This year presents as another challenging one for recruiters and employers. With an economic recession on the horizon, employers will be desperate to retain the best talent to help their businesses thrive. At the same time, unemployment rates are predicted to remain low, in the face of continuing labour and skills shortages that already exist across many industries. 

It will be important for recruitment, engagement and retention strategies to evolve to meet changing expectations from employees about the role work plays in their lives. With that in mind, here are our top five trends we think will shape the way we work in 2023. 

1. Diversity, equity and inclusion 

Research in recent years has found more than three quarters of job seekers and employees consider diversity an important factor when evaluating job offers. Nearly a third would not apply at all to a company where there is a lack of diversity, and for those already employed, 39 per cent would leave their current organisation for a more inclusive one. 

While this trend is not new, expect it to continue increasing in importance, especially as greater numbers of Gen Z join the workforce. The research linked above found that for younger workers, the number who would leave their organisation for a more inclusive one balloons to over 50 per cent. 

A focus on DEI is doubly important because the COVID-19 pandemic caused ground to be lost in some areas. In particular, a recent report by WORK180 noted women’s participation in the workforce took a hit during this period, due in no small part to the additional 512 billion hours of unpaid care work performed by women. 

In short, a proactive approach to DEI is good for businesses’ bottom line, it’s good for society at large, and is a proven way to attract and retain staff. 

2. The four-day work week 

A shift to a four-day work week would be a major change for workplaces in Australia, where the five-day week has been the norm since the middle of last century. But it’s a concept that has been gaining momentum in the last couple of years, and will continue to be a talking point throughout 2023. 

The local standard bearer is Unilever, who has trialled the approach in New Zealand and commenced a 12-month trial in Australia last November. The New Zealand trial saw a 34 per cent reduction in sick days in 2021 compared with 2020. Employees reported stress levels were reduced by 33 per cent, and work-life conflicts by 67 per cent. Wellbeing and engagement increased overall too, with a 15 per cent boost to feelings of strength and vigour at work. 

Unilever’s approach is based on the 100:80:100 model, where employees retain 100 per cent of their pay but work 80 per cent of the time while maintaining 100 per cent productivity. It works by giving employees more time back through removing low-value tasks like non-essential meetings and emails. 

There are alternatives to this model, notably “condensed” working weeks, where employees work a little extra time each day in exchange for an additional day off. Businesses considering shifting to a four-day week need to plan carefully, and consult with employees to determine the best approach. 

3. Hyper-flexibility

We all know hybrid and remote work have increasingly become the norm. But flexibility extends far beyond this, as employees continue to seek ways to achieve not just better work-life balance but better integration of their work and life goals. 

Part-time arrangements or a four-day work week may form part of that. It might also include things like providing time off for study, family or volunteering, or allowing flexibility for employees to pursue side gigs (more on that below). The key thing is providing space within employees’ working weeks to pursue the other things in their lives that help them flourish as a whole person. 

Asynchronous work schedules are another thing to consider, whereby employees are not expected to all be sitting at their desks during the same hours every day. Crossover times for collaboration and mutual availability are important. But one person might feel they are most productive between 6am and 2pm, while another doesn’t hit their stride until the coffee kicks in at 11am, or may even be at their most creative after dinner. Giving space to both the early birds and the night owls can lead to greater engagement and productivity, which is good news to employers and employees alike. 

Whatever form it takes from workplace to workplace, hyper-flexibility will likely continue to be a driving factor for jobseekers in 2023 and beyond. 

4. Investing in employee mental health and wellbeing 

This is another area that has gained more attention and grown in importance over recent years. In 2023 a dedicated commitment to workplace mental health and wellbeing will continue to be something employees and jobseekers value greatly. 

Robust employee assistance programs are a good start. But good mental health and wellbeing practices go far beyond this. Things to consider include: 

• Working to eliminate psychosocial hazards – environmental and cultural factors that impact negatively on mental health – from your workplace 
• Providing managers with training in recognising and responding to signs of mental ill health 
• Offering paid wellbeing days as part of or in addition to standard leave entitlements 
• Including wellbeing practices such as yoga, meditation or exercise classes as part of the standard working week 
• Establishing practices that ensure remote workers don’t feel isolated and remain connected to their team 

A study by Beyond Blue found 91 per cent of employees believe mental health in the workplace is important. It is worth putting time and resources into enshrining mental health and wellbeing into not only workplace health and safety policies, but also the life and culture of your workplace. 

5. The rise of the side gig 

The gig economy has had a major impact on attitudes to traditional working models and in 2023 will continue to shape the way we view and “do” work. For Gen Z especially, the appeal of gig work is significant: one report noted 53 per cent of Gen Z said they would pass up a traditional job for full-time gig work, with flexible schedules and greater independence being the major attractions. 

At the same time, Gen Z know the benefits of more tried and true ways of doing work. The same report identified that stability and predictable pay were major considerations for nearly half of Gen Z respondents. The lack of these in full-time gig work can lead to a reluctance to embrace it fully. 

So it’s likely we’re going to see more and more employees looking for some combination of regular, salaried employment and side gigs that align with their interests or passions and provide variety, independence and additional income. A McKinsey report found that already 25 per cent of Gen Z work multiple jobs, which is nine per cent higher than the average. 

Increasingly, employers may need to find ways not only to provide the flexibility to allow this, but to actively support younger employees to pursue these interests. This might include anything from adjusting work schedules to finding appropriate ways to promote and celebrate these entrepreneurial pursuits both within and outside the organisation.