Get ready for the top-5 HR challenges of 2023

HR just can't seem to get a break. Since 2020 it's been one challenge after another. So, what's going to keep HR practitioners busy this year?

The challenges HR has been facing ever since the onset of the pandemic are numerous and unprecedented. Much of these challenges have been dealt with in different ways with mixed results, sometimes leaving employees to fend for themselves and their wellbeing.

Will these challenges continue in 2023 with the pandemic's residue still lingering? Here is a look at five particular challenges that will keep HR busy in 2023, and what practitioners can do to manage the year better.

1. Remote work and hybrid models

The shift towards remote work that started with the pandemic will continue. The debate between WFH and work from office is not yet settled, and some kind of hybrid models will be in place in most companies. HR teams will need to develop policies and programmes that support remote workers. Virtual employee engagement activities and remote career development opportunities will be an area of interest for many.

Companies will be exploring several remote and hybrid models this year including some of the following:

Fully remote: Some companies are choosing to be fully remote, allowing all employees to work from work. Most tech companies including Google and Microsoft have opted for this model.

Rotational: A few companies are opting for a rotational model where employees spend certain days in the office and certain days WFH. Twitter has opted for the rotational model.

Regional: A regional model where employees in

WordPress (owned by Automatic) has a fully remote workforce.

Hybrid: Many companies are adopting a hybrid model, where employees have the option to work from the office or from home. This model provides the benefits of both remote and in-office different regions work from the office or from home based on local requirements. Hubspot is using this model.

Time-based: A few are using a time-based model, where employees work from home during off-peak hours and come into the office during peak hours, or vice versa. Buffer has chosen this model. HR will need to assess each department and individual needs and plan from a business point of view. These models will constantly evolve and the key is in supporting the employees throughtout this transition.

2. Increased focus on employee wellbeing and mental health

HR teams will have to prioritise employee wellbeing and mental health in 2023, recognising the impact that the pandemic has had on the mental health of workers. This could include implementing mental health benefits, promoting healthy work-life balance, and providing other ad hoc support to employees. Companies can choose from a wide variety of options to address these issues in the current year and some of the following are indicative:

• Offer mental health benefits such as access to a therapist or counselor. Buffer has made mental health a top priority, offering comprehensive mental health benefits to its employees, as well as promoting work-life balance and mindfulness practices.

• Promote work-life balance by offering flexible work arrangements, such as remote work or flexible schedules. SAP has implemented a variety of initiatives such as mindfulness and wellness programmes, flexible work arrangements, and open and honest conversations about mental health.

• Provide resources and support for employees' mental health such as mental health days, stress management workshops, and online support groups. Aetna, a health insurance company, has started off mental health days, counseling services, and stress management workshops.

• Incorporate mindfulness and wellness programmes into the workplace, such as yoga classes, meditation sessions, and healthy eating initiatives. Salesforce has made employee well-being a priority by offering mental health benefits, flexible work arrangements, and mind- fulness initiatives.

• Encourage open and honest conversations about mental health to create a supportive and inclusive environment for employees. TINYpulse, an employee engagement platform, has made mental health a central part of its culture, offering mental health benefits and promoting work-life balance and mindfulness practices.

3. Greater use of artificial intelligence and automation in HR HR teams will have to learn to leverage AI and automation to streamline processes and make datadriven decisions. This could include using AI to screen resumes, automate performance evaluations, and predict employee turnover. AI-based humanoids such as “Evueme” are already available for great recruit- ment experiences and depth of evaluation. An AI-powered automation platform can automate HR processes such as employee onboarding and benefits management. India’s first metaverse company WowExp has VR based onboarding solutions incorporating AI.

Many companies are planning for greater use of AI and automation. As AI and automation continue to evolve, companies will need to adapt and remain agile. Companies like HUL have used the metaverse in board meetings, and others have tried out AI-powered talent acquisition platforms that help with candidate sourcing and screening, interview scheduling and resume parsing.

For example:

• Textio is an AI-powered platform that uses machine learning to analyse job postings and provide feedback on language to help companies attract a more diverse pool of candidates.

• Evueme is an AI-powered video interview platform that automates the interview process and enables HR teams to evaluate candidates based on their responses to different kinds of skill testing and questions.

• myRefers automates employee referral programs and helps companies source high-quality candidates from their employees' networks.

• Namely streamlines HR processes such as payroll and benefits administration.

Many more tools are available to meet various needs.

Companies should look at many ways to meet this challenge head on:

• Invest in AI and automation technologies to streamline processes, increase efficiency, and improve decision-making.

• Train employees to ensure they have the skills necessary to work alongside AI and automation tools.

• Implement change management programmes to help employees adjust to the new technologies and processes as part of their work culture.

• Develop ethical and responsible AI practices to ensure that the technology is used in a way that aligns with their values and benefits society.

• Incorporate AI into the strategy, identifying areas where the technology can add value and help achieve the goals.

• Collaborate with external partners such as AI vendors and academic institutions, to stay up-to-date on the latest developments in AI and automation

4. The continued rise of DEI (diversity, equity, and inclusion) initiatives

Boards of directors will continue to prioritise diversity, equity, and inclusion in the workplace, recognising the business benefits of having a diverse workforce. HR will play a key role in creating and implementing initiatives to increase diversity and promote an inclusive workplace culture, even as allegations of discrimina- tion are on the rise with the divisive politics in India.

Glob ally, there are many pioneers in DEI like Microsoft, AirBnb, Spotify and Deloitte that have brought in excellent initiatives that inckude unconscious bias training, commitment to gender pay parity, diversity in hiring, inclusive language in job postings, and flexible work arrangements to support employees from underrepresented groups.

Here are some ways HR can tackle DEI initiatives in 2023.

Establish DEI goals and metrics: HR must set the goals and metrics to track progress and hold accountablility – Goals around diversity in hiring, representation in leadership positions, and pay equity.

Create a diverse and inclusive workplace culture: Build a culture that values diversity, equity, and inclusion. Examples include diversity and inclusion training programmes, encouraging open and honest conversations about DEI, and creating psychological safety.

Implement unconscious bias training: This will help employees understand the impact of their biases and promote a more equitable workplace.

Diversify recruitment efforts: Ensure that job postings and candidate pools are inclusive and representative of the communities they serve. This could include partnering with organisations that serve underrepresented communities and using inclusive language in job postings.

Foster a feedback-rich culture: A culture where employees feel comfortable providing constructive feedback and suggestions for how HR can improve its DEI efforts.

Review and revise HR policies: This is to ensure the promotion of DEI. Look at revising employee benefits, flexible work arrangements, and performance evaluation processes.

5. The need for reskilling and upskilling employees

The rapid pace of technological change has accelerated the need for employees to reskill and upskill. HR will have to play the key role in equipping and encouraging employees to acquire new skills to survive the AI era.

Companies will find it increasingly tough without skilling employees. Newer technologies are rapidly changing many processes, quality talent is in short supply, and competition is coming from many new areas.

Despite the increasing costs of learning and development, HR must know that the return from a wellequipped workforce will be far higher than the costs incurred in training them. Here are some of the critical skills HR will have to plan for this year and beyond:

• Data analytics and interpretation.

• Digital transformation –understanding and implementing digital technologies to improve business processes and customer experiences.

• Artificial Intelligence –knowledge of AI applications and the ability to implement AI solutions in various business operations.

• Cyber security – expertise in protecting against and mitigating cyber threats to maintain data privacy and security.

• Remote work and collaboration – skills for effective remote work, team collaboration, and virtual communication.

• Emotional Intelligence –ability to understand and manage emotions, relationships, and communications within the workplace.

• Agility and adaptability – ability to quickly adapt to changes, learn new skills, and take on new responsibilities in a fastpaced business environment.