Global HR Trends 2023  


January 2023
 

The last two years have brought about a sea change in global HR. 

 

Navigating a global pandemic, skills shortages, remote working, and the transition back to hybrid working, in many cases, have led to an evolution in expectation from employees and employers. Business and employee mindsets have been changed because of the pandemic and international HR professionals will have to bridge any gaps in expectation that might exist. 

 

High priorities for global HR professionals in 2023 include:

Hybrid working was introduced by many employers to encourage their fully remote workforce back to in office working on a flexible basis. Global statistics are difficult to find but research in the US shows 74% of previously office-based employees are now working on a hybrid basis. In Singapore 80% of employees favour hybrid working

 

Data shows there are many benefits to working from home and office. Many employees report higher levels of productivity, better work life balance and much less time spent commuting. However, it has not been without its challenges. Employees are conscious of: 

  • Feeling less connected to company culture
  • Not having the same access to resources
  • Decreased collaboration
  • Reduced amounts of communication

It is going to be essential for international HR teams to help employees accentuate the positives of hybrid working while mitigating the challenges. This may be in the form of changing the company culture, so it is easier to engage with in a hybrid workplace, encouraging employees to make collaboration and communication more intentional. 

Organisational culture has been impacted by a global move to hybrid working. Research by Gallup showed 32% of employees feel less connected to their organisational culture while hybrid working. As organisational culture is a key factor in recruiting and retaining employees, there is likely to be pressure on management and global HR teams in 2023 to create a culture that functions well regardless of where employees work. 

 

This can be achieved by:

A survey by Glassdoor found transparency improved company culture and employee engagement. While it may be easy to be transparent when everyone is in the office, it becomes more challenging when people are working from multiple locations. Make it easier for employees to know what is happening within the business by:

  • Manage HR workflows digitally so team members can access them and understand what is causing delays.
  • Set up a communications network between employees and management so that everyone can see and comment on business news
  • Make the most of video conferencing for meetings and feedback. Encourage people to switch on their camera. It does make a difference!   
  • Create a digital hub for HR resources so that everyone has one place to go to find what they need. 
One of the difficulties with hybrid working for junior employees is they do not get as much exposure to senior colleagues. This is starting to show in statistics, 80% of workers don’t believe their organisation provide development opportunities. Overcome this by formalising a mentorship programme. This is mutually beneficial as junior participants learn from more experienced colleagues and senior members of the team get to build relationship and leadership skills.  
A key method to unite hybrid teams is with a strong mission. If your global business wants a culture refresh, maybe it is time to revisit your mission, especially if it has not been an area of focus since pre-pandemic. Having a strong mission provides employees with a sense of purpose and once everyone agrees, it can drive teams to achieve business results. 
Although diversity and inclusion has been at the forefront of global HR for some time, it has expanded to include equality and belonging. This is the effort businesses make to support a fair workforce. Not only is continuing this trend the right thing to do, it makes business sense too. Studies around DEI&B show businesses that improve gender diversity by 1% see a revenue uplift of 3%. Higher ethnic diversity can increase revenue by 15% so there is no doubt focus is going to remain on global HR teams to diversify their workforces in 2023.

One of the challenges global HR teams have had to contend with in the past year have been skills shortages. This, coupled with the potential of recession looming in parts of the world there may be more pressure on global HRs to do more with existing employees rather than reaching out to the market. HR departments can offer upskilling or training programmes to existing employees who already have tacit knowledge of how the company works. 

 

There is no doubt 2023 is going to continue to pose some challenges for international HR however it is also likely to be a year filled with opportunity. With careful planning and execution your business can do more with your existing workforce by improving the culture and environment they work in.

 

While you focus on achieving your business goals, let us look after your international health insurance needs. From SME to enterprise, we have global health insurance products for you.