Spending the Talent Budget: 3 Employee Programs to Invest In For the Rest of 2023

After an unprecedented shortage of talent for the last two years, in which we saw the expansion of employee influence in the workplace, the labor market is finally cooling. And, while that takes some slight pressure off of HR departments everywhere in terms of winning talent, it comes at a time in which budgets everywhere, in every department, are getting shrunk down in preparation for difficult financial times, including a possible recession. 

Employee tastes, attitudes, and behaviors aren’t expected to change anytime soon—meaning that they still care as much about finding purpose-driven, values-aligned work as they do about pay (that wasn’t just a lofty feeling from the pandemic). 

So, under these conditions, what’s the best way to allocate the talent budget for the rest of 2023? How can HR leaders be sure they’re getting a return on their investment in benefits, competitive salaries, and other perks when every dollar counts? 

Read on to find out what employee programs to invest in for the remainder of the year and how to make the HR budget go further. 

Invest in Human-Centric Technology 

For the remainder of 2023, nearly half of HR leaders cited technology as their top investment priority, according to research from Gartner. And while it might not seem like an employee-centric HR program—it is. People leaders everywhere are scaling up their human-centric tech solutions—such as skills management or learning experience platforms—to streamline the employee experience, boost retention, foster collaboration, and improve productivity (and save time and money on administrative tasks). 

Plus, to attract and retain tech-savvy Gen Z (and Millennial) employees, companies need to modernize their systems and overall brand so they can grow a workforce that carries them into the future. 

Improve Learning and Development

Career advancement and upskilling opportunities are the top non-negotiables for job seekers in 2023, but less than half (45%) of employees agree that their organization’s learning is relevant. That means there’s an opportunity for employers to invest in and build a stand-out L&D program that actually helps employees grow in their careers—and helps them find purpose in their work. 

Workforce learning and development benefits both employees and the business. An impressive 93% of CEOs who introduced advanced workforce upskilling programs reported increased productivity, improved talent acquisition and retention, and a more resilient workforce. 

Expand Flexible Work Options

One trend that stuck around after the pandemic: a greater emphasis on employee mental wellness and holistic well-being in the workplace. And that’s not changing anytime soon since HR leaders have woken up to the negative effects of a burnt-out workforce, including lowered productivity, higher turnover, poor customer interactions, and more. 

However, employers have also—thanks to the pandemic—woken up to the fact that employees that have time to take care of themselves are less burnt out and better workers (well-rested managers get an extra four hours of productivity and six hours of focus in a 40-hour work week). 

As such, it’s key for HR leaders to spend time and money in the second half of the year really figuring out what flexible work policies help their workforce thrive, and it’s not a one-size-fits-all solution.

While companies like Netflix take this concept to the extreme by allowing employees to choose their own work hours, there are less drastic ways to improve employee quality of life—like summer Fridays, work-from-home options, and flexibility for working parents. 

For more insights into how employers are balancing the talent budget, where to invest in HR in 2023, and how HR departments can be sure they’re getting a return on their investment in perks, competitive salaries, and great benefits, tune in for this week’s episode of America Back to Work: Expert Interview Series. 

We’re sitting down with Natalie A. Smith, a best-selling author and human resources expert with more than 20 years of experience covering a broad scope of human resource functions, including staffing and employment, benefits design and administration, training, and development, strategy planning, executive coaching, employee relations, organizational design and development, policy design and development and HR compliance. 

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