5 Labor-Sector Trends Expected to Impact Americans in 2023

We’ve seen just how adaptable and resilient Americans are when facing obstacles in the workforce, thanks to the pandemic, which drastically changed traditional workplace culture. Now that society has shifted yet again—moving back toward pre-pandemic norms—there are a new set of obstacles to overcome.

It is extremely important for both organizations and employees to look ahead at what to expect this year, to strategically plan how to approach these challenges and create a successful working environment. With that in mind, Talent.com has identified five themes that we expect will significantly impact the employment sector in the upcoming year:

1. Conversations surrounding pay transparency will increase.

We are beginning to see a shift toward pay transparency nationwide, with California’s legislation taking effect on January 1. New York City and Colorado had already implemented pay-transparency laws.

A recent Talent.com study shows that nearly 35 percent of job candidates experienced pay discrimination, and more than half of them were women. There is still a long way to go in correcting gender and racial wage gaps across the United States. However, conversations around pay transparency, along with the implementation of laws across the country, are moving us in the right direction.

As more pay-transparency mandates roll out, we will see increased conversations surrounding the importance of advertising salaries and the impact that transparency has on employment as a whole. We believe that through increased discussion, pay transparency will become an expectation for employees.

2. Employers will prioritize skill development.

We do not foresee a slowdown in conversations surrounding up-skilling and skill development in 2023. Employers understand that we are living in an employee’s job market, with more open opportunities than there are workers to fill them. Since candidates have more options than ever before, organizations are experiencing more difficulty attracting the best possible talent.

With that being said, we expect employers to promote and emphasize professional development opportunities as a tactic for attracting new talent and retaining their current workforce. The benefits of this strategy are twofold: New hires and employees are able to develop their skillset and feel as though their employer is committed to their growth and future success, while employers are able to benefit from a workforce that is continuing to update and learn new skills.

3. Return to increased mental health conversations in the workplace.

Mental health conversations were everywhere over the past three years, especially as we went through periods of isolation. These discussions made their way into the workplace as well, and many organizations implemented programming to ensure their staff were in positive head spaces.

As another period of economic uncertainty arises in the form of a possible recession, it is vital to not lose momentum and continue to focus on mental health initiatives. Employers need to keep the mental health of their employees in mind and enact programs to assist their team where possible. Services such as virtual counseling and wellness workshops can provide employees with a sense of relief during this difficult period. In turn, they can create a healthy work environment.

4. Compensation negotiations will become driven by benefits.

According to a recent Talent.com report, nearly 60 percent of job applicants consider benefits as an important element during their job search. With the pro-employee job market making it increasingly difficult for organizations to attract and retain top-quality candidates, employers will become inventive with their benefits packages, starting to offer nontraditional perks that candidates cannot get anywhere else. Benefits such as home-office stipends, extended parental leave, and fertility treatments will become more common.

Additionally, since we are seeing the adoption of pay transparency, job seekers will begin to lean on negotiating benefits as a tactic to increase their overall compensation.

5. Organizations will emphasize hybrid work environments.

It’s no secret that a large percentage of Americans are enjoying the benefits of remote work. Remote work allows for flexibility and working autonomously in ways that are not present within a traditional office environment. For instance, employees can shift their working hours to tend to personal matters in the middle of the day, such as caring for children or attending appointments. Many workers also feel like they have been able to build a sense of trust among their colleagues and bosses through working remotely.

Nevertheless, there is a lot of value to the connections that are established through working on site and in person. Collaboration opportunities increase, as well as team building when colleagues get to know one another better on both personal and professional levels.

This is why we expect hybrid work environments to become increasingly popular within the upcoming year—they create a happy medium by combining the benefits of working both remotely and in person. With a hybrid-work approach, employees can enjoy the flexibility of being remote, while not losing the connection that is brought by in person face time.

Organizations that listen to the desires of their employees and take their point of view into consideration when making decisions will win brownie points with their teams and increase overall increase employee satisfaction. In fact, many job seekers have stated that return-to-the-office mandates are a deal-breaker. We have started to see backlash to some tech companies, such as Snapchat and Doordash, bringing these mandates into effect, which will be something to pay attention to in the year ahead. 

The ever-changing socioeconomic landscape will continue to alter the employment environment as we know it. Understanding the new developments will be key for employers, employees, and job-seekers alike, as we all adapt to these changes in the year ahead.

Robert Boersma is the vice president of operations in North America at Talent.com.

From: BenefitsPRO