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HR Trends to Watch Out for in 2023

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Here are our top picks for 2023 HR trends and predictions

There has been a lot of press about HR predictions or trends for 2023. Here are our thoughts on what’s essential for growing businesses in California to know.

There are many predictions that the Optima HR team has been staying on top for 2023. Of course, we don’t always pay attention to everything we read.  The trends we focus on depend on the organization we are working with and what they are trying to achieve.

HR Trends that can Impact Businesses

  • 73 percent of employees now work hybrid or remote schedules
  • 43 percent of employees are working fully remotely. 

Why do employees prefer a hybrid work setup? With a hybrid work setup, they are able to manage their time better. It also boosts productivity and creativity because employees experience different environments. It helps integrate work and life, which creates a balance between the two.

The Optima Office team is about 85 percent remote. Surprisingly many of our consultants enjoy being able to go into their clients’ offices, even if it is once a week. Many of our clients are trying to get the employees back into the office beginning the first quarter of 2023.

Performance Management

Performance management is the practice of continuous communication and feedback between employees and managers. It aims to achieve organizational goals. It focuses on Performance development, adding realistic and attainable goals to employee performance evaluations. It gives employees a path to know where they can go within the organization.

Why does this approach work? First, it works because it creates individualized accountability. It holds both the manager and the employee accountable. As it is a continuous process, they are able to address current performance successes and opportunities. It becomes continual coaching. And lastly, it works because it effectively establishes the expectations for the employee.

For 2023, we will be rolling out our official Performance Management program called “Optimal Path to Success.” It helps to give your program a name. New hires will be introduced to this on their first day as a part of their onboarding process, and the process will be reinforced during quarterly all-staff meetings and internal communications. Employees will know where they are and what they need to do. 

For example, there is a clear path outlined from Accountant to Sr Accountant or Accounting Manager to Controller. We do this by outlining the experience, skills, training, and assessments the employee needs to complete to get that promotion.

Improved Employer/Employee Communication

Another HR trend is Improved ER/EE communication. We all know how frustrated employees are with supervisors and managers that don’t communicate well or only communicate when they are not doing something well. Relations between managers and employees are critical for the success of any business or organization. When relationships are strong, you can expect increased job satisfaction, greater productivity, and a better sense of community in the workplace. In order to create and maintain positive employee relations, it is important to learn how to communicate effectively with each other to foster an environment that retains top talent and attracts potential new employees.

Coach your team daily and talk about the good things and the areas that the employee needs to improve on. Statistics show that employees feel that even after they have a dialogue with their managers, the interaction was bad.

So how can businesses do better? 

Implement Performance Management tools such as “PerfomYard.” Tools like these will help you step up your review game. At Optima, the head of HR is personally involved in meeting with at least 35-40 percent of the employee Performance review meetings. She spends anywhere from 30-45 minutes reviewing manager and co-workers' worker reviews and their self-evaluation. We want to know how they feel about Optima and their work and how we treat them. 

We want to hear from them about what they want to learn next. It has been a great experience. We also can’t forget the importance of following through when we ask questions. If you don’t want to know or if you are not planning on trying to improve things shouldn’t ask your employees. 

Want to stay on top of the HR trends this year? Click here for 2023's HR Guidelines.


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