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UKG’s top workplace trends for 2023

By Jack Campbell | |5 minute read

In December last year, HR, management and payroll solutions provider UKG revealed its ‘megatrend’ predictions for 2023, as reported by HR Leader. Now UKG has updated its picks as we enter the new year.

DEI policy may see a return on investment

According to a statement by UKG, last year it forecasted that environmental, social, and governance (ESG) policy would be a pivotal decision for a business’ growth and stability. In 2023, UKG says that diversity, equity, and inclusion (DEI) will have this same impact, as companies that invest in DEI policy may see increased engagement and retention, combating talent shortages.


Transparency with employees can improve trust

Garnering trust from staff can have business-wide advantages. UKG says that sharing data and metrics behind leadership choices can enhance standings with employees and allow for greater loyalty and productivity. By providing a reason for why decisions are made, even if the workers don’t agree with the choice, the transparency is appreciated.

Rewards for frontline workers

Healthcare, retail and HR workers have experienced increased pressure through the pandemic. UKG believes that 2023 will see many of these workers leave their roles, resulting in a continued great resignation, with those who stay, reaping the rewards of loyalty through wage increases and promotions. Hiring, training, upskilling, and reskilling should be on employers’ minds in preparation for this prediction.

Greater significance of the middle manager

UKG predicts that middle managers will be in hot demand this year as people are taking demotions and pay cuts to avoid the stress and responsibility of these roles. With more and more people backing out of these positions, demand will increase as employee desire to fill the roles decreases, creating what UKG calls a ‘people-leader paradox’.

Increased compliance

With the pandemic creating instability for industries, UKG says that many have flown under the radar of compliance, which it says will be corrected this year. Financial implications relating to tax, legalities, and change requirements due to hybrid and remote working will be recognised and addressed, says UKG. This includes circumstances of staff working in different countries, as there may be confusion around tax laws when working abroad.

These predictions vary slightly from the ‘megatrends’ outlined by UKG in December last year, but follow a similar leaning of employee wellbeing. The top issues discussed by UKG in late 2022 were:

  • Chronic anxiety;
  • Human energy crisis; and
  • Agility.





Compliance often refers to a company's and its workers' adherence to corporate rules, laws, and codes of conduct.

Jack Campbell

Jack Campbell

Jack is the editor at HR Leader.