What to expect in workplace trends this year: After being upended by the covid-19 pandemic, workplaces have been shifting back towards some semblance of normalcy — but not entirely without some covid legacies. Trends towards remote work and increased flexibility have become the norm in many companies, while tightening labor markets and the so-called “great resignation” are forcing employers to get creative to attract talent. As we make our way through 2023, here are five workplace trends to expect to take hold throughout the year.

#1- Labor markets will remain tight: Hiring difficulties are expected to persist in 2023 as demographic trends continue to cause a shortfall of candidates, according to a report (pdf) by employment platforms Indeed and Glassdoor. Aging populations, rising numbers of people opting for early retirements, and reduced migration are combining to tighten labor markets in developed economies, making it harder for companies to find the talent they need and giving employees the upper hand during wage negotiations.

#2- Remote work remains essential to the workforce: What started as a trend during the pandemic quickly became the new norm in the job market — and is unlikely to disappear anytime soon. The option for remote work or having a hybrid setup is one feature that most employees seek when applying for jobs. Mckinsey’s American Opportunity Survey revealed that 87% of Americans would work remotely if given the option. Working remotely has its perks and provides employees with a better work-life-balance, less commute stress, and location inclusivity. Remote work also increases the candidate pool by giving employers the ability to recruit employees from around the world, the survey notes. Based on a survey from Future Forum, 78% of employees want location flexibility while 95% want schedule flexibility.

Remote work is changing software industries, too: The rise in remote work has led to the expansion of the employee monitoring software market. The Global Employee Monitoring Software market amounted to USD 1.1 bn in 2021 and it is expected to grow to USD 2.1 bn by 2030, Spherical Insights reports.

#3- Salary expectations in a high-inflation environment: Higher pay is the most commonly cited reason for seeking a job change, according to a survey from Indeed Hiring Lab of men and women workers actively looking for new jobs. Those surveyed cited the option to work remotely as the second-biggest factor to consider when choosing a prospective employer. However, many employers aren’t necessarily capable of offering larger salaries as a result of the broader economic downturn, leading them to instead offer benefits such as retirement plans, health ins., paid family leave, and paid time off to attract job seekers.

#4- Moving the needle on burnout is a priority: Employers are exploring ways to create friendly and healthy environments for their employees, as mental health and well-being remain at the forefront in the labor market due to their importance in enhancing performance and retaining talent. According to Mckinsey’s Health Institute survey across 15 countries, 60% of employees have experienced at least one mental health challenge irrespective of their country, age, and industry. To support good mental health, employers must eliminate toxic behaviors in the workplace, raise awareness, assign sustainable workload, and push for inclusivity, McKinsey says.

#5- Four-day workweek instead of a five-day workweek: The call for a four-day workweek without changes to pay or compensation might be the biggest shift in the world of work taking hold this year, as more companies implement the new schedule. The last time a change to the workweek happened was in 1926, when Henry Ford instituted the rise of the five-day, 40-hour workweek in North America. Overall, the benefits of implementing a new four-day workweek include increased productivity, work-life balance and reduced overhead cost, Forbes reports. Microsoft Japan is one of the first companies to test drive the four-day working week for one month in 2019. The test drive resulted in productivity going up by 40%, 92% of employees reporting that they were satisfied, and electricity use going down by 23%. Here in Egypt, tech startup BasharSoft trialed a four-day workweek last year, with impressive results: The company said that 89% of its employees reported higher productivity, 82% said they were better able to manage their time, and 93% experienced lower levels of stress. BasharSoft’s business results have “either improved or remained stable” throughout the trial period and after, it said.