7 trends in the world of work in 2023 (2023)

Business leaders' hopes are warped that the world of work will return to something semblance of normal as the pandemic recedes as an all-consuming force. After all, the last two years have devastated the employer-employee relationship; It's human nature to want a breather.

But as we examine the trends for 2023, we encourage you to prepare for another year of great work-related opportunities. The continuing talent shortage, the growing emphasis on sustainability, the need for new leadership skills, and other factors mean that companies and leaders must be more agile, proactive, and focused than ever before to succeed.

Here's a look at the top trends for 2023.

1. Talent shortage and upskilling

It's at the top of our list because it'ssuper-Trend faced by all companies. The shortage of skilled workers is by no means a new challenge. Unleashed by the digital and green transition and exacerbated by the COVID-19 pandemic, the shortage of skilled workers will not abate even in the face of emerging economic headwinds. Many companies are struggling, especially when it's more important than ever to attract, retain, and engage the best employees. The talent industry will continue to play a pivotal role at a critical time of transition, as it is people and their skills that must solve the world's challenges.

The global economic outlook for 2023 is complex.Many believeInflation has recently peaked or is about to peak, and moderate growth or even a modest decline is forecast for many regions. Furthermore, the world is facing political turmoil and even turmoil.OECD Sea, labor markets remain tight and well below pre-pandemic levels, and lower-wage sectors continue to lag. Normally, such an economic climate would create a buyer's market, but these are not normal times for work.

The tight job market that began with the Big Layoff will continue with mixed results. One is that the college graduates of the class of 2023 may have a much easier time finding their first job than the classes of 2020 and 2021 did when Covid turned the world upside down. In fact, it is a national association of universities and employers.for studyfound that companies plan to increase graduate hiring by nearly 15% and that employers believe the class of 2023 is entering a "very good to great job market."

The current tight job market means it's crucial for companies to manage their talent well. This means thatWorkforce planning: having a talent strategy to anticipate future talent needsand upskilling and reskilling workers is vital for businesses to remain resilient and "future-proof" in the face of the unexpected, such as market volatility, in the face of economic headwinds.Inflation,the green transitionand future supply chain crises. This is an important part of an overview of sustainable employment. We will detail this later.

2. Skills for leaders to avoid giving up in silence

When we talk about skills development, we usually refer to the upskilling or upskilling of workers with technical skills. Additionally, leaders at all levels, from managers just graduated to the C-suite, need to update their leadership skills to move the company forward. The secrets to increasing employee retention and reconnecting colleagues with the company culture lie in the hands of managers and leaders.

These skills increasingly revolve around personal and business purposes. Workers, especially younger ones like Generation Z, look for meaning in their work. That's why it's so important for employers and organizations to show how their work is connected to a larger purpose.

While it has always been important for leaders to update their skill set, it is more important than ever, and the landscape has changed, with a greater focus on making employees feel heard, respected, and committed. Today's teams are likely to be multigenerational and geographically dispersed. Workers are more prone to burnout as the stress of Covid, an uncertain political and economic environment and the "change fatigue" of restructuring accumulate. The truth is, nearly half (48%) of workers globally say they worry about burnout.phenomena includedThe great reassessmentand "quietly surrender" was the result; If leaders are to stay close to their employees, motivate them, and create effective succession plans, they must remain resilient, and that may require mentoring or coaching.

In fact, brands as diverse as McDonald's, Nestlé, and GE Gas Power have recently introduced mass training at many levels of the organization.to help managers at different levels develop communication skills, manage conflict, think strategically, stay customer focused, and promote diversity and inclusion. This trend will continue and accelerate in 2023 as employers look to maximize their in-house talent and reduce turnover.

3. The power of internal mobility

As talent increases, it is clear that talent rCustomer retention will be critical in 2023, helping the savviest companies create a competitive advantage. provide training and reskilling of workers and opportunities for labor mobility in general,can make a big differencehere, but many organizations don't know how to create this culture of growth.

As we discussed, employers will continue to work hard to find the right skills. If they can't effectively develop their best talent into the best positions, they risk losing employees and their competitiveness. In fact in our lastFuture global workforceMessage,career developmentwas the third most common reason for respondents to change jobs after salary and work-life balance. With almost a third of workers (27%) saying they will leave their jobs in the next 12 months, companies are taking it seriously.

This report showed how companies risk shutting down their talent pipeline if they fail to create career paths and retrain or upskill talent. We found that only about half of the workersYou think your company regularly evaluates or invests in your skills. For non-managers, the situation is even worse: less than 40% believe their employer does this. And the employees are often right about that! About a quarter have never had a career interview with their manager. The lack of conversation is directly proportional to the visibility of employees and the incentive to seek internal development opportunities. Less race talk means less progress.

In 2023, HR leaders must deliver a new value proposition to employees, adapted to changing times; Growth, development and internal mobility will be key components of this proposal.

4. CHRO ascending

The crucial role of talent management today confirms that hiring managers will continue to gain importance. This trend, which started in 2020 when the COVID-19 pandemic put HR. H H. front and center, will continue in 2023 as C-suites and boards recognize that the skills that make a great CHRO also make a great CHRO. a great CEO.

There are already examples of this process. Mary Barra, CEO of General Motors, was previously the company's vice president of human resources. and Leena Nair was CHRO at Unilever before becoming CEO of Chanel.

There is a reason for this trend.leadership surveyshowed that companyCHROs should keep in mind when trying to fill the CEO position. Attracting talent, creating the right organizational structure, and building a supportive work culture are seen as essential to driving strategy. Experience as a CHRO, the researchers say, increases a senior leader's likelihood of success in these areas.

Regardless of whether or not a CHRO becomes CEO, the role is more important than ever. Moving forward, organizational design and change management will be critical to business success, as will effective talent and workforce planning that anticipates future talent needs. The CHRO should not only be a consulted stakeholder here, but the driving force behind the strategic imperatives.

As we explore in this article, retaining top talent is a crucial task for companies today to avoid losing knowledge. This requires creating a culture of inclusion and safety, as well as internal mobility. The CHRO must be close to the people, understand their needs and respond to them. Overall, good talent management is essential for organizations looking to stay resilient in the face of economic and other adversity. Ultimately, that's up to the CHRO.

5. Sustainable employment, or where sustainability takes over the HR strategy

At a time when ESG is competing with energy costs and supply chain disruptions, people-hijacking strategies become critical to sustainability.

In fact, the attractiveness of talent, the physical, mental and financial health of workers and long-term employability can no longer be separated from an organization's ability to create long-term value, sustainable performance and resilience. Employers face fierce competition for talent in an extremely transparent marketplace with social media feedback that can make or break employer brands.

In this environment, employers must strive for excellence every step of the way to full employment. Is the way you attract your talent really inclusive? Are you investing in the employability of (all) your employees instead of replacing them when their skills are outdated? Do your employees recognize the purpose of your company as sustainable? Do you have an alumni program for those leaving your company? And all of this is backed by an empathic leadership style?

Therefore, investing in workforce circularity becomes a must in 2023: connecting profitability and purpose in your workforce will enable your organization to go beyond a great onboarding process, wonderful dining rooms, or extensive offerings. training to adopt articulated sustainable employment practices.

6. Change labor market policies to protect workers

For many, temporary work serves as a means to achieve sustainable employment and employability; it can mark a first step, a next step or a return to the job market. Agencies that are properly run and regulated offer numerous protections and rights.Agency work is not just sustainable workitself - but it also leads to progressOtherssustainable employment opportunities. This is why proper regulation is so crucial for accredited agencies, workers, and society in general.

Therefore, it is particularly discouraging that the world has seen movements in the wrong direction of late.In 2021, Mexico faced several non-compliant employment agencies. They recruited and hired without respecting the rights of workers and without paying taxes or other mandatory contributions.

Unfortunately, the Mexican government has banned the sector entirely, instead of enforcing existing rules to curb rogue agencies and possibly clarify its regulatory framework. The shift had unfortunate but predictable results: a year later, workers previously employed by royal agencies had largely moved into the informal sector. These workers still do not have access to social protection and assistance in collecting taxes.

Mexico's unfortunate move appears to have had a ripple effect in the region; Peru and Chile were considering similar measures, although some companies were more receptive to commercial input, looking for a real solution to a problem rather than making a token gesture.

We have also seen similar movements in Europe, Norway and the Czech Republic. In both countries, policy makers see a vulnerable group of workers in the labor market. Actions must be taken to protect workers, but bogus measures that limit the ability of agencies to serve millions of job seekers may not be the right thing to do.

The labor market has some actors that do not comply. We see this, for example, in discussions about platform work and the abuse of (fake) models of self-employment. In many cases, however, the applicable standards are not lacking. We believe that temporary work is, in fact, the most regulated form of flexibility.

However, what is often missing is proper and efficient enforcement targeting high-risk areas, rather than increasing corresponding restrictions on access to flexible work. In 2023, we expect a greater focus on the effective application of labor market policies to protect all forms of work. This is where the real difference can be made.

7. New form factors: Web 3, DAOs and Metaverse

More recently, the world of work has been rocked by the rise of decentralized autonomous organizations, or DAOs, and the Metaverse. We believe they will have a significant impact in 2023. Our 2022 Global Workforce of the Future study found that nearly half (46%) of Gen Z workers believe Metaverse will become part of their work in the future, and perhaps most importantly, youwantto work in the metaverse. While DAOs are a lesser-known concept, 67% of Gen Z workers have worked on one or are considering one.

Through every actionDAOS are hot. The number of DAO and the number of its participants skyrocketed (through some measures, they went from 13,000 to 1.7 million people worldwide in 2021).

DAOs mark another step in people's growing ability to work when, where, and for whom they want. But they also raise questions about accountability and how the emerging space of Web 3 should be governed. What happens when the walls between organizations come down? Will the exchange of talents be a beginning of the future of flexible work?

While no one can claim to have all the answers to the future implications of DAOs and other decentralized structures, this is an area that business leaders should monitor and educate themselves on.

The same applies to the metaverse.The pandemic has accelerated the adoption of remote and hybrid work, but what many are still missing is the human desire for a more interactive and cohesive remote work experience. We believe thatMetaversoAlthough dismissed by some as a place for trivial socializing, it can help bridge that gap. In addition to the enormous gaming opportunities, there areare innovative metaverse appsin the fields of health, fashion/design and art.

As the metaverse continues to be embraced and matures, virtual twins of physical workspaces can satisfy the desire to connect and interact with teams and colleagues, break down barriers, and enhance organizational culture and engagement.

Like DAOs, the Metaverse opens the door to new labor regulations and new ways to handle leadership development and training. But the Metaverse is still in its infancy, and many questions have been raised about its effectiveness and practicality. As with DAOs, leaders need to examine the metaverse in 2023 and keep track of its opportunities, gaps, and buy-in.

Looking to the future

In today's digital world, where workers have unprecedented power and are not hesitant to use it, leaders need to be smarter and more adaptable than ever. Keeping an eye on these key trends can result in greater talent retention and a happier workforce in the coming year.

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