Published in People Matters, January 2, 2023
The year 2022 introduced “quiet quitting,” when employee engagement hit a record low during a global economic downturn.
Rick Hammell, founder of global human experience platform Atlas says in the new year, organizations must prioritize dealing with this facet of operations internationally.
In an exclusive interaction with People Matters, Hammell discusses the future of the workplace in 2023, as well as the likely trends and concerns, especially if there is a recession.
Testing the International Waters
Companies that have exclusively operated in one country may find themselves looking outside of their domestic market for the first time in 2023–not to necessarily access new customer markets, but to connect with global talent.
From an HR perspective, the most essential and prevalent tool we’ll see these companies implementing is an Employer of Record (EOR) platform to serve as an “in-country expert” as they scale their business globally. The country-by-country HR analytics will equip organizations with the insights and background they need to make educated decisions on where to source new talent next year.
Silencing the Quiet Quitting
We will see organizations prioritize employee engagement internationally, preventing both employee burnout and organizational inefficiency due to turnover. This will be especially noticeable for companies expanding globally, as local governmental ordinances–such as salary transparency laws–will impact international organizations looking to expand to these regions.
Regional Predictions
Asia Pacific: Historically, APAC has been underserved from an EOR perspective. However, we expect this to change in 2023 to reflect the region’s increase in hybrid and flexible work environments, as well as the rise of independent contractors.
Latin America: Companies looking to “follow the sun” in 2023 will diversify talent beyond India and Europe, meaning talent markets in areas like Columbia and Mexico will thrive next year.
Europe & Africa: Europe saw the introduction of the four-day workweek this year, and we expect that the success of that experience will echo throughout the region in 2023. Regarding Africa, HR tech will support the region in new, mature ways, as reflected by the business boom we’ve seen over the last 24 months.
North America: Europe’s mandated equality programs will migrate to North America next year, especially as another tool in an organization's toolbelt to focus on employee retention.
Recession-Proofing Talent
Organizational strategies were disrupted in 2022 by the global economic downturn, prompting many to reconsider their existing plan as the recession led to staffing decreases.
In 2023, organizations will prioritize upskilling, reskilling and repurposing existing talent to best weather the economic situation. With the continued uncertainty of the hiring landscape next year, offering training opportunities to upskill or reskill current employees not only saves the time and money it would have cost to hire and train talent, but can reinforce company loyalty for employees looking to build their skills within the organization.
Employee Experience and Engagement
Globally, we saw a rise in employee turnover due to a lack of engagement in 2022. This year, we expect to see a strong focus on increasing employee engagement through bettering the employee experience–turning attention to employee experiences, proactive talent retention (and attraction), and leader effectiveness will help organizations increase engagement and better prepare for the year ahead.