For hiring managers, 2022 had more ups and downs than a rollercoaster ride—a tight labor market, high levels of inflation, the continued influence of a global pandemic, and more. But what will the workplace hold for us in 2023? Here’s a roundup of five trends experts are saying will guide your talent strategy as we look to the new year. 

High value on social–emotional skills

With digital technology changing the world of work, the McKinsey Global Institute foresees a change in skill types needed for success—moving from the need for manual and physical skills to cognitive-based skills, with those who have technological and social and emotional talents thriving in the coming year. Traits such as mental flexibility, interpersonal skills, and grit will be highly valued. 

 Increased focus on mental health

Work–life balance is more than just a buzzword. Workplaces that don’t address burnout have more turnover and higher rates of absenteeism. More than a third of workers say their employer has nothing in place to help avert burnout. Savvy talent leaders will focus on ways to combat burnout and promote mentally healthy environments for their staff. 

Wellbeing as part of career development

Gallup has identified five different types of wellbeing—and career wellbeing, liking what you do every day, has the strongest influence on an individual’s overall wellbeing. People who enjoy what they are doing are more likely to be motivated employees who are highly engaged in their work. It benefits employers to be sure their employees are enjoying their work—amplifying what they like about their jobs while minimizing what they don’t like—in order to provide career growth and professional development. 

Creating sustainability to attract and retain talent

According to a recent survey of Generation Z and millennial employees, driving societal change toward a more sustainable future is seen as a major concern. They want their employer to work toward tangible ways to make the world a better place.  

In fact, nearly half of Generation X and millennials say they are putting pressure on their employers to take action on climate change. Businesses that work toward environmental sustainability will attract and retain these employees with their mission, as half of employees this age have made career choices guided by their personal values. 

Flexibility is here to stay

Though many offices are calling workers back in, many employees don’t want to give up remote work. More than half of respondents to a recent survey by McKinsey found that people want to work remotely at least part of the time, with job seekers saying that an increase in flexibility was a major reason they sought new jobs.  

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