The top trends that shaped the world of work in 2023
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The top trends that shaped the world of work in 2023
2023 in just one word? Turbulent.
Generative AI became commonplace – as did, sadly, geopolitical instability across the globe. We continued to face critical talent shortages across industries, but specifically in skillsets relating to healthcare, sustainability and digital transformation. Economies worldwide remained precarious, with the term ‘recession’ whispered once more, although thankfully, not yet realised.
This degree of shock in the macroenvironment forced CEO’s and their senior teams “to a place they have never been before”. But amongst the challenges lie opportunities, and forward-thinking organisations will always find ways to turn problem into potential.
In this blog, I reflect on the key trends that have shaped the world of work in 2023, with insights from the experts across Hays.
More organisations turned to the contingent workforce
Elisabetta Bayliss, COO Enterprise Solutions (UK), explained the driving force behind this growth:
“The high demand for contingent workers globally has been driven by a lack of confidence in hiring permanent staff… but work still needs to get done, so the most obvious and efficient way of making sure that projects continued was to hire contingent labour.”
It’s a story we saw written across all industries and regions in 2023 – permanent placements were down, yet temporary positions surged. It was good news for the flexible workforce, who benefited from the stability of demand, but also for organisations who enjoyed a continued reliability of output, with many contracts extended or renewed.
This increased interest in the non-permanent population meant the battle for the best skills intensified. As my colleague David Spence summarised:
“With organisations buying and releasing talent on a more regular basis, and faced with greater competition for specialist skillsets, companies quickly realised that a competitive pay strategy will only get them so far.”
In 2024, organisations aiming to secure high quality contractors and freelancers will need to ensure they are the most attractive destination of choice for contingent workers looking to develop their careers. They’ll need to be slick and “easy to do business with” – from the application process through to project completion and offboarding.
And Rob Moffat’s insights on his buzzword of 2023 – ‘omnichannel’ - remind us that the contingent workforce strategy is just one (very important) part of a wider sourcing puzzle. Omnichannel is a configuration of trusted sourcing methods, “but with a centralised strategy and a refocused energy to ensure we get the best out of each channel.”
Against a difficult economic backdrop in 2024, Rob reminds us that omnichannel sourcing allows organisations to increase the efficiency of spend, by coordinating channels and synchronising search efforts.
Companies offered clarity on their Diversity, Equity and Inclusion (DE&I) initiatives
For Bianca Stringuini, 2023 is characterised by its increased transparency.
“Over the last few years, companies publicly committed to ambitious goals and defined equally ambitious strategies to achieve them. This year, we started to get an indication of how successful they have been in turning the dial on their DE&I goals.”
In the year ahead, an organisation’s commitment to ESG may be tested by ongoing economic uncertainty – but those that stay firm, both in their efforts and investments – will reap the rewards.
For Kirsty Green-Mann, Group Head of Sustainability here at Hays, organisations looking to balance cost optimisation with their commitment to the environment will need to “prioritise finding areas where spend can deliver a win-win”, and in doing so, “you don’t have to boil the ocean.”
And the growing ‘Gen Z’ population will hold organisations accountable, as they “aren’t willing to tolerate ESG initiatives that fall short”, according to EMEA Managing Director Jon Mannall.
We started to shift towards skills-based hiring
Talent mismatches, rapidly evolving technical skills and a renewed focus on ‘soft’ – or core – skills have prompted organisations to review their recruitment processes over the last 12 months, with a shift towards hiring for skills, rather than solely focusing on experience.
Ruth Munday points to the “clear data” that showcases the success of skills-based hiring. Deloitte found that organisations with a skills-based approach are 107% more likely to place their talent effectively, and 98% more likely to retain high performers.
Making this switch requires organisations to change the way they hire, linking skills requirements to corporate strategy before identifying the competencies and capacities already in the organisation – and where the gaps exist.
Critical in closing these gaps will be an organisation’s learning and development strategy, for both incoming talent and an organisation’s existing skills base. For my colleague Matthew Dickason, as we head into 2024 there is a much-needed diversity lens that needs to be added to conversations around training, especially when it comes to internal talent.
“You need to focus on your internal talents and provide them with opportunity, but you need to do so in a transparent and open way. In some circumstances, we’ve seen well-intended training strategies exacerbate proximity bias and lead to disengagement in those individuals or groups left out of the loop.”
Technology reshaped our understanding of what’s possible
Generative AI wins my award for dominating conversations in 2023 – and rightly so, amassing 1 million users in just 5 days.
Just as technology captures our imagination, it also challenges our understanding of what is possible. James Milligan, Global Head of Technology at Hays, “it’s a game with ever-changing goalposts. We’re still discovering AI’s capabilities and implications, meaning ideas quickly become outdated.”
But in the year ahead, James stated that “we’ll all need to learn to work alongside AI.” In lieu of legislative guardrails, organisations will need to take the lead, identifying the tasks that can be safely automated to create capacity for workers.
Looking ahead to 2024
It’s certainly been a year of transformation, opportunity and challenge. Of course, 2023 also marked the start of my journey as CEO of Enterprise Solutions at Hays. As we approach the festive season, I look forward to taking some time to reflect on our shared success – as well as some of the lessons I've learnt in navigating the world of work alongside our clients.
As I look ahead to 2024, I have no doubt that it will be busy, but also incredibly exciting.
In my first 100 days I stated that my vision was to “do more, be more and achieve more for our clients.” This sentiment still rings true – and having spent the best part of the year visiting our teams across the globe, gaining a greater understanding of our digital capabilities and the evolution of our services, as well as meeting fantastic clients with huge ambitions and an incredible appetite for change – I am confident in the ability of Enterprise Solutions – and the Hays business more broadly – to “do more, be more and achieve more.”
Ready to start planning for tomorrow’s challenges? Get in touch today to explore how together, we can build a workforce strategy ready for the challenges of 2024 – and beyond.
AUTHORS
Nigel Kirkham
CEO of Enterprise Solutions at Hays
Nigel Kirkham has spent the last 30+ years driving growth in major global businesses. A strong, transformative Chief Growth Officer, he brings a Big 6 Consulting Partner background as well as large-scale BPO and outsource business experience. A blend of strong business acumen and C-level operating experience help deliver high revenue growth and business expansion. His most recent positions include TMF Group, the global Financial Services business where he sat on the ExCo as Chief Client Officer; Avanade, the JV between Accenture and Microsoft, a global tech giant and largest implementor of Microsoft technology in the world, where he was Global Head of Sales; CSC (Computer Science Corporation), the tech giant (now DXC Technology), where he ran several Industry Verticals, including Financial Services, Retail & Consumer Goods, Transport and Technology. Prior to this he ran Xansa’s consulting business in the US, where he was based in New York. He also spent 12 years in KPMG Management Consulting, the last 5 years as a Partner in KPMG Consulting in the UK. In this role he also spent c 4 years in the Middle East, setting up and running KPMG’s business in the Lower Gulf, where he was based in Abu Dhabi.
Outside of work, he spends his time between houses in Hampshire and Cornwall in the UK, with his partner Daisy. His son Toby works as an Account Executive for Sony Entertainment, and his daughter Milly has recently started a Graduate Management Training programme with tech giant DXC Technologies. .
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