In 2020, the world of work was profoundly transformed and disrupted by the Covid-19 pandemic. Businesses have been forced to rethink how they organize themselves.
During the three post-pandemic years, businesses have been able to adapt to this new reality. They have set up teleworking, Organized the Back to the office after the pandemic, and maintained productivity at a distance.
These challenges have become an integral part of business life. But three years after this major event, new challenges are emerging by 2024.
2023: a year of economic and social transformations
The year 2023 was marked by many major events that had a significant impact on everyone's daily life.
The Russian-Ukrainian conflict has created several pressures on the global economy. In particular, it caused an increase in inflation and raised various issues. Governments, individuals, and businesses have faced rising prices.
At the same time, for more than a year, the European Central Bank has adjusted its key rates in order to fight inflation. In mid-September, the ECB announced an increase in interest rates for the tenth time in a row.
In 2023, inflation reached a rate of 5.6%. Despite the restrictive measures taken by the ECB, inflation is expected to reach over 3.2% in 2024.
As a result, businesses face several challenges that have a lasting impact on their daily lives. In particular, the increase in transport costs has an impact on their strategy.
Transport costs and impacts on recruitment
Inflation has a significant impact on the variable costs of businesses, especially those that rely heavily on logistics and transport.
In addition, employees are seeing their transportation expenses increase, due to rising fuel or transport prices.
This rise in prices has several consequences on the organization of businesses. Elle pushes more and more employees to ask for remote work options, in order to limit this expenditure item.
Read also: What are the jobs that recruit by remote working?
In addition, rising prices have an impact on the profitability of businesses. Indeed, the increase in the price of raw materials has a direct impact on the margin. Operating costs are also affected, for example with an increase in electricity prices.
In order to maintain their financial viability, organizations are therefore forced to reduce certain expenses, especially their payroll. As a result, they are tempted to limit their recruitment in order to save money.
After a very tense period on the recruitment market, this context limits the number of job offers and is reversing the trend. As companies have reduced the scope, candidates have fewer choices in their search than before.
Less recruitment and a changed balance of power?
A reduction in recruitments directly creates a more competitive job market.
As a result, workers have fewer job opportunities. This new balance is upsetting the balance of power between employees and employers. In principle, the latter benefit from stronger bargaining power.
In addition, inflation has a considerable impact on the purchasing power of wages. Indeed, if incomes do not increase at the same rate as inflation, employees see their standard of living decrease. As a result, employees are doubly affected by this price increase.
Businesses under pressure: how to control costs and maintain productivity?
In a tense economic climate, businesses are facing a double challenge: controlling costs while maintaining productivity. This delicate situation requires innovative and sustainable strategies to navigate in a constantly changing environment.
Reducing costs and maintaining productivity
Faced with financial pressure, businesses are exploring various options to reduce expenses. This may include looking for suppliers that offer more competitive rates or downsizing. However, these measures may have undesirable consequences, such as a decrease in product quality or a slowdown in innovation.
These strategies undeniably offer short-term financial benefits. However, they can compromise a company's ability to remain competitive and innovative over the long term.
Flexible work: the winning bet
Faced with economic challenges, organizations have every interest in making their structure flexible at all levels. When it comes to offices - the second item of expenditure - the concept of flex office is emerging as an interesting strategy. It offers a balanced response to financial pressures while maintaining the work environment and productivity.
More generally, the mode of hybrid work, partly embodied by Flex Office, allows businesses to make significant savings. By reducing the need for workspaces and optimizing resources, operational costs such as energy, heating and catering are significantly reduced. This approach also offers greater flexibility to employees, reducing their travel costs and improving their quality of life.
In addition to economic benefits, hybrid work contributes to a better work/life balance for employees. This organization, by providing flexible working conditions, increases the overall quality of life at work.
Finally, this flexibility leads to a reduction in the stress associated with commuting to and from work and an increase in productivity.
2024: challenges that create opportunities to be seized
2024 promises to be a year rich in challenges. After the crisis of 2022—23, the most successful companies will be those that manage to innovate while remaining resilient.
They are the ones who have understood that a new balance of power does not mean that we must invest less in well-being. Conversely, providing them with benefits such as flexibility, while controlling costs, is the key to success.
Now more than ever, the future of work offers solutions for businesses to explore. Human resources or management functions have every interest in drawing inspiration from it to remain efficient in more difficult times.
