In
January, we made several leadership and workplace predictions for 2023 - but
did we get them right? Let’s take a look…
Prediction
1 - More movement at senior level
What
the prediction said… We’ll see more movement with
senior-level candidates seeking new opportunities. There seems to be optimism
regarding new roles because of the high employment levels, and a thirst for
increased remuneration in light of the cost of living crisis.
Were
we right? Across the team at Hanover, we’ve seen similar
levels of movement to 2022. However, firms have focused on people and strategy,
which has meant some casualties. High-profile moves have been met with
some premium packages to ensure success for those hiring.
Prediction
2 - Gen Zs will feel a squeeze
What
the prediction said… This generation may have to
make some compromises to advance in their careers and ensure job stability. For
employers, the challenge comes in balancing the return to the office and
inter-generational needs and requirements.
Were
we right? Yes and no. According
to Deloitte, the high cost of living is a
top concern for Gen Z, and 70% of
Gen Zers say salary is the most
important factor in their next role. This would indicate they’re after job
stability. But work/life balance is also critical, with the Deloitte report
indicating that more than 75% of Gen Zers would consider looking for a new job if
they’re asked to work on-site full time.
Prediction
3 - More focus on leadership skills for technical experts
What
the prediction said… Leadership skills for technical
experts or those with deep subject matter expertise will come to the fore as
they are tasked with leading large teams and delivering results - without
necessarily having extensive people management experience or formal training.
Were
we right? At Hanover, we’ve seen an uplift in the number of
clients asking us to source technical candidates with strong leadership or
management skills. The explosion of AI is a contributing factor, as is the
focus on cybersecurity. Per a recent Forbes
article, “Leaders should be soaking up
as much about AI as possible - specifically, its impact on the workforce. [...]
Leaders should get ahead by learning how to modernise the skills of their
people.”
Prediction
4 - Tech will be integrated into core business
What
the prediction said… Technology leaders will feel
the pressure to develop better stakeholder management skills, and CTOs will be
asked to make revenue growth predictions and work more closely with commercial
functions.
Were
we right? The impact of AI has been felt worldwide, with
increasing numbers of businesses harnessing its potential - and not just in
tech teams, but across business units. There seems to be a better understanding
that technology is part of your core business structure, and we’ve spoken to
several clients that are building commercial responsibilities into their CTO
job descriptions.
Prediction
5 - Greater focus on succession planning
What
the prediction said… ExCos will be prioritising
development for their successors in 2023. They will also be investing in talent
they want to engage and retain to prepare them for bigger and broader roles in
the future.
Were
we right? In 2023, we’ve worked with more businesses than
ever before on their succession planning strategy - but that doesn’t mean it’s
happening everywhere. According
to the FT, around half of business owners
have no exit strategy, 37% of businesses don’t have a succession plan and 10%
haven’t considered it.
Prediction
6 - Customer expectations will be elevated
What
the prediction said… Businesses will need to shift
from a product-centric to a customer-centric outlook to, perhaps ironically,
sell more products.
Were
we right? Yes - and this trend will continue. Forrester’s
data says that the number of businesses analysing customer health scores has
increased 55% year-on-year, and 70% of
brands say they now see a direct
connection between customer service and performance.
Prediction
7 - Businesses will double down on ESG and DE&I
What
the prediction said… Many more businesses will be
addressing both structural AND behavioural inclusion to drive sustainable
change truly.
Were
we right? Yes - but are we doing enough? Regarding
sustainability, McKinsey
reports that almost every company has a
defined strategy, but only 40% have the knowledge and capabilities to achieve
their targets. With the government scaling back on its commitment to net zero,
this may not improve as quickly as it should. As for DE&I, having a diverse
workforce positively
impacts the bottom line. And yet, we’ve seen DE&I
leadership roles being made redundant and only 41% of UK
workers believe their employer values diversity
and inclusion.
Prediction
8 - Outplacement will come into its own
What
the prediction said… There’ll be an uplift in
outplacement needs in 2023 due to the current climate of high inflation, rising
energy costs and the wider economic impacts.
Were
we right? Yes - and again this is a trend that we expect to
continue. Another reason for the uplift is that companies need to manage
redundancies more ethically and responsibly. Results
from comprehensive research in September 2023 suggest that
the outplacement services market is expected to expand at a CAGR of 5.65% from
2022 to USD 3352.78 million by 2028.
Look
out for our 2024 predictions coming soon.
