Looking ahead:
Talent, People & Culture in 2023

Dec 20, 2022
Dec 20, 2022 Agata

“The best forecasters are hovering between the chimp and God,” said Philip Tetlock, author of Superforecasting. He’s somewhat right, but we decided to take a chance and put our predictions for 2023 in writing. Let’s check back next year! 

A week ago, we shared with you a summary of 2022. A lot went on this year – war, recession, layoffs, quiet quitting. Unfortunately, few positive events moved and influenced our lives on the professional level. These difficult events of 2022 are certain to have their consequences for us in 2023, so let’s find out what they are.

Here are our predictions for 2023 from a perspective of Talent, People & Culture, Product, and Business.

People & Culture Predictions by Adriana Blazej & Kasia Mierzejewska

  • Company culture as a differentiating factor 

Salary still will be a number-one reason to change jobs, as pressure to increase salaries will be even higher than before due to rising inflation. However, we already see that people seek a healthy company culture with solid values, established interactions, and predictable processes, as well as financial stability. The way companies run layoffs that started in 2022 was the first test for how they handle this difficult situation, taking culture into consideration.

  • Including remote employees 

Remote staff struggle to have a thriving relationship with their immediate team (50%) and with people in the company outside it (42%) [source]. For hybrid workers, in comparison, these numbers go up to 58% (immediate team) and 48% (outside immediate team). Creating a strategy for remote workers and helping them maintain workplace relations will be challenging. At the same time, gathering people in one place once per year (such as a company retreat) will no longer be the best option if they are cutting costs. 

  • Even bigger focus on performance and productivity

There is still a disproportion between managers and employees regarding how the hybrid model impacts productivity. According to ‘Work Trend Index Annual Report 2022′,80% of employees say they are just as or more productive since going remote or hybrid. However, only 54% of leaders fear productivity has been negatively impacted since the shift. The problem is that managers and employees perceive performance in different ways. We believe that 2023 will finally bring a shift in that mindset – being a top performer won’t be about working long hours, but actually about results.  

  • Professional burnout will not go away

In 2023, burnout will be an even bigger issue, especially affecting middle managers. With the dynamic change in global markets and rampant inflation, the pressure to cut costs or even jobs will be ever greater. In addition, employees will become even more outspoken about pay dissatisfaction and motivation. Not every manager is prepared to face such challenges, especially when it comes to employee dissatisfaction. While some will look for solutions and opportunities to develop competence, others may lack the will to continue their committed work.The mental health issue will certainly still be important for employers in 2023.

Talent & Recruitment Predictions by Anna Doniec & Katarzyna Korytko

  • Changes in salary ranges, inflationary increases

Salaries will rise to keep up with inflation so companies can ensure that their most talented team members don’t jump ship for a better opportunity elsewhere. To be able to afford higher salaries, many employers will have to freeze hiring. Those that can’t afford raises will have to rethink how to remain attractive as an employer. Those operating in the most competitive industries may have to introduce a 4-day work week or other benefits (like an emergency savings fund, mortgage assistance, or even being paid in cryptocurrency). 

Additionally, companies with dispersed teams are already changing how they compensate employees. The challenge is that every country has legislation that impacts net salary, and cost of living and inflation rates differ between them, so financial expectations vary across the world. Already in 2022 we heard discussion about these issues, but the pay raise that very often happens in Q1 will show how remote companies are prepared for its execution.

Additionally, companies with dispersed teams are already challenging how to compensate their employees. The challenge is that every country has legislation that impacts net salary, and cost of living and inflation rates differ between them, so financial expectations vary across the world. Already in 2022 we heard discussion about these issues, but the pay raise that very often happens in Q1 will show how remote companies are prepared for its execution. 

  • The side hustle 

As companies downsize, people who have been laid off and suddenly lost an income will be more likely to build their side hustle as a part of their individual financial strategy. This will require a change on the employers’ side because employment contracts very often prohibit this type of practice. 

  • Learning instead of experience

In 2023 we will finally have the opportunity to see a clear change in our approach to evaluating candidates.  When hiring, employers will look at potential as well as work experience, since there won’t be enough candidates on the market with the required experience. Companies will invest more in training people with potential, and when recruiting there will be a greater focus on checking the candidate’s cognitive skills, behavior, and culture fit, rather than background and amount of experience.

For employees and candidates, this means that adaptability to change will be a desirable trait in the job market. It will be increasingly necessary to learn new things from different areas of business. 

What’s more, workplaces will turn more to solutions like internal knowledge sharing, using internal mentoring programs instead of hiring external trainers. Outsourcing may be a cost that companies going through a financial crisis will want to avoid. Companies will focus more on independence, self-sufficiency, and increased flexibility so they can adapt to changing realities.

  • HR tech and automatization 

Technological innovations continue to enter the HR world and support recruitment processes, among other things. Considering the number of remote or hybrid companies, paperless and remote candidate vetting and hiring processes will become standard. This change, accelerated by the pandemic, will stay with us. It’s also possible that we will see the introduction of new recruitment methods (based on mechanisms used in social media or games) as a way to hire Gen-Z employees.

“HR as a crucial part of the business growth” – Iwona Gruszka, HR Hints Head of Product, predictions

  • Digitization of Talent, People & Culture areas

In 2023, there is still a lot of room to develop IT systems in the areas of Talent and People & Culture – they are still waiting to be fully digitized in those areas where replacing humans makes sense. We have a lot of work to do to change the way we think about HR. HR is about learning how to manage people to make a business thrive, and many HR processes can be automated and optimized. 

Noting these, we decided to build an app that will assist founders in building and managing this human side of the business, relieving them of their increasingly overwhelming responsibilities, and giving managers a tool to support their daily work with teams.

Learn more about Culturivy and our app for founders, managers, and HR >>
  • Post-pandemic measuring of crucial things

We will see a growing interest among founders and managers in supporting the development of their organizations through overwork and post-pandemic burnout associated with blurred boundaries, and lack of any defined work-life balance. 

In the face of phenomena such as burnout or quiet quitting – In 2023 HR needs to learn to measure the People & Culture area. Measure it properly, because today’s measures emphasize the work of managers and leaders, e.g. measuring turnover in teams, and this is only indirectly influenced by HR. We need to move from measuring things without using this information to a real use of HR data for business operations.

“Human face of doing business” – final thoughts from HR Hints Co-founder, Filip Malek

In 2023 it will be crucial for the founders to pay more attention to the human element in what they do, continuing to be welcoming, inclusive, empathetic, and encouraging employees to voice their concerns. Healthy and transparent communication, regular feedback, attention to employee well-being, and their career growth opportunities. Organizations should strive for a people-first culture and make it a priority, not just a buzzword.

In the area of Talent Acquisition, hiring managers will place much more weight on intra- and interpersonal skills in 2023, and these qualities will be much more critical in the hiring process than in previous years. Skills such as empathy, emotional intelligence, mindfulness, adaptability, self-motivation and resilience will become more important compared to technical skills. Employee potential, eagerness to grow, and fitting into the company culture will be much more significant than experience.

What’s certain, HR will no longer play a “support” role in an organization. The economic crisis has shown how important the role of HR is in an organization. Proper workforce planning and operational budgeting are strategic areas. Throughout 2023, founders will also realize that using proper measures and data is a key contributor to people-based strategies, and central to attracting and retaining talent.

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