25 days into the new year and what a start it’s been!
When it comes to the workplace, 2022 was a rollercoaster that cemented the ever-lasting effects of the pandemic. With growing expectations to continue hybrid working practises, we saw the tech industry undergo a massive hiring spree - unfortunately in which we are now seeing the repercussions of - and with that came inflated salaries to compete for the best talent.
However that bubble was bound to burst and it has, the R word (recession….👀) has taken centre stage coupled with the cost of everything going up, it’s been a tough end of 2022 and that’s spilled over into 2023.
I’m still holding onto my positive outlook for this year but it’s certainly looking like it will be a challenge for everyone - employers and employees alike. But where there are challenges, comes the opportunity to tackle these and find ways to make the best out of a tough situation.…and that also applies to the workplace.
So, what can we expect to see this year?
💡1. Recession and inflation will force employees and businesses to take action
At this point, the tech world has been bombarded with layoff after layoff and it doesn’t seem to be stopping. Just this week, Spotify announced that they will be cutting 6% of their workforce, joining the rest of the big tech companies we all know!
Many companies are already taking action to promote growth, reduce expenses, and reduce risks. Whilst layoffs may not be avoidable, the manner in which they are conducted is the real focus.
LinkedIn is filled with first-hand accounts of employees being let go in the worst ways - a game of odds if your badge works that day comes to mind - and whilst it’s never an easy conversation, handling this situation correctly is not only the right thing to do but also goes a long way to proving the values that many companies say they are about - their people!
💡2. Career mobility and upskilling will be top priorities for employees
According to LinkedIn's "2022 Global Trends Report," upskilling and opportunities to grow at their current job are two top priorities for employees, coming only behind work-life balance, compensation and flexibility.
People feel less prepared for their next career move and desperately need more support, partly due to the pandemic but also because of changing job requirements and an unsteady job market.
The World Economic Forum predicts that over half of all global employees will need to upskill or reskill by 2025 to keep up with the evolution of jobs.
So, how do you develop an upskilling strategy?
Check out this great article written by Zavvy
💡3. Companies will continue to improve their well-being support
While employers have been working hard to implement mental health well-being support in the workplace, there is still a lot that can be done. This buzzword will still be a top priority in 2023.
Adding to the employee well-being conversation, it’s all about how the job, from its responsibilities, expectations, stress levels and working environment impacts an individuals health & happiness.
Especially in the remote/ hybrid nature we find ourselves in, it’s even more important to promote a sense of integration and belonging. Employees feel more and more empowered to find the right fit as their priorities in work and life change.
💡4. Automation and AI will enter the workplace in new ways
With the hype around ChatGPT, automation & AI had to make the top 5 list.
It is common knowledge that many modern “smart” technologies can carry out traditionally 'human' tasks like speech recognition, information gathering and calculating tasks.
Normally these technologies are made to help reduce repetitive tasks rather than completely taking over employee’s jobs. In fact, some people believe that AI will create more jobs than it destroys but time will tell on that debate.
Many companies are already using smart tech across their businesses from automating customer service tasks to achieving environmental and sustainability goals. Using tech to reduce carbon use by optimizing things such as heating and electricity.
💡5. Pay transparency will become more common
Pay transparency is a key topic.
It is viewed as a way for employers to build trust with employees, boost engagement and productivity. Along with this, the secrecy surrounding pay has only exacerbated long-standing racial and gender pay gaps.
Many changes are to be expected in 2023 and beyond.
Pay transparency laws are in place in many US states, and more are anticipated to follow. Although some EU countries already have their own laws regarding this, the EU Pay Transparency Directive won't go into effect until 2024.
A research into pay transparency conducted by Talent.com found that 78% of job seekers in England believed that salary transparency is a good thing, with 74% arguing that it creates a fairer environment for both the worker and their colleagues.
Insight from the research report by Talent.com
Employers should remember that paying employees fairly can increase employee retention and boost productivity by about 10%.
What other trends would you add to this list?