As we enter 2023, one thing is very clear. The pace has not slowed down. In fact, quite the opposite. To many it feels like they’re speeding up. Certainly with economic unrest, more pressure is on companies now to meet higher targets and as things funnel down, this gets passed on to workers to produce more.
The challenges for 2023 and the global workforce will felt by everyone; workers and employers alike. Just when we thought we might catch a break in 2023, the impact of COVID10 continues to wreak havoc on a already stretched workforces and economies globally.
What’s fueling these challenges?
The Great Resignation
The great resignation saw so many people deciding to quite their jobs. Some decided it wasn’t worth working for such low rates, while others jumped ship to get themselves better situated.
Competition for Talent
Companies continue to struggle to find the talent they need. This is true in all levels of work and all over the world.
Economic Uncertainty
In 2022, we started to see layoffs and into 2023 this is continuing. Companies are scaling down with the economic downturn and to prepare themselves with talks of recession part of daily household conversation. This was also evident with many large multinational companies cancelling large orders with their vendors.
How till this impact the workforce in 2023?
Worker’s Market
Talent, like real estate shifts between a buyer or seller market, but with talent it’s the a worker’s market or the employer’s market. Right now it’s more of a talent market. Companies looking to find the right talent and capabilities to fill roles have to meet the market requirements to attract the talent they seek. This includes offering remote work, salary packages, benefits. With workers having the upper hand, they’ll be seeking roles that meet their expectations along these lines.
Technology, Security, Surveillance
More people are choosing to work remotely, while more remote roles are being offered by companies. As a result, companies are having to fine tune and upgrade their technology, with IT leading the way. In 2022 we witnessed many data breaches and firewall hacks with warnings about possible global cyber attacks and grid vulnerability. Because of a more remote workforce and access to systems, companies are having to update their digital security to combat increased exposure.
Surveillance goes hand in hand with increased technology and security. We’re seeing companies now monitoring their systems constantly internally and externally, in addition to their workers throughout the day. This is likely to continue on into 2023 and some companies may even turn to biometrics for identify verification.
Flexibility
Workers and companies alike now have the ability to scale their operations, taking on new clients or projects as required. With economic uncertainty, this allows companies to scale their workforce and costs, as they respond to the market. This trend will continue into 2023 and beyond with remote working now the new norm, fueled initially by the pandemic, but now continuing by choice in some circumstances and by necessity in others.
Artificial intelligence and Automation
People are becoming more aware of AI’s capabilities. In particular, Chat GPT, an advanced AI tool, has recently emerged on the global arena, showing just how far AI has progressed by being able to produce intelligent, intellectual, coherent text and documents rapidly based on use input. It can now mimic a particular tone of voice or style, providing vast opportunities for content producers. More companies will embrace AI and automation, as they invest in their future and upskilling or reskilling their workforce to adapt to the new technologies.
The Gig Economy
Bringing together technology and flexibility, the gig economy gives freelancers and self employed workers the ability to choose when and how they work. The gig economy has exploded in the last few years and will continue to grow matching workers to tasks via various platforms.
In fact, its global market size is expected to swell to $455.2 billion by 2023 (MasterCard, 2019).
In the age of digital nomads, we’ll see more workers choosing the flexible lifestyle that the gig economy offers and more digital communities established to allow workers and companies to connect globally. Ultimately this helps companies with access to top talent and direct sourcing, reducing time to hire and cost savings.
Health and Wellbeing
There is a much bigger focus on worker health and wellbeing, accelerated by COVID19. Mental health has come to the forefront with companies investing more into their workers and providing support. While remote work for some has been happily embraced, others have struggled to adapt, with feeling of isolation or loneliness. Many companies have adopted strategies to combat this with more regular catchups and team building events. This trend will continue to grow, as companies invest into enabling a more productive and well workforce.
