HR Trends to Monitor in 2023

It seems that every year, HR departments are given more responsibilities but not always with matching budgets. Therefore, it’s essential for HR professionals to continuously think outside the box and keep up-to-date with current trends so they can compete in today’s unique labor market. Check out this article to learn about six upcoming HR trends in 2023.

Pay Transparency

According to recent studies, two of the most important aspects for workers when choosing or staying with a company are compensation and clear development potential. Recently, California passed a pay transparency law. This means that organizations in the state must disclose salaries in job postings. Some other states have similar laws, but they only require disclosure upon request. It is likely that more municipalities and states will join the nationwide pay transparency movement. Consequently, many U.S. employers feel as if they have to supply salary information even though it isn’t legally mandated. This problem has been augmented by the rise of companies, such as Indeed and Glassdoor Inc., that post overall pay estimates and data for job postings—which can often be inaccurate.

Year-round Benefits Education

In the next few years, employees will be looking for more help than ever before to choose their benefits wisely and save as much money as possible. With inflation at an all-time high and a potential recession on the horizon, workers will want to get the most out of every penny they earn.

By guiding workers through benefits selection during key points of employment, employers have the opportunity to shine by deploying effective communication skills and providing year-round education.

During tough economic times, employees tend to look for more financial guidance from their employers. Because of this, many employers see benefits education as something that should happen year-round instead of just during open enrollment season. By continually educating employees about their benefits, employers can help avoid information overload and ensure that employees feel well-informed about their options and confident in their choices.

Well-being Focus

With the pandemic, inflation and job duties exacerbating burnout rates, organizations are being burdened with more responsibility to help employees on a personal level. In the near future, employers will increasingly focus on taking proactive steps to improve employee well-being and resilience. Benefits packages, perks and wellness programs will become more comprehensive, encompassing mental, physical and financial wellbeing. Many employers are facing the issue of employee burnout and are expanding their programs to include assistance, behavioral health anti-stigma campaigns, and training for employees to recognize issues amongst their peers. By doing so, they will be able to provide the education and support that today’s workers need.


Many employers are beginning to invest more in Learning & Development (L&D), specifically upskilling and reskilling employees. Data from Gartner shows that the number of skills required for a single job is increasing by 10% annually, and over 30% of the skills needed just three years ago will soon be irrelevant. It generally costs less money to reskill a current employee than it does to hire an entirely new person.

In the race to find today’s top talent, employers might overlook an important solution: developing the skills of their current workforce. Upskilling is when employers give employees opportunities to learn new skills that will improve their work performance and prepare them for future roles in the company.

Not only does upskilling employees benefit the workers themselves, but it also improves the company as a whole. Furthermore, employers are now more focused on internal mobility to bridge skills gaps and keep talented staff members from leaving.

Skills-based Hiring

Another concern for employers when hiring is looking for the right skills instead of experience or education. With labor shortages estimated to continue through 2023, skills-based hiring may become more popular as a way to compete for talent.

SKills-based hires may be more beneficial for employers in the long term, as they can train new employees on desired skills rather than focuses mainly on experiences or education. With a well-developed learning and development program, companies can focus less criterion on specific qualifications that may not transfer well to adaptability or company fit.

Many employers are finding success by taking a chance on candidates who want to learn and grow with the company. Monitoring workplace trends is one way to stay ahead of the game and appeal to today’s workforce. HR functions have changed during the pandemic, so there are ways to evolve those strategies even further and make them sustainable for employees.

Increased Wages and Raises

The labor market today is such that there are more open jobs than people to fill them, and inflation is impacting employees’ pay expectations. And this reality will continue into 2023. Consequently, salary budgets for American employees are projected to increase in 2023. According to Willis Towers Watson’s July report, companies are budgeting an overall average increase of 4.1% for 2023. This is compared with the actual 4% increase in 2022 and is the most significant increase since 2008. Forty-six percent of respondents said that employee expectations for higher pay are the top reason behind budgets increasing next year. According to a recent ADP report, the median raise given to workers who changed jobs was 16.1%. This is interesting because it nearly double the 7.6% yearly pay change for those who stayed in their old job. Salary increases have become a way for organizations to keep up with the high costs of inflation and protect better positioned employees from financial insecurity.Employees are quick to job hop if they find an organization that can offer them a higher salary, so companies must be able raise their own wages in order stay competitive in the market.