Top 9 HR Best Practices in 2023

Recent years have created many challenges for HR professionals. As the workforce and the nature of work continue to evolve rapidly, HR professionals are constantly adapting to new challenges and finding innovative ways to attract, retain, and develop talent.

What Are HR Best Practices?

What are HR practices? Human resources practices refer to the various policies, procedures, and programs that an organization uses to manage its workforce. These practices cover a broad range of areas, including recruitment, team onboarding, performance management, training and development, compensation and benefits, employee relations, and compliance with labor laws and regulations.

Here are some of the HR best practices in 2023 that are helping organizations stay ahead of the curve.

Human Resource Best Practices

1. Flexible work arrangements

Thirty-five percent of job holders can work from home full-time, and 23 percent can do so part-time. (McKinsey)

One of the biggest human resource best practices in recent years has been the rise of remote work, which was accelerated by the COVID-19 pandemic. In 2023, remote work is expected to become even more prevalent, with many companies offering flexible work arrangements that allow employees to work from home, the office, or a combination of the two. This not only helps employees achieve better work-life balance, but it also enables companies to tap into a broader pool of talent and reduce their real estate costs.

The related trend here is a 4-day week. In Britain, companies conducted an experiment with a 4-day working week: stress decreased, and turnover increased. About 71% of employees reported lower levels of burnout.

2. Skills-based hiring

Thirty-five percent of recruiters believe soft skills assessment will shape recruitment in the next decade. (LinkedIn)

As the pace of technological change accelerates, it's becoming increasingly difficult for a company to find candidates with the right mix of technical and soft skills. To address this challenge, many companies are shifting their focus from traditional qualifications and degrees to skills-based hiring. This one of the HR best practices involves assessing candidates based on their specific skills and competencies rather than their educational background or work history. This helps companies identify candidates who have the potential to succeed in a rapidly changing business environment.

3. Employee wellness and mental health

Over 80% of employees whose employers are engaged in their wellness say they enjoy work. (Zippia)

With the COVID-19 pandemic taking a toll on people's mental health, many companies prioritized employee wellness and mental health initiatives. This kind of human resource best practices includes offering resources such as mental health days, access to counseling services, and mindfulness training. These initiatives improve employees' well-being and enhance their productivity and engagement.

4. Diversity, equity, inclusion, and belonging (DEIB)

2 out of 3 job candidates seek companies with diverse workforces. (Glassdoor)

Top examples of HR practices always include DEIB initiatives due to the challenges its non-compliance creates.

In 2023, companies will continue prioritizing diversity, equity, inclusion, and belonging in their hiring practices and workplace culture.

This reasonably popular trend is one of the best HR practices since it is a hot topic in society. They include setting specific DEIB goals, training on unconscious bias and cultural competency, and creating employee resource groups (ERGs) to support underrepresented groups. By fostering a more inclusive workplace, companies can attract a broader range of talent and improve their overall business performance.

5. Continuous learning and development

68% of employees prefer to learn or train on the job. (LinkedIn Learning)

With the pace of technological change and the need for new skills, continuous learning and development have become essential for employees to stay competitive. This is a must-have of HR best practices 2023.

In 2023, companies will continue to invest in employee training and development programs that enable employees to upskill and reskill. This includes offering access to online courses, coaching, and mentoring programs. By investing in their employees' development, companies can improve their retention rates and ensure they have the skills they need to succeed. Don’t neglect these human resource best practices to achieve success in 2023.

6. Increased use of HR analytics

38% of HR professionals agree that HR analytics are very effective at providing insights to HR leaders. (Oracle)

This is reasonably the best HR practice. HR analytics helps to make informed decisions about workforce planning, recruitment, performance management, employee engagement, and other HR processes.

It benefits organizations, including increased efficiency, cost savings, better decision-making, and improved employee engagement and retention.

Predictive analytics is an increasingly popular use of HR analytics, which uses statistical models and machine learning algorithms to forecast future workforce trends, such as employee turnover and retention rates. Find out more about predictive analytics here!

The success of HR analytics depends on its integration with HR strategy and the organization's overall business strategy. HR analytics should be aligned with the organization's goals and objectives and used to inform HR decision-making at all levels.

Overall, the increased use of HR analytics is expected to continue as organizations seek to leverage the power of data to improve their HR functions and drive better business outcomes.

7. Focus on agile HR

63% of HR leaders are taking steps to be more agile. (Gartner)

Take agile into account when planning HR best practices 2023. Agile HR is an approach to human resource management that emphasizes flexibility, speed, and responsiveness in HR processes. It is based on the principles of agile methodology, which originated in software development and has since been applied to other business areas.

Implementing agile HR requires a shift in mindset and culture and changes to HR processes, tools, and systems. It requires a commitment to continuous improvement and a willingness to experiment and adapt to changing circumstances.

Agile HR can present challenges in areas such as workforce planning, performance management, and compliance. It requires a balance between agility and stability, and organizations must meet legal and regulatory requirements.

8. Rise of the gig economy

The share of workers in the USA participating in the gig economy rose by 15% in the 2010–2020 decade. (CNBC)

The gig economy has created new opportunities for organizations to tap into a pool of freelance talent for short-term projects or specialized skills. HR departments need to be able to identify and attract these workers and may need to develop new recruitment strategies to target gig workers.

Among the best practices, HR managers should pay attention to the gig economy. This trend is growing, with more workers seeking flexible, project-based work arrangements. Organizations are exploring ways to tap into this talent pool and integrate gig workers into their workforce.

Engaging and retaining gig workers can be challenging, as they are typically not as invested in the organization as traditional employees. HR departments may need to develop new engagement strategies to keep gig workers motivated and aligned with the organization's goals.

9. Greater emphasis on employer branding

Every year, organizations spend roughly $2,500/employee on employee experience. (Gartner)

Organizations are investing in employer branding initiatives to attract top talent, build a positive reputation, and differentiate themselves. They implement such human resource management best practices to stay competitive.

In today's competitive job market, organizations must differentiate themselves from other employers to attract the best candidates. A strong employer brand can help to attract top talent and reduce recruitment costs.

A strong employer brand can also help to retain employees by creating a positive work environment and culture that aligns with their values and goals.

Also, employer branding can improve business outcomes by attracting and retaining the right employees, increasing employee engagement and productivity, and improving customer satisfaction.

How To Improve Your HR Practice With a Recruitment Platform?

Automated recruitment platforms can be a powerful tool for improving hiring results.

Here are some ways you can use Axterior recruitment platform to improve your hiring process:

1. Use data analytics: Axterior can help you gather and analyze data about your hiring process. By analyzing metrics such as time to fill a role, source of hire, and candidate quality, you can identify areas for improvement and make data-driven decisions.
2. Use automated profile filling: You can use Chrome Extension to add all the candidates’ information to the Axterior system, helping you identify top candidates more quickly and accurately.
3. Personalize communication: Axterior can help you personalize your communication with candidates by sending them targeted messages based on their stage in the hiring process.
4. Create a positive candidate experience: You can create a positive candidate experience by streamlining the application process, providing regular updates, and offering candidates the ability to schedule interviews at their convenience.
5. Foster collaboration: Recruitment platform fosters collaboration between hiring managers, recruiters, and other stakeholders by providing a centralized platform for communication and tracking.

By leveraging the power of automated recruitment platforms, you can improve your hiring results and build a more effective and efficient hiring process.

Conclusion

We’ve considered the human resource management best practices. Most of them are circular and stay on the annual top lists for many years. But you should take them into account when thinking about HR policies and recruitment strategies.

Of course, these are far from all the HR best practices that are noted in the HR community. These are the most relevant development vectors that need to be considered to attract the most professional specialists and increase efficiency.

If you feel that you don’t keep up with the trends, try to eliminate routine tasks and concentrate on the strategic steps. For example, automate your recruitment processes with the recruitment platform. Try Axterior for free today!