HR execs open up about the biggest challenges that will define 2023

Since 2020, we have seen a shift in how employers treat employees and what employees expect. DEI has become a large part of many organizations' initiatives — or so they say. However, with the shift in the economy, more companies will be putting profit over people and will inherently shift how they treat and value their employees.

I also believe we are seeing a downturn in the importance of DEI. Keeping that fire lit is going to be a hard task for many people and DEI leaders as companies cut and layoffs tend to impact DEI first.

As of January 1, four jurisdictions in the US now have legislation requiring the disclosure of salary in their postings. This will put pressure on companies that work in various states to have an equal practice across states, which will pressure other companies to follow suit.

Another challenge will be the move toward full automation, which may bring on a crisis of people who don't have opportunities to interact with other human beings. This runs the risk of polarizing people even more. The less we interact in person with others, the "meaner" we become. We're prioritizing cost savings and automation over humanity and connection.

Company leaders must listen closely to Gen Z voices. This generation typically aligns with organizations that cannot just talk the talk when it comes to diverse hiring, work-life balance, the future of the workplace, and more — but also walk the walk. They want to feel heard and seen at work, as we all should.

To help cater to Gen Z candidates, organizations need to prioritize creating a culture of psychological safety. In this environment, with clear decision-makers leading the way, organizations can benefit from employee engagement and retention and experience better business outcomes.

For many companies, the biggest challenge will be to build a new and truly collaborative workplace experience in the post-COVID world, with a future of work that both employers and employees design.

The COVID-19 pandemic was the biggest workplace disruption in generations, causing many to reevaluate their purposes and reprioritize their personal and professional needs. Now more than ever, employees want to bring their whole selves to work in an environment that is more inclusive, healthier, growth-oriented, and values-driven. By embracing this new mindset together, employers and employees can cocreate a stronger, more productive, and fulfilling work experience.

Leaders are growing impatient to get back to a more familiar scenario. But employees cannot "unsee" the benefits of the work-life balance they enjoyed while primarily working from home, so they want to retain that flexibility.

Yesterday's employment model that leans on full-time, 9-to-5 staff isn't flexible enough to future-proof talent needs in this volatile work environment. But it's hard to shake old habits. An overreliance on full-time staff tackling stretch assignments will be a major challenge to confront in 2023 and beyond.

Companies are going through digital transformations faster than ever, leading to an unprecedented skills gap.

They now face increased requirements to downsize costs and pressures on businesses to deliver more streamlined and customized digital experiences, combined with a workforce that is more dispersed and virtual. To solve the skills shortage required to deliver solutions to these challenges, employers must train and retrain the employees they have, attract skills — including those from nontraditional paths — and build a talent pipeline so there are more skills available in the future.

The volatility of the job market over the last several months reinforced the idea that most companies prioritize their own bottom lines when the economy tightens. Layoffs, especially in tech, ballooned.

In 2023, employees will respond by focusing more on what's best for them when making career decisions. They'll be much more interested in learning-and-development opportunities, mentorship, coaching, and career development, in addition to compensation. Economic headwinds won't stall the need for in-demand talent.

The task of balancing caring for their employees, caring for their customers, and caring for their organizations' needs during tenuous economic times will challenge businesses. For HR teams in particular, caring for employees during turbulent times includes major decision points about the programs that matter to their people: compensation; benefits; learning and development; diversity, equity, inclusion, and belonging initiatives; flexible scheduling; community giving; and more.

Many companies naturally focus on their bottom lines and cost-cutting measures during a recession, which can impact employee morale, motivation, and turnover that could actually lead to even worse business performance.