What to Expect In 2023 with Modern Workforce Trends

Navigating the economic downturn with the new normal

Over the last decade, the gig economy and on-demand work has become more popular than ever before. The flexibility and independence gig work offers has contributed to a shift from 9 to 5 towards freelance work.

Companies are also increasingly outsourcing talent to meet talent shortages as freelancers are proving to be skilled and budget-friendly compared to the hassle of hiring full-time employees.

Gig Economy: What Lies Ahead?

Throughout the year 2022, stories of corporate layoffs and hiring freezes have made headlines in the newspapers and on social media channels. However, companies are still feeling the after-effects of the great resignation. According to Upwork’s Future Workforce Report, 60% of employers are experiencing difficulty finding quality talent to fill positions.

Luckily, independent workers are bringing in high-quality skill sets and are contributing to organizational responsiveness and effectiveness.

What are the 2023 workforce trends and what lies ahead for the gig economy?

Growth and acceleration

Freelancers make up a large portion of the global economy. According to Statista, in the year 2023, the projected gross volume of the gig economy is expected to reach 455.2 billion U.S. dollars.

The Mastercard report also predicts that more people are likely to embrace gig work as a “side hustle” to supplement their main income. Some may even shift towards freelance as their primary income source.

Reshaping traditional gig platforms

In 2023, traditional gig sectors are expected to see some reshuffling in the way they work to accommodate the changing times. Traditional freelancing platforms are also planning to simplify their processes for finding, hiring, and managing independent workers.

More platforms are adopting real-time payments and instant-payout options. Increased collaboration and partnership with third parties to promote customer loyalty and improve retention is also a trending norm.

Increased outsourcing

A common industry misconception is that hiring independent workers is expensive. While the hourly pay rate of a gig worker may be higher than a full-time employee, in the grand scheme of things, it still accounts for a lower overall expense.

For the 2023 workforce trends, more companies will continue to outsource talent. According to SAP Fieldglass global research study conducted in collaboration with Oxford Economics, more than 75% of executives recognize that sourcing freelancers and independent contractors is important to meet the market’s demands.

A battle for the share

While the existing platforms are adopting aggressive policies to combat competition, new entrants are also tapping into the gig economy business to take their share of the market. These businesses are particularly focusing and investing in the underrepresented sectors.

Onboarding challenges

The increasing trend of hiring contract workers may pose new challenges for companies in 2023. Recruiting, onboarding, and integrating independent workers will be unchartered territory for many employers. Companies will find ways to ensure a positive and seamless onboarding experience for freelancers while integrating them into the company’s culture.

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At CoDo, we believe in fostering positive relationships between clients and on-demand workers. Through our simplified onboarding process, we make collaboration and integration easy between workers and companies.