Here's what employees want most heading into 2023 — and other happenings in the world of work (2024)

Welcome back to The Work Shift, a weekly newsletter that keeps you informed about the economy, labor market and evolving world of work through data-driven insights. This will be our last edition of 2022 — we’re taking a short holiday break. Click subscribe to be notified of our next edition, which lands in January.

Catch up on headlines from the last 7 days.

• Prices rose last month at the slowest pace in a year. That means inflation is starting to let up and reinforces expectations that the Federal Reserve will start to pull back on rate hikes.
• The Fed raised interest rates by half a percentage point last week, the increase comes after four straight jumbo hikes of three-quarters of a percentage point each.
• Retail sales fell in November, even as the holiday shopping season kicked into gear. The overall value of sales dropped 0.6% from the prior month. About 60% of Americans say they’re buying fewer gifts this year, according to a new Harris poll.
• Americans are spending big in Europe, even as they’re spending less at home. A strong dollar makes their money stretch further abroad, with designer goods costing 38% less in Europe than in the U.S.
• Rents took a tumble in November, according to the latest Zillow data. It’s another example of inflation easing up, but rents still remain way up compared to pre-pandemic levels.
• Executives are feeling as risk averse as they were in 2020, according to a new poll from Deloitte. They’re wary of making deals, investing or taking on debt. That skittishness could then precipitate the very slowdown companies fear.
• Americans are glum on next year’s economic outlook. Despite falling gas prices and slowing inflation, about two-thirds of U.S. voters say the economy is in “not so good or poor” shape and expect it to stay that way in 2023, according to a new Wall Street Journal poll.

Take a closer look at recent trending topics — and engage with meaningful conversations happening on LinkedIn.

What employees want most heading into next year

• It’s been a tumultuous year for U.S. workers between record inflation, general economic uncertainty, the great return-to-office debate and more. Heading into 2023, most workers want the same thing from their employers: Clear communication, empathy and stability.
• According to new research featured in the MIT Sloan Management Review, workers are looking to their managers for clear communication about the likelihood of layoffs and return-to-office plans along with general support for their well being. To support those needs, managers should focus on building individual trust with direct reports, researchers suggested. Anne Marie Squeo, the CEO of a consulting firm that focuses on C-suite executives, commented that the best way to earn that trust is “consistent messaging in real time,” especially about large or sensitive news. Clear communication, she continued, is also essential in “aligning a team around a strategy and motivating people through good and tough times.”
• Separate surveys found that workers are also wanting flexibility in when and where they work, pay transparency and mental health benefits. Looking for more insights about what professionals expect to see in the New Year? Check out LinkedIn’s Big Ideas, a list of predictions about potential trends that could define the year ahead. Share your own #BigIdeas2023 in a post or comment.

Which workers are least worried about layoffs

• A cloudy economic outlook sparks the question: Are any jobs quite recession-proof? According to LinkedIn’s latest Workforce Confidence Index, some certainly feel more secure than others. Just 22% of people who work in the legal profession are concerned about potential layoffs and cutbacks right now. Those in administrative or accounting jobs are also relatively comfortable.
• Anxieties run high for those with functions such as product management, marketing and quality assurance. All these roles are more closely associated with new product rollouts, which organizations might not be as inclined to work toward amid economic uncertainty. Workers in finance and information technology are also understandably jittery, as high-profile layoffs are already in the mix in those fields.
• “I continue to stress the importance of workplace and skills diversification,” Carl Seidan, a financial planning professional, commented. “While it may seem counterintuitive, fluidity in the marketplace allows you to go from one industry to another, one job to another, one core skills focus to another,” he said. The best long-term financial planning strategy, he argued, is making yourself “marketable and nimble.”

Who is still giving out year-end bonuses

• About 27% of companies aren’t awarding holiday bonuses this year, according to a recent survey from executive-coaching firm Challenger, Gray & Christmas. Current market conditions means that many workers, particularly those in tech and banking, won’t see as much extra cash as last year. The vast majority of firms, however, are still doling out some kind of bonus dependent on the company’s size, resources and financial performance.
• Of the companies awarding year-end bonuses, more than 80% said they would be comparable to last year. The general rule of thumb, according to GOBankingRates, is to expect 2% to 5% of your salary.
• A word of advice for business leaders heading into 2023? “Budget year-end bonuses at the beginning of the year, decide whether they’re individualized or based on company goals and label them as completely discretionary,” Mike Krupit, an executive coach, commented. Craig Bohall, a client success professional, responded that it’s disheartening to see hard workers going unrewarded and ultimately bad for morale and future success. “Take care of your people and they will take care of you,” he said.

Get ready for the week by seeing what's coming up.

• Wednesday, December 21: The National Association of REALTORS® will release its monthly home sales report, which measures the number of existing homes that were sold the previous month.
• Wednesday, December 21: The Conference Board will release its monthly Consumer Confidence Survey, which measures how optimistic Americans are in the economy.
• Wednesday, December 21: LinkedIn Senior Editor at Large George Anders will release his latest edition of Workforce Insights, digging into how tech companies are relying on contract workers right now.
• Thursday, December 22: The U.S. Department of Labor will release initial jobless claims for the previous week. The report, a proxy for layoffs, tracks the number of people filing for unemployment benefits.
• Thursday, December 23: The third estimate of last quarter’s GDP data is expected to show that the economy grew. The second estimate found that the economy grew at an annual rate of 2.9%.
• Friday, December 23: The U.S. Census Bureau will release its monthly report on durable goods orders, which measures manufacturing activity.
• Friday, December 23: The U.S. Department of Commerce will release the Core Personal Consumption Expenditure Price Index — the Fed’s preferred inflation measure. The report measures changes in the price of goods and services, excluding food and energy.
• Friday, December 23: The U.S. Census Bureau will release the annualized number of new single-family homes sold in November. It’s expected to be a lower number than October.