As 2023 approaches it’s a good time to look at what we can expect to see over the next 12 months. Here are three trends which I believe businesses should be watching out for next year.
The talent pool goes global
The skills shortage across most industries in the UK will continue and as such, many businesses will begin looking overseas. The UK has shown more willingness to utilise international workers, than other parts of the world have such as the US and Canada.
In fact, it’s reported that 30% of London entrepreneurs have the majority of their team based in another country, while 56% of business owners across the UK have hired at least one international employee since 2020.
The increase of remote working has facilitated businesses hiring international staff and businesses have realised the benefits. But one consideration to factor in if you consider extending your talent pool across the globe, is language barriers.
How can you train, nurture and build rapport with a workforce that speaks a different language? It’s crucial that businesses address this and introduce the right solutions that will overcome any communication difficulties.
Technological innovation will accelerate to overcome rising costs
We enter the new year amidst a cost-of-living crisis which is hitting many businesses. Aside from increases in rent and energy costs, there is a planned corporate tax rate increase to 25%, which is set to take effect in April 2023. This means companies will be looking at solutions to reduce their spending, which is likely to see accelerated digital transformation.
I believe that businesses should be investing in innovations and developments such as AI, IoT, virtual and augmented reality, and cloud computing, not only to reduce overheads but also to attract talent that want to work with a forward-thinking business.
Investing in the right tech can result in significant savings as well as increasing productivity, improving customer services and stimulating innovation. But. businesses must get this right and avoid shooting from the hip. They must choose innovation and tech that will deliver cost effectiveness.
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Long-term supply chain changes
Global supply chains are under strain due to the ongoing impact of the pandemic and Russia-Ukraine war. At the same time, the UK is still dealing with the legacy of Brexit and the impact it has had on supply chains for importing and exporting goods, services and raw materials.
This means that as issues with supply chains continue UK businesses will increasingly look to diversify their supply chain and look to emerging markets.
According to new analysis from Morgan Stanley Research, a new supply chain model is emerging which is more focused on trade among regional players and allies. Although the full effects of this change will take years to emerge, countries like Mexico, India, Vietnam, and Turkey could benefit from the process.
On the one hand, the numerous benefits of supply chain diversification include lowering costs and improving networks. But communication and cultural barriers can have a big impact if you’re moving to a new supplier. This means UK businesses need to be more mindful than ever of cultural differences, regional business etiquette and effective language translation solutions for businesses, such as those offered by Pocketalk.
By Joe Miller, Pocketalk general manager of the Americas and Europe.
