Professional Documents
Culture Documents
With the new year on the horizon, employers are eager to learn about upcoming workplace trends so they can
stay ahead of their competition. Changes in employee engagement and experience, workplace arrangements,
and employee well-being will be significant factors for the health of any organization.
This article explores nine predictions for the workplace in 2023 that will shape how businesses are run and
how employees are engaged. Examine several factors impacting the workplace in 2023 such as employee
retention strategies, flexible work arrangements, and tailored benefits.
One report revealed that 84% of HR teams are investing more in employee retention than they did in previous
years, and 61% of HR directors are prioritizing it over hiring new employees.
Employee engagement, the emotional connection an employee has to a company, is an integral factor of
employee experience and the key to retention. One strategy to increase engagement is to operationalize
employee recognition. Research shows that employees who are shown appreciation for their work are four
times more likely to be engaged. With 85% of employees being unengaged in the workplace, there is
tremendous room for growth in 2023 for companies to heighten employee experience and retain their
workforce.
In 2023, employers should consider applying pay transparency regardless of legislation. This idea of
transparency can be implemented in other aspects of the workplace as employees are looking for value
alignment and sufficient information to make the best decisions for themselves. HR professionals will aim to
find a balance between transparency and nondisclosure in the coming year.
Organizations must be aware of generational differences and take necessary actions that appeal to unique age
groups.
Workplace Arrangements
5. Employers who want employees to return to in-person work will be
met with push-back
After two years of remote work, almost 50% of companies plan to require (or already require) employees to
return to the in-office approach full-time next year. These employers believe that employees tend to be more
productive in person.
However, 81% of employees who worked from home during the pandemic do not want to go back to the office
or want to follow a hybrid model. In the new year, employers who refuse to accommodate their workplace
policies to employees’ wants and needs will likely face confrontation, backlash, and turnover.
Overworked employees are at risk for burnout. By reducing the weekly working hours, organizations can not
only maintain a productive and motivated workforce but also improve employee job satisfaction and well-
being. It also provides additional time for parents who have caregiving responsibilities outside of work.
Provisions for flexible hours will continue being implemented to accommodate caregiving and opportunities
unrelated to work.
7. A tight labor market and inflation will fuel unexpectedly higher salary
growth
While economic instability due to inflationary pressures will cause budget uncertainty, salary projections are
expected to increase in 2023. This is primarily due to the challenges organizations face while finding new
workers and their commitment to retaining current employees. In one survey, 57% of employers reported that
they have hired candidates higher than the usual salary range, and 76% have adjusted salary ranges more
extensively, increasing ranges by 2-5%.
Although salary ranges are expected to grow, organizations may adjust total compensation packages in other
ways. Accounting giant EY, for example, recently announced that employees will not be receiving holiday
bonuses this year due to the poor economic climate.
While signing and “staying” bonuses are attractive financial compensation measures, there are other options
companies can implement. These include offering more flexibility in hours, paid time off, and personalized
health and wellness benefits.
Companies spent $51 billion on employee wellness in 2020, and that number is expected to rise to $100 billion
by 2030. In 2022, the most popular solutions were employee assistance programs, digital health tools, and
educational resources. Investing in employee mental health through wellness programs not only benefits both
the organization and its employees, but also enhances the organization's appeal to job seekers.
As technology progresses, companies are better equipped to enhance workforce solutions by personalizing
them to individual employees. Sixty-eight percent of executives claim that their future workforce strategies
will be more customized to individual needs, and this becomes increasingly attainable with machine learning.
There will likely be an exponential rise in the use of machine learning and other forms of artificial intelligence
for both business endeavors and employee wellness measures.