As we reflect on the events of 2022, it is clear that the business world has continued to evolve and develop at a rapid rate. This can be seen in the way that HR and leadership roles have shifted to meet the changing needs of the modern workplace.
The leadership landscape of 2022 has seen a dramatic shift, particularly with the increased use of AI and automation. Companies are now relying more and more on technology to handle mundane tasks, freeing up the leadership teams to focus on more strategic roles. Teams have had to become increasingly agile, as well as mindful of the complex and fast-changing dynamics of the workforce.
The year 2022 was a year of reflection and adjustments to practices based on what we have experienced in the last two years. Two important consequences for the corporate world were:
The Great Resignation
This year saw the biggest-ever wave in the ‘Great Resignation’ when more than 100 million people resigned across the world. The reasons were many, but for many, it was to try different career options, consulting, freelancing and start their own businesses or pursue new career goals. That rise was mirrored in the US, A whopping 64% of workers would consider quitting if asked to return to the office full-time in 2022, according to a report.
Quiet quitting
Quiet quitting, or doing the bare minimum of one’s required job, was on the rise. This can be attributed to the fact that companies are scrambling to redeploy people, leading to much being left undone. As a result, productivity and morale have both plummeted, and many workers feel undervalued. This is a concerning trend that can have negative consequences for both the individual employees and the overall organization.
Faced with this need, it is necessary to reflect on the priorities in People Management in 2023. In this article, we will explore the trends that are emerging and highlight the top priorities in the area of People Management and Leadership as well as how organizations can work together to make the most of these changes. By focusing on the details that made the past year successful and the trends that will continue to shape the future, we can create meaningful, long-lasting impacts for our organizations.
Right people in the right places
Providing clarity on the career advancement opportunities within the company is essential for employees to understand the path they can take professionally and the steps they need to take to achieve their goals. It is also important for the organization to have a clear succession plan in place for leadership positions that identify not only technically competent individuals but also those with the ability to develop and mentor others, including for the position they may eventually occupy. This helps to ensure a smooth transition and continued growth and development within the company.
There is a growing recognition that leaders needed to do more to nurture and retain their workforce. When the economy was strong, executives were focused on filling openings in middle management. Now that businesses are rapidly scaling down, they are focused on expanding the ranks of high performers. Organizations are increasingly conscious of the “diversity gap,” as this strategic talent is more willing to stay in an economic downturn, which means fewer openings.
Diversity, Equity and Inclusion – a fundamental skill for leaders
Reflecting on the events of 2022, it is clear that diversity, equity, and inclusion (DE&I) have become fundamental skills for leaders. While the importance of DE&I may seem self-evident, leaders often struggle to understand how it adds value to their organizations and impacts the long-term sustainability of their businesses. Some large companies dominated the debate, while many smaller ones were at a loss because their leaders lacked basic literacy on the topic, and were unable to articulate clear objectives.
It’s the responsibility of HR and top management to demonstrate the positive effects of DE&I on the organization and its long-term success. In order to truly embed DE&I into the fabric of the company, talent management strategies such as promotions, recognition, and hiring must also prioritize DE&I.
Employee Experience will be More Important Than Ever
In the past few years, the concept of employee experience had become increasingly important for businesses of all sizes. As the economy continued to recover from the impacts of the COVID-19 pandemic, companies were striving to create positive and supportive work environments in order to attract and retain top talent. New programs, from workplace wellness to flexible work arrangements, are being offered freely, even to staff in traditionally hard-hit industries, as companies try to maintain morale and limit absenteeism. Meanwhile, employees’ reliance on technology means the human touch is more important than ever.
The leadership landscape in 2023 will look vastly different from the one facing executives in 2021-22. Over the past decade, leaders have been focused on growth and profit, with employee experience often falling by the wayside. Much like the C-suite, HR leaders will be moving their focus from managing employers to managing employees. Leaders who understand the human side of change are well-positioned to lead their organizations toward a sustainable future.
The 2022 trend towards younger, more diverse workplaces and a more collaborative approach to leadership will continue to change the way organizations look at recruitment and retention. As more millennials enter the workforce, organizations will have to find new ways of engaging them. Organizations that continue to ignore these shifts will begin to fall behind.
Talent Shortage: Preparing for the Future of Work
The influx of new technology, globalization and automation is expected to fundamentally transform the job market in 2023. Companies will have to shape their workforces, reinvent their HR priorities and focus on future-facing talent strategies. And it’s all happening while employees continue to demand more from their jobs.
New technologies are forcing companies to rethink how they attract, develop and retain talent, and to devise alternative practices for managing labor. Many employers have concluded that it will be critical to restructuring their entire workforces to address the new circumstances.
HR leaders will be tasked with discovering what skills employees will need in the future and how to maintain a diverse workforce amid rapid technological change.
The productivity gains of automation and artificial intelligence are giving many employers pause. Workers will need to keep their skills sharp and retrain, or look for new career opportunities, to remain employed.
Keeping Employees Engaged – Remotely
As remote work has become an industry standard, it’s more important than ever to make sure employees are on the same page since it’s not always easy to keep employees engaged and motivated. As companies race to virtualize their workforces, it’s more difficult to keep tabs on employees’ progress and hold them accountable.
To thrive in the current remote work environment, organizations must prioritize building a culture of trust, transparency, and collaboration. This involves actively communicating with employees, setting clear expectations, and providing the necessary resources and support for them to succeed. It also involves being open and transparent about the company’s goals, challenges, and decision-making processes, and creating a space for employees to share their thoughts and ideas. By fostering a sense of connection and support among remote team members, leaders can help ensure that employees feel engaged, motivated, and valued, which is crucial for the overall success of the company.
Bottomline
As the world of work continues to rapidly evolve, it is essential for HRs and leaders to stay ahead of the curve by understanding the trends of the future. From remote work and talent shortages to diversity and employee experience, HRs and leaders need to assess the landscape and ensure their teams are equipped for success.
In the coming year, the HR sector will focus even more on cultivating the leaders within their ranks. As companies implement “lean management” and “agile working,” managers will increasingly serve as catalysts for change, rather than tellers who translate plans into actions. This shift calls for a new type of leader—one who can lead through crisis, and who can rally teams to achieve new goals.
The impact of artificial intelligence, data and analytics, machine learning, and robotics is also being felt, employers are moving away from static human resources models to one that emphasizes adaptable, flexible human capital solutions. Whether that means taking on greater responsibility for overseeing the implementation of new technology or developing strategies to harness new technologies, HR leaders must stay vigilant as they navigate an evolving work environment.
