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The problems that confronted the global economy in 2022 — high inflation, supply chain disruptions, talent shortages and the ripple effects of the Russian invasion of Ukraine — continue to affect organizations in 2023. The new year has brought new disruptions as well, from bank failures and political crises to the arrival of generative artificial intelligence. Organizations that had hoped to grow this year are now scaling back their ambitions and bracing for a possible recession, as rising interest rates, difficult talent markets and lagging digital transformations serve as anchors on potential growth.
In times like these, HR leaders find themselves under pressure to control costs, streamline processes and maximize the value their talent strategies create for their organizations. With fewer resources at their disposal, they must work even harder to secure critical investments in current and future talent needs. The good news is that CEOs and business leaders recognize the importance of talent in their future strategies and view the workforce as a top business priority for 2023. The challenge for HR leaders is to identify the talent investments that will most help the organization weather economic uncertainty and position itself for future success, while remaining within its means.
This journal is a timely resource for HR leaders trying to plan for the uncertain months and years ahead. Within it, CHROs will find guidance on how to improve their strategic leadership skills and gain a seat at the table where critical business decisions are made. We present budget
and staffing benchmarks that HR leaders can use to identify where they can cut costs and where they must invest. We also consider the trade- offs organizations can make to keep their total rewards offerings competitive amid high inflation and limited budgets.
To help HR leaders navigate today’s uniquely challenging talent market, we look at ways to build trust throughout the recruiting process
to keep candidates engaged and improve the likelihood of successful hires. For organizations that have to lay off employees, we offer some solutions for rebuilding morale and sustaining engagement among those who remain. Another article highlights the importance of remaining committed to diversity, equity and inclusion, even in an economic downturn, and shows how CHROs can continue to support these goals when resources are scarce. Finally, we hear from thought leader Keith Ferrazzi about how HR leaders can make their workforces more resilient in a radically volatile world by embracing
radical adaptability.
While HR leaders cannot predict where the global economy will go in the next six months, they can plan for the challenges that may lie ahead and take steps to make their organizations more resilient to disruption. HR leaders should seize the opportunity provided by this economic uncertainty to demonstrate HR’s strategic value and continue evolving the function to drive greater returns on talent investments.
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