7 workplace trends for 2023

When things didn’t go quite right, my grandmother has a saying: “it’s been a funny old day”. Well, for many people, 2022 has been a funny old year. But what does 2023 have in store? Here are my tips for the major workplace trends in the coming year.

Flexible working is here to stay

The demand for flexible and hybrid working isn’t going away. Yes, there are high-profile examples of organizations that demand that employees return to the office; I’m writing this in the week after Elon Musk scrapped Twitter’s work from home policy.

But for most organizations, allowing those employees who can work in a hybrid way to do so will pay dividends. In our own research at The Myers-Briggs Company, we found that people working in an office full-time were more likely to be looking for a new job than were hybrid or remote workers, and that employees whose preference was for home working but whose organization demanded that they were entirely office-based were almost twice as likely to be looking for a new job.

Allowing employees to be flexible around hours and location also taps into other trends around sustainability, inclusion, and wellbeing. And it is worthwhile considering that when a large proportion of workers work remotely, this can save thousands of dollars per employee annually.

The workplace becomes more than a physical location

Several trends are beginning to change our conception of the ‘workplace’. The rapid increase in hybrid and remote working means that for many the workplace is no longer a physical location, but a rather a virtual space where they can connect with their fellow workers and share a sense of belonging.

This may be especially the case for Generation Z, the digital natives joining the workforce for the first time. Of course, for some workers, rises in energy costs may mean that they prefer not to work from home too often. Others may choose to attend the office for one or two days a week to build or maintain a physical connection with their fellow workers or to enjoy the social side of the workplace.

It is important that this is a choice, and personal preferences make a difference; our research shows that almost a third of introverts felt forced to socialize with their co-workers, compared with just 6% of extraverts. Organizations can use this shift from ‘workplace’ to ‘connection space’ to build employee wellbeing by creating channels for workers to connect online, and by re-configuring office layouts to ensure that there are informal spaces where employees can catch up and chill out, but also quiet areas for reflection and concentration.

Diversity, equity and especially inclusion will increase in importance

Statistics show that when schools were closed during the pandemic, mothers tended to take on more responsibility for childcare than fathers, and were interrupted more often when homeworking, even if both parents were working full-time. In addition, women and members of minority groups were also over-represented in frontline and client-facing roles where they were more susceptible to COVID, in some cases with long-term effects on their ability to work. This has the potential to affect women’s careers and exacerbate the gender pay gap. We will see an increased focus on diversity and equity in 2023, but more attention being paid to inclusion in particular. Our research shows that employees who feel included have higher levels of wellbeing and engagement at work, and that it is especially important for managers to act in an inclusive way to all their staff.

To attract and retain staff, companies will need to demonstrate an authentic social purpose

The COVID pandemic has made many people re-evaluate their life choices. Some have left the world of work entirely; others have moved to charities, not for profit organizations, or companies with a wider purpose than simply maximizing shareholder value. Many young people entering the employment market will already have the same mindset.

Companies that can show that they genuinely care about people and the environment, and that can demonstrate corporate social responsibility and point to their Environment, Social and Governance (ESG) strategies, are more likely to attract and retain good staff, and this is now more important than ever before. My own organization, The Myers-Briggs Company, has been a B Corp (Benefit Corporation) for some years now, and in a competitive employment market this has proved to be one reason why several good job candidates chose to work for us rather than for a competitor. A B Corp is a commercial, for-profit company that has a triple bottom line (profit of course, but also people and the planet) and which is audited against standards for sustainability, the environment, effects on workers and the wider community, and more.

A focus on maintaining wellbeing and mental health during the recession

The last few years have focused many people’s attention on their physical and mental wellbeing; as recently as October 2022, the U.S. Surgeon-General unveiled a new framework for mental health and wellbeing in the workplace. This will continue to be a theme into 2023; indeed, the likely coming recession and increases in the cost of living will bring wellbeing into sharper focus. Our own research in 2022 suggests that levels of wellbeing at work had begun to recover somewhat after lower levels in late 2020 and in 2021, but this may change in 2023.

More than ever, workers are looking for an environment that will be conducive to their physical and mental health and are less prepared to compromise on these issues. Organizations that take account of this will find it easier to attract and retain staff.

A move to more human-centered and inclusive leadership

The saying “people don’t quit their jobs, they quit their manager” may sound like a piece of folk wisdom, but it’s directly backed up by academic research, and also indirectly. A 2021 study of 1.4 million people found that a toxic company culture was by far the biggest predictor of attrition, and most of the factors contributing to this culture were due to, or heavily influenced by, the behavior of managers and senior leaders. Employees are increasingly unwilling to adapt to or put up with poor management and may resort to ‘quiet quitting’ or to actually quitting. In our own consultancy business, we have found that people are more and more looking for their managers to treat them as individuals and in an inclusive way. Inclusive leadership will be a major theme for 2023.

The employment market will continue to be volatile and competitive

Recently, the employment market has been extremely competitive; many recruiters will have stories of having a job offer accepted on a Friday only to discover over the weekend that the candidate has accepted a better offer elsewhere. As the recession bites, companies may slash their workforce as a way to cut costs, in some cases supporting the remaining workers and removing repetitive tasks by a greater use of technology. However, in some areas labor shortages will remain, and given the effects of inflation, salaries will need to remain competitive.

Read more: 6 key trends influence employee benefits in 2023

Paying attention to the factors listed above will help organizations to attract and retain staff even when money is tight. Allowing flexible and hybrid working may play a role here too, especially where otherwise the costs of commuting and/or extended childcare would become prohibitive for workers.

John Hackston is a chartered psychologist and Head of Thought Leadership at The Myers-Briggs Company where he leads the company’s Oxford-based research team.