Top Three Workforce Trends in 2023
As leaders, the beginning of the year is always a good time to pay increased attention to what is going on around us and to think about what may be ahead. In an effort to be more proactive in our businesses and our approach to market conditions, customer demands, and employee engagement and retention, we simply need as much information as possible to plan accordingly.
Organizations have faced tremendous and unprecedented challenges over the past several years. And they’ve learned to adapt, survive, and in many instances, thrive. But the ramifications of tumultuous times don’t dissipate overnight. At The Win Woman, we are seeing our clients struggle with the ongoing impacts of a highly competitive workforce environment, record inflation, supply chain disruptions, increasing momentum for Environmental, Social, and Governance (ESG) policies and operational changes, and concern over a potential impending recession.
As we help them navigate their way through it all, we remind them of the importance of a strong team. That’s because ultimately, no matter what else is happening, our success often rests on our people. And to be more proactive about the issues that are affecting people most, we’ve compiled the top three workforce trends for 2023.
Trend 1: Shift from Experience to Skills
Workforce circumstances have arguably never been as uncertain as they have been over the past several years—from reprioritized values to remote and hybrid work arrangements to employee engagement and retention. The scales remain off balance even today. Organizations can’t seem to find the right people and people can’t seem to find the right organizations.
This conundrum is prompting both sides to think and look outside the box. Today, employers can no longer stick with traditional sourcing methods if they want the best people for the job. The assumptions about credentials and past experiences are simply outdated. The old hiring requirements mandating certain educational degrees and past job experience no longer have the same impact. Now, it’s about the skills needed to learn the position and do it well.
According to the Society for Human Resource Management (SHRM), 36% of employers say a candidate who scores high on a skills assessment but doesn’t meet other requirements, such as the minimum years of past job experience, is highly likely to move forward in the interview process.
“With employers still struggling to fill vacant positions, HR professionals are leading the way in using skills-based hiring and skilled credentials to acquire top talent,” said SHRM Chief of Staff and Head of Government Affairs Emily M. Dickens.
In 2023, instead of thinking in terms of specific jobs and qualifications, more leaders will begin to think about the skills needed to accomplish those jobs. Then, they’ll hire for those skills and train the individual for the specific position, leading to a broader, more talent diversified workforce overall.
Trend 2: Sustainable Performance Takes Priority
With the effects of high employee burnout, mental health struggles, and large-scale movements of employees leaving jobs in which they were feeling undervalued and overworked, leaders are finding that performance and productivity are about the marathon, not the sprint. Essentially, performance and productivity must be sustainable. And sustainability in this respect will always come down to the person who is performing.
It’s no secret that most employees have different priorities and expectations regarding their employment today than they did two or three years ago. According to a survey by Gartner, 82% of employees now say it’s important that their organizations see them as a whole person, rather than simply an employee. For them, it is no longer about just getting a paycheck. They want to feel valued and a part of something in which they believe. And they’re not scared to walk away if the organization does not meet those needs.
According to an article in Harvard Business Review, “[C]andidates are increasingly selective about whom they work for, so firms need a compelling ‘employment value proposition,’ which might involve anything from competitive compensation and benefits to career-development opportunities and a reputation for stellar management.”
In 2023, leaders will be more proactive about addressing these employee issues from the start rather than being responsive when work product declines, absences increase, or vacancies abound. They may offer increased PTO time, especially before going into high demand periods, allot specific wellness time for employees, or even offer free counseling. Leaders are going to worry less about the “lost time” trainings and counseling takes from productivity in the short term and focus more on sustainability for the long term.
Trend 3: DEI Increases Momentum to Break Through Pushback
Organizations have made significant strides in Diversity, Equity, and Inclusion (DEI) initiatives and policies over the past several years. The continued effort to actively engage marginalized populations to ensure they are involved in creating and designing the solutions is being felt in organizations across the country. And just as some leaders may be starting to feel a sense of accomplishment in seeing the needle begin to move, many of them now face pushback from groups of employees.
Some employees may feel these measures actually create more divisiveness, others feel resentful, and still others that they are now being alienated. The issue comes down to the fact that the country overall is facing increasing class, ideological, and political polarization, which is seeping into the workplace (and everywhere else). So, while DEI is intended to bring people together, it must overcome the undercurrent of our polarized society pulling people apart first.
Much of this solution may be in the approach. According to an article in the Harvard Business Review, “Backlash from all directions is often due to DEI initiatives being framed as solutions to individual problems to be fixed rather than to correct for systemic issues at play in an organization.”
Leaders this year will be called upon to redirect the conversation around DEI from a personal perspective to a systems focused one. But they must do so delicately. Up until now, we have seen far too many leaders ignoring the pushback because they don’t want to legitimatize the concerns. However, when they do so, they are alienating those with concerns, negating the inclusion intent of DEI. In 2023, they will begin to address them with a conscious, thoughtful effort to ensure this evolution results in all employees being engaged and feeling heard—all being included.
What the trends for 2023 are telling us is that the social contracts that make up the workforce are still evolving. As a social impact firm that helps organizations navigate through the inevitable stormy seas, helping to find the balance between employers and employees is what we do best. We empower leaders to lead with clarity and be proactive in these, and all, situations.
At The Win Woman, we focus on Environmental, Social, and Governance strategic development and policies for organizations of all sizes and funding opportunities for nonprofits. We work with boards and C-Suite executives to help develop the right solutions for their specific situation in their specific industry. For more information, please contact us.
