8 Trends to Watch in 2023 – HBS Working Knowledge – Harvard Business School Working Knowledge

8 Trends to Watch in 2023 – HBS Working Knowledge – Harvard Business School Working Knowledge

As 2023 begins, businesses and employees face an uncertain economy and labor market, as the twin dilemmas of inflation and interest rates weigh on forecasts. Harvard Business School faculty share the top trends that they believe will shape the workplace and markets this year, including new ways to build incentives, potential conditions for entrepreneurs, and how to make work-from-anywhere work best.

Boris Groysberg: Look to hire back top talent

While it may seem counterintuitive given the economic forecast, 2023 could be the year of powerful hiring opportunities.

For the past 12 to 18 months, we have witnessed the Great Resignation and record turnover rates. What we are hearing from many people now, however, is a sense of regret. Many people feel that they made a mistake in switching jobs, that they acted impulsively and are now disappointed with their new manager or new company. For many reasons, people switched jobs during the Great Resignation without doing their due diligence or discounted what their company at the time had to offer. In this coming year, companies may have opportunity to lure back former star employees they didn’t want to lose.

“As a possible recession looms, it is critical that companies ready themselves by having star talent in their most critical positions.”

Over the past 50 years or so, many companies have changed their perspective on rehiring former employees, at least under certain conditions, such as the former employee was a high performer and left on good terms. As a possible recession looms, it is critical that companies ready themselves by having star talent in their most critical positions.

Strong talent is invaluable at any point in the economic cycle, but one could argue it is most important in economically challenging times. If companies need to strategically and selectively upgrade their talent to deal with the challenges ahead, perhaps they should ask themselves: Is there anyone we want to bring back?

Boris Groysberg is the Richard P. Chapman Professor of Business Administration.

Sandra Sucher: Employee trust is on the line

Companies will be pulled in opposing directions in managing the people who work for them in 2023, challenging their ability to maintain the trust that we know from research leads to better business.

One direction will lead companies to increase employee fears of job security, the top fear of 85 percent of employees globally, according to research by Edelman. Even as they cut back in some areas, companies will be hiring in others, whipsawing employees who won’t know whether their jobs are safe, leading to the well-researched drop off in engagement and risk-taking that accompanies fears of job loss.

The other direction will lead companies to put more demands on employees by pressing for a return to more in-person work and other actions to rebuild frayed company cultures. The pandemic was a game-changer for employee trust, and employees have responded to that wake-up call with a realization that their first obligation to themselves is to live a life worth living.

“In summary, employees will receive mixed messages from employers: you don’t matter at all—and—you matter greatly.”

Inspiring these employees to abandon the flexibility they have come to rely on will be a tough row to hoe, and …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiMmh0dHBzOi8vaGJzd2suaGJzLmVkdS9pdGVtL3RyZW5kcy10by13YXRjaC1pbi0yMDIz0gEA?oc=5

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