Published by Jessica Weisman-Pitts
Posted on December 15, 2022
By Joe Miller, Pocketalk general manager of the Americas and Europe.
As we look ahead to the new year, we must consider what influences there will be which will impact the business world over the next 12 months.
If we look at the past year we can reflect on some significant challenges – skills shortage, supply chain changes and of course, a cost-of-living crisis which had a hit on businesses as well as consumers. All of these external factors have shaped businesses and prepared them for the year ahead. Will some of those matters continue into 2023? Time will tell.
Here are my four predictions for business next year:
1. The talent pool goes global
It’s without question that the resource and skills shortage that has had an impact on most industries in the UK will continue. This means that a lot of businesses will need to reevaluate how they attract and source their talent. I believe that business leaders will begin looking overseas. It’s already happening but it’ll become even more of a trend in 2023. It’s reported that 30% of London entrepreneurs have much of their team based in another country, while 56% of business owners across the UK have hired at least one international employee since 2020.
Of course, in employing people based overseas there are some other challenges to address. For example, language barriers and employment law but the UK has shown more willingness to open their recruitment globally and utilise the international talent on offer so expect to see more of that.
2. Flexi-national working
The increase of remote working in the past couple of years has, without doubt, fueled the desire and acceptance of flexible working. This has now leveled up even further and often you will find businesses now have staff based all over the world. Which, in turn opens new market opportunities, partnerships, new consumers and again, also offers another network to acquire new talent.
But one consideration to factor in here is language barriers.
How can you train, nurture and build rapport with a workforce, consumer base, stakeholders that speak a different language? It’s crucial that businesses address this challenge and introduce the right solutions if they are to look outside of their homeland for business opportunities. Addressing the language barriers will make any international move more successful.
3. Technological innovation will accelerate to overcome rising costs
We enter the new year amidst a cost-of-living crisis which is hitting most businesses as well as their consumers. 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.
These cost increases mean companies will be looking at solutions to reduce their spending, which is likely to result in a move towards 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.
4. 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.
