Successful businesses know that the return on investment (ROI) is not solely generated by the marketing and sales departments. Delivering a better ROI should be a priority for every facet of a business, including the human resources team. This is especially important, as a bad hire can cost an employer up to $50,000. To improve ROI and ensure strong organizational performance, it is essential to continuously improve the quality of hires and efficiently fill strategic roles within a company. The following article lists the top HR trends that will help your company maximize profits in 2023.
Focus on Employee Engagement
The research has shown that engaged employees outperform their non-engaged colleagues by 202% - adding more value to people who are passionate about the job. Employee engagement has also been proven to lead to higher shareholder returns. Higher employee engagement supports better revenue from customer satisfaction and higher revenue and decreases costs from lower turnover.
Unfortunately, on average, only 15% of employees are engaged in the workplace. This means that the majority of the workforce is doing the bare minimum to make it through the day with little to no emotional attachment. With that in mind, creating a personalized employee experience becomes an increasingly important factor in getting a better ROI in 2023.
Organizations should frequently ask employees for feedback or consider implementing an employee listening strategy to ensure workers get a positive employee experience. The feedback from employees can help managers identify and fix issues that most impact worker engagement, productivity, and retention.
Promote Diversity and Inclusion
Last year's Annual Recruiting Trends report found that diversity, equity, and inclusion was the top trend for 2022. More and more HR leaders realize the importance of diverse hiring and its role in a company's success.
The research by McKinsey Global Institute shows that gender-diverse organizations' financial performance is 15% better. Moreover, workplace inclusion has critical implications for employee experience. High belonging is linked to a 56% increase in performance and a 50% drop in turnover risk.
Although this hiring trend is relatively new, the numbers overwhelmingly indicate that the implementation of DEI strategies provides a myriad of positive business outcomes. Therefore, companies should aim for a more diverse workforce and inclusive culture that welcomes, appreciates, and values employees of all backgrounds.
Automation
Automation is among the most important trends fueling growth and productivity in the workplace that are significant enough to impact the ROI. There are two significant benefits of using HR technology; automated features save time on hiring new employees and increase candidate experience for people involved in the hiring process.
Effective HR management software attracts and retains top talent and ensures all HR processes are optimized, placing employers in the best position to achieve better ROI. Around 83% of HR technology adopters state they see a positive return on investment. Automation doesn’t just stop at people management, it also helps with candidate screening and sourcing.
AI-powered recruitment tools can identify qualified candidates from a large talent pool helping significantly improve the quality of hires. For instance, Employa uses artificial intelligence to source candidates from ATS as well as externally. The software allows users to set unlimited search criteria and assign different levels of importance to them for more accurate search results.