6th January 2023

Workplace Trends for 2023

What Changes to Foresee in 2023

The past few years have dramatically impacted the workplace and shifted the priorities of both employers and employees. Some changes have come and gone, but some are here to stay. As we head into a new year, we can use current trends to predict what the workplace will look like going forward. Though we can’t know anything for certain, it’s helpful to let our current situation speak to what may come so we can be better prepared to lead our teams well. Here are some of the top trends to be on the lookout for in 2023.

Tight Labor Market

The number of Americans quitting their jobs is still higher than usual. According to Emeritus, 4 million Americans quit their jobs in October 2022, leaving 10.3 million positions unfilled. With so many open positions and so few people to fill them, hiring and retention will continue to be a major focus for companies in all fields. Since competition for top talent will remain tight, businesses will need to work hard to ensure they’re offering valuable reasons for their current employees to stay, and for new employees to want to join them. In a job market like this one, it’s the workers who have leverage; they can be picky about what they’re looking for in a career, a workplace, and benefits. If you could use some insight into what you can and can’t offer when it comes to benefits, check out this blog post for more.

Employee Well-Being

Even though employees are in a place of leverage, their mental and emotional health is still struggling. A shocking 48% of employees say their well-being declined in 2022, while 28% say they are miserable at work, according to a study done by Gympass. Therefore, it’s as important as ever for employers to ensure their team members are being taken care of. We know stress and burnout can lead to high turnover, so companies who prioritize the well-being of their team are not only caring well for their employees, but they are also saving themselves from losing top talent. Putting in the effort to help your team maintain work-life balance and good mental health will continue to be a win for everyone involved.

Employee Growth

Employees who stay with their company during this time of turnover don’t want to stay stagnant, nor can they afford to do so; in our ever-evolving workplace, employees need and deserve the chance to grow within the company. We are seeing a widening skills gap in many areas, meaning there just aren’t enough qualified people to fill the necessary positions. This talent shortage means companies will need to work on upskilling employees by providing ways for them to grow, learn, and become qualified for more positions. These days, especially, there is a big focus on soft skills, so “companies will need to reassess their leadership models and the skills leaders need to succeed in their roles” as we move forward into 2023. Luckily, many employees want opportunities to grow; in fact, lack of advancement is one of the main reasons many people quit their jobs. Thus, this is another priority we can expect to be a continued benefit for both employers and employees. 

Diversity, Equity, and Inclusion

Ignoring diversity, equity, and inclusion (DEI) in any area of your company is simply not an option; it’s too important! Not only is a real commitment to DEI efforts necessary for employee engagement – after all, every one of your employees deserves to feel seen, represented, respected, and treated fairly – but it also has an impact on company finances. According to research done by Accenture, companies are missing out on $1.05 trillion dollars by not being inclusive. This report discusses how prioritizing DEI leads to more productivity as well as financial savings from less turnover. Therefore, in 2023, we can expect to see a continued push for more DEI efforts across the board.

Remote Positions

With such significant positive feedback from employees about remote work, it’s safe to say it’s not going away anytime soon. Though some companies are starting to require employees to come back to the office full-time, many are still focusing on flexibility. For some, this means offering fully remote positions, and for others, it may look more like a hybrid work environment. There are many potential benefits of remote work when it’s done right, which can lead to happier employees and healthier companies.

Pay Transparency

Workers can expect more transparency when it comes to compensation as we head into 2023. By the beginning of the year, “a fifth of all U.S. workers will be covered under pay transparency laws,” according to the Harvard Business Review. Companies can anticipate having more open, honest conversations with their employees about pay and other forms of compensation. Leaders who prioritize these helpful conversations will be more likely to attract top talent to their business.

2023 will likely see a continuation of these trends, among others. From corporate sustainability initiatives to AI and automation, no area of the workforce will remain unchanged, but this isn’t a bad thing. As we discussed here, many of the changes taking place have proven to be a win-win for companies and team members alike, and they will continue to be. 

However, this doesn’t mean change is easy. If you need assistance navigating any of the shifts taking place, we’d love to help guide you! We offer executive coaching to help you be the most effective leader you can be, and you learn more about it here.