2023 will present its own challenges for business owners, but also benefits for those who can adapt. Here’s a few.
Inflation
Inflation concerns are on the rise this year, particularly for small businesses. A staggering 91% of midsize business leaders said they are experiencing inflation challenges. Half of surveyed small businesses acknowledged that inflation is a challenge this year. Nearly all reported inflation impacted their expenses. Nearly 38% noted expenses increased by 11% or more, leaving businesses with few options. https://www.imf.org/en/Publications/WEO/Issues/2023/01/31/world-economic-outlook-update-january-2023
Labor
Given the ongoing labor shortage, it’s no surprise 70% of large employers are planning benefit enhancements for 2023. One thing we’re sure to see is an increased expectation for employers to help people with their financial situation. This includes offering more affordable benefits as well as providing tools and programs designed to bolster employees’ financial well-being.
Possible Recession
As the economy continues to recover from the pandemic, the high employment growth that happened immediately after the pandemic has slowed significantly in 2022, although it is still higher than it was prior to the pandemic. Men and young people also are not entering the workforce at the same rate as they used to do. The only increase is in those 55 and older, which he said is due to an aging population with lower mortality and morbidity. People do not want to outlive their retirements, so they may be working longer. As baby boomers continue to age, fewer will continue to work.
Awareness
According to Forbes, employee engagement has shown to lead to an increase in business profitability by 21% and four times more revenue. Why? Because engaged employees stick around longer and show up to work every day with passion, purpose, presence, and energy. The Great Resignation (due to the pandemic) and resulting talent shortages have left no doubt that employee satisfaction directly influences business success. Therefore, it has never been more critical to create a work environment that fosters and supports employee engagement.
Connection
Numerous studies have shown that the relationships people form at work can impact not only employee well-being but also a company’s bottom line. Other human factors such as work-life harmony and feeling appreciated help create this sense of connection. Going forward, HR teams must prioritize employee connections and commit to people-first cultures.
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