Today, companies must keep track of emerging trends if they wish to remain competitive in the employment market.

Underlying these trends are three factors:

• The flexibility and appeal of hybrid work
• People prioritising values and purpose over financial gain
• Digital transformation, automation, and the evolution of Artificial Intelligence

GLOBAL WORKFORCE TRENDS 2023

1: The 'Everywhere' workplace

Hybrid working spaces are here to stay. According to research by management consultants Gartner, people who work remotely will form around 32% of the workforce by 2024.

Gen Z – the latest group to enter the workforce – are clear about their needs, too. According to a study by Mazars, as much as 73% want to be able to organise their working hours as they like.

Some employers oppose remote working. But employees are voting with their feet and choosing employers that offer the flexibility they enjoyed during the pandemic.

What does this mean for your organisation and people?

This continuing trend means employers must increase the flexibility of their working models to remain competitive, so they can attract and retain the best talent.

This also requires training because employees need to be familiar with the latest collaborative tools and learn how to use their time productively.

Managers, too, should be trained to lead across the hybrid workforce. Indeed, the whole of L&D should adapt their training models so that people can learn as well as work remotely.

2: Environment, Social and Governance Agenda

Today, employees expect their employers to get involved in societal and political debates; to have a view, take a stand, and promote ESG initiatives.

According to a report by McKinsey, more than 90% of S&P 500 companies now publish ESG reports in some form; as do approximately 70% of Russel 1000 companies.

As such, more people are choosing companies that prioritise, clearly communicate and act on environmental, social and governance concerns.

What does this mean for your organisation and people?

People want to know the companies they work for have a clearly defined ESG plan to address global issues. There are no taboo topics anymore.

Whether it is political, environmental, or inclusiveness related topics, employees expect their companies to take a position and express it via social media, company policy or visibility in social awareness campaigns.

3: Reskilling and Upskilling

According to the World Economic Forum, 50% of employees will need reskilling by 2025. And it is not difficult to see why. Much of our manual and even our intellectual labour is fast being replaced by AI and machines.

Thankfully, leaders and managers are beginning to take note. According to the 2021 Deloitte Global Human Capital Trends survey, 72% of executives ranked “the ability of their people to adapt, reskill and assume new roles” as the most important or second-most important factor to navigate future disruptions.

What does this mean for your organisation and people?

Life-long learning is now a necessity. Employees know they must continually update their skills to remain competitive in the employment market, especially when it comes to dealing with new technologies and ways of working.

Organisations that play an active role in reskilling and upskilling their people stand to benefit from higher employee acquisition and retention rates. However, they can only hope to do this if they match the speed of change with the rate of training required.

4: The Great Reshuffle

According to Microsoft’s 2021 Work Trend Index – a survey covering more than 30,000 people in 31 countries – over two-fifths of people are considering leaving their employer in the next year. And flexibility and hybrid work opportunities have become a deciding factor.

Many people now prioritise working for an organisation that aligns with their values and offers work that is fulfilling. This has resulted in thousands of people jumping to roles that fit both criterion and has been dubbed ‘The Great Reshuffle’.

In the Cegos International Barometer 2022, 78% of employees say they would be willing to consider a complete career change if it brought greater meaning.

What does this mean for your organisation and people?

Companies should promote policies that align with modern values and include the human touch. For example: flexibility, the ESG agenda, work-life balance, company culture, respect for inclusivity and diversity, etc.

Employee experience matters more than ever, so organisations should invest time and resources developing a vibrant company culture that is enjoyable to work in.

5: Skills-based Hiring

The way people traditionally get hired is based primarily on the degree they earn, the job they currently hold, or the people they know. This is changing.

The trend now is moving towards skills-first hiring strategies. People are being hired on the strength of the skills they possess – or have strong potential to develop – rather than evidence of any kind of intellectual rigour, such as a degree.

For some years, bosses have complained that graduates or school leavers lack some of the most basic skills – such as communication or critical thinking – that are essential to productivity. As such, many employers are placing an emphasis on hiring people with those skills already in place and, in some cases, removing certification from criteria unless they are deemed necessary.

What does this mean for your organisation and people?

Young people entering the employment market need to embrace the work-integrated learning opportunities available as internships, placements and apprenticeship programs.

And companies need to build these programs to attract and develop talent around the skills required. According to the World Economic Forum, more than four out of five employers believe internships prepare graduates to work in their companies.

6: The Evolving Role of the Manager

According to a study in Harvard Business Review, 65% of the tasks currently undertaken by managers have the potential to be automated by 2025. This will change expectations of what it means to be a manager – transitioning from managing tasks to managing the experience of all employees.

Many of the more menial tasks – scheduling, approving expense reports or vacations, monitoring completion of tasks, project management and coordination, etc., – will be automated.

What does this mean for your organisation and people?

Managers should focus on developing their people management skills, so they are able to keep up with the fast pace of change. Where there are gaps in ‘soft skills’ – communication, empathy, giving feedback, etc., – they should access training or coaching to build them.

Managers who continue with the status quo risk being left behind and replaced by automation. To avoid this fate, they must shift their mindset towards being people-oriented, as opposed to task-oriented.

7: The Evolution of Leadership

It is not just managers who need to adapt. Leaders, too, are being called upon to develop more human-centric leadership skills, especially as we become more dependent on technology.

Leaders today must navigate a range of uncertain and complex challenges as well as deal with change quickly. It calls for a different type of leadership: empathetic, agile, and inclusive.

What does this mean for your organisation and people?

Leaders and companies should invest in building leadership skills that will enable them to lead in the modern world. They must develop deep personal qualities, which include the qualities of survival:

Humility: reflecting that only others can recognise you as a leader
Receptivity, empathy and self-awareness: to understand yourself and others
Creativity: to innovate, plan for the future and improve performance
Audacity: to dare to get started, take risks and embrace responsibility
Assertiveness: to take action, reassure and convince others
Integrity: to take ownership of your actions
Endurance: to maintain consistent effort over time
This trend is already inspiring transformation across leadership development programs, which now focus on the whole person.

8: Talent Scarcity

People took early retirement in record numbers in 2020 – part of the so-called ‘Great Resignation’ following the pandemic. This has resulted in a severe shortage of labour in many sectors, compounded by digital transformation giving workers more flexibility in how they work, and who they work for.

A crisis of leadership, poor understanding of what young talent needs, and the lack of decent working conditions contributed to the issue. The push towards higher education in place of work-based training pathways, and the mismatch between education and workplace needs also had an impact.

What does this mean for your organisation and people?

Employers must work extra hard to attract the brightest and the best. Companies should focus on improving the employee experience, adapting their practices and rules allowing for more flexibility and improved working conditions.

They should also invest in employee training and well-being programmes as part of developing an attractive company culture. According to a recent Ernst & Young survey, more than half of employees globally would quit their jobs if not provided post-pandemic flexibility.

9: 4-Day Work Week

Mental health and work-life balance is becoming increasingly important for today’s employees. Thanks to digital transformation that creates flexibility and more efficiencies in the way we work, some companies are now experimenting with the 4-day week to see if such an initiative will increase employee well-being without negatively affecting productivity.

The thinking is that, besides increasing productivity and employee well-being, the 4-day work week can reduce the gender gap and unemployment, as well as enhance employee engagement, attraction, and retention.

What does this mean for your organisation and people?

To ensure the 4-day week works effectively, employees should be trained up on effective personal organisation. Companies will also need to review their policies to make sure that reduced availability does not affect customer satisfaction.

Managers and leaders must be clear on priorities, too, making sure goals are achievable within a shorter time period.

10: Employee-first Experience

Many companies, with good reason, like to say they put the customer first. But this sometimes comes at the expense of employee engagement and leads to attrition.

The shift towards employees becoming more autonomous has created a real challenge for employers. Along with the shift in priorities (values rather than money), employees are looking for a company culture in which they are fully supported; one that is inclusive and encourages risk-taking.

What does this mean for your organisation and people?

The key to success here is to create a positive dynamic between individual employees and between teams. That means giving people the space to be vulnerable and confidently share their problems as well as their successes. Employees who feel more connected and valued are more likely to thrive in the company. And stay.

Employees should be given the right tools, and training to use them, so they can collaborate successfully in the new hybrid world. Companies should also create programs that enhance employee wellbeing (see Trend 12).

11: Diversity, Equity and Inclusion (DEI)

Companies that prioritise DEI will be more sustainable in the future of work. According to the World Economic Forum, one of the primary focus areas of L&D programs across the world in 2022 is Diversity, Equity and Inclusion.

Strong DEI policies are no longer a nice-to-have. They allow for more innovation, provide new perspectives, widen the talent pool, improve performance, and foster creativity. The workforce of the future – given the prevalence of new technology, remote work and global travel – is more diverse than ever.

What does it mean for the organisation and people?

Companies need to adapt their working culture to appeal to the new generation of workers, as well as to the changing priorities of existing ones.

Corporate DEI policies and practices should be also improved. This means making changes to the recruitment process to promote DEI issues and avoid biased decisions.

12: Wellbeing at Work

Wellness is fast becoming a metric used by companies to understand their employees, predict performance, and promote retention.

Mental health issues have increased tremendously since the pandemic and continue to impact people in unpredictable ways. Thankfully, many companies recognise the issue and have put programs in place to combat mental health challenges, including greater flexibility, the 4-day work week, learning and development benefits, health and wellness initiatives, etc.
A 2020 survey of 52 HR executives by management consultants Gartner found that:

• 94% of companies made significant investments in their well-being programs
• 85% increased support for mental health benefits
• 50% increased support for physical well-being
• 38% increased support for financial well-being

What does it mean for the organisation and people?

Compassionate, human-centric business models have a positive impact on wellbeing at work, as well as on employee’s retention and overall engagement.
Wellness and wellbeing at work should be an important metric for measuring people performance, in addition to employee satisfaction and engagement.

To keep up with this trend, companies should invest widely in resources and programs that support well-being.

In boardrooms up and down the country and across continents these trends will be being discussed, what do they mean to your organisation and your people?