We, as employers, have faced countless human resource management challenges over the last number of years, and each year yields more than the previous.
This year looks the same, with many HR challenges continuing from last year and creating new challenges.
So what are they? What problems and challenges will we run into? Are we knowledgeable enough to deal with that?
This year’s HR problems: Challenges and Ways to Address Them
1. Managing uncertainty.
Instability and uncertainty should be the main themes in 2023. There is already much speculation and concern over the potential effect of a recession on businesses and jobs.
According to the Randstad survey, around 37% of respondents are worried about layoffs. Also, 52% are concerned about the impact of the economy on their employment situation.
As we know, waves of layoffs have started in Southeast Asia. In Indonesia, GoTo, a combined venture of ride-hail company Gojek and e-commerce player Tokopedia, reported in November 2022 that 12% of their workers were laid off.
As never before, perfect HR management is necessary for a challenging business environment. Here’s how to stay ahead of the uncertainty:
- Ready for change: HR should emphasize the benefits and potential of implementing changes.
- Prepare for all possibilities: Preparedness is critical to building resilience and taking advantage of new opportunities.
- Invest in multi-skilled skills: Employees must develop versatile skills like communication and a good understanding of their company and market.
2. The skills shortage.
The post-COVID crisis and the recession in 2023 will make recruitment and hiring difficult. According to the Gartner HR survey, 36% of HR executives say their recruitment strategies fail to find the required skills.
Traditional recruitment strategies that rely on job vacancies we post or LinkedIn messages may not guarantee quality candidates. For 2023, here is a guide to use to attract talent:
- Reputation is all that matters: Develop and promote a strong brand that showcases corporate ethics, employee growth, a strong culture, and stable finances.
- Leverage the network: References from existing employees to potential candidates will be the company’s most valuable hiring asset in 2023.
3. An employee experience.
According to a Gartner survey of HR leaders, 47% say employee experience is a top priority for 2023. If not well managed, this could be this year’s HR issues.
In today’s competitive labor market, companies must attract and retain top talent to stay competitive. It is why providing a positive work experience for employees is vital.
In this way, employee experiences are increasingly crucial to HR because they directly impact employee satisfaction, engagement, and productivity.
Concerning that matter, we can focus on the following areas:
- Putting Employees First: The employee experience must be tailored to their personal and work situations.
- Common goal: People are increasingly seeking organizations that match their values.
- Flexibility: Employees need flexible hours and benefits suitable to their way of life.
- General Wellness: Employees are looking for businesses that holistically address mental, physical, and emotional health.
4. Humanizing employee-employer relationships.
Employees report that 31% of conversations with their managers are poor, with little or no focus on well-being or development.
Meanwhile, 97% of workers say communication affects their daily work efficiency. In addition, according to Pumble’s workplace communications statistics, almost 69% of managers feel uncomfortable contacting employees in person.
We can say that in 2023, managers should focus on building relationships with new staff as well as strengthening relationships with existing employees.
Then how to make it work? A human-centered approach to fostering relationships is the best way to improve morale and reduce the attrition that can lead to HR problems in companies.
Here are areas of concern:
- Trust: Communicate clearly, be honest with people, fulfill commitments, respect limits, and be free to express vulnerability.
- Shared commitment and Responsibility: Establish mutual responsibilities with our people and hold one another accountable.
- Frequent Checks: To keep people engaged, meet face to face, virtually, or by phone or text where possible.
- Appreciation & Recognition: Recognizing employees in front of others can be a powerful way to motivate and inspire others.
5. Focus on DEIB programs.
Diversity, equity, inclusion, and belonging (DEIB) will continue to be a priority for HR managers in 2023. That’s because 76% of employees value diversity at work. In addition, companies identified as more diverse and inclusive are 35% more likely to outperform their competition, according to McKinsey.
Furthermore, HBR stated that diversified companies are 70% more likely to grow easily into new markets. Diversified leadership also drives 19% revenue growth.
However, many organizations struggle to integrate DEIB ideals into their strategic planning. What do managers need to focus on?
- Building an inclusive culture: Foster an inclusive culture that values diversity through open communication, collaboration, and embracing diverse perspectives.
- Bring DEIB into operations: Integrate DEIB in all areas of business operations, including product development, marketing, and customer service.
- Provide diversity training: Provide knowledge about unconscious bias, cultural awareness, and effective communication in various backgrounds.
The business trend has changed dramatically over the last few years and will continue to do so. By understanding what HR problems are coming, the HR team can tackle the challenges.
