The last two years have created unprecedented changes in the work industry. The COVID-19 pandemic served as the impetus for many of these changes that are continuing into 2023. HR leaders have new challenges ahead as we enter the new year. They are finding that employees are looking for changes in the workplace and companies have to take note.
The future is hard to predict, but data and other information from HR leaders have led many to believe that certain changes are either in the works or not far away. This includes changes in compensation and health benefits.
Companies that want to remain successful will have to alter their methods to align with the current wants and needs of employees. This is an effective way to improve hiring and retention rates. All of this places HR departments at the forefront of determining which changes will place their companies on trend with what employees want.
Popular HR Trends in 2022
In 2022, we saw many new trends take shape across various industries. Last year, we saw many people trade in their demanding, stressful jobs for more easy-going jobs that promoted a healthy work-life balance. There were some of the top trends of 2022:
Flex compensation – It allows workers at some companies to choose between base salary and restricted stock units. This gives employees more control over how much they save and earn.
Four-day work week – Many companies shifted the work week to only 32 hours. This is part of the change employees said they were looking for in that it provides more time for doing things you enjoy.
New benefits – Some companies chose 2022 to begin offering new health benefits for workers including in-vitro fertilization, donor eggs, and surrogacy.
Start With Impressive Salaries
One of the expected changes for 2023 concerns employee salaries. HR leaders must learn more about compensation information to improve hiring practices and employee retention rates.
Some suggest that employers begin gathering statistical data about compensation for their industry and market. HR leaders must look at what other companies offer employees and make necessary changes.
HR experts believe another important change is communication between employers and employees about compensation. This step strengthens trust between the two parties.
Bonuses and New Perks
Human resource departments will have to get creative in 2023. They have to begin thinking of new ways for retention such as offering bonuses or other incentives. This could come in the form of shorter work weeks or on-the-spot bonuses. If companies cannot come up with the money to incentive employees to stay, they’ll have to think of new, out-of-the-box ways. Taking time to cultivate these new methods will benefit employees and companies.
New Understandings from Venture Capitalists and Boards
Another expected shift in the industry concerns board members beginning to require companies to issue time-based goals and report achievements on pay parity. The latter refers to the practice of paying employees in an equitable fashion.
The reason for this expected change is that investors are learning that companies that implement equitable practices tend to outperform the competition. Some expect we may see boards backed by venture capitalists start being more selective about the initiatives they choose to fund.
What Employees Want From Health Benefits
We’re learning more about the type of companies where employees want to work. Data shows that health benefits greatly impact an employee’s decision on whether to remain with a company. HR leaders have found that mental health and reproductive health services are near the top of the list for many workers. This is a sign to companies that they need to seriously consider their health benefits and also take a look at other closely related benefits such as paid time off and sick days.
Alltrust: Helping Your Company Stay on Trend
The Alltrust Insurance team can help your company stay on trend with the latest in human resources. We offer services such as cost management services, technology support, and more. We’ll help you determine which type of employee benefits package best suits your company and the needs of your employees. Our services aren’t limited to companies of a certain size. Whether your company consists of two employees or into the thousands, the Alltrust Insurance team can assist you. Contact us today by clicking here!