6 Trends that will Change the HR Industry in 2023

The HR industry has exponentially evolved since the pandemic times in 2021. Some things worked well similarly, many aspects did not. A shift began in the way HR functioned, such as the emergence of remote onboarding, remote working model, higher dependency on technology, all of which made the novel aspects mainstream. As we have stepped into the 3rd year of the pandemic, things have continued to evolve in the HR industry. HR technology like AI, ML, metaverse have made every HR industry process more people-centric and accurate. There has been a shift from the manual to the technology advancements, helping with more productivity and retention.

Here are 6 trends that will dominate the HR industry in 2023

1. Employee wellbeing: The approach of the companies will be more people-centric towards their employees’ well being—both physical and mental. There will be a lot of input, data, strategy, and communication to initiate mental health awareness programmes since the pandemic saw a rise in stress, anxiety, depression and other mental health conditions that the HR industry absolutely cannot ignore. Sleeplessness, paranoia, fear, isolation, etc became more common as people were trying to get used to the new scenario with the rise of the pandemic. It affected their productivity without help. The aim is to not only implement strategies pertaining to employee wellbeing but also to enforce their utilisation so that it becomes a core part of the business goal. It has shifted from a “good-to-have” to a “must-have” category. Work-life balance is being focused on more than ever by the HR industry.

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2. Technological advancement: Technology has always played an integral role in the HR industry, but has extremely grown in demand due to the effects on business because of the pandemic. With a global workforce in sight, new tools and softwares are a must-have to upscale the process of physical and manual management of the HR industry. Josh Bersin, who is an industry expert in HR tech, estimated that the market for HR Technology Solutions will be roughly $400 billion. A key factor for the HR industry is to use advanced technology to streamline their processes without fail.

3. Talent acquisition:  Acquisition of talent by the HR industry will be streamlined by advanced tools and softwares. For example—manual labour will be minimised by chatbots, interviews will be scheduled by virtual assistants, and execution of redundant tasks will be managed by such other examples. Automation will help in hiring the right people in an unbiased manner. Talent acquisition, which has been managed manually mostly by the HR industry, will see a rise in automation and higher technology for the sake of efficiency. In-person recruitment will become more and more remotely managed.

4. Workforce diversity and inclusivity: Organisations will move towards giving more credibility to the need of the hour being in solidarity with workforce diversity and inclusivity. The HR industry will look at hiring possible candidates without allowing gender, race, ethnicity, age, sexual-orientation, nationality, and other related factors to become barriers. A major focus will also be to bridge the gap in the imbalance of employee recruitment on the basis of gender roles. Filling this gap will enhance what is brought to the table. The focus is to build an interpersonal community of team players who will enrich not only the company culture but also enhance productivity of the team through interpersonal learning, being from different and various backgrounds.

5. Remote and hybrid work: With the rising cost in maintaining infrastructure and resulting lay-offs of employees, and employees proving to the organisations that their work is at par with quality and output even if they worked remotely or on hybrid mode in the peak pandemic phases, the HR industry is considering remote and hybrid work more seriously. The idea to not make any employee feel alienated because of their remote work is a stepping stone. The right tools and softwares will help in enabling employees to stay connected without problem or prejudice. Zoom, Google Hangouts and other tools are available to help the people stay connected. It will lead to better work-life balance, and innovation and re-designing of the HR industry policies. Metaverse might also make a mainstream appearance in the scenario.

6. Upskilling and reskilling: Although the HR industry has paid a lot of attention to upskilling and reskilling amongst employees of an organisation, it is a prerequisite now for competitive edge and internal mobility. Organisations will not necessarily have to look outside for any talent or skill gap if the HR industry focuses on upskilling and reskilling their own employees. A resilient workforce is around the corner in 2023 as the HR industry is trying to set goals for the employees so that they become experts in their fields as well as try something new alongside it or altogether. This will enhance productivity by also giving the employees a huge confidence boost in their respective fields. 

As we can see, these 6 trends in the HR industry will equip the organisations to move forward in a resilient and successful manner. The HR industry has been vital in designing and redesigning models and modes perfect for the time at hand, and 2023 will see these trends as go-to for a successful venture. The HR industry has adapted to the demands whenever there has been a change, and the pandemic times saw one of the biggest changes, making innovations and new trends in the third year of the pandemic fundamental to the good functioning of organisations.


  • 6 trends to dominate HR industry in 2023, India Today
  • 6 Trends That Will Shape HR Strategies In 2023, Engagedly, December 20 (2022)

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