Top 10 HR Lessons from 2023

Hello and welcome to my newsletter! If you’ve been forwarded this, please join over 6700 people and subscribe here so that you receive future newsletters straight to your email inbox ??As we step into the evolving landscape of Human Resources in 2024, we should reflect on the past year.

2023 brought about unprecedented challenges and opportunities, pushing HR professionals to adapt swiftly to the dynamic demands of the modern workplace.

In this article, we delve into the heart of HR practices in the UK and unveil the Top 10 Lessons learned from the tumultuous yet transformative year that was 2023.

Financial support is no longer a nice to have, it’s a necessity

The paradigm has shifted and financial support is not merely a luxury but an indispensable necessity. In 2023, organisations recognised that prioritising robust financial assistance is imperative for employee wellbeing, engagement and overall organisational resilience.

We learnt that:

• 74% of HR managers believe the financial crisis is negatively impacting the work of their employees.
• 28% of staff decreased their spending on socialising.
• More than 2.4million fixed rate mortgages will expire in 2024

What can HR do you ease the financial burden?

1. Boost financial IQ
2. Ensure your EAP is equipment for 2024
3. Said and promote financial wellbeing
4. Provide discounts on employee spending

We are still competing for the best talent

In 2023 organisations had to embrace new approaches to attract, engage and retain top talent. We were hit with the talent drain following brexit, high inflation levels and losing our staff to the United States, the rest of Europe and Asia (CEO of the London Stock Exchange.

As we move into 2024, we need to ask ourselves:

1. Are people connected to our mission
2. Are we recognising people enough
3. What are we doing to engage employees across their lifecycles with the company
4. Are we communicating what people need from us?

Workplace disconnection is on the rise

In 2023 we witnessed a surge in workplace disconnection, as remote work became widespread. This phenomenon underscored the critical need for HR strategies that address employee isolation and foster a sense of belonging. Understanding and mitigating this disconnect emerged as a pivotal lesson, with the following stats being released:

• 2 out of 3 don’t feel a sense of connection and belonging at work.
• 1 in 4 experience loneliness frequently or very frequently at work.
• Lonely people are half as likely to be inspired to go above or beyond.
• Lonely people are twice as likely to have taken 10 or more unplanned days off.
• Lonely people are twice as likely to be looking for a new employer.

Beating burnout should be a top priority

Beating burnout emerges as a paramount concern. Recognising its profound impact on employee wellbeing and organisational productivity, prioritising burnout prevention strategies is crucial to fostering a resilient and thriving workforce.

• 39% say the largest negative impact over the past few years has been on their well-being.
• Over half frequently experienced stress at work.
• Over 1 in 5 say workplace burnout has an impact on their overall impact on their overall mental health and well-being.
• 89% of global employees say, feeling listened to by leadership is important to their well-being at work.

Top global employee “must haves”

• 67% of employees want fair pay.
• 56% of employees want a manager who cares.

How can we beat burnout?

1. Put the basics into place
2. Be proactive, rather than reactive
3. Provide a platform and support for employees to voice concerns
4. Be mindful of the different needs of people
5. Make sure you’re well-being resources are easy to access

Recognition can be powerful

72% of UK employees agree their work wellbeing, would improve if they were simply thanked more for the hard work

54% of UK employees agree that recognition for the work would make them feel more connected at work

Meaningful authentic appreciation

• Celebrate progress – not just final results
• Recognise the impact, not just the action. of the employees that frequently experienced stress at work, 74% rate recognition as poor) of the employees that frequently experienced burnout at work, 66% rate recognition as poor
• Say thank you and send your employee a voucher for a drink
• Recognise employees for good work - feelings of competence, and mastery, release, dopamine, a neurotransmitter that triggers pleasure and motivation.
• Help employees, see the purpose of their work and feel valued - feelings of autonomy and soulmates, release serotonin, a neurotransmitter that regulates mood
• Encourage positive connection with others - interactions, involving trust and kindness, release, oxytocin, a hormone involved in bonding and social learning

We need to walk the walk with Diversity, Equality and Inclusion

How to walk the walk?

• Go above and beyond box ticking
• Accommodate for generational diversity
• Be mindful of neurodiversity
• Ensure social mobility is part of the agenda

ESG should be reflective in your employee value proposition

Gen Z are driving the trend of climate quitting, and ESG strategies are influencing employment choice.

Employees expect companies to have a clear sustainability strategy to stay working with them.

54% of Millennials say they research a brand, environmental impact and policies before accepting a job offer.

Corporate social responsibility is one of the most important influences on the public reputation of your company

Steps you can take towards sustainability

1. Introduce Volunteer days
2. Cycle to work scheme
3. Support local communities
4. Green car scheme
5. Carbon offsetting/tree planting
6. Align with the United Nations sustainable development goals
7. Implement recycling strategies at work
8. Review your suppliers and their sustainability practices/mission.

Adapting your EVP to the multi-generational workforce is key

There are now FIVE generations in the workplace - with Gen Alpha set to join in 2026!

By 2025, 39% of the workforce will be millennials, and 23% will be Gen Z employees.

A multigenerational employee value proposition has never been more important.

Final Thoughts

The HR landscape in the UK underwent significant transformations in 2023, from embracing remote work as a permanent fixture to prioritising employee wellbeing and diversity and inclusion emerged as the non-negotiable pillars.

What are your lessons from 2023?