The one constant in the last few years has been uncertainty, with every year throwing up new challenges and black swan events.
The Covid-19 pandemic, the Omicron wave this year, and the subsequent Russia-Ukraine war have resulted in changes in how offices function, made hybrid workspaces the norm, and so on. On the other hand, talk of a recession and funding cuts has meant that cost-cutting and layoffs seem to be a regular feature, as companies adapt to the new realities.
For HR leaders, this brings to the fore many issues and puts them in uncharted waters. How organizations and leaders react as the world slowly reverts to pre-covid mode, with the added pressure of an economic downturn will be interesting to witness.
The availability of large data sets and an enhanced focus on employee and company well-being have meant that HR can better understand the nuances of the working relationship and business cycles. In these uncertain times, below are some broad HR trends that could shape the space in 2023:
The rise of algorithmic HR
As more and more HR tasks become automated, there is a trend to use multiple algorithms to help with multiple HR functions. A report by research firm IDC estimates that 80% of about 2,000 global giants will start using algorithms for processes such as hiring, firing, and training workers by 2024. This is already happening in the gig economy. Algorithms are increasingly rewarding, rating, and mapping the productivity of employees. 40% of the HR functions within international companies have incorporated AI applications.
This aids in talent retention grows the candidate pool and enables a faster hiring process that saves the company money and resources. However, there is a flip side. Algorithms have been accused of faulty decisions, are often unable to explain the reasons for major work-related calls, and have faced flak for terminating people for reasons beyond their control.
HR will have to take full ownership of algorithms, choose where they work best, and ensure that the process is efficient. Measures to eliminate existing biases embedded in historical HR data are a must to make the process smooth. Algorithmic managers can process large quantities of data, communicate clearly, and help make better-informed decisions.
Focus on total well-being
The impact of remote working, combined with the pandemic added pressures of a looming recession and a smaller employee base, which could result in employee burnout. The Mayo Clinic defines burnout as physical, emotional, or mental exhaustion combined with self-doubt. For HR professionals, tackling burnout, especially among the top performers, will be very important to prevent attrition and a dip in productivity. Encouraging mental health leaves, and offering value vacations for a job well done will help.