10 Workplace Trends That Will Shape the World of Work Next

The workplace of 2023 will be “more technologically-reliant, more distributed, more diverse… largely virtual.” However, the significance lies in emerging “new ways of working.” Rather than viewing workplaces solely through their physical characteristics, organizations must recognize them as “human systems” that adapt to “global teams in dynamic environments.” This shift encompasses “new rules of performance and engagement” and “unique models of work.”

What Makes a Workplace Trend… a Trend?

A workplace trend constitutes “a business change that acts as an indicator of the shifts we should expect in the world of work.” Such changes become trends when they demonstrate longevity through:

• Widespread adoption: Popular practices adopted by numerous company leaders and employees over specific periods (exemplified by the hybrid work model trend post-pandemic)
• Adaptive response: Reactions to impactful workforce changes, such as the emergence of digital nomads driving remote work expansion
• Data patterns: Identifiable trends in datasets (e.g., “77% of workers consider that a wellness program will have a significant impact on the company culture”)
• Cultural integration: Trends that persist and become embedded within work culture itself (such as workplace sustainability initiatives)

Important distinction: “Workplace trends are business changes expected to grow, but only some trends will eventually grow into business standards. While the others will remain at the level of… breaks from the standard routines.”

Why Understanding Workplace Trends Matters

Organizations should monitor emerging trends for four primary reasons:

1. Attract talent more easily in 2023
2. Boost employee retention
3. Build a more progressive workplace
4. Improve company culture

The most critical advantage is that trends serve as “reliable sources of changes” that organizations can implement to enhance employee efficiency and workplace quality.

10 Workplace Trends That Will Shape 2023

1. Workplace ESG (Environmental, Social, and Governance) Grows in Importance

In 2023, organizations will face increased demands from current employees and younger job candidates for proof of “equitable and sustainable business practices.” ESG performance will become a competitive advantage, particularly crucial given that young professionals “will make up 72% of the workforce by 2029.”

The study ESG as a Workforce Strategy revealed that “employers that have the most satisfied employees score higher at the ESG performance level. 14% higher.”

Organizations should prioritize:

• Minimizing carbon footprint
• Improving labor management policies
• Strengthening corporate governance practices

2. Remote and Hybrid Work Is Here to Stay

The American Opportunity Survey demonstrated that “58% of employed respondents” have the opportunity to work from home at least one day per week – representing “92 million people.” Additionally, “35% of the respondents answered that they have the opportunity to work from home full-time.”

Most significantly, “87% of them said they’d accept a flexible work model if offered to them.”

Benefits for both parties:

• Employees: Flexible hours, reduced commute time, improved work-life balance
• Employers: Increased productivity, higher retention, access to diverse talent pools

3. Workplace Wellness Trends Will Grow Even Stronger

Mental health at the workplace represents shared responsibility between employees and employers. The Workplace Wellness Programs Study found that “80% of US companies having more than 50 employees have offered some kind of wellness program.”

As remote and hybrid models expand, wellness initiatives are transforming:

• Ping pong tables and office gyms are becoming home equipment vouchers and gym memberships
• Catered healthy lunches are becoming healthy meal delivery services

4. Collaborative Online Tools + Metaverse = Immersive Collaborative Working Environments

According to Gartner, “by 2026, 25% of people will spend an hour per day in the metaverse for shopping, work, entertainment, or education.”

While full metaverse adoption remains uncertain, organizations should anticipate that “at least some aspects of the metaverse experience will have their key roles in the remote and hybrid workplaces of 2023.” This includes features like avatars and multi-purpose virtual environments.

5. Employers Will Be Increasing Their Benefits to Attract Talent

In 2022, searches for $20 wages “increased by 35%” compared to $15 wage searches in 2021. Compensation remains critical for job seekers in 2023.

To differentiate themselves in tight labor markets, employers will expand compensation packages beyond standard healthcare, retirement, and paid time off to include:

• Food preparation services
• Childcare benefits
• Additional holistic benefits

6. Employers Will Invest More in Upskilling Programs

This trend responds to both talent shortages and workers’ expectations for skills development. Research shows that “74% of Millenials and Gen Z employees think about finding new jobs next year due to the lack of opportunities to upskill at their current jobs.”

Expected developments include:

• Enhanced learning programs and benefits
• Increased time allocation for skills development during workdays
• Greater career mobility options
• Comprehensive support for skill-building

7. Employees’ Expectations Around Happiness at Work Will Grow

An Indeed and Glassdoor survey revealed striking insights:

• “90% of the respondents said that how they feel at work matters”
• “86% of them stated that how they feel at work influences how they feel at home”
• “46% of the respondents stated their expectation around happiness at work has increased in 2022”

In 2023, happiness at work will become “a measure of success for businesses.” This metric will directly influence talent attraction and retention.

8. Companies Will Continue to Minimize Their Office Space and Make It Multifunctional

CBRE’s Spring 2022 Occupier Sentiment Survey revealed that “52% of the respondents planned to reduce their office space in the next 3 years.”

Consequently, 2023 workplaces will become increasingly “flexible and multi-functional” through:

• Hot-desking arrangements
• Rearrangeable office furniture
• Flexible coworking rentals
• Advanced technology (screens, electronic whiteboards, projectors, VR)

These innovations are transitioning from experimental concepts to standard business practices.

9. The HR Department’s Purpose Will Level Up From Human Resources to Human… Results

Up to “60% of HR and people leaders have reported an increase in their administrative AND strategic tasks in 2022.”

Following challenges like The Great Resignation and quiet quitting movements, organizations increasingly recognize HR’s strategic value. This shift is evidenced by:

• Elevated HR positions to C-suite levels (CPO and CHRO roles)
• Recognition of people data’s importance in workforce strategy
• Transition from administrative functions to business impact orientation

10. We’ll See More Diverse and Multicultural Workplaces in 2023

The Glassdoor and Indeed survey found that “72% of young workers (aged 18-34) are considering quitting their current jobs (or declining job offers) if they considered their managers do not support DEI (Diversity, Equity, and Inclusion) initiatives.”

Organizations should expect increased demand for:

• Diversity training programs
• Mentoring programs
• Employee resource groups

How the Recession Could Impact the Future Workplace Trends

A KPMG survey of 1,300 CEOs revealed concerning patterns: “46% are considering reducing their workforce over the next 6 months. As 8 out of 10 are expecting an economic recession over the next 12 months.” Additionally, “39% of them have already started to carry out their hiring freezing plans.”

Beyond visible impacts like layoffs, deeper changes will emerge:

• Hiring practices: More deliberate, thoroughly considered decisions for new hires
• Work management: Companies will become stricter about employee work arrangements
• Remote preference: Employees facing inflation will intensify preference for remote positions to reduce transportation and childcare costs
• Asset preservation: Organizations will invest in current employees to improve retention and satisfaction
• Loyalty building: Companies will strengthen employee relationships by providing workplace support during economic uncertainty

Key Takeaways

These 10 workplace trends of 2023 emerge not from urgency but from organizational commitment to “do things better”:

• Make employees’ lives better both at and outside work
• Improve operational efficiency

Three critical takeaways:

1. Prioritize employee wellbeing and happiness (including fulfilling upskilling expectations)
2. Adopt new collaborative tools to support hybrid/remote work models while enabling faster, reliable communication and increased efficiency
3. Recognize that positive work environments depend on “effort and intention and less about physical presence in 2023”