4 predictions about the future of work in 2023
Over the past few years, COVID-19, the ensuing Great Resignation and continued economic uncertainty have created a new world of work. As the end of 2022 nears and 2023 comes into view, it’s time for employers to think about what’s next so they can compete in a challenging hiring landscape. Here are four predictions about the future of work next year.
1. Companies will hire more independent workers.
While a full-time job with one employer may seem like the norm, a surprising 36% of Americans identify as independent workers, up from just 27% in 2016.1
This independent workforce enables companies to expand their workforces during periods of peak demand, and then revert to a leaner team when workloads are normal. Calling in help on an as-needed basis is valuable for small businesses that need specialized help at times, but are unable to afford having those workers on staff full-time.
In 2023, employers should consider how independent workers may be able to benefit their organization.
2. Companies will be a mixed bag of remote, onsite and hybrid work.
Remote, onsite or hybrid work? Post-COVID, businesses have taken a scattered approach in deciding what’s next for their workforce. While 81% of employees who worked from home during the pandemic don’t want to go back or they would prefer a hybrid schedule,2 many employers feel that productivity benefits from employees who show up in person.
In 2023, employers should strike a balance between setting their company up for maximum productivity and giving their employees the flexibility and work-life balance experienced while working from home. Employees who don’t feel like they receive this flexibility may decide to seek employment elsewhere, as remote opportunities are on the rise and giving job seekers ample options.
3. A different generation will come into leadership—and a new generation will start working.
As more and more Baby Boomers enter retirement every day, a different generation—Gen X—is moving into upper-level leadership roles in organizations. As direct communicators, eager learners, autonomous self-starters and excellent multitaskers, Xers bring much value to these leadership roles.
And as Xers move on up, a new generation is also entering the scene: Gen Z. This youngest generation of professionals care less about salary and more about things like: flexibility to work remotely, wellness and mental health initiatives, and meaningful work and culture.
In addition to Gen X and Gen Z, Millennials are still the largest working generation.3 This generation is known for being innovative, optimistic, open-minded and supportive in the workplace, and they tend to value perks and culture over paychecks.
In 2023, organizations must take necessary actions to build an engaged workforce through benefits and policies that appeal to all generations.
4. Robust benefits will be more important than ever.
Medical costs are on the rise, and quality health care has never been more important to employees. In this employee’s market, voluntary benefits can help employers attract and retain talent while managing their bottom line.
Voluntary benefits help protect employees from certain health and financial risks and appeal to employees of all generations. Here are some common types of voluntary benefits:
- Cancer insurance
- Heart / stroke insurance
- Critical illness insurance
- Hospital indemnity insurance
- Short-term disability
- Life insurance
Voluntary benefits are unique because benefits are paid directly to employees, not doctors or hospitals. Employees can use cash benefits for any purpose, including medical bills and living expenses.
This financial protection comes at an affordable price. Premiums for supplemental insurance typically cost just dollars a paycheck, and can be paid via flexible funding options including 100% employer paid, 100% employee paid, or a combination of both.
Enhance your benefits in 2023!
Are you ready to learn more about how voluntary benefits can help your business in 2023? Call (877) 266-7326. Our dedicated professionals are here to help!
1McKinsey & Company, Freelance, side hustles, and gigs: Many more American have become independent workers, https://www.mckinsey.com/featured-insights/sustainable-inclusive-growth/future-of-america/freelance-side-hustles-and-gigs-many-more-americans-have-become-independent-workers, 2022.
2Forbes, Why 2022 is the Year of Workplace Culture, https://www.forbes.com/sites/carolinecastrillon/2021/12/29/why-2022-is-the-year-of-workplace-culture/?sh=1f0cde7a1bbb, December 2021.3Team Stage, Millennials in the Workplace Statistics: Generational Disparities in 2022, https://teamstage.io/millennials-in-the-workplace-statistics/#:~:text=The%20number%20of%20millennials%20in,Xers%20in%20the%20US%20workforce, 2022.