The 5 biggest trends that will shape the workplace in 2023

Glassdoor and Indeed’s 2023 Hiring and Workplace Trends Report showed that despite growing concerns of a global economic recession, workers would retain the upper hand in the job market — making hiring a tougher undertaking for businesses looking to expand their workforce. 

According to the report, which surveyed thousands of workers and consulted with economists to determine what turns are in store for workers in the year ahead, the continued shift of balance of power towards workers is due to the significant demographic changes. 

Although data indicates that Australia’s population will continue to grow, the share of people over 65 will rapidly rise in the coming years. 

“Fewer people of working age mean the supply of workers will dwindle. Combine this aging population with other trends, such as reduced immigration, and the stage is set for chronic recruiting challenges,” the report stated. 

The report also highlighted that while COVID-19 didn’t reverse the long-run demographic trends that will drive tight labour markets for the next decade, the pandemic did accelerate changes to the workplace. 

Another flow-on effect of the pandemic cited by the report is that it helped workers be more aware of the leverage to demand change in the workplace — leaving many employers at a loss about how to deal with this new dynamic. 

To gain more insight, here are five trends of the modern workplace that will reshape the labour market in the long term. 

1. Tight labour market to affect hiring 

The report warned businesses not to be lulled into believing that the hiring difficulties will dissipate as the world continues to move towards a post-COVID-19 environment. 

“Deep-seated and long-term supply dynamics will continue to be a major force that creates a persistent gap between employer demand for new hires and the supply of candidates,” the report explained. 

Due to the lack of supply in the recruitment pool, the report highlighted that the “hiring difficulties seen today will continue beyond the short-run impacts of the pandemic”. 

While hiring appetite may be hurt in the event of some countries falling into a recession or seeing a slowdown in economic growth as central banks intervene to lower inflation, the report stated that the supply of workers “seems likely to remain tight in the long run”. 

2. Remote work is here to stay 

The near-complete global shutdown due to COVID-19 made working remotely a necessity, according to the report. 

It explained that the pandemic has forced most business operations to adapt to a work-from-home setting, which eventually resulted in employers seeing its success as a working concept. 

While the acute need to work from home has ended as lockdowns and restrictions across the world eased, the report highlighted the ability and option to work from anywhere is thriving. 

Data showed that on the job-posting platform Indeed, advertising remote-work listings are above where they were prior to the pandemic, albeit their numbers have slightly decreased since their pandemic heights. 

Notably, searches for remote work remain popular with job seekers, with searches for jobs not fully tied to work sites observed to command much higher shares of overall searches than they did in 2019. 

For employers looking to expand their recruitment pool, a recent study by Indeed suggests that positions that offer remote work have substantial potential to attract a global pool of candidates. 

“Because remote jobs can theoretically be done from anywhere, they are a particular draw for foreign job seekers,” the report noted. 

3. Benefits boost 

Compensation remains king for applicants when deciding to say “yes” or “no” to a job offer, according to the report. 

In the study, both of the job sites found that employers are increasing their benefits, and advertising them, in order to draw in talent. 

Across wage levels, the report noted that there had been substantial nominal wage gains over the last 12 months as employers tried to find workers. 

Employers looking to fill in positions in the coming year are recommended to offer holistic benefits, which have become an even more critical part of compensation packages. 

Notably, the report highlighted that there have also been observed changes in what benefits are valued by employees. 

For example, access to commuter benefits grew in many of the industries that do not have a remote-work option. These benefits could include free parking, public transportation reimbursement, and even money for petrol. 

“The priorities by industry for in-office food and commuter benefits have shifted in the post-pandemic era between office workers and those who worked, and continue to work, in person,” the report stated. 

Notably, employers are also increasingly offering mental health benefits. “Perhaps the most critical benefit that seems to be growing across all industries is mental healthcare. In addition to the havoc COVID-19 had on the labour market, it impacted the mental health of many, which was reflected in the workforce,” the report highlighted. 

4. Happiness and wellbeing as a workplace priority 

While salary and benefits remain top of mind for employees, creating a positive company culture is a key area that employers can use to help them stand out in the competitive labour market, according to the report. 

“With more choices for workers thanks to a smaller labour pool, employees are demanding greater wellbeing in their experience at work, including increased levels of happiness, satisfaction, purpose, and manageable stress,” the report stated. 

Survey results showed that almost half of workers said that their expectation around happiness at work has increased in the last year. Meanwhile, 86 per cent of those surveyed say that how they feel at work impacts how they feel at home.

On top of this, Glassdoor and Indeed estimated that 90 per cent of people believe that how we feel at work matters. However, only 49 per cent of people stated their company is tracking their workforce’s happiness and wellbeing. 

With that, the report underlined that “measuring and understanding employee wellbeing is becoming vital to attracting and retaining talent”.

5. Stronger push for diversity, equity, and inclusion (DEI) in the workplace 

In 2023, the report forecast an increased emphasis on diversity, equity, and inclusion (DEI).

However, this enthusiasm is not evenly distributed among workers, as the report noted there is a generational divide when it comes to attitudes toward DEI initiatives. 

While 72 per cent of surveyed workers ages 18 to 34 said they would consider declining a job offer or leaving a company if they did not think that their manager (or prospective manager) supported DEI initiatives, that attitude changes with each older age group. 

The figures fall to just 63 per cent of those ages 35 to 44 and a further down to 60 per cent of those ages 45 to 54. 

Finally, only 52 per cent of those ages 55 to 64 and 45 per cent of those over the age of 65 said they would turn away from a workplace that does not support DEI initiatives.