Your Guide on How to Calculate Employee Retention Rate
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An insight into workplace culture trends in 2023 to guide companies on what to expect, what to change, and what to implement.
Workplace culture trends are always evolving to meet the needs of businesses and technology.
A few years back, telecommuting was a daring concept, and now it's commonplace in many working environments.
Workforce culture trends reflect what some companies are already implementing and what other companies plan to implement in the near future. They also impact how businesses interact with employees, govern decisions, and measure success.
In this article, we'll highlight common workplace trends that companies can implement and the 4 major workplace culture trends to look out for in 2023.
Will these trends cater more to remote, hybrid, or in-office-only employees?
Let’s jump right in!
A lot of trends are currently underway. While most of them can be accounted for by the recent pandemic, some are from the generic restructuring processes which characterize most organizations.
Workplace culture trends are changes that are typically progressive and aim to reform company culture. So, it’s crucial for employers to stay abreast with these series of changes and align with current industry outlooks.
In addition, these trends aid the development of inclusive working environments and lead to increased retention rates.
Some of the trends that are currently changing workplace outlook include:
Since the pandemic, employees have increasingly shown reluctance in returning to the physical workplace and vying for permanent remote working options.
Working remotely has benefits to the overall productivity of the company - the time expended on commuting is not lost and rigid working hours are replaced with flexible working hours.
The modern workplace is fast-paced and hectic. Employers are beginning to pay more attention to the well-being of their employees by dedicating resources to interventions that promote mental and physical health.
As a result, life-coaching sessions, meditation sessions, financial literacy workshops, and gym centers are becoming features in workplaces. Reward culture, thoughtful company swag, and incentives are also gaining traction.
In addition, there’s increased promotion of empathy and care beyond workplace needs and concerns, and this improves retention.
A survey by PWC showed that organizations that care about the financial well-being of their employees are experiencing a higher retention rate.
This is a surviving feature of remote working. As a consequence of the differing geographical locations, transparency is becoming a necessity. It’s crucial that there’s clarity and decentralized information that enables communication to be well-detailed.
Many organizations that have seen the benefits, set out objectives despite geographical limitations and emphasize transparency in communication. Feedback and Ask Me Anything forms can be a great source of honest feedback.
According to Harvard Business Review, 65% of a manager's tasks can be automated by 2025.
The workplace is gradually seeing an increase in the use of automatic tools, allowing for a synchronized workflow and for certain tasks to be completed much faster. For example, time-consuming tasks such as report approval, employee appraisal, and meeting scheduling are now done using HR tech solutions.
Assembly offers seamless solutions for an automated workflow. Book a free demo today.
The current economy is a skill-based economy. It is no longer unusual for employees to cross from one industry to another once they possess the required skill set to thrive in the new industry. As a result, organizations may find it harder to retain talents unless they invest in employee training.
According to a recent LinkedIn report, employees remain at a job for a much longer time provided employers are able to offer adequate training programs.
The workplace is fast embracing diversity - both remote and in-office workplaces. Society now places greater demands on organizations to create a safe, diverse and inclusive work environment.
In fact, studies have shown that companies with more females in leadership positions perform better than their competitors by about 50%.
Over the years, campaigns have been channeled toward increasing the involvement of women and people of color in corporate governance. Likewise, there are campaigns that advocate against sidelining professionals due to their disabilities.
While we can’t see the future, there are various ongoing workplace cultures that will typically influence workplace trends in 2023.
As younger people join the corporate world, they’ll come with different values and cultures that will merge with the existing values of the middle generation. And taking a cue from some of the things already at play, we would probably see more inclusivity and diversity with more flexibility in work.
So, let’s take a look at the four major workplace trends to expect in 2023:
Already, most changes made in the workplace aim at keeping employees happy, and in 2023, we will see more workplaces making more efforts to be employee-centered.
Workplace happiness is like a gift that keeps on giving. When employees are happy, it leads to a more productive environment where quality work is done, and eventually leads to happy customers.
Learning that a company's productivity is in direct proportion to the level of employees' input makes all the difference. Basically, 1n 2023, happy workers equal successful companies.
Currently, there is a gradual shift from the conception that more work hours equal more pay and employers are now coming up with strategies to make work hours flexible to reduce turnover. Employees on the other hand prefer to work for companies that offer a better work-life balance.
However, the increasing acceptance of the happy worker phenomenon will help fuel the acceptance of work-life balance in organizations.
According to CNBC, approximately 69% of employees still experience intense fatigue despite working remotely. Therefore flexible working hours, and not attractive pay will determine retention rates in 2023.
Given the current social climate, the need for community building, and the onset of shorter job tenures, employees are no longer impressed with companies that don’t encourage corporate responsibility.
Today's job seekers want to work with companies that see the need for social responsibility and are willing to genuinely practice it. This gives companies that practice corporate social responsibility or adopt philanthropic mindsets, a competitive advantage over those who don’t.
In addition, Vantage Circle shares that in a survey, 78 percent of millennials said that CSR directly influences their decision to join an organization.
Over the past few years, we’ve seen a tidal wave of companies adopt a remote work culture and move away from the traditional office space in favor of a more flexible schedule.
In addition to the daily commute, 2023 could be the year that we step away from another norm - the five-day workweek.
While this conversation is still shaky given the current economic situation, some countries have started trying out the four-day week. They include; England, Belgium, Sweden, and Iceland, and in the coming year, countries Scotland, Ireland, Canada, and New Zealand may follow suit.
Although it is unlikely to become a compulsory practice, reducing the number of work hours in a week is said to have a positive impact on mental and physical health.
Furthermore, in 2023, we will most likely see overall improved flexibility around work.
We describe culture as the behaviors and norms that characterize a group of people. Workplace culture, on the other hand, is a set of shared basic assumptions that guide members' behavior in a variety of situations.
They are formed through a combination of factors and every workplace has its peculiar set of cultures & values they abide by.
A good company culture typically ensures to have a healthy environment, employee happiness satisfied customers. It also aims to foster personal and professional development. And one way to achieve that is by setting up culture rewards.
Some workplace culture examples include:
● Adhocracy culture
● Customer-focused culture
● Purpose-driven culture
● Market-driven culture
● Innovative culture
● Creativity culture
● Clan culture
● Hierarchy culture
Each year, thousands of new jobs are created as new companies are formed or existing businesses expand their operations. These new positions must be filled, providing an opportunity for those looking for employment.
If there aren't enough job openings available, this could lead to higher unemployment rates as more people compete for fewer positions.
But, it’s not always straightforward. There are different factors that tilt the scale each year and influence employment trends.
So what are those factors?
A combination of recession, job growth across a nation, and employees' desire to seek new jobs influence employment trends.
When the economy is good and more job opportunities are springing up, it becomes harder for employers to retain employees. In such a scenario, companies tend to experience higher turnover.
When the conditions become reversed, the duo of a poorly performing economy and low employment rate make retention easier for employers since job opportunities are much reduced.
Though not applicable to all industries, different seasons influence employment trends.
Employment trends in industries like construction and agriculture are significantly impacted by seasonal fluctuations. For instance, in an agricultural industry, certain seasons require an increase in the number of people employed due to the higher workloads.
However, a much-reduced workforce is adequate in other seasons hence those periods are characterized by reduced employment rates.
Technology is another factor that influences employment trends.
An increasing level of automation seen in industries is a key determinant of employment trends.
When a company that previously employed manual labor in executing certain tasks switches to utilizing computer-driven machinery for the same purpose, there's a high chance their workforce would be downsized.
Due to these technological advancements, certain positions are no longer relevant in companies.
The type of company culture practiced in a company affects the employment rate in the company.
Companies that don't have good cultures run the risk of losing out on top talents. If the work environment is too toxic, employees can become unmotivated and put in less effort, affecting the overall company's productivity. And in the long run, employees leave the company in search of organizations with better workplace cultures.
If you're struggling with keeping employees motivated, Assembly offers the best solutions to incentivize your employees.
Every year organizations are presented with novel ideas and innovations which in some cases disrupt the pattern of workflow. With each change comes a different definition of an ideal company culture introducing the need for employers to adjust accordingly.
Will your workplace still be using the same culture trends and tactics in 2023? Will it cater more to remote, hybrid, or in-office employees?
To gain a competitive edge in the future, companies need to apply new and innovative technologies, processes, and trends to attract the best talent. And the best way to create innovative and inclusive work environments is by imbibing and putting into action workplace culture trends.
Don't be left out of the loop. Get started with Assembly today for seamless workflows in line with current workplace culture trends.
Your employee retention rate affects your business’s bottom line & productivity. Learn how to calculate & improve it.