The new year is just weeks away—meaning this is the ideal time for business leaders to both look back on the successes and obstacles of the past 12 months and look forward to what the next year will bring for their organization.
Many leaders undergoing this process right now are reckoning with unprecedented challenges—record-low unemployment, hotter than ever competition for talent, the impacts of remote and hybrid work on everything from workplace technology to culture—setting up the coming year to be one that holds significant potential as well as possible pitfalls.
As Integrity Staffing Solutions reflects on 2022 and gears up for the year to come, here’s what we’ve learned about the changing staffing industry and the broader transformations happening in the world of work:
What we learned this year
- The year of turnover: Catchphrases like the “Great Resignation” and “quiet quitting” rose to the top of HR and business leaders’ agendas in 2022—and with good reason. Estimates from Gartner have annual U.S. turnover this year at nearly 37.5 million, up 20%, with many experts citing pandemic-driven reckonings and a need for better work/life integration as driving the exodus. Responses have varied across industries and organizations, but some companies have used the moment to leverage professional staffing to help fill their ranks and boost retention.
- Workers need support: Another common reaction to the turnover crisis has been the strengthening of employee benefits and perks. From higher salaries to signing bonuses, compensation had a moment in 2022, but many employers are also investing in areas like mental health resources and more support for flexibility.
- A shifting market: While workers have been in the driver’s seat when it comes to the hiring market this past year, that’s not to say they’re simply hopping from Job A to Job B. Instead, many are reconsidering the traditional industry, role or type of work they’ve done as they make moves. And they’re being influenced by external factors. For instance, as Americans grapple with rising inflation, more are turning to additional temporary or seasonal jobs, driving interest in the staffing industry. The American Staffing Association reported this fall that staffing employment remained above 2021 levels.
Where are we headed?
- Labor demand may fall: While 2022 was dominated by the hypercompetitive war for talent, some financial experts are predicting a downturn in the coming year. That’s leading some employers to pull back on hiring, or even turn to layoffs.
- Flexibility will remain king: Even if competition for talent cools off, employers will need to focus on retaining the talent they have—and that focus should land on flexibility. According to recent research from CareerBuilder, jobs that offer candidates the ability to work from home saw seven times the number of applicants than in-person roles. That included both part- and full-time work, across a range of industries and job levels, demonstrating that employees today clearly have a mandate for flexibility.
- Uncertainty is the name of the game: One of the most certain things about what’s to come for HR and business leaders in 2023 is that nothing really is certain. There are a lot of factors at play—a shifting economy, changing employee expectations, a reshaped Congress—that all will influence the challenges employers face, and how they overcome them.
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