If there was any hope during the height of the Covid-19 pandemic that the workplace would one day “return to normal,” 2022 has already shattered that expectation.
Hardly anyone gets through the past 12 months without their work life being disrupted or completely turned upside down.
Millions of people lost their jobs or changed careers. Some people go back to work for the first time in years, while others, after months of working from home, discover that they never want to step foot in the office again.
Now, with a recession looming, economists and researchers are confident that 2023 will usher in even more significant changes to the workplace.
CNBC makes it spoke to three experts about the biggest trends that will shape work this year.
Hiring will slow in 2023 – but job seekers will still be in charge
Although some American companies have slash staff In recent months, workers will continue to dominate the labor market this year.
Karin Kimbrough, chief economist at LinkedIn, said the layoffs at Goldman Sachs, Google and other notable companies are not a sign that the worst is yet to come. Some businesses, mainly in the tech, media and entertainment sectors, she added, are only adjusting to after hiring too much at the start of the pandemic, when they experienced rapid growth. and surprise.
Kimbrough said: “It’s never been a great thing to see people lose their jobs, but overall the labor market is resilient, even if its strength is slightly eroded, it’s still a good thing. tight market with many open roles,” said Kimbrough.
In November, the US labor market posted a near-historic low of 1.4 million layoffs – less than 1% of the workforce – and there were 10.5 million job openings, equivalent to 10.5 million job openings. equivalent to about 1.7 vacancies, for each available worker, according to the latest Ministry of Labor data.
While hiring is likely to slow in the coming months, it’s falling from record highs — and it won’t lead to unemployment as high as people fear. “At most, I see the unemployment rate rising to 5% from the current historic low of 3.5% in the US,” Kimbrough said.
Education, government, healthcare and retail are among the industries that recruit has maintained momentum and is poised to continue growing into 2023.
Kimbrough added: “For now, US consumers are still strong and are still spending a lot. “This is not the time for employers to go ahead and forcefully fire workers, cutting off their ability to meet demand.”
Managers make or break a company’s success
The secret to stopping “quietly give up” and improved employee retention can be hidden in the middle of the corporate ladder.
Since the start of the pandemic, managers have reported higher rates of stress and poorer work-life balance than the employees they supervise — and according to a recent study. here from Gallup and MicrosoftManager burnout only got worse.
Bryan Hancock, global leader of talent management at McKinsey & Company, said: “While having stress managers is never a good thing, it’s a particularly bad problem when the market is in a bad position. The labor market continues to tighten.
“They’re the ones that are driving productivity and employee engagement, balancing the need for employee flexibility, and if we’re thinking about employee loss, the only way you can really ‘shut up’. ‘quietly give up’ is if you don’t have an effective manager who checks you in,” explains Hancock.
However, as their roles have become much more challenging over the past two years, managers are leaving their jobs at a high rate, even as the turnover rates of individual contributors are high. has fallen from peaks in late 2021 and early 2022, said Anu Madgavkar, a partner and researcher at the McKinsey Global Institute.
“All of this is creating a manager shortage, which only exacerbates the challenges companies are facing in attracting and retaining talent,” she added.
Great bosses may not stop disgruntled employees from applying for new jobs, but they can often be the deciding factor in whether employees are looking for new opportunities in the first place. 2022 report from BCG notes.
Workers in healthcare, retail, manufacturing, hospitality, and similar industries with direct contact, which make up 70% to 80% of the world’s workforce, are likely to experience burnout. They are 1.5 times more likely to leave their jobs and 1.5 times more likely to leave their jobs within a year if BCG finds that they are not satisfied with their managers than with satisfied employees.
However, Hancock adds, the companies that improve their management — training them to be more empaths, communicate more effectively with employees and lead in a virtual environment — will be the ones. thrive in 2023, no matter what state the economy is in.
Salary transparency will become the norm in American business, not the exception
In 2022, after wage disclosure legislation was enacted in job markets across the United States, several major companies, including Wells Fargo, IBM, and American Express, announced that they would post rates salary for all positions in the United States, even if it is not required.
The wage transparency movement gained significant momentum in just the past three weeks as three other states — California, Washington and Rhode Island — passed their own disclosure laws. The bills have been implemented with many states and city legislatures across the United States
“The year 2023 could be a tipping point in making fair, equitable pay practices the norm in the United States,” said Julia Pollak, chief economist at ZipRecruiter. “As payment transparency laws become more common, it will become increasingly difficult for companies to ignore or avoid this issue.”
By the end of this year, about 1 in 4 workers will be covered by a law that requires businesses to be transparent about how much they pay them, according to the report. Wage.
Transparent salary policies can lead to a better fit in the labor market, Pollak says, as job seekers are “more inclined to apply for positions they really want to fill” if they know the salary in advance, instead of turning down the offer just because the salary is not so. did not meet their expectations.
Such policies can also help businesses be more productive in the long run, says Pollak, as having a transparent, formal pay structure can help companies understand what competitors are doing. what they are doing, encouraging productivity and retaining top talent.
Economists have also shown that payment disclosure request can help close persistent wage gaps between gender, racial and LGBTQ identities.
Pollak adds that the rise of wage transparency legislation will have the “most obvious impact” on high-paying jobs in technology, healthcare, law and similar industries, where crime vi for different locations tends to be much broader.
Payment procedures:
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