2022 was a volatile year for HR & workforce
I would say 2022 was just a recoil period from the massive stress that Covid-19 had on every organisation’s business and processes. The pandemic situation had no precedence and hence every organisation experimented with lots of changes and ways of working. The Great Resignation was about people looking for more purpose and meaning driven outcome rather than routine and mundane office shift jobs which also triggered hiring on a large scale. But, towards the second half with the global slowdown on cards, driving efficiencies, lean structure and enhancing productivity were the only moat left with companies. Hence, the layoffs.
2023: Will it be a turmoil again or peace?
For HR, the war for talent always existed and will continue to. In 2023, it looks like the organisations will have more of an inward focus. We will surely see lot of action in:
• Organisation restructuring
• Cost optimisation
• Productivity enhancement
• Driving efficiency
• Capability building
To me, 2023 seems to be a busy year and will keep support as well as line functions on their toes.
To me, 2023 seems to be a busy year and will keep support as well as line functions on their toes
Balance between rising inflation and changing employee expectations
The best employers are becoming sensitive to the fact that the market is changing faster than ever and adopting more flexible compensation practices. The commitment of a competitive pay can only be kept by regularly reviewing compensation. The annual increment budget can be segregated into:
• Inflationary Increase Budget – Mid-year flat salary increase purely based on Cost of Living Index hike
• Merit Increase Budget – Performance based salary increase
• Rewards Budget – Enhanced rewards to offset rising costs
The pandemic has transformed the way people prioritise their well-being. Compensation is critical but not the only driver of employee experience. The employee should have a real choice to customise the rewards and benefit basket as per individual need.
Debate on moonlighting to continue
In my view, acceptance of the ‘gig workforce’ gradually will take over this discussion. Moonlighting then will no longer be seen as an ethical or legal constraint, rather it will be seen as an opportunity to have knowledge and expertise sharing across organisations at the same point in time. For SMEs, this would mean an opportunity to earn more and be flexible with how, where and when they work.
33 leaders predict the upcoming trends for 2023. To find out more click here.
