As strategic planning kicks into high gear, 2023 will bring new challenges that extend beyond quiet quitting and the Great Resignation. Effective HR teams stay ahead of problems rather than being at the mercy of the marketplace.

So, what are the Growth Operators HR thought leaders predicting, and what should you consider?

1. Contingent Workforce and Use of Contractors - Workforce experts forecast that up to 50% of U.S. employees will be contingent or contractors in the upcoming years. There are many reasons behind this number, but what should you start preparing for in 2023?

2. Fractional HR Leadership On The Rise - The beauty of the fractional model is that you can hire top talent at a more reasonable expense for the 10-20 hours a week you need them. Why pay for a full-time HR leader when you could hire an HR manager to manage the day-to-day administrative functions at a lower price point?

3. Retention Bonuses, Not Signing Bonuses - Tie behavioral economics to longevity. Retention bonuses motivate the trained, top performers to stick around. Signing bonuses are similar to counteroffers, as the effect is only felt short term.

4. Technology Automation – It can be seen as a taboo topic for HR employees who fear downsizing. On the contrary, operational excellence in your HRIS and reducing redundant administrative responsibilities is smart business. Develop your HR employees to learn more value-added skills! Lifelong learning is a critical component of positive psychology.

5. Options, Options, Options – Moving to a hybrid work environment and the demand for needed employees has changed the expectation that every aspect of employment should have options. People now expect to have options. From benefits to work assignments to career paths---The list is endless, and a one size fits all approach won’t work anymore.

6. Job Analysis - In 2023, companies will be more purposeful in employee retention efforts and how roles align with the organizational design. You’ll see more long-term professional development plans, layers within roles, and advanced job analysis to redefine how positions can be used.

7. Compensation and Pay for Performance - As the traditional workforce evolves, so will compensation. Companies will develop more pay-for-performance models. ROI and value will become more measured, especially in HR efforts.

8. HR Strategy - There will be greater urgency in developing deliberate, tangible, and progressive HR practices. Consider finding industry consultants to build your strategic plan but assign your existing team to implement it.

9. Candid Communication - So many issues arise from workforce shortages. In 2023, HR will need to bring candor in communicating with leaders. Depending on your organization, this can be a significant change, but most leaders greatly appreciate it. One of my colleagues refers to it as the “Tell me when I’m being stupid” coaching method. While I don’t suggest using this mantra, there is a balance between being candid and withholding one’s opinion.

10. Employer Brand and Identity - Referring to your company “as a family” or having a strong culture isn’t enough anymore. The past couple of years has uncovered a need for people to have new purpose and meaning in their lives, not just a pleasant work environment. How will you help them have a more direct impact on the world?

For the last three years, many darts have been thrown at dart boards, hoping our HR ideas and strategy will work. While we could add a lot more to this list, getting on top of these challenges through creativity, thought leadership, and adapting to the needs of a changing workforce will be what grows your organization in 2023.

Need help? Reach out, and we will point you in the right direction.

Julie Kline
julie.kline@growthoperators.com