2023 Report
State of People Strategy
How HR Drives Results in Times of Change
introduction
Over the last three years, organizations navigated a global pandemic, the switch to remote work, and a Great Resignation. Next in line: navigating economic uncertainty, inflation, and a potential recession. For HR leaders, it’s all in a day’s work.
The 2023 State of People Strategy Report distills those leaders’ perspectives, priorities, and challenges — and the practices that make them succeed against all odds.
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The 2023 State of People Strategy Report distills those leaders’ perspectives, priorities, and challenges — and the practices that make them succeed against all odds.
10%
20%
30%
40%
50%
Employee Engagement
Talent Acquisition
Manager Training
Learning and Development
Performance Management
DEIB Programs
A new crisis means new priorities.
Retention has taken priority over recruiting.
RETENTION IS MOST IMPORTANT
ACQUISITION Is MOST IMPORTANT
Survey Question: When balancing investments across talent acquisition and retention, which best captures your company’s priorities in the next 12 months?
Key Insight: You can’t hire your way out of a recession. Recruiting has gone from HR’s second-highest priority to its eighth. Teams are reinvesting in engagement and diversity, equity, inclusion, and belonging (DEIB).
“The most important thing you can do for your employees is listen to what they want and need. The world has changed.”
Farrah Jessani Mitra
Founder at Green Reed
Key Insight: Among the third of HR leaders worried about employee facetime, most are concerned with connection, career conversations, and morale.
“The basic idea of hybrid work has really been normalized, but the implementation and execution are still in experimentation mode.”
Dave Carhart
VP of Lattice Advisory Services
6
2
7
5
%
of employees want pay transparency
of employees know the pay band for their job level
When we surveyed employees about pay, the message was clear. They want more transparency and equity from their organizations.
At over half of companies, pay ranges are known only by HR and finance. Just a quarter of employees know their own range.
Key Insight: Employee expectations and a wave of new pay equity regulations are pressuring HR teams to lift the veil on pay. HR teams cite employee reactions, manager readiness, and privacy as roadblocks.
Comparing the priorities of low and high-performing teams
Low performing teams
High performing teams
0%
20%
40%
60%
80%
Linking pay and performance
Greater pay equity
Training programs for reducing bias
Clear employee growth paths
Investing in HR analytics
Key Insight: The highest-performing HR teams share several things in common. When you invest in the things employees care most about — like equity, growth, and DEIB — you don’t just improve retention and engagement, but also achieve better business outcomes.