Gartner: How to navigate HR uncertainty in 2023

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The 2020s so far have been incredibly disruptive for businesses. HR has been on the frontline – this business function has been reacting to ever-changing external circumstances, plus trying to get ahead of emerging trends around employee expectations.

The volatility of the past three years is showing no signs of slowing down in 2023.

This year, on top of existing challenges like the future of work, as well as labor and skills shortages, “HR leaders face an increasingly unpredictable and uncertain economic environment”, which “ will impact how organizations operate and how the workforce develops”, Gartner HR’s senior director Emily Rose McRae tells UNLEASH.

HR is going to have to “make tough decisions on what they should prioritize this year”, she adds. To help, Gartner has made some advice for HR leaders for 2023 and beyond.

The ‘Great Resignation’ is going nowhere

First coined in May 2021, the ‘Great Resignation’ has remained consistent throughout 2022. Employees have continued to quit in droves across the US and Europe, and 2023 will see more of the same.

Despite the economic uncertainty, “higher than ‘normal’ (pre-2020) attrition is here to stay, as workers will have more options available to them than they would otherwise, thanks to the widening pool of potential roles that comes with hybrid work”, according to McRae.

On the topic of hybrid, Gartner is very clear that hybrid is the future of work and that companies revoking pandemic-era flexibility do so at their peril.

“Organizations that resist hybrid working are setting themselves up for long-term reputation and attrition risks”, says McRae.

“With technologies continuing to evolve, a more virtualized future is inevitable. Organizations that are innovating and getting the most out of hybrid work now are setting themselves up for success in the future.”

Of course, there are still challenges with hybrid, particularly around proximity bias and connection, but forcing all employees back on-site full-time is not the solution.

Yes, there are some jobs that do not allow for remote work. But to create an equal experience for all, employers should rethink the flexibility it offers to frontline workers who have to be in-person.

Flexible working isn’t just about location, it is about hours. It is high time that employers follow in the footsteps of Tyson Foods and use technology to give frontline workers more control over their schedules.

In dealing with connection and collaboration challenges, McRae advising that “instead of relying on the hope that simply being in the same space will lead to connection, leaders need to find more intentional solutions”. This includes “ensuring that the time spent on-site is valuable for employees”.

Emily Rose McRae, senior director, Gartner HR.

Rethinking hybrid amid burnout crisis

Central to why organizations must not roll back on workplace flexibility is that remote and hybrid work has been proven to be good for employee engagement and productivity.

While the pandemic helped employees to achieve a better work-life balance, there were still issues around switching off from work and setting boundaries between work and personal lives.

This, and the significant upsurge in the number of virtual meetings, fed into 2022 being the worst year on record for burnout. A Gartner survey of 3,500 workers found that 58% are stressed and 48% are worried about work.

Therefore, McRae tells UNLEASH: “In 2023, organizations need to consider how they can redesign the employee experience in a hybrid workplace which prioritizes rest and recovery.

“Leading organizations will implement proactive rest to help employees maintain their emotional resilience and performance rather than offering rest as a recovery solution after they are already burnt out”.

Managers also have a crucial role to play – “with the introduction of remote and hybrid work, managers became the single point of contact for many employees”; this meant managers were taking on increased responsibility around employee wellbeing and morale.

This is having an impact on manager’s workloads and their wellbeing – “many might be pushed to breaking point as they navigate the conflicting needs of their peers”. In this context, managers need better support ad more training so they can look after their team, and themselves, better.

Ultimately, dealing with burnout will help employers avoid being hit by the worst of the ongoing ‘Great Resignation’ – extreme stress has been a major cause of attrition over the past year and a half.

‘Quiet hiring’ and a refocus on L&D

The ‘Great Resignation’ isn’t the only HR buzzword that has emerged in the 2020s. In fact, 2022 was the year of the buzzword, and particularly so-called ‘quiet’ trends like ‘quiet quitting’, ‘quiet firing’ and ‘quiet constraint’.

Now Gartner has added a new one to the mix – ‘quiet hiring’.

McRae explains: “One of the most significant shifts anticipated is the slowing pace of hiring on the back of all-time highs witnessed post-pandemic” – despite the ‘Great Resignation’, hiring freezes are in full force across many organizations, and layoffs are gaining momentum particularly in tech and finance.

“As a result, organizations will become more reliant on the development of their existing workforce” – this is a huge problem for businesses that cut back on training and learning during the pandemic.

“In 2023, organizations will be forced to shift focus back to learning and development” plus “pursue alternative employment models and rethink talent pools to include non-traditional candidates”, adds McRae.

Technology has a part to play here; “skills management, learning experience platforms and internal talent marketplaces are cited as the most important areas for tech in the company year”.

But importantly, employers don’t necessarily have to invest in brand new technology, but instead better deploy and optimize the tech they already have.