Right now most of us are taking stock of the year that was, looking toward the future – wondering what’s coming next, and how do we prepare to get ahead of it. If only we had a crystal ball!
We continue to be in an environment of rapid disruption, and that is not going to change.
As I study the trends impacting your business over the next 5 – 7 years, I want to bring your attention to seven trends to watch now. These trends are significant risks and inform what priorities need to top your agenda as HR and business leaders in the short and mid-term (watch for details on the list of top agenda items next week).
Economic Indicators to Watch
Our business and personal wallets are feeling the effects of the economic upheaval. Here are some of the economic indicators to put on the top of your watch list:
- Inflation and global supply chain challenges will continue to be a sore spot. The US Federal Reserve continues to raise interest rates to slow inflation. As a result, access to capital becomes more expensive. Unemployment rates are expected to increase.
- Growth is slowing globally with the looming threat of a recession in several countries.
- Wage inflation will continue to rise even higher to 4.3% of total payroll, according to the Conference Board.
Workforce Indicators of Concern
Human Capital is your greatest asset. What’s going on with the workforce that you need to stay attuned to?
- Competition for talent will be even fiercer. A recent McKinsey study found that 40% of people across six countries said they were unhappy at work and considering leaving their jobs in the near future.
- Because of a smaller labor pool, influenced by factors such as shrinking workforce participation, an aging workforce, and immigration policies, it is going to be even harder to fill those open positions.
- A new Korn Ferry report finds that by 2030, more than 85 million jobs could go unfilled due to the lack of people with the required skills.
- Employees will continue to demand greater flexibility in work arrangements. Many employees don’t believe there is a compelling case to be made to go back to the office full-time. A study by Avanti found that two-thirds of employees were willing to sacrifice a promotion or a pay raise in order to work from home.
What does this mean for you?
As we look forward, there are myriad complex issues to deal with simultaneously. We’re in unchartered territory. The environment you operate in will be in a constant motion of change. So, how you lead requires agility and different skills.
Organizations that fail to proactively and resiliently adapt risk being left behind.
Which of these or other trends are most concerning for your organization? And, more importantly, what are you doing about them?
Let me know. I’d love to hear from you.
I’ll be discussing these trends and the priorities that need to top your agenda on my new podcast, GGG Unleashed: Better Leaders Better Workplaces. My first episode drops on December 20. Don’t want to miss it!
Listen to the podcast trailer. https://podcasts.apple.com/us/podcast/introducing-better-leaders-better-workplaces-with/id1115530408?i=1000586252356
You can subscribe to the Geeks Geezers Googlization family of podcasts here. https://www.geeksgeezersandgooglization.com
