Trends forecast for the future of work 2023

While the world is resuming normalcy and employees are going back to the office, hybrid working is still here to stay, as revealed by IWG’s 2023 trends forecast for the future of work. Nearly one-third (31%) of workers believe the hybrid mode enhances productivity, and two-thirds of workers believe that choosing where they work means they can perform better.

It appeals to employees, and employers have benefited from the hybrid model.

IWG's survey showed that among 250 CFOs surveyed globally, 87% of CFOs agree that hybrid working will help them save more than ZAR 150 000.00 per employee on average.

As more change is on the way along with innovation and new thinking in areas such as sustainability, recruitment and productivity impacting our working lives, IWG outlined seven future-of-work trends businesses should consider when adopting the hybrid model in 2023.

1. Outcomes over hours

Instead of simply focusing on working hours, productivity is increasingly the priority for businesses. A mindset shift is gradually happening, in which they would increasingly use KPIs and outcomes of projects as indicators to rate employees' performance, and adopting a hybrid working model will play a significant role.

2. Have a laptop, will travel

'Work from anywhere' will become a reality for more and more workers around the world. Markets like Japan, Malaysia, the Philippines, and Indonesia have started to offer digital nomad visas in a move to attract more remote workers to bolster the economy and tourism sector.

However, the main challenge for digital nomads and 'flexcationer's would be the issue of a reliable internet connection, on top of a conducive working environment. While the idea of flexcation or digital nomad is still relatively new to South African workers, flexible and hybrid working is increasingly become their preferred model.

3. Rise of the green lease

Sustainability is high on the agenda for companies worldwide, and hybrid is helping them to mitigate their real estate emissions.

Meanwhile, businesses are also aware of the importance of green buildings in reducing carbon emissions and are increasingly willing to upgrade their existing assets and build new facilities in a 'green' manner.

4. Companies and workers reap the hybrid bonus

In the face of an uncertain economic outlook in the year ahead, hybrid working will provide a timely boost to corporate and personal pockets.

The 'Great Lease Resignation', where long leases are increasingly shunned in favour of more flexible arrangements, will continue to accelerate in 2023 as more companies seek the cost-saving benefits of hybrid working.

5. Retaining talent with benefits and training

As the world heads towards an uncertain economic horizon, retaining key talent becomes ever more essential, putting a renewed focus on employee benefits and training. Hybrid working in itself can be a significant perk.

At the same time, training and reskilling are becoming solid incentives for workers to join or remain at companies.

6. Side hustles and the pixelated workforce

The idea of what constitutes a job is changing. Google searches around the term ’side hustle’ have grown by 50% over the last year, and these arrangements are increasingly becoming normalised. This ties in with the shift to ‘portfolio careers’, where workers combine several different income streams, often from very different kinds of work, without any of them being considered as their main ‘job’.

South Africans interested in side hustles tend to look for jobs with flexible schedules that allow them to pursue their passions. For younger employees, side hustles provide an added layer of variety to their lives, and such activities connect individuals with social groups and other like-minded people, promoting personal satisfaction and happiness.

The trend is expected to continue as more corporates are looking for freelancers for work, which provide more incentives for youngsters.

7. Purpose of employers is important

In the past, workers might treat their job only as a job and would not care what the companies they were working for were doing. But today, this notion needs to be updated as it is expected the purpose of companies will become more critical in 2023.

In IWG's survey of Gen Z, nearly a third of them will quit their job if their employer's values do not align with their own. Gen Z considers environmental and social responsibility as key values, and many will only join companies that have clear goals of these values.

“This trend is likely to accelerate as more leases expire and companies seek to capitalise on the cost-saving benefits of hybrid work. The shift towards hybrid work will also contribute positively towards talent retention and attraction, especially among the emerging cohort of Gen Z workers”, says Mark Dixon, CEO and Founder of IWG Plc.

On the other hand, this means that time spent in the office is even more precious, says IWG. The report says that “connecting and collaborating in person is an essential part of the hybrid equation. But it needs to be done intentionally. Just announcing anchor days doesn’t cut it — team days need to be planned and have a clear purpose. And the same goes for meetings.

Dixon adds: “The most successful companies are now very focused on how meetings work. It’s not enough anymore to schedule a meeting and then try to wing it. If people are going to make an effort to come together in the office, their time must be spent productively.”

The future of work continues to be led by focusing on enriching employees’ workplace experience, and utilising new technologies to boost efficiency and productivity, says IWG. A greater awareness of sustainability and well-being will also colour much of the discussions on the future of work.

About IWG Plc.

Our companies provide that choice and serve the whole world of work: Regus, Spaces, No18, Basepoint, Open Office and Signature. We create personal, financial, and strategic value for businesses of every size, from some of the most exciting companies and well-known organisations on the planet to individuals and the next generation of industry leaders. They all harness the power of flexible working to increase productivity, efficiency, agility, and market proximity.

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