For business leaders, keeping pace with evolving workplace is key in 2023

Businesses will undergo a workplace evolution in 2023 as they modify their core infrastructure so they can effectively support their employees in a rapidly changing environment. Our HR experts have identified trends we expect in 2023 as this evolution continues to unfold.

1. Protecting privacy in HR systems: Privacy laws will take effect in five states in 2023, and more privacy-related bills are in the works. Notably, the California Privacy Rights Act extends employees privacy rights already granted to consumers. Though the CPRA only impacts companies with employees in California, HR leaders will be watching how these requirements impact employers. Businesses will benefit from assessing their current systems and determining if privacy management tools will be needed to help adapt to these fast-changing privacy requirements.
2. Targeted strategies that boost employee engagement: On the heels of the “Great Resignation” employers are experiencing low levels of employee engagement, often referred to as “Quiet Quitting.” Two key components drive this trend: a lack of employee engagement and dissatisfaction with pay. Business owners can quell this trend by actively listening to what their employees want. Focusing on retention, which is less costly than recruiting, providing continuing education, and defining career paths will also help employers increase engagement. 
3. Workforce management in a complex regulatory world: Labor laws continue to grant workers additional rights and protections, making compliance increasingly more complex. Noncompliance is costly, so staying abreast of these changes is key in avoiding potential fines, claims, and lawsuits. Small and mid-sized businesses may benefit from working with employment lawyers or an HR outsourcing provider such as professional employer organization, which can help leaders understand new requirements and how they impact their business.
4. Integrating flexibility with organizational structure: Employees continue to demand remote and flexible work options. It’s time for businesses to define their company’s stance — in-person, hybrid, or remote. Communicate it clearly and transparently, then implement necessary policies and procedures.

For companies transitioning to a hybrid or remote workplace, leaders will need to work closely with HR to address challenges, adapt the company model, and ensure employees are set up for success.