5 HR trends that will lead us into 2023

It’s that time of the year when we make predictions for the coming year. Making sense of 2022 and what has been going on in the labour market is a lot to unpack. No doubt, the year ahead will bring even more changes and transitions to HR’s roles and responsibilities, and for business functioning. 

Sometimes we wish we had a crystal ball for the future. However, we saw some HR trends which were moving the needle this year. They will continue to follow us in the next year as well.

From enabling mental health for employees, and moving salary talks out of the shadows, to switching to hybrid and flexible working schedules, we saw how the new world of work evolved. It continues doing so with demand for top and niche talent, and the need for upskilling. That is making a skills-based approach to workforce planning increasingly attractive to organisations.

We take a look at specific HR trends which shaped this year and how they will continue to tweak our way into 2023. 

1. Only a healthy and strong team can perform well

Mental health, wellbeing and work-life balance have continued to be big topics in 2022. From scientist saying that Covid is changing our brains, to Deloitte allowing their employees to work from home forever, or LinkedIn giving their staff a week’s break to prevent burn out, the topic of wellbeing has taken over the news titles. 

Enabling physical, emotional and mental health for people to focus on challenges outside themselves is crucial in and for a company. 80% of job seekers look for employee wellbeing when considering a job opportunity, as stated by Indeed’s 2022 Work Wellbeing Insights Report. Nearly 60% of employees believe that their wellbeing is integral to the health of a company as a whole. More than being an HR trend, this is another reminder on why managers should support employees mental health.

Enabling physical, emotional and mental health for people to focus on challenges outside themselves is crucial in and for a company.

2. Salary talk is out of the shadows 

When it comes to retaining and motivating your employees’, salary matters. Employees who are satisfied with their pay and benefits are 26% more likely to have their expectations exceeded at work, according to Qualtric’s Employee Experience 2023 Trends Report. Companies need to offer the right compensation and adapt it through time. 

Salary talk has definitely come out of the shadows. One of the ways of fighting fierce competition is being open about the money. At the same time, startups that offer transparent pay have smaller gender pay gaps. Nearly 75% of the workforce supporting more transparency around salaries or job growth opportunities. However, organizations should determine which level of transparency is most suitable for them while responding to employee and external demands.

One of the ways of fighting fierce competition is being open about the money.

3. The top talent shortage is still at the top of HR trends

Mass tech layoffs signaled an end to the pandemic-era funding bonanzas. However, many companies across all stages are still selectively hiring. According 2022 Kleiner Perkins People Report, the market still remains competitive for companies with less than 500 employees. Moreover, the tech ecosystem of Europe remains in good health, and Berlin remains one of the hotbeds for European innovation. 

However, the German economy’s skills shortage is growing by the day. 73% of company decision-takers report skills bottlenecks in their companies, but just 17% of businesses are looking into foreign talent. Fewer than a fifth of them believe that sufficient staff are available in Germany, according to the Bertelsmann Stiftung’s new Skills Migration Monitor. 

According to Datapeople’s 2022 tech hiring report, the available labor pool in the tech industry has reduced for 25%. We already see the most demanded programming languages topping the job lists, and AI talent shortage is already a real problem.

This info goes to show that talent is the most fundamental ingredient of any successful tech ecosystem. Tapping into international tech talent will greatly benefit the German tech ecosystem.

Talent is the most fundamental ingredient of any successful tech ecosystem.

4. The present of work is flexible and hybrid

Flexible working options are not new to the tech world. Fast forward to the present, the situation is clear and employees want flexible work hours. 74,2% of full-time employees put flexible work on the top of their wishlists, along with leaving early on Fridays, as well as a 4-day workweek. On top of that, 32.9% businesses say they’re now in a hybrid operation, according to the new Workable’s 2022 Worker Survey

The future of work is changing. Are you offering a four day work week, work from anywhere options or perhaps the unlimited PTO? Hybrid work has the potential to offer flexibility as well as security, a better work–life balance, more tailored employee experience, and builds community and communication. Moreover, the contracting and remote work trends offer employers a larger talent pool and greater flexibility.

5. Upskilling is the new currency for employees and employers

As our founder Moritz Drerup likes to say, upskilling is the new currency. Are you ready to invest in your workers offering career path clarity and support? 

43% tech candidates want development and career progression from a new job in tech. Understanding your company’s needs is important, but understanding your employees’ needs is even more important. An employee who sees progression as an option is also more likely to be motivated and engaged, which also amounts to better work and overall wellbeing and employee retention. Moreover, upskilling your workforce will future-proof your business.

Which HR trends we can take with us to the next year 

Even though 2022 is drawing to a close, HR trends such as flexible working options or the need for tech talent certainly aren’t going away after the new year.

As an HR professional, it’s important to know what is happening in the industry, and diagnose problems before prescribing solutions. That is why we always have an in-depth and personal approach to recruiting and consulting. Good salaries, leave days, sick days, medical claims, flexible working policies cannot be taken for granted by the employers. Because they surely will be taken into consideration by the employees. 

The seemingly small steps and decisions will make a big impact for your ultimate goal: attracting and retaining the top tech talent.

If you are looking to hire worldwide tech talent or you just need advice get in touch with us. We can help you access top developers even for rare roles or work with you on your hiring strategy and HR skills.

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