A Look Forward to the Year 2023
Lastly, this may seem obvious, but what exactly do we mean? Specifically, you must have different models and strategies that are dependent on larger reductions along the way or (ideally) a comeback and how you will ramp back up. On the other side, determining the first-best new hires. Determining which positions do not require replacement, etc.
The trick is to remain informed. If you were forced to make cuts, you should assess their effects. Whether you introduced software or manpower, you should also measure their effects. We are all aware that we continue to navigate uncharted seas, but an upsurge is inevitable. Recognizing it and responding accordingly will be crucial. As previously noted, as a result of the Great Resignation, we now realise that some organisations overhired and overpaid as a knee-jerk reaction, and they are addressing this issue. You want to prepare your organisation to emerge from this period lean and ready to capitalise on growth opportunities.
Job Security
Thousands of people lost their jobs as 2022 came to a close, coinciding with the start of an economic slump. The epidemic caused a reversal in the trend of employment at some of the largest corporations in the world, leading to widespread layoffs. Workers in a wide variety of sectors are understandably concerned, wondering, “Are I safe?”
Pausing, Switching Course, or Making a Plan with iSolved Staff members worried about their jobs have their concerns amplified by the possibility of a recession, according to HR Trends of 2023. One-quarter of workers are unhappy with their job security.
According to James Norwood, executive vice president and chief strategy officer of isolved, this anxiety has never been higher. “The numbers suggest that workers today are more concerned about their future financial stability and are feeling more burned out than ever before,” he says.
According to Kathy Gardner, vice president of communications at Remote.co and FlexJobs, in this uncertain economic climate, consistency is of highest significance to today’s workforce. Most workers today are quite worried about their future employment prospects. She adds, “In fact, 63% stated they are either highly frightened or somewhat concerned about their job security in the next three months.
Norwood, however, insists that human resources can do much more to ensure workers feel secure in their jobs. To address these issues, businesses of all sizes would do well to examine the areas where human resources automation and efficiency gains are possible, where the department can strengthen the employee experience, and where it can grow its reach.
The paper by isolved provides further strategies for reducing employee anxiety, which in turn increases employee retention, engagement, and trust in the company.
- Support worker relationships: 32% of full-time employees cite their relationship with coworkers as their favourite aspect of their present employment, ranking higher than benefits (17%) and daily work (17%).
- Create career pathways: In a recent survey, 59% of employees said their firm could do more to help them improve in their careers, while 21% said there is no possibility for advancement there.
- Benchmark market value: Minimum compensation should reflect market value. In fact, respondents indicated that competitive pay is the most effective strategy for enhancing business culture.
- Make a better candidate experience: 46% of businesses fail to provide a positive candidate experience. In spite of the urgency of the requirement to fill positions quickly, it is imperative that companies provide a positive experience.
The Roller-coaster Economy
There have been rumblings about a possible recession for months, and now most experts believe it will actually materialise sometime within the next year with a probability of 96%. Workers are at a crossroads because of this and the expense of life right now.
According to Remote.co’s Work & Financial Wellbeing survey, the present economic climate has a significant impact on the decision-making of both job searchers and professionals. Eighty percent of workers complain that their wages aren’t increasing at the same rate as inflation, and 92 percent say that rising prices and the threat of a recession have altered their outlook on the future.
About half of respondents (47%) said that they have found or begun looking for higher paying employment due to worries about inflation and recession. In addition, 46% have cut back on discretionary spending, 31% have taken on additional work or freelanced, and 23% have increased their reserves for unexpected events.
And when asked if they’ve considered a career change, respondents said:
- “Yes, I am actively trying to change careers right now” (50%);
- “No, but I am considering trying to change careers” (21%);
- “No, because I already successfully changed careers” (12%); and
- “I already tried, and it didn’t work out” (3%).
But, although some employees are brushing off their resumes in search of more compensation, others are hesitant to change jobs due to the unstable economy. Nonetheless, there is a subset of the population that has turned to less conventional means to increase their access to financial resources.
Inflation and the economic slump have forced 44% of millennials and those born after 1980 to move back in with their parents, according to a Harris Poll by DailyPay. Just 28% of respondents in the study reported consistently meeting all of their financial obligations on schedule. Compared to the 56% of Americans who feel they are capable, this is a significant difference.
Workers, however, should not be expected to cope with inflation on their own. Providing aid and/or incentives is a necessary for businesses.
According to the Effective Pay Study 2017 from Maintain Financial, 86% of employees would accept a monetary bonus in exchange for remaining with the company longer. Seventy-six percent of those who have stock options or other forms of equity say they would rather be compensated monetarily for the same amount of work.
When asked how a cash bonus payment would be used, respondents said:
- pay off debt (44%);
- save for retirement (40%);
- start an emergency fund (28%); and
- save for a down payment on a home (21%).
Cash bonuses have been shown to be quite effective for his clients, according to Rob Frohwein, co-founder and CEO of Keep Financial, and they don’t need businesses to seek out “new” money.
In many cases, monetary bonuses are unnecessary on top of a regular salary. “Employers can simply allow workers to collect a percentage of their annual salary up front,” he argues. If an employee makes $100,000 annually, for instance, their employer may agree to have them take $20,000 of that amount up front and the rest of it in installments over the year. Possible one-year minimum participation requirement for this perk. Employees who receive their payouts in a lump sum have more financial flexibility and can utilise the money for things like a down payment on a home, paying off debt, or investing.
The CEO of Remote.co, Rob Gardner, offers some alternatives to monetary bonuses for businesses. As she puts it, “businesses should examine alternate benefits that can aid workers now and in the long run” beyond bonuses, salaries, and cost of living hikes. “For instance, providing alternatives to the traditional office setting, such as telecommuting or flexible scheduling, can help employees achieve a healthier work-life balance and deal with the pressures of their jobs in a more manageable way.”
The Emergence of Quiet Hiring
This year, another “silent” trend is gaining traction: the practise of firms filling vacancies without recruiting new, full-time staff. Existing personnel are temporarily reassigned to different positions within the organisation.
According to a recent Monster survey, 80% of workers have been “quiet-hired,” and 63% view this as a fantastic opportunity to develop new skills.
Jennifer Shewan, vice president of people at Wonolo, attributed the surge in popularity of quiet hiring to firms’ increased fiscal prudence. “The reason quiet hiring is currently receiving so much attention is largely due to the impending recession, which is forcing firms to be more strategic with hiring in the face of budget cuts,” she explains. “By being strategic with headcount allocation, team development, the employment of temporary workers, and individual bandwidth, organisations are able to meet their immediate needs in a cost-effective and low-risk manner, while simultaneously investing in the growth and development of their personnel.”
Several individuals are now asking if quiet hiring could be a long-term answer to decades-long talent shortages. Time will tell, but for now it appears to be working.
“The [economy’s] unpredictability makes it difficult to effectively predict staffing needs relative to predicted firm performance,” adds Shewan. “Silent recruiting allows organisations to save money by reviewing their existing and prospective independent contractor needs and developing their internal workforce without adding full-time workers,”
Therefore, leaders should not allocate responsibilities hastily before becoming aware of the potential burnout inducing effects of internal job hopping. In a poll by Key Bank, 42% of respondents stated they are now overwhelmed or suffering burnout at work, with Millennials and those younger reporting a greater rate of burnout at 53%. To sustain quiet hiring, management must guarantee that it is not harmful.
“Although there are enormous benefits to silent hiring, there is a risk of staff burnout if it is not done carefully,” adds Shewan. Companies can attempt to prevent overworked staff by prioritising and investing in employee programmes. Investing in mental health help when possible could be beneficial for both employees and employers.”
She also asserts that recognising and rewarding employees with salary hikes and promotions is effective and recommends organisations who are minimising expenses to create a healthy balance between cost reduction and rewarding effort.