HR Trends Report 2023:

The 9 Most Important

HR Trends in Time for 2023
Content

Trend #1 HR analytics are here to stay

Trend #2 Holistic talent strategies are a must

Trend #3 Hybrid work is ever-expanding

Trend #4 Inclusion extending to every employee

Trend #5 Putting the ‘well’ in employee wellbeing

Trend #6 Compensation is becoming more competitive

Trend #7 Your leaders are more important than ever

Trend #8 Company culture should save the day

Trend #9 Employee development will drive success

Checklist How can HR prepare for 2023?

The top trends painting a “people-first” future
Whether navigating the cost of living crisis or keeping employee
engagement high: 2023 is set to be another year of unique challenges for
HR teams. In our view, employee experience will remain a key factor, with “I see organising HR work along the
employee satisfaction becoming even more tied to business outcomes. employee experience as a central trend
So, how can HR professionals find success in ensuring that employee- for 2023. Although this requires more
centric HR work happens in the first place? Especially with budget cuts initiatives, it directly contributes to
potentially on the horizon, where do teams need to focus most?
necessary talent loyalty.”
In this report, we asked HR experts from Spotify, Culture Amp and other
leading companies for their thoughts and compiled nine of the most
important HR trends for the year ahead. Find out what’s top of mind for
industry experts to help prepare for what awaits us in 2023.

Katarina Berg
Chief People Officer
Spotify

Get a step ahead: Become “Recession Ready”

with three critical strategies HR teams can employ
to prepare for any potential downturn.
Trend #1:
HR analytics are here to stay
One of the most important things you can do to strengthen your business, especially during a downturn, is
to have the right data on hand. In our latest HR study, we also found that ‘HR data’ finds itself at the top
of the list for many HR professionals in 2023. For HR leaders, that means making informed decisions and
generating business-critical insights.

“In order to be able to initiate and control “Listening to employees, understanding

processes and measures in a targeted them and - based on their feedback -
manner, HR managers need a sound and initiating targeted HR measures will be an
trustworthy database. In 2023, it will important building block for HR in 2023.
often be a matter of making (sometimes This requires data, in the form of numbers
difficult) decisions quickly. HR should be or information. It’s so important to collect
able to access important reports just as it regularly and look at the right KPIs.”
quickly. The right tools are a must.”

Annika in der Beek Daniela Fermin Ripepi

Director People & Orgaization HR Advisor
About You DLA Piper
Trend #2:
Holistic talent strategies
are non-negotiable
While the goal of retaining employees and filling positions with great
talent remains, companies need to embrace a bit of a shift. In 2023, a
more holistic and balanced talent strategy will be key: enjoying a mix of ​​
“The biggest trends in 2023 for me are: 1.
retention, redeployment and creative recruiting to win the day.
Managing talent acquisition teams during
economic downturns, 2. Finding solutions
to keep good employees on board
“I think the focus in 2023 will be more when there is less work on the table,
in retention than in recruiting, maybe 3. Reallocating resources across the
the focus will be more in the onboarding business to keep employees motivated
process than in the selection process.” and engaged.”

Reece Procter
Daniela Fermin Ripepi Team Lead People Operations
HR Advisor - Mobility
DLA Piper Personio
Trend #2:
Holistic talent strategies
are a must

“We should put more focus on applicants’

motivation and commitment, rather than
just including resumes and degrees in our
recruiting decisions.”

Prof. Dr. Bas Kodden

Lecturer in Leadership & Management
Development
Nyenrode Business Universiteit
Trend #3:
Hybrid work is ever-expanding
Many companies spent 2021 and 2022 proving the hybrid work
concept. This year, experts expect companies to take the intial solution
they found, build on it, iterate and keep it as a key focus into 2023 (and
potentially beyond).
“Businesses have spent the past two years
working out where they stand on hybrid
work. Now, they have to practice what they
“Expanding and refining hybrid working preach, adopt a philosophy and embed
models will remain important for it into their working practices. Especially
companies – especially given the current when it comes to understanding the true
economic situation. Here’s my advice: Do impact on productivity and leading people
a pulse check with your employees. What versus things like proximity bias and in-
is already working and where might there person career progression.”
be room for improvement?”

Vaso Parisinou Pete Cooper

Chief People Officer Director of People Partnering
Ravio Personio
Trend #4:
Inclusion extending to
every Employee
There’s no doubt that diversity, equality and inclusion matters. But,
in 2023, the topic itself will expand to meet the needs of even more
employee groups. DE&I now has the permission to roam to more of the “For a DEI strategy to work, it is important
business – which is ultimately good for business.
to think of employees as travellers. When
they are hired, they have different needs
than when they are five years in, married
“Diversity and inclusion are important and have children. Companies need to ask
pillars for employee-centred HR work. themselves: are we covering the needs of
And it will be inevitable in 2023.” every life situation for our employees?”

Leonam Espindola Holly Smith

Co-Founder & People Lead Diversity, Equity & Inclusion Partner
PPulse Personio
Trend #5:
Putting the ‘well’ in employee wellbeing
There is no doubt that worldwide uncertainty will drive employee emotion in 2023. For companies of all kinds,
this means approaching team members individually and supporting them in a tailored way – so everyone can
feel empowered to bring their best self to work.

“Wellbeing can only continue to grow in
importance in 2023, with a clear shift to
a more tailored approach. Health (and
especially mental health) is deeply personal
to employees, so smart firms will involve
their people in shaping new initiatives. Only
by giving power back to their people in this
area will businesses foster a mindset of
prevention ahead of cure.
“I see a trend towards a greater focus
on different realities of life. This will
then be reflected in the flexibility that
employees need. In addition, I see a trend
for employers to be more responsive
and supportive, whether monetarily or
through mental health support.”

Nathalie Marie Pérez Sievers

Trevor Merriden Founder I HR /
Founder and Managing Director Recruitment Consultant & Business
Merriborn Media Trainer
The People Hub
Trend #6:
Compensation is becoming “Companies that make fair decisions
when resources are scarce will stand
more competitive out and drive greater engagement,
productivity and long-term retention.
While budget cuts may be the order of the day, benefits and pay equity Where there are limited resources for
models will still play an important role. Taking time to ensure that your
benefits keep top talent around, and motivated, while improving equity
reward, how these are distributed and
conditions for everyone can help boost your culture even in tough times. who with will be strongly noted; with the
cost of living crisis hurting those who earn
the least, organisations who demonstrate
with actions their understanding and
“Innovations in benefits packages: empathy in this regard will win long term
Despite the recession, companies need to loyalty and respect (as well as external
find ways to address the individual needs brand advantages)”
of employees to keep them motivated.”

Carla Lazo Jessica Brannigan

Head of People & Culture Lead People Scientist
Puente Romano CultureAmp
Trend #7:
Your leaders are more
important than ever
According to Personio’s HR study, only 60% of employees say they
trust their manager. This kind of statistic should be a wake-up call
for companies to invest more in their leaders, with particular focus on “Given the economic downturn, we need
leadership skills in an increasingly hybrid world.
to equip leaders to be able to navigate
significant change, and to be able to
support their teams in doing the same.
This requires more efficient leadership
“Leadership culture needs to be resources, crystal-clear expectations
modernised. Leadership will be a decisive and capitalising on the role leaders can
factor in how committed and motivated play in change management and leading
employees work. In this way, HR is clearly with empathy. HR can play a key role in
challenged to provide the right framework all of this.”
and develop leaders accordingly.”

Marcus K. Reif Christian Westin

Group Head of HR Team Lead, Leadership Development
Universal Investment Group Personio
Trend #7:
Read More: A look into how to best
Your leaders are more begin developing your leaders.

important than ever

“Leading employees remotely requires

different leadership skills than in-person
work. A manager is also an important
multiplier for corporate culture and
values. To pass these on remotely (or also
in hybrid work) is a clear challenge.”

Michèle Czarnecki
Co-Founder
NanoGiants
Trend #8:
Company culture should
save the day
Especially during the cost of living crisis, culture can play a very special role.
When done properly and with intent, it can strengthen team cohesion as
well as engagement. If you aren’t focusing on culture right now, you may “Hybrid working models are here to stay
already be behind the eight ball.
and will become even more sophisticated.
This requires an adapted corporate
culture and strengthening feelings of
“Corporate culture will be crucial to inclusion.”
motivate and satisfy employees. What’s
important is that culture is not about
offering the best benefits, but about
listening to employees and taking their
concerns seriously.”

Teresa Niubó Michèle Czarnecki

CEO & Founder Co-Founder
bloom mood NanoGiants
Trend #9:
Employee development
will drive success
For some companies, layoffs will unfortunately be inevitable in 2023.
But, companies can and should invest in retaining their talent through
various development and retention measures. The ones that do are
most likely to come out of any downturn stronger.
“I think we will see in general more of
a slowdown in attrition of talent, as
uncertainty leads many to sit tight for
now; however that doesn’t make the
topic less important but more about
avoiding a delayed build-up which looks
like an exodus as soon as the external
environment improves. I’m seeing more
organisations think shrewdly about
career development and progression
within and across their organisation, and
I think this climate will further amplify
that.”

Jessica Brannigan
Lead People Scientist
CultureAmp
Checklist
How can HR prepare
for 2023?

Knowing the trends is one thing, but

implementing them is another. Based on
the opinion of our experts, here is how
HR teams can best prepare for the
challenges ahead…
Checklist
Keep your employees “Companies that make fair decisions
when resources are scarce will stand
in focus: out and drive greater engagement,
productivity and long-term retention.
Where there are limited resources for
Look more closely at individual needs and align them with your reward, how these are distributed and
company‘s interests. When it comes to measures, keep ‘quality over
who with will be strongly noted; with
quantity’ in mind.
the cost of living crisis hurting those
who earn the least, organisations
Your best sparring partners are your current employees. who demonstrate with actions their
Talk to them: What do they need for greater health, motivation
understanding and empathy in this
and productivity?
regard will win long term loyalty and
respect (as well as external brand
Question your recruiting methods and selection criteria. Listen advantages)”
carefully to applicants and pay more attention to their skills rather
than their CVs.

Think about your own value contribution and ask yourself

consistently: What can I do for employee wellbeing? Where are our
biggest gaps? Jessica Brannigan
Lead People Scientist
CultureAmp
Checklist
Align HR with
business goals:

Create a solid foundation of figures, data and insights – become a

business partner for your business during times of uncertainty.

Create clean analyses of the needs of individual departments and,

in a second step, a tangible plan of action.

Define annual targets and target planning per quarter. This allows
for an agile approach and carries the advantage of the ability to react
quickly to market shifts.

Develop different scenarios for 2023 and focus on measures that are
cost-effective and deliver strategically important results with a high
return on investment (ROI).

Align your HR strategy with your overall company goals or strategic

pillars. Only then will HR teams enjoy the relevance they deserve.
Checklist
Rethink current tools, processes
and settings:

Strengthen your team competencies in area of analytics or hire a team

to support them in data sourcing and analysis.

Become more open to digital transformation, agile and flexible yourself

with more will to change - in your HR team and across the wider
organisation.

Learn about various recruiting channels and align them to find suitable
candidates. Gone are the days of one singular recruiting channel or
platform.

Engage with HR professionals from other companies, work

collaboratively with them and join a community that can help your
teams prepare for the future of work together.

Get tips from other teams, e.g. Marketing or Customer Success, to

make processes smoother and become more familiar with your target
groups.
Preparing your HR teams
for the future of work

From sourcing and recruiting to workflows and

workforce analytics: Personio supports HR
teams in aligning all their pressing tasks with
the needs and goals of their companies.

Try it out for yourself by starting a free trial

or booking a free demo today.

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