Almost three years after the onset of the COVID-19 pandemic, one thing’s for certain: The workplace at most American companies continues to undergo a massive transformation.

According to a recent report by Gartner, 65% of employees surveyed said they were rethinking the place work has in their lives because of the pandemic.

In addition to shining a light on the opportunity to work remotely, the pandemic gave workers good reason to reflect on many aspects of their work life, including an assessment of their personal values. The same report from Gartner showed that 56% of respondents want to contribute more to society as a result of the pandemic.

As employees think about what the future of work looks like for them, companies are under pressure to adapt and transform in order to attract and retain talent. Here are some of the top Human Resource (HR) and workplace trends that are shaping the future of work in 2023.

Hybrid and remote work

According to a new study published in Forbes, the ability to work remotely increases employee happiness by 20%. One of the main reasons? Eliminating time-consuming and costly commutes. In fact, the longer the commute, the more employee happiness goes down.

Many employers are responding by providing hybrid and fully-remote schedules to their employees when possible. In 2022, 58% of Americans were able to work from home at least one day per week, and 38% were not required to consistently work in an office. It’s amazing to consider how much of a shift that represents from the pre-pandemic norm.

The workplace at most American companies continues to undergo a massive transformation.

Flexibility

Not all employees have the type of job that lends itself to working remotely, but many companies are finding ways to offer them flexible schedules.

Some organizations are early adopters of the four-day work week, which has proven to improve employee satisfaction as well as productivity. Other forward-thinking companies are shifting their focus from rigid work schedules based on specific hours to measuring the productivity of their teams through Key Performance Indicators (KPIs).

Technology

Solutions that supported companies and their employees during the pandemic continue to innovate to meet the increased demand for virtual workplaces. In particular, cloud-based tools that offer real-time collaboration are critical to high-functioning teams that work remotely or on different schedules. Video conferencing platforms are adding new features to help teams participate virtually as they would in person. For example, some apps can host breakout groups during a larger meeting or provide collaboration on a whiteboard.

Some company leaders who are still uncomfortable with their employees working remotely are using technology to track their workers. Using “bossware” is a flawed approach to measuring employee engagement and productivity according to this Forbes article, and contributes to a toxic work environment and higher levels of stress.

Artificial Intelligence (AI) and machine learning are helping employers retain employees by automating repetitive, high-burnout tasks.

Data

HR systems and enterprise management platforms like Workday are providing company leaders with valuable insights about their employees. These insights drive decisions that help improve employee experience, increase retention, provide opportunities for career growth, and measure workforce diversity.

As more data becomes available, however, it is critical that companies keep it secure to protect their organizations from harmful breaches and ensure the privacy of their employees.

Training

Many companies are stepping up their support of managers by providing them with increased training focused on current leadership best practices. Inclusive leadership training, for example, not only helps managers overcome unintentional bias, but also improves employee satisfaction.

Upskilling existing employees is helping companies increase retention rates and grow diverse talent into leadership roles.

Providing training on soft skills — sometimes referred to as “power skills” — is particularly important for Gen Z workers who missed out on in-person work experiences early in their careers due to the pandemic. All employees benefit from the opportunity to develop negotiation, active listening, public speaking, and networking skills.

Recruitment

Despite concerns of a recession, employers added 223,000 jobs in December, indicating that while the hot job market of 2022 may not be quite as hot, it certainly isn’t cooling just yet.

Because of the tight job market, professional recruiters understand the importance of appealing to candidates who may not have a job title that matches the role they’re trying to fill. According to recent Gartner research, 56% of job candidates are applying for roles outside their area of expertise. Savvy recruiters are responding, and able to expand their talent pool by focusing on transferable skills instead of job experience when considering non-traditional candidates.

Pay transparency

New pay transparency laws are being enacted by city, regional, and state governments — including in New York City and the State of California — and most HR experts recommend that companies embrace pay transparency proactively, before they are legally required to do so. Pay transparency is the practice of being open about pay, both with candidates and employees, in an effort to reduce pay gaps by gender and race. 

Increasingly, candidates expect to see salary ranges on job postings, and professional recruiters agree. Being transparent about pay during the interview process saves both hiring managers and jobseekers time, builds trust, and reduces frustrating misunderstandings about compensation.

Employee well-being

Most HR professionals understand the importance of employee well-being, which not only helps retain employees, but also contributes to a thriving company culture that attracts the brightest new talent.

The pandemic was a tipping point for mental health globally, and many companies have responded by encouraging authentic discussions about mental health and providing resources for employees and their families to help them cope with trauma.

Another way companies have supported their employees’ well-being is through the support of Employee Resource Groups (ERGs). These employee-organized groups foster a sense of belonging, provide connection and understanding, and organize special events.

DEI

Diversity, Equity, and Inclusion (DEI) strategies continue to be a critical focus for companies committed to creating truly inclusive workplaces that welcome employees from all backgrounds.

Despite pushback from some employees — 42% feel DEI efforts are divisive, according to a recent Gartner study — most people believe that DEI aligns with their personal values. Another study showed that 81% of respondents would consider quitting their jobs if their companies were not committed to DEI.

Sustainability

Employees also respect and appreciate companies that are proactively reducing their carbon footprint, and many view the ability to work remotely as an important step toward sustainability.

It’s important to employees that companies go beyond simply making a pledge to sustainability, and walk the talk by measuring their reduced impact on the environment and reporting it on a regular basis.

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