HR Trends for 2023

Posted by HR Division of Propel HR on 1/5/23 2:15 PM
HR Division of Propel HR
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Posted on: January 5, 2023

New and emerging trends continue to reshape the workplace and impact the role of Human Resources. Here’s are some of the top areas small businesses are focusing on in 2023. 

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Embrace Remote and Hybrid Work Roles. According to a Gallup workplace study, an estimated 70+ million workers in the U.S. are able to do their job working remotely. Yet, only two in 10 of remote-capable workers are currently working fully on-site.

AdobeStock_442157068_01By now, most businesses have adopted some form of flexible work option. In 2023 remote and hybrid work strategies will continue to trend. Research shows that since the pandemic, offering hybrid work has been a key driver in keeping and attracting workers. In the same Gallup study, 6 in 10 remote employees say they would be “extremely likely” to leave their job if the opportunity to work from home was no longer an option. 

While hybrid and remote work options benefit both the employer and the employee, employers still struggle to embrace flexible work strategies when it comes to productivity. But that has to change. According to Microsoft’s Work Trends Index study, 85% of employers say that the shift to hybrid work is a challenge and want workers to return to the workplace. But employees are not racing back to the office. 73% of employees say they need better reasons to return than just meeting company expectations.

➡️➡️Read More:  Here's Your HR Checklist for Q1 2023

Invest in Current Talent. The cost to recruit and train new hires is much more expensive than the cost to keep current employees. According to the Microsoft study, 76% of employees say they would remain at their current job longer if they could benefit more from learning and development support.  

Workers expect their employers to provide a safe, engaging,  and diverse work experience, with increased opportunities for personal and professional growth.  In 2023, businesses will focus more on investing in retaining existing workers through employee development as well as engagement programs.  

Focus on Skills versus Job Titles. As employers continue to deal with the effects of the Great Resignation, finding top talent with the right skills will be a top priority in the new year. 

AdobeStock_283522509_001In a recent Deloitte study, 90% of companies surveyed say that they are moving towards a skills-based approach – looking at a collection of skills versus a job title – as a way to build their workforce.

This new operating model presents new opportunities (and challenges) for Human Resources to reshape the hiring process, implement strategies for talent development, and increase efforts to hire non-traditional talent. 

Increase in Pay Transparency. California, Washington, and Rhode Island are the latest states that have enacted pay transparency laws. Similar laws already exist in Colorado and New York. As the number of states passing new pay transparency and equity laws continues to grow, keeping employee pay a secret will become more of a challenge in the future - especially for multi-state employers. 

Make Mental Health & Wellbeing a Priority. It goes without saying - your employees are stressed out. According to the American Psychological Association (APA), the impact of the pandemic on workplace stress was experienced by more than three out of five employees. 

From changes related to the pandemic, the impact of a lingering labor shortage to concerns about higher costs and inflation – the overwhelming feeling of being overworked, burnt out, and stressed out, is increasing.  As a result, well-being will take center stage in 2023. 

Deliver a Memorable and Personal Customer Service Experience. Customer expectations continue to challenge the customer service experience of companies, both large and small.

➡️➡️Read More:  How Good Customer Service Can Help Your Business

According to a Salesforce study, 47% of customers say they’ll stop buying from a company if they have less than a top customer service experience. In the same study, 76% of customers say it’s easier than ever to take their business to the competition. In 2023, customers will look for businesses that deliver a customer service experience that is memorable, experiential, and most of all - personal.

Outsource to Get Ahead. With the rise in hybrid and remote work options, the skills shortage, and the increase in employee expectations, employers will look to outsourcing strategies to support Human Resources teams and to help them get ahead. 

AdobeStock_499708562_01Many small businesses already take advantage of the resources and skills provided by outsourcing to a Professional Employer Organization (PEO) for HR-related tasks such as benefits, payroll, compliance, and general HR, as well as a host of services that can also be customized. 

Outsourcing certain Human Resource functions significantly reduces a business’s administrative workload and frees up valuable time, which can be invested back into growing the business. For example, if you need to enhance your customer service efforts, then outsourcing that function can help you become more competitive. Or, if you need to expand your HR area but are not ready to invest in adding more staff, outsourcing can help you gain access to expertise, knowledge, and resources that you may not be able to afford on your own. Even if you have an in-house HR manager, it often makes smart business sense to outsource to a team of HR experts to supplement your staff.

Looking Ahead

We hope your year ahead is both productive and successful. If you would like more information on how outsourcing can help your business, please give us a call at (800) 446-6567 or visit

Choosing the Right PEO

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 25 years. Propel partners with small to midsized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. Visit our new website at

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