4 Key Trends to Watch and Act On Right Now
Nothing stands still. Labor markets are undergoing disruption as people rethink every aspect of work and life and businesses face mounting pressure to change. Here are the 4 key trends that’ll shape 2023 and our strategic management advice.
1. Recession: Remaining, Retraining, Retaining
While the prospects of recession in 2023 vary across markets, companies everywhere are facing weak business growth and must reduce their workforces to manage costs prudently. In 2023, companies must smartly identify the “remaining”, the talent assets they value most and want to keep, and sharpen their focus on retraining and retaining them in preparation for the post-recession economic upcycle.
Take Action: Identify the highest value assets you want to keep, while helping those you lay off with their professional transition.
2. Remote: Reevaluation & Rebalancing
Remote work will increase in 2023. The important trend you should appreciate is that Remote is not about work (as everyone would have you believe). Instead, it’s about the Big Reevaluation & Rebalancing that’s reshaping people’s allocation of time, attention, and energy between personal and professional purposes and pursuits. Savvy employers will be wise to appreciate, recognize, and understand this critical undercurrent, and respond to ensure they can get top talent to stay with them.
Take Action: Build flexibility and fluidity into every aspect that affects how people can achieve their work and contribute to your organization. You should go far beyond Zoom meetings. Hint: if you don’t know what DAOs are, find out.
3. Redesign: Realize, Recognize, Reward, Renegotiate
More than in any other time before, workers are looking at the work they do — and their relationship with their employer — through a high-definition prism. Coming out of the Pandemic, people “redesigned” their personal and professional value formula, increasingly looking for purpose, not just prosperity. While companies will continue to face high turnover in 2023, those that seek to emerge better and stronger will be wise to create and implement new ways to Redesign Work around people’s preferences and purposes, rather than continue to do what they have done for so long.
Take Action: Create opportunities that increase sticky non-monetary value people derive from being part of your organization.
4. Retool: AI-Powered Edge
When implemented smartly, AI-powered software provides businesses with an unrivaled advantage, including: (a) process advantage, (b) time/cost advantage, (c) engagement advantage, (d) input advantage, and (e) results advantage. Taken together these advantages roll up into a momentous business edge. Companies will be wise to increase their investment in AI tools, especially now as they face recessionary pressure and must manage their costs carefully.
Take Action: Gain insight and find out where and how AI-powered software will give your business an unrivaled momentous edge. Retool your business ahead of time, to avoid finding yourself in a “catch up“ mode once the economic upcycle kicks in.
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