Unemployment rates are steadily dropping as more of the employees who previously changed jobs settle into their new roles. Many global economists predict the market will begin to enter a soft recession in 2023, which means the job market will begin to loosen. The balance of power between employers and jobseekers will begin to even out, giving breathing room to employers that have fought a tense battle for talent the last 2 years.
A stabilization in labor trends means employers can more confidently move forward in pursuing investment in employee skills training, enhancement of soft perks, and expansion of global recruitment. While employers must continue to recognize the presence of employment micro-trends and other ripple effects of previous years, there seemingly is a light at the end of the tunnel. In the rest of this article, three executives from G-P discuss how they’re approaching the new year in hopes of emboldening other employers to make the most of hiring in the year ahead.
More than a Paycheck
Despite economic uncertainty and other challenges, employees are still universally invested in their career growth and professional future. G-P’s 2022 Global Employee Survey, which gathered input from thousands of employees across nine regions, found that today’s workforce is actively invested in their careers and that many view going to work as more than just collecting a paycheck.
According to the study, employees are also willing to put in the time it takes to reskill and learn new things. The global talent pool is increasingly more accessible and eager than it’s ever been before, and despite some of the more ominous assertions making headlines today, they want to be compensated fairly in terms of both pay and benefits, and they want to learn and grow. Employers must strike while the iron is hot by scooping up talent now and investing in their long-term growth.
Unlocked Diversity
If there is a silver lining to the pandemic, it can be found in the changing world of work. No longer are employees limited to their physical location when jobseeking. Enabled by advances in technology and legislation, businesses can seek talent in new geolocations. Not to mention, the process of hiring those people is easier than ever, thanks to Employee of Record (EOR) companies.
Because many employees are no longer locked in geographically, they have more control over their schedule and their daily structure. This lends employees the opportunity to explore new industries and companies that more closely align with their personal values, beliefs, and passions. This will bring more diversity in thought, experience, and culture to the workforce. Employers need to rethink how they recruit, hire, manage, and retain their employees in 2023. This involves where they find talent and how they keep workers engaged, specifically focusing on professional development (including reskilling and training) and creating future opportunities.
Transparent Expectations
The world of work is remarkably different compared with merely a decade ago. Perhaps the most prominent shift is in the role of the employee. For modern employees, work is meant to fit in with their life, their values, and their goals, which differs from the traditional sentiment that a job simply exists for a paycheck and pension. While salary and financial benefits are still important, employees want their work to be meaningful, both to themselves and to the societies around them. Because work has taken on a new meaning, employees are increasingly inclined to express their desires for things like increased flexibility, meaningful recognition, or a focus on mental health at work.
In 2023, we expect employees to be even more transparent with their employer on the things they need to stay satisfied and motivated in their organization. With this in mind, employers must focus on creating an open, trust-based dialogue around employee goals and needs as work becomes more personal in the year ahead.
Global Expansion, Simplified
The global business process outsourcing market size was valued at $261.9 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030. As more organizations realize the benefits of a global workforce, we can expect to see global hiring escalate in 2023. Businesses will want to focus on scaling without the regulatory hurdles and difficulties. They’ll also want to ensure everyone is on the payroll, the proper deductions are being made, employment agreements meet statutory requirements for notice, and payments are made in a timely manner. A truly global workforce requires an unprecedented degree of compliance, and streamlining that compliance is one of the major tasks businesses are facing in 2023. Therefore, the streamlined processes provided by EOR platforms will set the new standard for global business expansion in the year ahead. Expect this new, efficient, and flexible approach to global expansion to take an even deeper hold of the global business community going forward.
Could 2023 be the light at the end of the hiring tunnel for many global companies? It’s safe to say the year ahead will be much less about employees quitting en masse and more about a slow, yet steady, rebalancing of the workforce. While the global economy isn’t expected to fully bounce back overnight—or even by the end of the year—there is hope on the horizon. There is assurance for employees who seek a better work/life balance, a more diverse culture, and better soft perks. There is also hope for employers that wish to recruit, retain, and invest in top talent without fears of a repeat mass exodus.
G-P’s executive leadership team: Bob Cahill (CEO), Richa Gupta (CHRO), and Simone Nardi (CFO)