This last year has seen skill shortages put workers in the driver’s seat, and with it, wages have grown and flexible working in many industries has become the new status quo.
Wellbeing continues to be a priority for businesses as workers adjust to new norms after a tumultuous few years. Surprisingly though, there has been a lack of focus on employer brand rejuvenations… perhaps a missed opportunity given the choice that in-demand employees have had in such a tight labour market.
So what are the current workforce trends?
There’s plenty of commentary about a difficult year ahead with tough economic conditions amidst a global slowdown. The World Economic Forum is predicting fragile economic conditions and slow GDP growth of 1.7%, which is the slowest pace outside of the major recessions of 2009 and 2020. With this pessimistic economic outlook, many businesses will likely shift from growth mode towards consolidation and cost management.
#1 Effective Change Management is Crucial
Managing change is expected to take a more prominent position at the forefront of leaders’ minds this year. In developed countries such as the US and Canada, we’ve seen significant restructuring and reduction of headcount since early 2023, particularly in big tech, Google, Amazon and Meta, to name a few.
Hiring freezes are also likely to continue. The New Zealand RCSA job report for Q4 of 2022 revealed the national job index has plummeted 22.4 percent during that period, signalling business confidence is low and projected hiring rates are in decline. Of particular note was the job listings for the tech industry (down 36.3 percent) and public service (down 47 percent) last quarter.
Whether downsizing or not, we will likely see organisational structures optimised for efficiency rather than growth. After several tough years through Covid, the compounding crises will make people more vulnerable. To be good employers, it is imperative that businesses look at ways to effectively manage change.
A recent Gallup article suggests training managers in soft skills such as listening, communication and coaching as a great start to prepare for change. Gallup also highlighted the importance of regular communication throughout periods of uncertainty. This involves utilising effective open communication methods and empowering collaborative processes that involve genuine consultation.
#2 Talent remains important
Despite the economic outlook, talent shortages are still prevalent, particularly in sectors such as technology, manufacturing, retail and trade. According to a recent Manpower Survey, 75 percent of employers reported talent shortages and difficulty hiring.
Employers should identify key talent and create robust plans to retain them. They may need to be creative around which retention strategies they can employ, particularly if salary and benefits are not able to grow in line with inflation.
Read more: Work trends to look out for in 2023
Whilst a strong employer brand is always important, it becomes particularly crucial in times of uncertainty. During economic instability, employer branding can shift to a more internally focused approach. At RUSH, we focus on taking a proactive and consultative approach to looking after our people to ensure they are happy, healthy and engaged. We launched our newly refreshed employer brand late last year and deliberately chose to take an internal focus, initially.
With this approach, for us it was about creating the sense of pride from seeing our employer brand come to life, in a way that truly reflects what it’s like to work at RUSH. It helped reaffirm our commitment to creating great career opportunities, an uplifting and inclusive culture and better benefits.
#3 The Sweet Spot is Hybrid work
The post-pandemic world of work has been much debated; remote working, office/home hybrid working and flexible hours. For the last few years, businesses have been trialling a range of approaches to find that perfect balance for improved business productivity with happy employees.
The winner? Hybrid working.
According to research conducted by McKinsey, 9 out of 10 executives envision a hybrid working model going forward. In this study, business executives referenced improved productivity, better employee retention and engagement as key reasons why it will continue to win out.
After gathering feedback from external HR networks, RUSH and external business leaders, and conducting an internal survey, we’ve concluded that our current hybrid approach of 2 team-focused office days is our sweet spot. This approach resulted in higher employee engagement, our highest retention levels, and continues to deliver quality for our clients like never before.
To make the hybrid approach work for us, we optimise our time together over those 2 office days. Through regular company comms like our weekly company sync, maximising team meetings and having lots of social get-togethers, we are finding engagement has never been better.
Of course, not all workplaces are created equal and there are many where remote working simply isn’t practical. For us, however, we feel we have struck the right balance.
#4 Embed Wellbeing into Work
With economic uncertainty all around us and business changes likely, this will inevitably cause a strain on an already worn-out workforce. Throughout the next year many people will feel the pinch and therefore the risk of burnout remains high. The combination of high inflation and cost of living with extreme weather events in New Zealand is likely to cause significant stress and anxiety for many people, as they struggle to cope with rising living costs and the physical and emotional impacts of extreme weather conditions.
The case for investing in employee wellbeing is well and truly here.
At RUSH, we continue to prioritise wellbeing by creating programmes and initiatives to ensure our people are healthy and leading fulfilling lives. Last year, we invested in the fundamentals by establishing a health insurance scheme through Southern Cross.
We have also partnered with Wellbeing Platform IGNITE Aotearoa. Through this platform all of our employees can access an extensive range of resources and workshops, while also being able to book an appointment with a specialist ranging from counsellors and psychologists, to life and financial coaches.
Wellbeing is also a regular agenda item at RUSH Exec Team meetings.
#5 The Strength of Diversity, Equity, Inclusion and Belonging (DEIB)
With change comes opportunity. When looking at work efficiencies and structure charts, we have the ability to rethink the shape of roles, consider more part time and flexible ways of working, and ensure fair compensation. This could be the year where we see rapid business transformation in the diversity and inclusion space.
Companies that prioritise DEIB efforts generally have greater innovation; an essential ingredient for not only withstanding, but also thriving in economic slowdowns. One recent study found that during the GFC in 2008, those companies with inclusive workplaces outperformed companies where employees lack inclusivity. These businesses also typically build strong employer brands as a result as they are focused on how to attract, retain and develop; crucial in a talent-short market, especially in order to springboard when things pick up during the next phase of growth.
DEIB is ingrained in RUSH’s fabric; and we recently launched an official Belonging framework to strengthen our company commitment to diversity and belonging. This framework outlines specific programmes of work to ensure we are always at the driving edge.
Our newly formed Belonging Steering Group will lead our initiatives and act as a form of governance to ensure we continue to assess, improve (and pivot where necessary) our efforts around DEIB, to ensure it is embedded and at the forefront of our approach.
#6 Technological Transformation continues
No matter the industry you work in you would have heard about the groundswell in AI and in particular new platforms such as ChatGPT. There is no doubt that this technology will disrupt the workforce, and the fabric of the internet as we know it.
ChatGPT can improve workplaces by automating repetitive tasks, enhancing customer service, compiling research, generating reports and improving communication. In doing my own research, I can see many use cases for our People and Culture function. In a short window, I was able to:
1. Quickly create a job description for a new role,
2. Develop the base for a bullying and harassment policy (specific to NZ)
3. Create new recruitment practices (such as job ads and interview questioning techniques for technical roles).
Whilst in most instances, this automatically generated content required some editing and modification, having the fundamental templates in a matter of seconds saved a heap of time, allowing us to spend the saved time developing such content on other value-add activities and tasks.
It would be remiss not to note the reports of bias present in current forms of AI:
As an example, as a DEIB advocate, I undertook my own research to uncover potential gender bias in AI. I asked ChatGPT “who is the youngest golfer to make number one in the world?”. The answer provided was: “Jordan Spieth”.
The correct answer is actually Lydia Ko, NZ’s famous golfer who became number 1 at 17 years old; how could Lydia be forgotten!
We need to encourage movements like “correct the internet” to try and fix some of the bias inaccuracies as AI grows and becomes commonplace.
But consultation with individuals about what works for their lives, the experience of measuring and learning, and the human connection that makes a workplace great can’t be replaced.
2023 is going to be a bit of a bumpy ride for companies. But it’s not all doom and gloom! By focusing on a few key areas – like taking care of your employees, creating a diverse and inclusive workplace focused on wellbeing, and using fancy AI tech – businesses can set themselves up for success. So, even though things might get a little rocky, the companies that put in the work now will come out on top in the end!
