Global HR Outlook Q4 2022
As the year winds down, business and HR planning for 2023 is underway. With geopolitical tensions, high inflation, and recession fears setting in, the new year may be a difficult and volatile time. Nonetheless, the unemployment rates remain low in major economies. HR hiring is still solid, although we have seen a shift away from talent acquisition mandates and towards more talent management, leadership and learning roles as organizations focus on retention, culture, and development. In general, the market has become “stickier”. Top talent seems to be well retained and expensive to extract.
OD and change remain hot specializations as HR functions continue to transform. These skills are sought after either in a specialist guise to replace or complement external consulting resources, or as part of a CHRO or senior HR leadership mandate where business partners are expected to be strategic change and transformation agents. Total rewards remains busy, especially for experienced and creative benefits experts.
Another interesting global trend is a move to more flexibility in role location when it comes to regional and global heads of CoEs. In the past, it has been rare to see these positions located outside of a global or regional headquarters. We are now seeing more flexiblity and preparedness to move the role location to where the talent sits. We believe this is being driven by a mix of top talent availability and cost, with companies also being more comfortable with the post-pandemic notion that we can work effectively from anywhere. This trend is limited to CoE roles and does not apply to HR partnering/head roles requiring proximity to business leaders and/or specific geographic knowledge and experience.
HR tech-stack innovation is a growing priority on the CHRO agenda, as companies automate while balancing the critical high-touch people experience journey. HR/people operations, employee experience, HRIS, and people analytics skills are in demand as a result. As HR functions become more efficient and leaner, an ability to embrace innovative technologies, and optimize through these disciplines is becoming a ‘must’ for HR leadership looking to build and leverage a contemporary, business-friendly, best practice platform for their function.