{"id":99494,"date":"2023-04-17T14:25:37","date_gmt":"2023-04-17T12:25:37","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=99494"},"modified":"2026-03-27T13:40:18","modified_gmt":"2026-03-27T11:40:18","slug":"future-of-talent-management","status":"publish","type":"post","link":"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/","title":{"rendered":"The Future of Talent Management: Trends to Watch"},"content":{"rendered":"<p data-pm-slice=\"1 1 []\">HR is rooted in people and culture. As both of these are constantly evolving, HR needs to keep on top of changes in trends and the demands of the workforce to stay competitive.<\/p>\n<p>In this article, we\u2019ll explore our expected trends in human resources for 2023 and look at what we think will shape the next 12 months in the HR industry.<\/p>\n<div class=\"js-toc toc\">\n<p class=\"js-toc-title toc__title\">Table of Contents<\/p>\n<nav id=\"fac_toc_nav\" class=\"js-toc-nav toc__nav\" aria-label=\"Table of Contents\"><ol class=\"toc__list toc__list--level-1\"><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-1\" href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/#human-resources-technology-and-analytics\" title=\"Human Resources Technology and Analytics\" data-target-id=\"human-resources-technology-and-analytics\">Human Resources Technology and Analytics<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-2\" href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/#learning-and-development\" title=\"Learning and Development\" data-target-id=\"learning-and-development\">Learning and Development<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-3\" href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/#diversity,-equity-inclusion\" title=\"Diversity, Equity &amp; Inclusion\" data-target-id=\"diversity,-equity-inclusion\">Diversity, Equity &amp; Inclusion<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-4\" href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/#improved-treatment-of-people-with-disabilities\" title=\"Improved Treatment of People with Disabilities\" data-target-id=\"improved-treatment-of-people-with-disabilities\">Improved Treatment of People with Disabilities<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-5\" href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/#greater-diversity-of-age-groups\" title=\"Greater Diversity of Age Groups\" data-target-id=\"greater-diversity-of-age-groups\">Greater Diversity of Age Groups<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-6\" href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/#skills-based-recruitment\" title=\"Skills-Based Recruitment\" data-target-id=\"skills-based-recruitment\">Skills-Based Recruitment<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-7\" href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/#employee-experience,-health,-and-wellbeing\" title=\"Employee Experience, Health, and Wellbeing\" data-target-id=\"employee-experience,-health,-and-wellbeing\">Employee Experience, Health, and Wellbeing<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-8\" href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/#flexibility-in-the-workplace\" title=\"Flexibility in the Workplace\" data-target-id=\"flexibility-in-the-workplace\">Flexibility in the Workplace<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-9\" href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/#esg-reporting-to-talent-acquisition\" title=\"ESG Reporting to Talent Acquisition\" data-target-id=\"esg-reporting-to-talent-acquisition\">ESG Reporting to Talent Acquisition<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-10\" href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/#leveraging-ai-responsibly\" title=\"Leveraging AI Responsibly\" data-target-id=\"leveraging-ai-responsibly\">Leveraging AI Responsibly<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-11\" href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/#transparency\" title=\"Transparency\" data-target-id=\"transparency\">Transparency<\/a><\/li><\/ol><\/nav><\/div>\n<h2>Human Resources Technology and Analytics<\/h2>\n<p>With HR technology now affordable and accessible even to small businesses, everyone can reap the benefits of automating and streamlining those time-consuming processes. Hiring, onboarding, performance management, time management, and career progression across the entire employee life cycle can all be managed more efficiently while giving HR teams more time to focus proactively on business performance and objectives.<\/p>\n<p>All of this technology comes with another benefit, too \u2013 data. <strong>Big data can help HR professionals deeply understand their people and make smarter, more informed decisions on growth opportunities, hiring, employee engagement, and skills gaps<\/strong>; you name it. The potential for creating value through analytics is infinite, and we expect this to be one of the key HR trends this year.<\/p>\n<p><a href=\"https:\/\/factorialhr.co.uk\/ebooks\/people-analytics\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-99496\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112145\/eBook_banner_People-Analytics_11zon.jpg\" alt=\"people analytics free ebook factorial\" width=\"900\" height=\"308\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112145\/eBook_banner_People-Analytics_11zon.jpg 900w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112145\/eBook_banner_People-Analytics_11zon-300x103.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112145\/eBook_banner_People-Analytics_11zon-768x263.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/a><\/p>\n<h2>Learning and Development<\/h2>\n<p><a href=\"https:\/\/www.mckinsey.com\/featured-insights\/future-of-work\/jobs-lost-jobs-gained-what-the-future-of-work-will-mean-for-jobs-skills-and-wages\" target=\"_blank\" rel=\"noopener noreferrer\">About 50% of our current work activities are technically automatable by adapting currently demonstrated technologies<\/a>. <strong>By 2030, 1 billion jobs (30% of the world\u2019s workforce) will be transformed by automation and AI<\/strong>. This means our work will be fundamentally different from what it is today \u2013 even if our whole profession hasn&#8217;t been forced to change.<\/p>\n<p>Learning and development trends will start to reflect this. Upskilling, reskilling, and right-skilling are all taking centre stage as organisations try to address the growing skills gap created by technology adoption and disruption.<\/p>\n<p>Ironically, a<strong>rtificial intelligence and technology will help us<\/strong><a href=\"https:\/\/factorialhr.co.uk\/blog\/artifical-intelligence-training\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong> bridge the skills gaps<\/strong><\/a> with learning on-demand, individualised learning, and artificial mentoring, all helping to improve learning outcomes.<\/p>\n<h2>Diversity, Equity &amp; Inclusion<\/h2>\n<p>Expect more from DE&amp;I trends in 2023. Businesses are beginning to understand that DE&amp;I brings a strategic and financial advantage and that <strong>it is a priority for people when deciding where to work. <\/strong>We think we&#8217;ll see a continued trend toward hiring &#8216;Diversity Professionals&#8217; to help companies meet their diversity goals, as well as increased transparency and accountability in achieving them.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-99506\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17124801\/pexels-moe-magners-7495315_11zon-1024x682.jpg\" alt=\"The future of talent management and hr trends\" width=\"812\" height=\"541\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17124801\/pexels-moe-magners-7495315_11zon-1024x682.jpg 1024w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17124801\/pexels-moe-magners-7495315_11zon-300x200.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17124801\/pexels-moe-magners-7495315_11zon-768x511.jpg 768w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17124801\/pexels-moe-magners-7495315_11zon-1536x1023.jpg 1536w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17124801\/pexels-moe-magners-7495315_11zon-2048x1364.jpg 2048w\" sizes=\"(max-width: 812px) 100vw, 812px\" \/><\/p>\n<h2>Improved Treatment of People with Disabilities<\/h2>\n<p>According to government figures, <a href=\"https:\/\/www.gov.uk\/government\/statistics\/family-resources-survey-financial-year-2020-to-2021\" target=\"_blank\" rel=\"noopener noreferrer\">14.6 million people in the UK are disabled, including 21% of working-age adults<\/a>, making it the largest minority group. Shockingly, a study conducted by recruitment company PageGroup found that 22% of business leaders say they are unlikely to hire candidates with known disabilities, which might explain why only half of the disabled population are in work.<\/p>\n<p>With other trends like flexible working here to stay and renewed government focus on getting the disabled population back into work,<strong> 2023 could be a watershed moment for the group.<\/strong><\/p>\n<h2>Greater Diversity of Age Groups<\/h2>\n<p>Our current workforce is more generationally diverse than it ever has been. There are currently as many as five working generations:<\/p>\n<ul>\n<li>The Silent Generation (1928 \u2013 1945)<\/li>\n<li>The Baby Boomers (1946 &#8211; 1964<\/li>\n<li>Generation X (1965 \u2013 1980)<\/li>\n<li>Millennials or Generation Y (1981 \u2013 1996)<\/li>\n<li>Generation Z (1997 onwards).<\/li>\n<\/ul>\n<p>The government is also trying to get older generations out of retirement and back into work, which will present its own challenges for HR professionals. There is a huge disparity between the wants and needs of these generations, and HR departments need to be mindful of their different values and ensure that policies are inclusive of everyone.<\/p>\n<h2>Skills-Based Recruitment<\/h2>\n<p><a href=\"https:\/\/remote.com\/blog\/degree-vs-experience-how-important-are-degrees\" target=\"_blank\" rel=\"noopener noreferrer\">Recent research has shown that skills-based hiring is up 63%<\/a>. This represents a shift from employers towards adopting a more rounded approach to hiring that includes experience and traditional academic qualifications &#8211; and not disqualifying candidates because of a lack of them.<\/p>\n<p>This trend has far-reaching implications for businesses and individuals. <strong>It vastly broadens the talent pool and removes salary and progression barriers <\/strong>for more than half of the UK workforce without a post-secondary education.<\/p>\n<p><a href=\"https:\/\/factorialhr.co.uk\/templates\/recruitment-dashboard-template\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-99498\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112525\/ENG_Blog_banner_Recruitment-Dashboard-1_11zon.jpg\" alt=\"recruitment dashboard free template factorial hris\" width=\"1000\" height=\"343\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112525\/ENG_Blog_banner_Recruitment-Dashboard-1_11zon.jpg 1000w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112525\/ENG_Blog_banner_Recruitment-Dashboard-1_11zon-300x103.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112525\/ENG_Blog_banner_Recruitment-Dashboard-1_11zon-768x263.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/a><\/p>\n<h2>Employee Experience, Health, and Wellbeing<\/h2>\n<p>The last few years have been turbulent. While we half-expected and half-hoped the emotional toll of the pandemic would wear off with the vaccination, 2022 proved to be another stressful year, with well <a href=\"https:\/\/www.spill.chat\/mental-health-statistics\/workplace-stress-statistics\" target=\"_blank\" rel=\"noopener noreferrer\">over half of employees stressed at work every day<\/a>.<\/p>\n<p>This year we expect a renewed focus on employee wellbeing, with employers leaning into health and wellness and improving the employee experience by boosting employee benefits. Here are some examples of what businesses are offering to show they value employee mental health:<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Gym memberships<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Health food in the office<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Mental health coverage<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Remote working<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Flexible schedules<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Time off before and after busy periods<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Therapy<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Regular social events<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Employee Assistance Programs<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Conflict resolution<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Relaxation techniques<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Unlimited holidays.<\/p>\n<h2>Flexibility in the Workplace<\/h2>\n<p><a href=\"https:\/\/factorialhr.co.uk\/blog\/changes-to-flexi-working-laws\/\" target=\"_blank\" rel=\"noopener noreferrer\">Flexible working<\/a> has gone beyond choosing whether to work from home or not \u2013 it\u2019s about when as well as where. What it really boils down to is trust and whether employers trust their employees to get their work down outside the watchful eye of a manager in a traditional 9-5 office setting.<\/p>\n<p>These are the two trends we\u2019re expecting to make the most noise this year:<\/p>\n<h3>Hybrid Working<\/h3>\n<p>There is a stalemate between employers and employees when it comes to remote working vs. returning to the office. <strong>Employees want flexibility and the option to work from home, and many business leaders want them back in the office.<\/strong><\/p>\n<p>Until now, a hot job market has meant the balance has been in the employees&#8217; favour with the option to leave for new, more flexible pastures if their current situation doesn&#8217;t allow it. But as we move into 2023 and the threat of recession has somewhat cooled the market, <strong>we\u2019ll have to see which side will take the edge this year.<\/strong><\/p>\n<p><a href=\"https:\/\/factorialhr.co.uk\/templates\/remote-work-policy-checklist\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-99499\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112700\/ENG_Blog_banner_Remote-Work-Policy-1_11zon.jpg\" alt=\"remote work policy template free factorial hri\" width=\"1000\" height=\"343\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112700\/ENG_Blog_banner_Remote-Work-Policy-1_11zon.jpg 1000w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112700\/ENG_Blog_banner_Remote-Work-Policy-1_11zon-300x103.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/17112700\/ENG_Blog_banner_Remote-Work-Policy-1_11zon-768x263.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/a><\/p>\n<h3>Four-Day Weeks<\/h3>\n<p>The world\u2019s biggest <a href=\"https:\/\/factorialhr.co.uk\/blog\/four-day-work-week\/\" target=\"_blank\" rel=\"noopener noreferrer\">four-day week<\/a> trial came to an end in December 2022, with more than 90% of participating businesses opting to continue and 18 organisations adopting it permanently. There was also a 65% reduction in sick days and 71% of employees reported reduced levels of burnout.<\/p>\n<p>With the evidence pointing towards better physical and mental health and an improved employee experience, in 2023, the timing might finally be right for the widescale adoption of the four-day week from business and HR leaders.<\/p>\n<h2>ESG Reporting to Talent Acquisition<\/h2>\n<p>Environment, Social, and Governance policies intertwine with talent management continuously. Earlier, we mentioned employee expectations around health and wellbeing and the willingness to leave positions if their workplace values or culture do not align with theirs. But <strong>employees are also happy to trade a portion of their salary in exchange for greater purpose and meaning at work.<\/strong><\/p>\n<p>This means that it&#8217;s not just investors, stakeholders, boards of directors, and consumers looking out for accountability and progress regarding ESG goals, but current and prospective employees are too. <strong>ESG performance must be accurately reported and published to remain competitive in the job market.<\/strong><\/p>\n<h2>Leveraging AI Responsibly<\/h2>\n<p>The introduction of Artificial Intelligence will see massive changes across the whole world of work and the HR industry. <strong>We\u2019re already seeing a greater reliance on AI tools for recruitment, but we must ensure we use these advances responsibly. <\/strong>Governments are already scrutinising the use of AI in HR, and ethical responsibility will likely be mandated before too long.<\/p>\n<p>As of 1st January 2023, New York City requires by law that AI recruiting tools disclose their hiring metrics and undergo an annual bias test.<strong> We expect to see more of this kind of legislation in the future<\/strong>, and although the onus will likely be put on vendors to get ahead of it, it will be an important factor for HR leaders to consider too.<\/p>\n<h2>Transparency<\/h2>\n<p>We know that transparency fosters increased employee engagement, strengthens company culture, helps employees feel valued, and encourages creativity.<\/p>\n<p>Here are two HR trends toward greater transparency we expect to see in 2023.<\/p>\n<h3>Salary<\/h3>\n<p>It\u2019s traditionally been an unwritten rule that <strong>salaries are never discussed \u2013 until now. <\/strong>Our youngest working generation is apparently responsible for the shift away from this, with <a href=\"https:\/\/www.cnbc.com\/2022\/04\/27\/young-workers-share-salary-information-as-pay-transparency-gains-steam.html\" target=\"_blank\" rel=\"noopener noreferrer\">42% of Gen Z workers sharing their salary information with colleagues.<\/a><\/p>\n<p>Encouraging employees to start <strong>talking about salaries more openly will help to further address pay disparity and champion pay equity<\/strong>, particularly among minority groups and women.<\/p>\n<h3>Career Trajectory<\/h3>\n<p>As well as salary, there is also a growing trend toward transparency for talent mobility. Employees are looking for internal growth opportunities and <a href=\"https:\/\/factorialhr.co.uk\/blog\/career-paths\/\" target=\"_blank\" rel=\"noopener noreferrer\">clear career paths<\/a>, and when they don\u2019t have that visibility, they\u2019re more likely not to be interested in taking their career further within that company. Visibility is directly linked to job satisfaction, with 47% of employees surveyed as part of a talent mobility study saying that they would be more satisfied at work if they had more opportunities to explore careers internally.<\/p>\n<p><a href=\"https:\/\/factorialhr.co.uk\/get-started\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-98841\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/12151012\/Get-started_11zon.jpg\" alt=\"free trial for factorial hr software hris\" width=\"900\" height=\"308\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/12151012\/Get-started_11zon.jpg 900w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/12151012\/Get-started_11zon-300x103.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/04\/12151012\/Get-started_11zon-768x263.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>HR is rooted in people and culture. As both of these are constantly evolving, HR needs to keep on top of changes in trends and the demands of the workforce to stay competitive. In this article, we\u2019ll explore our expected trends in human resources for 2023 and look at what we think will shape the<a href=\"https:\/\/factorialhr.co.uk\/blog\/future-of-talent-management\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":161,"featured_media":99505,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[343,337],"tags":[],"class_list":["post-99494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-trends","category-talent"],"acf":{"topics":"talent"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Future of Talent Management: Trends to Watch | Factorial<\/title>\n<meta name=\"description\" content=\"Keep up with the fast-moving world of talent management and human resources 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