Challenges and Opportunities for HR Professionals in 2023: Navigating Layoffs, Workforce Ecosystems, and Purpose-Driven Organizations
By Marc Bishop
Partner at HR Path
As we head into 2023, there are several key issues that companies and HR professionals will face. We will explore some of these challenges and how HR can address them.
Lay-off in the “tech” sector
The first challenge that we will explore is the great lay-off in the technology sector. Major tech companies such as Amazon, Salesforce, and Meta have announced significant redundancies, which will impact the job security of those who remain employed. HR professionals will need to own the lay-off process while also being a part of it, which presents a unique challenge. Furthermore, this change in the balance of power from employee to employer may lead to less home working as people return to work to be present during times of change. This raises important questions, such as what impact this will have on other industries and whether you are being told to start planning staff lay-offs.
Managing workforce ecosystems
The second challenge is managing workforce ecosystems. While HR has traditionally focused on permanent employees, contractors, gig workers, and employees working for supply chain partners play an increasingly important role in the company’s service delivery. In about 40% of companies, one in four workers is a gig worker, meaning a big part of the total workforce goes unmanaged. HR will need to become actively involved in managing its contingent workforce and integrate these workers into the HR value chain. This is not only a must-do from a value creation perspective but also from a risk viewpoint. We encourage you to recognize this issue in your organization and consider how recruitment firms such as HR Path can help their clients manage contractors and gig workers who are often found by the recruitment specialist.
Creating purpose-driven organizations
The third challenge is creating purpose-driven organizations. People want to join and stay in organizations that have a purpose that connects with wider society’s environmental and social goals. A purpose-driven organization will become a key differentiator when recruiting talent in 2023 and beyond. HR will need to build purpose into the employer brand while ensuring that they can connect with college and school leavers as well as the older members of the workforce. This is a challenge that HR professionals need to embrace and overcome.
As a progressive HR consultancy business, we aim to challenge our clients on issues such as these. We hope that this blog has given you something to think about, and we encourage you to address these challenges in your organization. By embracing these challenges, you can create a better future for your organization and its workforce.