The recent Trends Redefining Employee Experience in 2023 report by software company Workday highlights the workforce changes impacting organizations in 2023. It shows that employers are posting fewer job openings, extending fewer offers, and prioritizing best-quality hires. However, with an increased focus on efficiency and internal productivity, the report indicates that employers should also pay attention to the well-being of their workforce or risk burnout and retention issues. This article outlines trends that are currently redefining the employee experience.

The Hiring Market Is More Competitive

The report reveals that job seekers are expected to experience greater competition for job offers in 2023, impacted by a 10% decrease in open roles and a 4% drop in job offers compared to the previous year. This trend is especially pronounced among tech and media organizations, where job seekers are expected to compete with around 27 candidates for an offer. This marks a 248% increase from the first quarter of 2022. These statistics indicate the likely end of the growth era as business leaders focus on efficiency over growth. It also coincides with an increased focus on hiring the right candidates for each new position and internal productivity.

Employers Are Shifting Their Focus to Employee Engagement

This report highlights four primary areas of focus that can help organizations succeed with shifting workplace dynamics as employers transition from growth to efficiency:

1. Employee health and well-being— As employers increasingly focus on efficiency, employees will likely be tasked with increased pressure to be productive. This can increase the risk of burnout, especially since many employees are already under significant pressure to perform. Employers should find ways to improve employee efficiency without increasing burnout risk.

2. Hybrid work— Although the majority of employees (87%) feel productive in a hybrid work environment, many employers find that hybrid or remote work makes it difficult to trust employee productivity. According to the Workday report, employers who focus on outcomes rather than hours worked and establish clear goals and objectives for employees can cultivate trust, foster employee autonomy and reduce the risk of burnout.

3. Growth and recognition— With a heightened focus on existing employees rather than new hires for growth, it's crucial that employers provide talented workers with recognition and growth opportunities. This can boost employee engagement and retention as well as increase productivity and efficiency by ensuring employees are in the right positions for their skill sets.

4. Strategy— Half of business leaders say their organization is unprepared for future economic or geopolitical challenges, according to management consulting firm McKinsey. As internal and external pressures shift, employers can create clear strategic goals to help employees prioritize their work in accordance with high-value initiatives.

Employer Takeaway

As organizations adjust to the end of growth-based hiring, prioritizing workplace efficiency and employee experience is critical. Employers can do this by focusing on employee health, well-being, productivity and communication. Internal attitudes are shifting toward internal efficiency, so employers should consider the needs and psychological well-being of their employees and identify areas for improvement.

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The content of this News Brief is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice.