In 2022, the ever-evolving world of work experienced fundamental shifts, milestones, and trends that will shape and impact our operations and practices throughout 2023. Let’s look at some of the key trends we saw through 2022, what we learned, and, most importantly, how they will affect the world of work moving forward.
Major Trends In The World Of Work In 2022
2022 brought about a shift in how we work, where we work, and technological evolutions. Below is our list of the most notable and impactful trends we’ve witnessed.
- The Great Resignation
- Hybrid & Remote Work
- The Increased Need For Data, AI, And Automation
The Great Resignation
It’s no secret that the Covid-19 pandemic certainly disrupted the world of work. During the pandemic, many people resigned from their current jobs. This became known as The Great Resignation. Although life has shifted back to some normalcy in 2022, The Great Resignation has continued. According to the US Bureau Of Labor Statistics, 38.6 million resignations occurred between January and September 2022.
Technology Impacts & Solutions For The Great Resignation
In the world of Human Capital Management, the effects of The Great Resignation were felt in many ways. Many companies experienced high turnover rates, leading to losing key experts working on their HCM projects. Subsequently, these employees had to be replaced mid-project and quickly brought up to speed. Through these challenges, we learned some important ways to handle high turnover.
- Client Agnostic Configurations: HCM solutions must be designed so new team members can quickly adopt them.
- Documentation & Support: It is now essential to document unique solutions to support post-go-live turnover.
- Improved Project Management Tools: By implementing improved project management tools, we were able to ensure that tasks did not fall through the cracks with employee turnover.
The Great Resignation In 2023
While pay remains the number one reason employees tend to resign, 2022 has shown us the significant disconnect between management and employee. This study by The Workforce Institute at UKG highlights the discrepancies between why managers believe employees are leaving vs. the reasons they resigned. In order to improve employee retention in 2023, it is clear that management must actively engage with their workforce. Conducting stay interviews can help management keep a pulse on employee satisfaction, leading to improved connection, productivity, and engagement.
Hybrid & Remote Work
Employees increasingly found their voice in 2022. The demand for flexibility increased significantly—much of this demand centered around the desire for hybrid and remote work. According to a survey by Gartner, 52% of employees said flexible work policies affect their decision to stay at their organizations. As a matter of fact, it was found that employees with time & location flexibility were 2.6 times more likely to report being happy and 2.1 times more likely to recommend their employer.
Technology & Remote Work In 2022
Undoubtedly it has become clear that HCM technology has shifted to accommodate the demand for hybrid and remote work. We faced some complex issues that we did not fully anticipate in 2022. Not only did remote work impact our clients, but concurrently, it impacted third-party vendors like banks as well. The disconnect between HR and front-line workers continued to grow. Things like geo-fencing, state & local taxes, and work transfers all now had to be considered when implementing projects. Through these challenges, we learned some critical solutions.
- Requirements need to account for hybrid work exceptions.
- Project timelines must account for remote work in their organizations and third-party companies.
- Increase time for gathering new requirements in the project timeline
The Future Of Remote Work
Indeed, hybrid and remote work is here to stay. While some workers have been required to return to the office, remote and hybrid work’s flexibility is still desired. Moving into 2023, technology will become increasingly important to take a people-first approach more than ever. In our recent webinar co-hosted by Julie Develin of UKG, she states that the focus in 2023 will become less on where you work and more on efficient and effective work, personalization of work, and encouraging teamwork and partnerships to improve organizational culture. Develin believes that the key to success in remote work in 2023 revolves around focusing less on policy and more on productivity.
Data, Automation, & AI
While it may be true that hybrid and remote work are here to stay, along with that comes an increased need for data, automation, and AI. Automation and AI have been proven to boost organizational performance and streamline processes. For example, employee scheduling, employee management, routine tasks, talent acquisition, and onboarding, and employee training can all benefit from automation.
The Future of Automation and AI in Human Capital Management
According to Gartner, early adopters of AI in Human Resources have reported significant improvements. In fact, the study showed that organizations that embrace a more personalized approach to employee experience would increase the average employee’s performance by 17%. It can no longer be ignored that the data and analytics gained from AI provide valuable information regarding decision-making, planning, and strategy. As AI continues to improve within the HR space, investment and adoption will only increase in the future.
Moving Foward Into 2023
As we close out 2022 and begin to prepare for 2023, now is the time when many people look back on the previous year and plan for what will come in the new year. It is no different in the world of human capital management; reflecting on what we have learned, what changed, and what is to come is essential for future success. If you’d like to know how Covalence Consulting will set your organization up for success in 2023 and beyond, we’d love to hear from you. Contact us today!