HR Trends Report 2023

Allgo's 5th annual HR Trends Report, giving a snapshot of the HR landscape and predictions for the year ahead. The report was compiled based on an in-depth survey of over 250 HR Leaders and Managers in January 2023.

Download the full report here for free - https://info.allgo.ie/hrtrendsreport2023

To summarise the key findings:

Employee Engagement is the No. 1 Challenge and the No. 1 Focus for HR Professionals in 2023. This could be a by-product of the Remote Working trend, which is clearly here to stay. 80% of companies are operating remote or hybrid working, and almost 70% are not looking to change this in 2023.

Employee Retention is still an issue, but the situation is easing slightly. Recruitment is not going to be as challenging this year as in previous years.

The issue of Cost of Living can be clearly seen in the fact that Pay is still the biggest factor in recruitment, and that Comp & Benefits is the No. 1 retention tool. For the first time, since 2019, Bonuses have also become a Top 10 factor in retention.

However, we are also seeing employees valuing Work/Life balance, Company Culture and Company Leadership, so it's not all about pay. Similarly, Company Communications and Training & Development are becoming increasingly important.

Companies are coming under more Cost Management pressure, and together with some easing in the labour market, the expected average wage inflation is 2.8% for this year compared with 3.7% a year ago.

On a similar topic, a record 66% of Irish employers are now using the Small Benefit Scheme, which increased to €1,000 per employee per year in 2022, not just as an employee reward but also we feel as a means of both pay moderation and an aid for employees in dealing with the cost of living crisis.

Is this the year that Employee Engagement and Remote Working dominate HR, while Cost Management requirements raise the prospect of a more challenging business environment ahead?