In our last blog we focused on preparing your team for success in 2023, now it is time to consider the new business trends that might affect you and your business.
The world of business is constantly changing, with new trends and technologies rapidly emerging and transforming how we do business. This transformation can be a great opportunity for businesses to innovate, succeed and grow — but it can also be a major threat if you’re not prepared. In this blog post, we’ll explore the four business trends that are likely to cause major disruptions in 2023 if you don’t start addressing them now. We’ll back up predictions with evidence from current trends, research and real-world examples of companies that have faced disruption from these trends.
1. The rise of automation
In the past few years, automation has become an increasingly important factor in business success. With advances in technology and the ability to use artificial intelligence to do more and more tasks, automation is quickly becoming an essential component of the modern workplace. Automation has the potential to streamline processes, reduce costs, and boost productivity. However, it also has the potential to cause problems for businesses if they don’t adjust accordingly.
Businesses that are not prepared for the rise of automation in 2023 will face a number of challenges. For starters, businesses must be able to accurately assess and address their automation needs. Without the right strategy, they risk making investments in automation technologies that could be redundant and costly. In addition, businesses must prepare for an inevitable skills gap between employees who are comfortable with automation and those who are not.
It’s important to keep in mind that automation should never completely replace human interaction or communication. While automation can streamline processes, it should still be complemented with some degree of personal touch in the areas of relationship management, customer service and sales.
By taking the time to assess their current capabilities and consider their future needs, businesses can better prepare for the rise of automation. By understanding and addressing the potential issues that come with automation, businesses can ensure that they remain competitive and are positioned to remain ahead of their competitors.
2. Increase cyber security risks
As technology continues to evolve and become increasingly integrated into businesses, cyber security threats become a more pressing issue. In 2023, these threats are set to become even more dangerous. If businesses don’t take the necessary steps to protect themselves, they could be at risk of a devastating attack that could lead to irreparable damage.
Some examples of this include how Medibank and Optus, who were both held at ransom, with thousands upon thousands of customers’ data at stake — which was eventually released in 2022, costing the businesses millions of dollars and a major loss in consumer confidence.
Despite being a large or small business, one of the biggest trends we’re seeing right now is an increase in the sophistication, frequency and complexity of cyber attacks. Cyber criminals are getting smarter and more creative in how they target businesses. For example, they’re using Artificial Intelligence (AI) and machine learning algorithms to outsmart conventional cyber security measures. They’re also targeting cloud computing systems, which can leave businesses exposed to a variety of cyber security risks.
Furthermore, cyber criminals are becoming more organised, with some groups even forming their own networks to launch coordinated attacks. This means that not only is it important for businesses to have their own robust cyber security measures in place, but also to ensure that any vendors or partners they work with have adequate security as well.
For business owners, the key takeaway here is to be proactive when it comes to cybersecurity, and don’t become complacent with a “that won’t happen to me” mentality. By taking steps such as implementing advanced technologies, investing in cyber security personnel or contract partners for mid to large organisations, and staying up to date on compliance standards, businesses can protect their organisations from potential threats and risk
3. Staff turnover and exits becoming a regular thing
You may have already experienced it firsthand within your business, but the rate of staff turnover and exits from businesses is one of the most damaging trends that will continue to have a massive impact on companies across 2023. According to a report by the Bureau of Labor Statistics, the average employee tenure in 2018 was just over 4 years, which means that businesses have to expect regular turnover from their employees.
This is particularly concerning when it comes to key positions or those with specialised skills and knowledge; if those employees exit the company, then it can lead to serious disruption to operations, a loss of valuable resources, and even financial losses.
However, Managing Director of Bespoke HR, Paulette Kolarz says it’s important to not make ‘exit’ a dirty word. “The aftershock of COVID has resulted in people investigating new ways of making money, hybrid approaches and attitudes to work (resulting in people securing multiple part time jobs), and a reshuffle of priorities and allocation of time in life,” Paulette says.
“This will continue into 2023. It’s important not to fight or resist an employee wanting to exit your business, but embrace and support people in their pursuits of new opportunities. Twenty years ago, ‘exit’ was viewed as a dirty word. We skimmed over exits as something that meant something wasn’t working or something was wrong, but in this day and age, it’s a natural progression of the employee lifecycle. This means you will open up space within your organisation to find someone who is aligned to your vision and mission, has motivation for the role, while simultaneously supporting your other colleagues to do what’s best for them, without any resentment or struggle.”
Businesses should be proactively addressing the issue of staff turnover, especially when it comes to training and developing a strong succession plan. Investing in education and training programs for current employees can help to keep them engaged and motivated, while having a succession plan in place can ensure that there are no gaps in your team if an employee decides to leave, or the ones you want to stay know the career path ahead of them.
4. New regulatory and award environments
Although changes in regulations and awards have been an ongoing area of focus, it’s important to stay up to date on changes that could drastically impact your business in 2023. One of the most pressing issues is the rising cost of labour, which has been pushed to new heights due to recent minimum wage increases. These new wages have a direct impact on operational costs, resulting in higher expenses and smaller profits for businesses.
It’s important to understand the implications of new minimum wage standards for your industry, and have a plan in place to address changes to operational expenses. Depending on where you’re located, there may be additional rules and regulations you need to comply with, such as overtime pay, sick leave, and more. Additionally, employers must adjust their salary structure accordingly if they want to remain competitive and attract the best talent. Not only does this affect recruiting and retention efforts, but it also puts a strain on budgeting and forecasting.
Another factor to consider is award environments that could potentially hurt your business’ bottom line. Awards are often set at the industry or regional level, which means they can change rapidly without warning. It’s important to stay informed of any changes in order to ensure compliance and maintain a competitive edge. Additionally, failure to adhere to these regulations can result in hefty fines, so keeping an eye on any new developments is crucial for long-term success.
Want to start your year in good stead? Take the Bespoke HR Business Health Check to identify the areas of your business that could put you at risk of falling prey to the outlined examples above.