Looking Forward: The Top Five Trends for Employer/Employee Relationships in 2023

As we look to 2023, the evolving economic and work climate will require businesses to remain adaptable and work to maintain the pulse of their business operations.

Since the beginning of the pandemic, employers have had to adapt their business practices. Some of those new practices include remote work capabilities, employee wellness initiatives, retaining the best talent and so on. Don’t be caught off guard by the next wave of changes expected in the new year.

Here are the top five areas to focus on to build strong employer/employee relationships in 2023:

1. Leadership Development and Effectiveness

In 2023, people managers should prioritize an authentic human-centric approach when leading employees. Employees want to feel like people in the organization not a tool or a number.

As the workforce grows and changes, leadership must adapt. The dynamics of a flexible work environment have posed new challenges to the leader/employee dynamic. Maintaining the human element of a relationship can be challenging. Additionally, challenges in the market — supply chain issues, competitive recruiting and the need for work-life balance — have further challenged leaders. A 2021 Gartner EVP Employee Survey indicates that 82 percent of employees say it’s important for their organization to see them as a person and not just as an employee.

2. Organizational Change Management

Since the start of the pandemic, change management has been a consistent necessity. As we have emerged from COVID-19, organizations have had to remain flexible and adapt to continued market disruptions. This constant fluctuation has created change fatigue, a general sense of apathy or passive resignation toward organizational changes by individuals or teams.

Organizations are constantly undergoing some form of change. As humans, we inherently seek stability, order and predictability. When change is continually occurring, employees become overwhelmed, their ability to adapt is depleted and feelings of loss and uncertainty skyrocket.

Organizations can stay adaptable in the market while reducing change fatigue by creating employee buy-in. Organizations can do this by involving employees that will be affected by changes in the processes of making decisions regarding those changes. Leadership that includes affected employees in strategic decision-making has more buy-in and is more successful in the long run. An employee that works to develop the change is more likely to positively communicate the change, work to implement the change and is more likely to pivot if the change needs to be adjusted.

3. Employee Experience

In today’s labor market, organizations must offer more than a competitive salary package to retain top performers. A more personalized approach to employee retention and engagement can showcase a positive employee experience in a meaningful way.

As we look to 2023, one of the key employee needs is growth — personally and professionally — through training and development.

Upskilling your workforce involves facilitating a continuous learning model to minimize skill gaps and expand the capabilities of your employees. A Gallup survey discovered that 65 percent of workers believed that upskilling is important when considering a new job, and 48 percent of workers said they would switch to a new job if offered career advancement and training opportunities.

Employees are recognizing employers who are investing in their success. An organization that provides a development plan and roadmap to develop and achieve success has higher retention rates. Further, a byproduct of enhanced employee experiences and commitment is more engagement from the leadership, a top priority for organizations in the coming year. Implementing employee experiences will continue to increase the organization’s capabilities, and research shows putting resources into employee experiences provides a high return on investment.

4. Recruiting and Retaining Top Talent

Well-qualified talent is becoming scarce in the recruiting space, and the need to hire and retain the right talent should be a top priority. Employers who can focus on the staffing needs on the front end will have a better result with their employee experiences and retention for the long haul.

The market continues to favor job seekers. Research shows that one factor for high turnover is hiring team members that do not align with the culture, are not qualified for the role or are not properly onboarded.

Onboarding has shown to be a significant component in a new employee’s experience and engagement in the organization. Employees who have been with the organization for longer than a year often define the company based on their onboarding experience. If employees do not feel they arrive understanding the culture and values, they are likely to leave. Further, high turnover can reduce the effectiveness and culture of the organization.

Employers should develop sound recruiting strategies with well-developed job descriptions. Organizations should seek input on hires from the team the position will work with, have a highly engaged hiring manager and create a strong onboarding process. 

5. Employee Well-Being and Wellness Programs

Employee mental health continues to rise as a top priority for leaders. While it has always been at the forefront of Human Resources practices, the need for mental health support has been strongly communicated by employees in research and polls in recent years. This requires engagement from the organization and its leadership.

Employees should be encouraged to disconnect and not engage in work outside of work hours. In a digital world, we have increased our need for immediacy but it comes at a cost. Studies show an employee is more productive if only engaged in work during normal work hours. While this seems counterintuitive to constant engagement, productivity from an employee working outside of normal hours significantly decreases.

Employers should also find resources to allow employees to connect outside of work to maintain their mental health. This could include EAP programs that provide free mental health assistance, meaningful employee engagement opportunities and engagement with peers and leadership that encourages open discussions. 

As the workforce moves into 2023, there is a great need to engage and develop employees and leadership. A strong culture of engagement increases productivity and retention and reduces turnover. Organizations that are developing their employees and leaders, that proactively engage in authentically supporting their staff and  are implementing researched best practices are moving toward best-in-class workplaces.

People Performance Resources provides support to inspire excellent workplaces. For information on our services and how we can help your organization, you can reach us at info@pprhr.com.