How to overcome the challenges of 2023

The pandemic saw a complete revamp of how workplaces operate. Three months into 2023, businesses are adapting to this change.

Mercer released Rise of the relatable organisation: Global Talent Trends 2022–2023 Study. The report discussed the “relatable organisation”. That is, a workplace that values its employees and the world around it by listening and delivering on what matters.

Mercer outlined the five characteristics of the relatable organisation and what businesses should be focusing on in 2023:

1. Reset for relevance – With the workforce seeing drastic change through the pandemic, Mercer said successful businesses would thrive by adapting to the change.
2. Work in partnership – Mercer said: “Today, ‘partnering’ over ‘leading’ might be a company’s biggest competitive advantage.” Do this by connecting with employees and stakeholders and making them feel valued through loyalty and engagement.
3. Deliver on total wellbeing – Economic and pandemic stress has taken a toll on employees. Businesses will thrive by understanding this and prioritising the wellbeing of their workers. Engagement, retention, and attraction will all be affected by this.
4. Build for employability – Build the skills of your workforce. Learning and development will be very important this year as talent shortages persist. Utilise the talent you have and build them up from within.
5. Harness collective energy – Make changes for the benefit of the employee. As the workforce resets and adapts to the new world of work, use the opportunity to cater to the needs and wants of staff, as happy staff produce better results.

Some of the other points of discussion were:

Inflation

According to the Global Talent Trends Study, 57 per cent of business leaders expect supply costs to increase, and 55 per cent believe employees will ask for more money. In reaction to this, 60 per cent of organisations plan to pass these costs onto the customer.

With inflation already becoming a massive concern as the cost of living rises, this could spell more issues for people struggling to keep up.

Employee experience

Unsurprisingly, talent shortages are still hot on employers’ minds, as the top HR priority for the year is to improve the employee experience. This is good news for staff as the pandemic and current economic concerns add stress to our lives. This could be a silver lining as workplaces work to look after existing staff.

What the workers want

The main motivators for employee success were also revealed, with being valued and fulfilling work taking the top spots across the world.

The pandemic had some concerning impacts on employee wellbeing, with energy down 11 per cent. In 2019, 74 per cent of workers felt energised at work, compared to just 63 per cent in 2022.

Similarly, burnout is on the rise, with 81 per cent feeling at risk of burnout in 2022, compared to just 63 per cent in 2019.

This is where the relatable organisation comes in, as employees want to be valued and looked after.

Positive pandemic outcomes

While pandemic pressures are still being felt, it appears that many leaders saw some good from the hardships.

Of the leaders surveyed, 41 per cent used COVID-19 as an opportunity to reset and shift practices, and 40 per cent were empowered as they believe they can now rise to challenges.

While this optimism is promising, 39 per cent believe that in order to be successful, they need to expand their technological capabilities.

Mercer surveyed over 13,300 employees from 25 industries across the world. To read the full Rise of the relatable organisation: Global Talent Trends 2022–2023 Study, click here.