What are your plans for the future of your business? While your roadmap might be clear, and your objectives solid, one thing remains to be true: the future of work is evolving at an erratic rate.
Yes, no one can predict the future with a 100% success rate, but you can always look back at past and current trends to catch crucial hints of the bearing where you can align your company’s sails.
Since we’re at the halfway point of 2023, the timing is just perfect to review some of the future of work trends that have persisted up to this point—and those that might continue.
Trend #1: The focus on employees’ well-being and mental health
“Take good care of your employees, and they’ll take good care of your customers—and the customers will come back.” —J. Willard Marriott; American Entrepreneur and Businessman
If your company were a body, your customers would be the lifeblood of your business. In a similar fashion, your employees are like the skeletal structure that keeps the company up and running.
This H1, more and more companies have started putting a premium on employee experience—and for good reason, too. After all, the benefits of doing so speak for themselves: higher productivity, great employee retention rate, and positive work culture.
This new focus has seen businesses initiating new strategies to ensure that employees are satisfied, content, and mentally in a good place. Here are some examples we’ve seen over the first half of the year:
- Offering learning, upskilling, and development opportunities with clear career paths
- Social gatherings (whether in-person or virtual)
- Rewards and recognition programs
- Adding health benefits to the compensation packages
- Offering free counseling
- Enforcement of better work-life balance
Will this future of work trend continue? Our verdict is a resounding yes. As more businesses start to understand how employee experience impacts the business bottom line, they will be more than willing to invest in it.
Trend #2: Skills-based hiring over degrees and experience
Gone are the days when employers would hire a candidate solely based on their educational attainment. As seen over the course of H1, businesses have embraced the fact that the lack of a specific degree is not equivalent to a lack of skills and competencies.
Today, many companies are already removing the degree requirement. Individuals who have the right skills and expertise can be hired even if they didn’t have a relevant degree.
Will this future of work trend continue into? Definitely. 76% of employers know that skills-based hiring gives them access to a richer pool of talents, according to The State of Skills-based Hiring in 2022 by TestGorilla.
Trend #3: Global mobility and remote hiring
Remote work has made it possible for businesses to grow and scale internationally without having to put up physical offices in different countries. Hiring an Employer of Record makes it even easier.
Flexibility is the keyword of the future of work trends. And nothing emphasises that better than global mobility and remote hiring. After all, remote workers can work in environments where they’re most focused and comfortable—boosting their productivity. And because they’re working from home, they can spend more time with their family and satisfy their work-life balance.
Adding up all these points will not only give you overall higher productivity but also higher employee retention rates.
Will this future of work trend continue into? Yes, definitely! Hiring globally opens up your business to a much bigger pool of talent. It’s also more cost-effective, as it can help you reduce your overhead costs (office space, utilities, etc.). As more companies plan to expand globally, they will be embracing remote hiring. On the other hand, there will be companies that will also implement a hybrid setup.
Trend #4: Blended workforce of humans and AI
As early as 2022, about 35% of companies adopted AI tools and this continued during H1. This trend shows no signs of slowing down too, with 80% of retail companies expected to adopt AI tools by 2025.
As companies continue to grow, efficiency becomes a priority. Here’s where automation helps with minimising the manpower you spend on tedious and repetitive tasks. But no—humans will not be replaced by AI. In fact, the future of work sees companies being manned by both man and technology.
Humans can leave the menial time-consuming tasks to AI-driven bots while they focus on the tasks that need more critical thinking and creative strategizing.
Will this future of work trend continue? Without a doubt. As early as H1, we’ve also seen the dawn of a new type of job—the AI operators.
Trend #5: Doubling down on labour law compliance
When companies first started exploring the possibility of hiring workers in different countries, they realized that this included a ton of legal implications. After all, each country had its own taxation laws and government-mandated benefits.
Violating labour laws is no joke. It can cost your company millions in penalties and damages—regardless if your violation was accidental or not. Employee misclassification is just one of many labour laws that companies need to avoid at all costs. Aside from the financial consequences, this can impact employee morale.
One example is the most recent case that happened in May 2023. Nike was found guilty of misclassifying thousands of their employees, and could end up paying over $530M in penalties.
Will this future of work trend continue? It should—as it is extremely important for global companies to comply with the proper labour laws in their employees’ or contractors’ respective countries. An EOR can help facilitate this process for growing companies.
Can you confidently navigate the future of work and beyond?
The future of work trends, while unpredictable, can still leave behind patterns for businesses to decipher. At CXC, we have decades of experience helping global businesses like yours navigate the ever-changing landscape of work—both locally and internationally.
When it comes to changing industry trends and updates that concern talent acquisition, workforce management, and payroll facilitation—we will be with you every step of the way to ensure that you remain compliant and that processes remain smooth.
Are you ready to gear up for 2023? Reach out anytime and we’ll help you craft a strategy specifically tailored for your company.