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Employee Recognition

5 HR Trends for 2023: What to expect and prioritize this year

Future of work

As we move past the changes brought on by the global pandemic and further into our new world of Work, the field of human resources continues to evolve and adapt to the changing needs of organizations and employees. As we look to the future, there are several trends that are likely to shape the HR landscape in 2023, such as employee recognition and well-being.

Here are 5 of the most significant trends, and the role that employee recognition will play in each. 

1 –Virtual and remote work will continue to shape the HR landscape

remote work

Over the past few years, the COVID-19 pandemic has accelerated the shift towards remote and virtual work, and this trend is likely to continue in 2023. Organizations will need to adapt their HR policies and practices to support employees who are working from home or other remote locations. With remote work comes new barriers and one big barrier is ensuring employees remain feeling valued in this new remote world. This will include developing new communication and collaboration tools, as well as providing training and support for employees who are new to remote work. There is now less face to face interaction, which can cause employee appreciation to be less and less. Recognition and rewards programs are now more important than ever to help employees feel valued for their contributions. There are also recognition and rewards software that can help automate these recognitions, celebrations and service awards and are set up to be easily accessible in a remote work environment. 

2 – Employee well-being will become a top priority

employee recognition

As the world continues to grapple with the mental and physical health impacts of the pandemic, employee well-being will become an increasingly important issue for organizations in 2023. 59% of Millennials report feeling burned out often, meanwhile only 31% of Boomers report the same. HR professionals will need to develop and implement policies and programs that support employee well-being, including mental health support, flexible working arrangements, employee appreciation programs and employee assistance programs. It’s shown that programs such as a recognition and rewards program can help with employee well-being and burnout. 25% of UK employees said the lack of recognition is one of the top three reasons for their burnout at work (Visier, “Burnt Out Britain,” 2021).

3 – Artificial intelligence and automation will transform HR


The increasing use of artificial intelligence and automation in HR will change the way that organizations recruit, train, and manage employees. HR professionals will need to stay up-to-date with the latest technologies and develop new skills to be able to effectively use these tools in their work. To add, 37% of Americans are worried about automation displacing them from their jobs. Because of this, it’s crucial to continue to build a culture that feels human and supports the whole human, which is where recognition and rewards can help. Being able to have a program in place where employees can recognize their colleagues for a job well done, continues to build on that feeling of connection, regardless of where everyone is working from. 

4 – Data-driven decision-making will become the norm


With the growing use of technology in HR, organizations will have access to an unprecedented amount of data on their employees. HR professionals will need to develop the skills to analyze and interpret this data, and use it to make informed decisions about recruitment, training, and performance management.

5 – Employee recognition will become more important than ever

employee recognition

Employee recognition has always been an important aspect of human resources, but in 2023, it will become even more critical. With remote and virtual work becoming the norm, it will be more challenging for managers and supervisors to observe and recognize employees’ contributions. In the USA, up to $600 billion in productivity is lost each year due to “actively disengaged” workers. Organizations will need to develop new ways to recognize and reward employees for their hard work and achievements, such as through digital platforms and non-monetary rewards. Employee recognition programs will also need to be flexible, as employees’ preferences for recognition will differ based on demographics and other factors. 47% of employees want to receive a spontaneous and personalized reward. It’s crucial to think about how to make your recognition and rewards program unique to each individual employee to have the maximum impact. An easy way to do so is through employee recognition and rewards platforms that are customizable based on each company’s unique needs and values. 

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Overall, the HR trends in 2023 will be shaped by the ongoing effects of the pandemic, the increasing use of technology, and the changing needs of employees. HR professionals will need to adapt their policies and practices to support remote and virtual work, prioritize employee well-being, stay up-to-date with the latest technologies, develop new ways to recognize and reward employees, and use data to make informed decisions. Rewards and recognition is a prevalent component to every trend for 2023 as it can really help to enhance the employee experience in this new work environment (remote & hybrid work) and help to keep employees engaged regardless of where they are working from.

As we move forward, it’s important for organizations to stay aware of these trends and adapt accordingly to support their employees, improve organizational performance and increase employee satisfaction.

If you are interested in learning more about how recognition and rewards can help you stay on top of these trends in 2023, book a demo here to learn more.

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