Looking Forwards: What Can We Expect from HR in 2023?
The world of HR is a multi-headed and rapidly evolving beast with new practices and challenges coming down the pike on a seemingly daily basis. This is especially true in the current climate where the industry is being dominated by problems attracting and retaining fresh talent, and the constant advancement of digital technology.
So, as we reach the close of 2022 [at time of writing] it would seem to be a good idea to take an inquisitive look forwards and see if we can’t make a few predictions regarding what challenges, developments, and innovations the industry will be experiencing during the coming new year.
With that in mind, let’s craft a nice internet friendly numbered list and see what we can expect for retail HR in 2023.
#1 Leaders and Managers Need to Level Up
As the HR environment becomes increasingly complex, the skills needed to effectively lead departments will grow in sympathy.
According to the Gartner HR Top Priorities 2023 report, 60% of HR leaders list the need for better management training as a primary concern, with nearly a quarter (24%) admitting their current leadership development approach is insufficient when it comes preparing them for the future.
"Even though HR leaders try to build commitment, courage and confidence in leaders to help them answer the call, human leaders remain few and far between,” says Gartner. "Leaders do need commitment, courage and confidence to be effective human leaders; however, HR’s typical approaches do not address the barriers that are holding leaders back. These obstacles include their own (very human) emotions of doubt, fear and uncertainty.”
#2 Diversity, Equity, and Inclusion will continue to grow in importance
We’ve already discussed this topic at length elsewhere in this article series, so go check out those pieces for more information. However, it’s safe to say, these factors will grow in their ability to determine how attractive your retail operation is as a career option as candidates increasingly seek out employers which prioritise them.
#3 Hybrid and Remote Work are here to stay
Ever since the COVID-19 crisis, workers have woken up to the benefits of working from home. Not only does it save time and money on things such as commuting, but it also improves work/life balance and allows people to manage childcare and spend more time with their families during the working day.
While remote and hybrid working is not suitable for all retail roles, your organisation should really consider offering it for back-office positions and other suitable jobs. According to Forbes, a staggering 97% of workers now desire some form of remote work. Furthermore, with one study finding that 57% of respondents would leave their job if their company wouldn’t offer remote work options.
If you want your brand to remain competitive when it comes to attracting and retaining staff, remote working should be part of the discussion.
#4 Recruitment
The retail talent crisis isn’t going anywhere anytime soon and brands in the space need to rethink their recruitment efforts if they want to be considered by high quality talent and have a pool of skilled people from which to pull.
According to the Gartner report, nearly half (46%) of HR leaders named recruitment a top priority, with 36% going on the record to sate their current recruitment efforts are insufficient and changes need to be made if they are going to remain competitive in an increasingly tight labour market.
"Fifty percent of organizations still expect the competition for talent to increase significantly in the next six months, regardless of broader macroeconomic conditions,” adds Gartner. "This means recruiting leaders must reprioritize recruiting strategies to align with current business needs, plan for multiple potential scenarios in this shifting market and make decisions with great confidence using data.”
#5 Retention
It may shock you to learn that, according to the US Bureau of Labour Statistics, more than 43 million people quit their jobs in 2021. The so-called great resignation is continuing to send reverberations throughout the industry and it’s leading many brands in the space to rethink how they take care of the talent they have.
Creating a rewarding and happy environment, prioritising employee engagement, having clearly signposted and supported routes for career progression, and ensuring compensation and benefits are attractive, are just a handful of ways retailers can make sure their staff are kept on board.
"Regardless of their companies’ employee turnover rates, HR teams will need a strong understanding of what motivates employees if they wish to keep them,” said DeVry University. "Employee motivators will vary according to which stage of life the employee happens to be in, but some motivators may include career growth opportunities, connection or sense of community, compensation and benefits, manageable workload and DEI.”
Final Thoughts
There are five of the trends we believe will be shaping the HR business in 2023. The challenges we need to face are significant, but a focus on innovation and people will give brands the best chance possible to meet them head on and succeed.
These trends and more are sure to be part of the conversation at HR Retail 2023, being held in April at the Seattle Marriott Waterfront, WA.
Download the agenda today for more information and insights.