The five most important HR trends in 2023
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Not all HR trends and currents that will occupy us in 2023 are new. Topics such as work-life balance, mental health, corporate culture, diversity, but also coaching or mentoring qualities of managers have been with us for some time. Add to this the rising cost of living and crisis management in the face of many pressures and the worsening world situation. We have summarized what we consider to be the five most important trends.
HR trend: strategic succession planning is becoming increasingly crucial
Few companies plan for the replacement of non-age-related vacancies at the management level in the long term. Often, succession planning is only considered on an ad hoc basis when the vacancy becomes known. Then the time pressure is correspondingly great and the desire to quickly fill the vacant top position is correspondingly urgent.
This can result in a less-than-optimal selection. Added to this is the tight candidate market. It is rare to find someone quickly whose profile fits the long-term corporate strategy and at the same time meets the requirements that arise from topics such as new work, agile working and digitalization. He or she should also be crisis-proof.
In 2023, there will be much discussion and argument about succession, especially in medium-sized family businesses. Therefore, make important decisions in good time: Continuation or closure? Are there internal talents who could take over with appropriate coaching? Do you know these talents? Do you use tools such as management diagnostics? Or should the company be sold?
Flexible working or: Is “new work” still new?
Much has been said in recent years about the HR trends “new work”, home office or workation. In 2023 we will finally have arrived in the world of flexible working. This may mean bringing employees back to their desks at the parent company. Because the longing for face-to-face communication and “analogue collaboration” will be unbroken this year.
“If all digital knowledge workers compete as lone warriors on digital platforms for the next job and their appointments only differ by the zoom window, there will be no sense of community and thus no bond,” writes the German Association of Human Resources Managers in its HR Theses for 2023. Corporate culture is also in danger of being lost.
One thing is clear: companies that can offer their existing and potential new employees flexible working, sufficient participation in company life and at the same time the desired self-determination will have a decisive advantage when it comes to finding, hiring and retaining the best talent.
Skills shortage and no end in sight
This brings us to the crucial HR trend that will occupy CHROs in 2023, and not only in Germany: the shortage of skilled workers, which has rather already become a general shortage of employees. According to calculations by the Boston Consulting Group, the labor shortage costs the Federal Republic of Germany 86 billion euros annually.
Efforts are already being made to recruit workers in other countries. Companies specializing in this area are cooperating with chambers of trade to bring together trainees from abroad and German companies. The federal government wants to make it easier for skilled workers to immigrate to Germany and work here, even without a recognized qualification. If this succeeds in the long term, everyone involved would benefit – not least because diversely positioned companies are much more innovative and better equipped for the future. All this is already practiced in many countries around the world. Germany still has some catching up to do here.
Another HR trend that could increase in 2023, at least in certain sectors, is so-called “fridge hiring”. In other words, companies are “stockpiling” talent, even if they don’t currently have a tailor-made position on offer. This helps them get ahead of others who also want to fill their talent pool. This strategy could lead to HR departments becoming more open to CVs and profiles that do not necessarily fit the norm. However, ‘hoarding’ talent is certainly a trend that only relatively large companies can afford.
Let data do the talking
The pressure on HR departments is enormous. Those who can use HR technologies to simplify and speed up processes, offer targeted training, and underpin decisions with strategically analyzed data are well placed to benefit. This frees up more time for core HR issues and is also an asset that can be used to score points in the competitive labor market.
About InterSearch Executive Consultants
InterSearch Executive Consultants is one of the leading personnel consultancies and specializes in the recruitment of executives (Executive Search) and systematic analyses of executive potential (Management Audit / Executive Diagnostic). Founded in 1985 under the name “MR Personalberatung”, the company is now represented in Germany with three offices in Hamburg, Frankfurt, and Cologne and was a founding partner of InterSearch Worldwide in 1989. Today, InterSearch operates worldwide in the field of executive search with over 600 consultants in more than 50 countries with more than 90 locations.