Table of contents
Businesses are up against a lot in 2023. They face challenges like retaining employees, navigating an unpredictable economy, and more.
This is especially true for industries such as construction, manufacturing, and field services. Businesses in these industries are at the forefront of the global economy, providing consumers with essential goods and services. In 2023, it’s essential that they’re aware of potential business problems so they can ensure continued success.
In this article, we discuss some of the challenges your business may face this year. This way, you can stay in the know, prepare accordingly, and tackle any issues as they arise.
Recruiting skilled workers
In today’s global economy, it’s more difficult than ever to recruit skilled workers. There are only so many out there, and they’re becoming more and more selective about the businesses they want to work for.
Candidates in 2023 are looking for flexible work arrangements, competitive pay, and opportunities for professional development. Plus, they value businesses that are trustworthy, have a strong company culture, and are clear about their goals and objectives.
This year, businesses will have to go the extra mile in what they offer employees and how they present themselves if they want to secure talented new hires.
In the last few years, many workers have reevaluated their jobs and career paths. This sparked the Great Resignation in 2021 and 2022. While some have predicted that resignations might slow down in 2023, others have noted that the Great Resignation 2.0 may happen later this year.
Businesses simply can’t afford not to be prepared. On average, employee turnover costs companies between 6 and 9 months of an employee’s salary to replace them. This can jump to more than double the employee’s salary if they were in an executive position.
For more information on retaining your workers, read our top tips for reducing employee turnover.
Communicating with and offering feedback to all employees
There are 5 different generations currently in the workforce— the most there’s ever been! They are:
- Traditionalists, born between 1928 and 1945.
- Baby Boomers, born between 1946 and 1964.
- Generation X, born between 1965 to 1980.
- Millennials, born between 1981 and 1996.
- Gen Z, born between 1997 and 2012.
It can be difficult to navigate how to communicate with and offer feedback to employees across different generations. Each group has unique communication preferences that you must consider. For example, older workers may prefer to receive updates and feedback in a phone call or in-person meeting. Meanwhile, younger workers may prefer a text message or email.
Likewise, it can be difficult to reach employees when they’re spread across different locations or working at different times. You’ll need to establish clear communication channels and develop meaningful feedback methods to overcome these challenges.
Keeping Gen Z employees engaged
Gen Z workers are likely to be the newest addition to your team. They bring with them unique characteristics and expectations, and it can be tricky to know how to keep them engaged.
Members of Gen Z are digital natives who are used to multitasking and achieving fast results. They also value employers that have clear mission statements and prioritize Diversity, Equity, and Inclusion (DEI).
Additionally, Gen Z values flexibility in their working arrangements and a healthy work-life balance. They also want to do work they feel is meaningful and has a positive impact on the world.
As a business owner, you must adapt to the changing preferences of Gen Z employees.
Read more about how to keep Gen Z-ers satisfied in the workplace.
Maintaining strong company culture
Company culture influences how your employees interact with one another and how they feel about their jobs. It also impacts your business’s ability to retain current employees and attract new hires.
In fact, a recent Glassdoor study found that 56% of workers ranked a strong company culture as more important than salary. In addition, more than 75% of workers said they’d strongly consider a company’s culture before applying for a job there.
As a business owner, you’ll need to make an effort to maintain a supportive and inclusive culture across your organization in 2023 and beyond. Workers today value inclusion, flexibility, and positivity. Your company culture should promote employee well-being, prioritize DEI, and align with your business’s values and goals.
Good company culture is especially important when you have employees working in different locations at different times. Everyone needs to feel satisfied, included, and supported.
Read more about how to build a strong company culture.
Keeping up with evolving technology
Technology continues to develop at an alarming rate. In 2023, businesses must be willing to invest in new tools and systems and train employees in the latest technologies. Otherwise, they risk losing their competitive edge and missing out on top talent.
By not keeping up with the latest technology, you also risk:
- Cyber security threats. As technology evolves, so do threats to cyber security. Businesses that don’t keep their technology up to date may be vulnerable to cyber attacks, data breaches, and other security threats.
- Inefficiencies. Outdated technology can lead to inefficiencies in business processes and productivity losses. Slow or unreliable systems can result in delays and errors. Plus, employees may spend more time troubleshooting technology issues than actually working.
- Missed opportunities. New technologies often create opportunities for businesses to innovate and grow. Failing to keep up with evolving technology can mean missing out on these opportunities and falling behind competitors.
One of the best technologies you can adopt right now is employee management software. These powerful digital systems help simplify every aspect of employee management, so your team can be more productive and your business’s information is more secure.
Navigating a changing economy
The changing economy in 2023 presents a complex challenge for businesses. Potential sky-high inflation and changing consumer behaviors are just a couple of factors impacting the current economy.
Although there’s little you can do to prevent a looming recession, you’ll need to stay updated and be prepared to quickly adapt your strategies. Businesses that are slow to respond or fail to anticipate changes in the economy risk losing revenue and profitability.
From a turbulent economy to changing employee priorities, businesses face many challenges in 2023. However, it isn’t all doom and gloom. There are steps you can take to combat these challenges and prevent them from affecting your business.
You can start addressing business challenges by using Connecteam’s all-in-one employee management software.
Learn more about how Connecteam can support your business today.