6 HR Trends to Monitor in 2023
Jan 25, 2023
6 HR Trends to Monitor in 2023

Just as HR professionals quickly adapted to changes at the height of the pandemic, they must now adapt and respond to today’s evolving expectations of organizations and employees alike. As such, savvy HR leaders and professionals will approach 2023 with human-centric strategies that holistically support and benefit workers. Organizations will benefit from putting people first and listening to what their people need.


This article highlights six HR trends to follow in 2023.

1. Increased Wages and Raises

There are more open jobs than people to fill them, and inflation is impacting employees’ pay expectations. With a recession on the horizon, it remains to be seen exactly how wages and pay will increase. The labor market also continues to evolve. It’s still worker-friendly, but not as much as it was even months ago. However, salary budgets for American employees are projected to increase in 2023. According to a Willis Towers Watson report, companies are budgeting an overall average increase of 4.1% for 2023, compared with the average actual 4% increase in 2022. Keep in mind that these are the most significant increases since 2008. Nearly half (46%) of respondents said the top reason pay budgets are increasing next year is to address inflationary pressures and drive retention.


Raises are also in the spotlight as many workers change jobs or careers. According to an ADP report analyzing payroll data, workers who changed jobs got a median raise of 16.1%. Interestingly, according to the same report, that’s nearly double the median change (7.6%) in yearly pay for those who stayed in their jobs. Job hopping has proven to be a way employees can compete with increasing costs amid inflation and be better positioned to afford everyday life. To compete, organizations are finding ways to offer raises to match the pay increases of employees’ counterparts leaving for other, higher-paying opportunities.


2. Pay Transparency

Today and going into 2023, workers want to know what they’ll be paid before interviewing and that they’re being compensated fairly compared to their colleagues. Workers also want to clearly understand their career development potential, as many are interested in professional growth opportunities.


Some large states, most recently California, have passed pay transparency requirements. For example, some states require organizations to disclose salary in job postings, but others require it only upon request. Although conditions will vary, many municipalities and states are poised to join the growing nationwide pay transparency movement. As a result, many U.S. employers feel pressured to provide salary information even when they are not legally required to do so.


Pay transparency is rising on the list of employees’ demands, and employers should consider what changing requirements and employee desires for pay transparency mean. There are different ways employers can increase their pay transparency—and doing so may help improve attraction.


3. DEIB in Workplace Culture

Diversity, equity, inclusion and belonging (DEIB) is a growing initiative focused on eliminating discrimination, bias and harassment, while creating an inclusive workplace. According to a PwC survey, 75% of companies said they value and prioritize diversity. However, only 5% of companies meet high maturity levels for a successful DEIB program. This year, employers have an opportunity to pursue, enhance and make good on their DEIB initiatives.


While diversity, equity and inclusion have long been targeted efforts for employers, the concept of belonging is newer, as there’s a renewed focus and need. When workers feel like they belong at work, they are more productive, motivated and engaged. Add that all up and workers are more likely to contribute to their fullest potential. That’s a win-win for employers. With hybrid and remote workplaces becoming increasingly popular, additional employee experience layers must be considered among employers. Ultimately, employers can elevate employee experiences by creating workplaces where employees feel they belong.


4. Well-being Focus

Between the pandemic, inflation and job duties, more employees feel burnt out. As such, organizations are expected to take more responsibility for workers’ burnout and help employees on a personal level. More employers will be considering how to take a proactive approach to employee well-being and resilience. Benefits, perks and wellness programs will shift to being more holistic to account for mental, physical and financial well-being. To address burnout and other well-being challenges, many employers will offer or expand their employee assistance programs, behavioral health anti-stigma campaigns and training for recognizing employee and peer behavioral health issues. Employers are poised to offer the education and support that today’s workers need and are looking for.


5. Upskilling

Learning and developing efforts are on the rise, and many employers in 2023 will invest specifically in upskilling and reskilling. According to Gartner data, the number of skills required for a single job is increasing by 10% per year, and more than 30% of the skills needed three years ago will soon be irrelevant. It’s often less expensive to reskill a current employee than to hire a new one.


As employers go head-to-head in the competitive race for talent, upskilling or reskilling their current workforce could be a solution to finding workers for their in-demand roles. Upskilling is when employers provide employees the opportunity to learn new skills to better their current work performance while also prepping them for the projected needs of the company. When upskilling employees, employers invest not only in workers but also in the company’s longevity and development. Furthermore, organizations are prioritizing internal mobility more to address skills gaps and strengthen employee retention.


6. Skills-based Hiring

Regarding skills, employers may also focus their hiring efforts on looking for the right skills rather than experience or education. As labor challenges continue through 2023, employers may explore skills-based hiring to help them compete for talent. While specific qualifications may be valuable for some roles or industries, HR professionals may consider candidates based on desired skills rather than experience or education. With robust learning and development initiatives in place, employers can hire workers who are an excellent cultural fit and then train them on specific skills or tasks later. In the current worker-friendly market, many employers are having luck with taking a chance on candidates who are eager for a challenge and willing to learn on the job.


Summary

Employers can get ahead of the game by monitoring the trends that will impact the workplace and resonate with the current workforce. Many HR functions and employee expectations have significantly evolved amid the pandemic era. As such, there will still be ways to elevate and strengthen workplace strategies to be sustainable, supportive and attractive to today’s workers.

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DOL Issues Guidance on AI-related Wage and Hour Risks

11 May, 2024
On April 29, 2024, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) published Field Assistance Bulletin (FAB) No. 2024-1 on the use of artificial intelligence (AI) in the workplace. The FAB follows a statement released by the White House announcing key AI-related actions following President Joe Biden’s executive order issued on Oct. 30, 2023, on establishing standards for AI safety and security. Guidance on AI-related Wage and Hour Risks Employers are increasingly using AI tools to generate timecards, set schedules, monitor performance, track employee hours and process payroll. As such, the FAB highlights certain compliance risks under the Fair Labor Standards Act (FLSA) for employers using these tools. These risks include: Tracking employee work time; Monitoring employee break and waiting time; Using location-based monitoring for individuals performing work at multiple geographic locations; Calculating employees’ regular rate of pay and overtime compensation; and Violating the FLSA’s antiretaliation provisions To aid employers in addressing these compliance risks, the WHD identifies recommended practices, including exercising proper human oversight, to help ensure that AI systems and tools do not violate the FLSA. Additional AI-related Guidance In addition to addressing FLSA compliance risks, the FAB also examines certain AI-related risks that may arise under other laws, including the Family and Medical Leave Act (FMLA), the Providing Urgent Protections for Nursing Mothers Act (PUMP Act) and the Employee Polygraph Protection Act (EPPA). For example, using AI tools to administer FMLA leave can create potential risks for violating the law’s certification requirements when determining whether an employee’s leave is FMLA-qualifying. Employer Action Items While FABs are not necessarily legally binding, they offer insight into how the DOL interprets laws it enforces and how agency officers will analyze workplace conditions and circumstances to enforce compliance.  Using AI systems for scheduling, timekeeping and calculating rates of pay and overtime may increase an employer’s risk under the FLSA. Therefore, employers should ensure that their AI systems and tools comply with all federal laws and regulations by examining potential legal and business risks associated with AI, implementing AI usage policies and establishing internal best practices.

Nurturing Your Mind: Embracing Mental Health Awareness Month

30 Apr, 2024
As we step into May, we're reminded of the importance of mental health and well-being. May marks Mental Health Awareness Month, offering us an opportunity to renew our commitment to nurturing our minds and fostering supportive environments, both in and out of the workplace. In this blog post, we'll explore practical strategies for enhancing mental health, including small tips that can refresh you mentally during the workday. Embracing Self-Care Amid life's hustle and bustle, it's crucial to carve out time for self-care. Whether it's practicing mindfulness, engaging in hobbies, or simply taking a moment to breathe deeply, prioritizing self-care nurtures mental resilience and fosters a sense of inner peace. Cultivating Work-Life Balance In today's fast-paced world, achieving a healthy work-life balance is essential for mental well-being. Set boundaries between work and personal life, establish a routine that includes breaks and leisure activities, and strive to unplug from technology during downtime. Remember, balance is key to sustaining productivity and happiness. Fostering a Supportive Workplace Culture Employers play a pivotal role in promoting mental health in the workplace. Encourage open dialogue about mental health, offer resources such as counseling services or mental health days, and prioritize flexibility to accommodate employees' well-being needs. By fostering a supportive culture, organizations cultivate environments where employees feel valued, understood, and empowered to prioritize their mental health. Supporting Loved Ones If someone you care about is struggling with mental health challenges, your support can make a significant difference. Listen without judgment, offer empathy and reassurance, and encourage them to seek professional help if needed. Remember, your presence and understanding can provide comfort and strength during difficult times. Practicing Gratitude Gratitude is a powerful tool for enhancing mental well-being. Take time each day to reflect on moments of gratitude, whether it's appreciating the beauty of nature, expressing gratitude for supportive relationships, or acknowledging personal achievements. Cultivating a mindset of gratitude fosters resilience and enhances overall happiness. Small Tips to Refresh Your Mind During the Workday  Take short breaks: Step away from your desk for a few minutes to stretch, walk around, or simply gaze out the window. These brief pauses can rejuvenate your mind and boost productivity. Practice deep breathing: Incorporate deep breathing exercises into your day to reduce stress and promote relaxation. Close your eyes, inhale deeply through your nose, hold for a few seconds, and exhale slowly through your mouth. Connect with nature: Spend time outdoors during your lunch break or coffee breaks. Even a brief stroll in a nearby park or green space can invigorate your senses and clear your mind. Listen to music: Create a playlist of soothing music or uplifting tunes to listen to during work breaks. Music has the power to uplift your mood, reduce anxiety, and enhance focus. Stay hydrated: Drink plenty of water throughout the day to stay hydrated and maintain mental alertness. Dehydration can impair cognitive function, so keep a water bottle handy and sip regularly. Practice mindfulness: Take a few moments to practice mindfulness or meditation exercises. Focus on your breath, observe your thoughts without judgment, and cultivate a sense of presence and calm. Declutter your workspace: A clutter-free workspace can promote mental clarity and productivity. Take a few minutes to tidy up your desk, organize files, and create a calming environment conducive to focus. Engage in positive self-talk: Replace negative self-talk with affirming and encouraging statements. Remind yourself of your strengths, accomplishments, and capabilities, and cultivate a mindset of self-compassion and resilience. Connect with colleagues: Build supportive relationships with coworkers by engaging in meaningful conversations, sharing experiences, and offering mutual support. A sense of camaraderie and connection can foster a positive work environment and bolster mental well-being. As Mental Health Awareness Month unfolds, let's commit to nurturing our minds and supporting those around us. By embracing self-care, fostering work-life balance, promoting workplace well-being, and offering compassionate support to loved ones, we contribute to a culture of mental health awareness and resilience. Remember, you are not alone. Reach out for support if you need it, and let's journey toward better mental health together.

DOL Announces Final Overtime Rule Increasing Salary Levels for White-collar Employees

30 Apr, 2024
On April 23, 2024, the U.S. Department of Labor (DOL) announced a final rule to amend current requirements employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The final rule will take effect on July 1, 2024. Increased Salary Level The FLSA white-collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer-related occupations. Some highly compensated employees may also qualify for the FLSA white-collar overtime exemption. To qualify for this exemption, white-collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white-collar employees must receive to qualify for the exemption. Starting July 1, 2024, the DOL’s final rule increases the standard salary level from: $684 to $844 per week ($35,568 to $43,888 per year); and $107,432 to $132,964 per year for highly compensated employees. On Jan. 1, 2025, the standard salary level will then increase from: $844 to $1,128 per week ($43,888 to $58,656 per year); and $132,964 to $151,164 per year for highly compensated employees. Automatic Updates The DOL’s final rule also includes mechanisms allowing the agency to automatically update the white-collar salary level thresholds without having to rely on the rulemaking process. Effective July 1, 2027, and every three years thereafter, the DOL will increase the standard salary level. The agency will apply up-to-date wage data to determine new salary levels. Impact on Employers The first salary level increase in July is expected to impact nearly 1 million workers, while the second increase in January is expected to affect approximately 3 million workers. Employers should become familiar with the final rule and evaluate what changes they may need to adopt to comply with the rule’s requirements. Legal challenges to the rule are anticipated, which may delay the final rule’s implementation.

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