If you want to attract, hire and retain top talent, it’s important to know what today’s workers want and what competitors are offering so you don’t miss out. As we look ahead, here are the top modern workplace trends and expectations of the workplace in 2023 we’re seeing in knowledge worker industries.
1. More Companies Go Hybrid
Labor experts predict organizations will continue to operate remotely as much as possible in 2023 and beyond. As of June 2022, Gallup reports only 2 in 10 remote-capable employees are currently working fully on-site. Half are working hybrid, while 3 in 10 are exclusively working remotely.
Knowledge worker employees are increasingly interested in hybrid or remote positions. According to Indeed & Glassdoor’s Hiring and Workplace Trends Report 2023:
- Nearly 10% of online job searches in September 2022 in the U.S. mentioned “remote work,” which was nearly 6x higher compared to September 2019
- In the U.S., 8.6% of job postings mentioned remote work in September 2022, compared to 2.9% in September 2019
In June 2022, McKinsey & Company reported when people have the chance to work flexibly, 87% do so. The pandemic ushered in what remote workforces can look like, and they’ve since become one of the dominant future workplace trends of organizations with remote capabilities.
More companies are adopting a hybrid approach these days, rather than fully remote. Gallup reports by the end of 2022, 55% of remote-capable workers are expected to work in a hybrid setting, while fully remote work arrangements are expected to decrease to 2 in 10 employees by the end of the year.
More than 90% of 70 million employees don’t want to come back to the office full-time, so more offices are giving employees the opportunity to choose when they come into the office. Hybrid arrangements may range from employees coming into the office on specific days of the week, to employees creating unique work schedules with their managers’ approval that state which duties need to be completed in the office versus which tasks can be done at home.
2. Employees Still Have Control But Economic Woes May Waiver Their Power.
The U.S. unemployment rate has remained relatively unchanged throughout most of 2022, staying around 3.7% in November 2022, similar to the previous year’s rate. Quit rates also remained steady throughout the year, reaching about 2.6% of the total workforce for October 2022, after hitting a record high of 3% in September 2021.
Low unemployment and high quit rates have led to a continued tight labor market, with employees being more selective in which employers they sign with and stick with. This will cause employers in 2023 to broaden their talent pool by making job descriptions more flexible and more inclusive. What may have been rigid requirements in the past, such as years of experience or a specific educational degree, can no longer be so stringent in order to attract top talent.
On the flip side tech leaders like Google are making bold moves with announcements such as…
“I believe flexibility is here to stay, even though it might not look exactly as it does today. We believe deeply in the value of coming together in person but want to give employees the flexibility they need. We expect our hybrid work model to evolve.” —John Casey, VP of global benefits and future of work at Google
Employers are also placing a higher priority on diversity, equity and inclusion and are defining and promoting their values when recruiting candidates. A June 2022 survey by Qualtrics found 54% of U.S. employees would take a pay cut to work at a company with better values, and 56% wouldn’t consider a job at a company that has values they disagree with. Employers today must understand what employees are looking for and showcase that when recruiting.
3. Companies Focus on Work-Life Balance
Future workforce development relies on supporting work-life balance for employees. Mercer’s 2022 Inside Employees’ Minds study found 36% of employees are open to leaving their company, with a top three factor being burnout due to a demanding workload. According to FlexJobs’ 2022 Career Pulse Survey, 63% of respondents would choose better work-life balance over higher pay.
This is causing organizations to evaluate how they can support and improve the work-life balance of their employees. Tactics include offering flexible work schedules where employees work the hours they want, offering unlimited sick and personal time, and expanding parental leave.
4. Inflation Leads to Higher Wage Demands
Inflation was 7.7% higher year-over-year in October 2022, impacting both employers and employees. Salary and benefits remain a top concern for workers. In 2022, Gallup reported 64% of U.S. employees cite “a significant increase in income or benefits” as “very important” when considering taking a job.
Hiring managers in 2023 must be aware that selective candidates are influenced by salary. For companies that can’t compete with as high of a salary, benefits like health insurance and 401(k) matches can help organizations stand out.
5. Employers Shorten Hiring Processes
With more competition for top candidates, expect organizations to move quickly to hire talent in 2023. A July 2022 research report published by “Harvard Business Review” found longer hiring processes and pickier hiring managers don’t choose better performers. Rather, the result is leaving a higher number of roles empty for a longer period of time.
Employers are looking to future workforce technology and are partnering with hiring firms to streamline hiring. An October 2022 survey by the Harris Poll found nearly 80% of companies believe automation can help their business in a tight labor market. An August 2022 report by Bullhorn found recruiting firms that use automation have a 64% higher fill rate, provide 33% more qualified applicants per recruiter and were 55% more likely to report major revenue accomplishments.
Organizations are increasingly using virtual portals for candidates that provide transparency into timelines and expectations for what the process entails. Employee surveys also provide data on what makes some hires more successful than others, which can help improve hiring success overall.
Stand Out in the Workforce by Partnering with AccruePartners
If you have hiring needs in 2023, contact AccruePartners for help with recruitment and hiring. We’ve built strong candidate relationships in areas like information technology, finance and accounting, marketing, digital, creative, human resources and corporate support. We use the top hiring technology to keep talent engaged and make hiring processes more efficient.
We know what candidates in your industry are looking for. We can help you find top talent for your open permanent, contract and contract-to-hire positions. Contact us for a free consultation.