'The power dynamic will remain tilted towards the employee and not shift back to employers anytime soon'
As we head into the New Year, employers and HR teams are keen to know what the future holds.
With economic uncertainty, dramatic inflationary increases, critical labour shortages and ongoing pandemic concerns, there’s a myriad of workplace issues that HR leaders need to consider for 2023.
HRD heard from several industry leaders to get their take on the trends for the next 12 months, covering everything from employee expectations, the return to work and jobseeker power to the importance of corporate culture.
What started as a Tik Tok trend, quiet quitting soon became a worldwide phenomenon. Data from UpCity found that 70% of HR leaders believe quiet quitting spiked after COVID-19, with 57% saying it is a "moderate problem" this year.
“It has been a rollercoaster 2022 for many people leaders, with organizations still coming to terms with the impact of COVID-19 while grappling with hybrid work, new employee expectations, new talent models (non-permanent talent like contractors and alumni), and ever-shifting market conditions,” says Janice Burns, CPO of Degreed.
“That’s how we enter 2023, with a lot of upheaval for employers and employees alike and it’s important to recognize this. It’s also vital that people leaders understand how things have uniquely changed in their organization — and how to respond to this both as a leader and a human.
“The pandemic highlighted the new relationship between employers and employees, one of empathy and taking care of each other. It’s something that employees want to continue, and employers who aren’t meeting expectations are suffering from phenomenon like quiet quitting and the great resignation.”
It might be tempting recall staff back to the office, but a survey by Robert Half found that one in three Canadians would be willing to quit if their manager recalled them to the office full-time.
Given the choice, four in five respondents say they would rather work from home more frequently and commute to work only when needed.
“Companies worried about the isolation that remote models can cause should look into hosting social activities for their employees,” says Tessa Anaya, analyst at Capterra.
“Forcing employees back into the office full-time isn’t the only (or necessarily the best) way to create a socially connected workplace. In-person parties, physical activities, and cultural events were voted some of the most highly valuable ways to connect employees with their colleagues.”
The talent market is very much candidate-led, with job seekers in the driving seat when it comes to asking for more money and senior titles. This, sadly for employers, won’t change in 2023. In fact, the recruitment market is set to become even more intense, according to one HR leader.
“The power dynamic will remain tilted towards the employee and will not shift back to employers anytime soon,” says Oliver Staehelin, chief strategy and development officer at Harver. “Quitting is not a post-pandemic phenomenon, as quit rates have been steadily rising for over a decade. In addition, we saw the highest new union election win rates in over 20 years in 2022.
“Meanwhile, pressure to increase wages will continue to persist. The aforementioned are all symptoms of the underlying workforce crisis, in which there simply aren’t as many working-age people in this generation as there were in prior generations. Companies (and even countries) won’t have enough workers to fill the number of job roles required to keep growing at the rate they’ve been growing.”
The pandemic proved that paying lip service to culture, or rolling out one-size-fits-all strategies, will only have the opposite intended effect.
“As a result of the work from home versus the in-office debate, there will be more emphasis on creating a good culture in the workplace as a way of attracting and keeping people in organizations,” says Angela Champ, SVP of HR at Alpine Building Maintenance.
“Team coaching and culture coaching will become more mainstream as organizations look for tools to increase discretionary effort and engagement.
“There will be more attention paid to mental wellness at work, including reducing stress and providing support.”
