The HR in 2023 and Beyond annual report, which examines the state of HR in the year 2023, is now available!
We surveyed 150 HR professionals in businesses with less than 100 to more than 5,000 employees, from banking and financial services to construction to healthcare.
The business and employment environment has not become any less turbulent, despite the end of Covid lockdowns by 2022. The effects of the pandemic and the war in Ukraine, as well as the rising cost of living, have further strained an already fragile economy. Businesses must be flexible and agile in order to deal with these changing pressures.
We compare our findings with those from last year in order to assess how the HR community has adapted to navigate a constantly changing landscape.
What are the HR priorities in 2023?
In 2022, for the first time in recorded history, the number of job openings outnumbered the number of unemployed. Many reports have highlighted the talent shortages, and it is not surprising that many of HR’s top priorities in 2023 are related to this problem.
78% of respondents ranked retention and recruitment among the top priorities for HR in 2023. This is by far the most common priority. Preferences show that HR departments are putting a genuine emphasis on looking after their employees. This year, 63% of HR departments have placed employee health and well-being as a priority. 57% place employee engagement and experience at the top of their agenda.
All of this points to the same thing: Businesses and their HR departments are putting people at the forefront. The HR department is looking at implementing workplace initiatives this year. Mental health and employee well-being are both ranked first, each with 76%, followed by flexible work (66%).
Who is most affected by the talent shortage?
In 2023, more than half (55%) of HR professionals surveyed identified staff retention and recruitment as a major challenge. This is the most pressing issue for the industry, as 64% report that their staff turnover rate has increased, up from 56% in 2020.
Nevertheless, different sectors have been more vulnerable than others. Construction, hospitality, and tourism are among the worst-affected sectors. Meanwhile, 43% of banking and finance respondents said they had not seen any impact.
The size of an organization and its impact on talent shortages were also related. Businesses with less than 100 employees were the least affected. Only 43% of these businesses experienced an effect.
Who looks after the HR?
The economic pressures on people and businesses, as well as the emphasis placed this year on taking care of employees, could make 2023 a challenging year for HR professionals. We wanted to know where they go if they’re struggling.
HR professionals most often raised their concerns with their manager (64%), followed closely by senior management (57%) and colleagues (38%).