HR Technology Trends 2023: The advent of cloud computing, artificial intelligence, and machine learning is metamorphosing businesses globally. Many organizations are now utilizing upcoming HR technologies to create a sustainable, productive, and engaged work environment. In the last two years, investments in the HR domain have skyrocketed, with venture capitalists spending over $17 billion on HR tech. We can surely anticipate some colossal changes in the future of HR technology.
In this article, we will discuss 10 HR technology trends in 2023 that human resources leaders should keep an eye on.
10 HR Technology Trends in 2023
Measuring the outcome is the first step in improving or enhancing the system. By adopting HR technologies, organizations are becoming more aware of their employees’ expectations. A similar trend will follow in 2023 with the following upcoming HR technologies.
1. Workplace Digitization
The surge in workplace digitization, which began in March 2020, continues to reshape the way businesses operate. In 2023, expect organizations to remodel their technical infrastructure by incorporating artificial intelligence and machine learning, revolutionizing employee experiences and customer satisfaction. From employee onboarding to retirement, HR technologies will leave no stone unturned in enhancing the employee lifecycle.
The digital workplace will foster seamless connectivity among colleagues, providing personalized experiences for each individual. Employers investing in these technologies can expect a more informed, knowledgeable, and innovative workforce, leading to higher operational efficiency driven by data and technology.
Forrester’s prediction report states that 60% of organizations will shift to hybrid work models and only 10% will stay committed to a completely remote working model. Further, it adds that 1 in 3 companies shifting to a hybrid model will fail in doing so. The primary reason is redesigning the workplace, job roles, and creating an engaging work environment.
So far, employers have been facing the challenge of maintaining higher standards of work and productivity with a geographically dispersed workforce. As employees are being called back to offices, it will become even more difficult to manage them and provide an engaging and productive experience in the workplace. HRs will have to solve these massive challenges to offer a better employee experience, interconnectivity, and engagement.
To make a hybrid workplace successful, organizations are taking several measures. These include the following:
Deploying a centralized platform to integrate multiple employee applications to enhance productivity
Improving internal communication through multimedia content: HR can break silos by connecting with employees through interactive videos and surveys
Deploying space management technology to reserve office space and desks
Using tools like OfficeTogether to offer a healthy work environment by monitoring visitors’ check-ins, employee health screening updates, and offering superior assistance to every employee.
3. Digital Learning & Development
Employee learning and development is a core strategy of every organization. In the last two years, L&D has faced an onslaught of changes due to sudden shifts in work setups and organizations’ lack of preparedness for them. In 2023, l&d professionals will have an uphill task of providing continued learning along with engagement and inclusivity at the forefront. Employee experience and learning will have to go hand in hand to get optimum results.
With organizations already embracing digital learning, 2023 will be a landmark year with the deployment of gamification and virtual reality in the learning process. The overall estimated impact is higher employee engagement, motivation, and better learning outcomes. Further, to ensure the learning of employees working remotely, digital learning will be customized to cover more ground through mobile and desktop applications.
To understand hyper-personalization in the workplace, try answering the following questions:
What work environment brings out the best in employees?
Is every employee doing what they are best at?
What activities, policies, and infrastructure are more meaningful and engaging to employees?
What does an ideal workplace look like?
For decades, hyper-personalization has been used in marketing to attract customers, but by 2023, it has made its way into office cubicles. With 45% of US employees working remotely (completely or partially) and a shortage of skilled labor in the market, the power of decision-making has shifted from employers to employees. Hyper-personalization gives employees more flexibility and an opportunity to change work environments to better suit them.
Organizations are working to provide a better employee experience and transform traditional office spaces into more interactive, accommodative, and inclusive workplaces. They are working on three pillars to provide a personalized experience to employees: communication, management, and work environment.It will help in resolving challenges around accessibility, gender diversity, and inclusivity.
In the last decade, organizations have amped up their efforts to create a diverse and inclusive environment for employees. But the achievement has not been much substantial. The primary reason being that many of the efforts were on paper and there wasn’t enough data to analyze the outcomes. It is a proven fact that data disclosures in certain industries harbinger behavioral changes.
With organizations adopting several policies and practices for enhancing diversity, equity, inclusion, and belongingness in the workplace, it is imperative to use data analytics to get actionable insights. Research conducted by HBR found that data disclosure and analysis can have a profound effect on the diversity initiatives of an organization.
One of the most important HR tech trends in 2023 is a reliable and data-driven DEIB strategy. As a large proportion of employees are willing to work in a hybrid setup, organizations have to place pragmatic measures to enhance diversity and inclusion. It involves driving various processes such as sourcing, hiring, onboarding, employee engagement, grievance redressal, and policy formation through a competent tech-enabled system.
6. Tech Enabled Employee Self-Service
Employee self-service is an aspect of Human Resources (HR) technology that enables employees to access and manage their HR-related information and tasks independently. This can include updating personal information, viewing pay stubs, and requesting time off. The primary objective of employee self-service is to improve operational efficiency and reduce the workload for HR departments.
As we move into 2023, it is expected that employee self-service portals, mobile applications, and chatbots will become increasingly prevalent. These tools will allow employees to access the information they need quickly and easily, regardless of location. Furthermore, the integration of artificial intelligence (AI) and machine learning will enable these portals, applications, and chatbots to provide personalized recommendations and assistance to employees.
The adoption of employee self-service not only improves organizational efficiency and reduces costs, but it also enhances the employee experience. By providing employees with the ability to manage their HR-related tasks independently, organizations can become more agile and responsive to employee needs, which can improve employee satisfaction and engagement. In conclusion, employee self-service is an important aspect of HR technology that is expected to continue to evolve and gain prominence in the years to come.
7. Metaverse in HR
Immersive alternate reality, also known as the Metaverse, is poised to revolutionize various aspects of HR practices. This groundbreaking technology offers a seamless integration of virtual meetings, interviews, discussions, onboarding, employee engagement, employee experience, and learning and development. By creating lifelike virtual environments, the Metaverse enables HR professionals to host dynamic and interactive meetings, conduct immersive job interviews, and facilitate engaging discussions among remote teams.
Researchers predict a swift and widespread adoption of the Metaverse in HR, with a projected 25% of people dedicating at least an hour of their daily work routine to this transformative technology by the year 2026. As more organizations recognize the immense potential of the Metaverse, its impact on reshaping traditional HR processes and enhancing collaboration across distributed teams will be nothing short of revolutionary. The Metaverse empowers HR to transcend geographical boundaries and usher in a new era of seamless and impactful virtual interactions that enrich employee experiences and elevate organizational productivity.
8. Data-Backed and Digitally-Led Organizations
In the transformative landscape of 2023, organizations are embracing a data-driven approach to gain a deeper understanding of their employees and customers. By harnessing the power of employee and customer data, organizations are poised to align their actions and initiatives with a clear sense of purpose and direction.
This trend goes beyond mere data analysis; it signifies a holistic shift towards customer and employee centricity, where organizations strive to cater to individual needs and preferences, fostering stronger relationships and brand loyalty. Moreover, the data-driven trend extends its reach to address pressing social and environmental concerns, as organizations recognize their role in contributing to a more sustainable and responsible future.
9. Artificial Intelligence to Address Talent Concerns
Talent shortage and hiring will get tough in 2023. To overcome these issues, organizations will see a surge in the adoption of AI to create digital skills catalog and utilze it for hiring, internal mobility, overcoming paper ceiling and bias in recruitment processes.
10. People Analytics
The contribution of people analytics in the critical decision-making process and business outcomes has outpaced convention and paper-led strategies. It will continue to grow through massive adopting and upscaling in 2023.
To cope with the demand for a more innovative employee experience and provide a progressive environment for employees, the future of HR technology will have to be based on continuous modernizing technology, innovative frameworks, and data-driven approaches. We hope the HR technology trends mentioned in the article will help you to create a better workplace.
Frequently Asked Questions
Q1. What are the latest HR technology trends for 2023?
Ans. In 2023, global human resource leaders will put emphasis on providing an innovative and personalized experience to employees. We anticipate the following HR tech trends for 2023.
Elevating Hybrid Workplace
Digital Learning & Development
Tech Enabled Employee Self-Service
Q2. What are the top 10 HR Initiatives for 2023?
Ans. In 2023, HR leaders will focus on the following initiatives for 2023:
Creating critical skills and competencies
Organizational change management and design
Current and future leadership bench
Future of work
Diversity, Equity, and Inclusion
Q3. What challenges will HR leaders face in 2023?
Ans. The changing geopolitical environment, technological advancements, and rising employee demands are some of the factors leading to changes in human resource management. We anticipate the following challenges for HR leaders and managers in 2023:
Reskilling and upskilling employees
Digital learning and development
Retaining key talent
Hiring talent in a tough global market
Q4. How will HR technology help companies stay compliant with legal and regulatory requirements in 2023?
Ans. In 2023, HR technology will provide companies with tools to help them stay compliant with legal and regulatory requirements such as GDPR and EEOC. This may include software to track data privacy, compliance training, and compliance reporting.
Srikant Chellappa is the Co-Founder and CEO at Engagedly and is a passionate entrepreneur and people leader. He is an author, producer/director of 6 feature films, a music album with his band Manchester Underground, and is the host of The People Strategy Leaders Podcast. He is currently working on his next book, Ikigai at the Workplace, which is slated for release in the fall of 2023.