The CBI's economic forecast shows the UK is facing a shallow but prolonged recession in 2023, with business investment standing nine per cent below its pre-COVID level by the end of 2024. Following a year of post-pandemic catchup - fewer respondents to the 2022 CBI Education and Skills Survey said they were increasing their investment in training and development.

It’s clear that business leaders face a choice. Dial back budgets in every area of the business, hoping that they can ride the wave of economic crisis and come out unscathed. Alternatively, they can choose growth, finessing the allocation of existing resources by concentrating on their most valuable asset: their workforce.

But what kind of training needs do they require?

Learning and development – like the rest of the workplace is going through what the Workplace Learning Report from LinkedIn calls the “Great Reshu le” – a period unlike anything in the history of work.

According to the Report - its members’ skills for the same occupation changed by about 25 per cent from 2015 to 2021. At this pace, it expects members’ skills will change by about 40 per cent by 2025. The report adds that almost half (49 per cent) of learning and development professionals say that their execs are concerned that employees do not have the right skills to execute business strategy.

Flexibility in training is becoming more important, for example, a report from City & Guilds has found that tailored training is on the rise with 65 per cent of organisations opting for tailor-made in-house training over o -the-shelf programmes, to support the bespoke skills needs of their business.

The digital coaching industry experts at CoachHub agree that in response to economic challenges, a greater need for personalised training is required in 2023. Below they look to the year ahead and outline some of the key predictions that business leaders should begin to prepare for.

Key predictions include: Economic challenges will mandate employers to rethink working practices

Professor Jonathan Passmore, Ph.D., SVP of Coaching at CoachHub said: “The coming year will bring a host of challenges for employees. All indications are that the economy will slow, inflation will rise and organisations will look for transformational change as they implement the lessons of digital and hybrid working. As organisational transformation takes place, whether it be cultural, digital, or related to a merger or acquisition, leaders will leverage digital coaching to o er employees a wellbeing and support framework that replaces traditional, in-o ice support.”

There will be a greater need to support neurodiversity in the workplace

He continues “Coaching will help organisations support neurodiversity in the workplace, starting with encouraging managers to recognise that each employee is di erent and identifying what support they need. One-on-one coaches can also help neurodiverse employees understand how others experience them and help them use their diverse perspectives to the best e ect.”

Executives will require greater support due to significant pressure points

Juliane Sterzl, SVP EMEA at CoachHub said: “As leaders experience the range of pressures associated with organisational transformation resulting from upcoming challenges, they too will need support. Leaders will leverage executive coaching to unlock their potential and build the skills they need to manage their teams through periods of change.”

Leaders will need to future-proof training and development programmes

Sam Isaacson, Global Director of Consulting at CoachHub predicts: “In 2023, the business world will continue its move away from multi-day training workshops, toward shorter webinars and on-demand content. This 'nugget learning' fits more naturally into hybrid work and the gig economy, but it increases the mental pressure for employees to squeeze ever more out of each day.

“As our understanding of the hybrid workplace matures, learning activities will follow suit. Small group and 1:1 interventions, such as coaching, will be delivered digitally by default. Large-scale events will also increase the use of technology, including virtual reality and augmented reality, enabling attendees to join remotely. Learning will become increasingly personalised, with content for building knowledge bases delivered asynchronously, and digital coaching used for skills transfer.’’

Immersive technologies will become more common in the workplace

Isaacson continued: “Immersive technologies will become more commonplace in organisational learning environments. Virtual reality (VR) will be particularly popular in sectors where traditional training requires expensive equipment, such as healthcare, defence and construction. Other industries will begin to use more VR experiences for so skills training, and early adopter organisations will use VR and AR (augmented reality) for some team events and conferences, reducing the environmental impacts of international travel.”

The experts agree that now is not the time to take our foot o the professional development throttle, as this would have an immediate knock-on e ect on business outcomes. This year isn’t about dialling back, but rather ensuring that people development strategies are adapted to both business and individual challenges.

As the economic crisis continues to cause significant change in the workplace, in 2023 leaders will need to focus on fostering a culture of learning and development that takes into account the unique needs of each employee.

Half of the UK’s employers can’t find enough qualified candidates for the roles they need to fill, with almost a third (29 per cent) revealing that their direct competitors are beating them in the race for top talent.

A study by background screening and identity services firm, Sterling revealed that a significant proportion of employers are losing out to the competition due to these slow hiring processes. Of the jobseekers surveyed, 71 per cent revealed that they had either dropped out or considered dropping out of their most recent recruitment experience. The top three reasons cited for this were; the process was taking too long, it was too complicated or there were too many touchpoints.

ISS is joining the Age-Friendly Employer pledge, introduced by the Centre for Ageing Better to help employers recognise the skills and experience of older workers – many of whom are overlooked even as the UK endures a skilled labour shortage. By signing, ISS commits to maintaining age-positive recruitment, flexible working solutions and a workforce that embraces diversity.

Statistically, an applicant’s chances of employment drop significantly a er the age of 55. Similarly, more than half of people legible to work stop before state pension age.

A multigenerational workforce helps businesses stay innovative with the insight and experience that only long-serving workers can provide. With this pledge, ISS continues its dedication to an inclusive workforce where people can pursue the career they desire.

Environmental, Social and Governance factors are influencing employment decisions for almost half of UK o ice workers, with millennials and younger workers driving the growing trend of ‘climate quitting’ – seeking out a more environmentally friendly job.

KPMG UK surveyed around 6,000 UK adult o ice workers, students, apprentices and those who have le higher education in the past six months on their attitudes to work. The findings highlight that almost one in two (46 per cent) want the company they work for to demonstrate a commitment to ESG, while one in five (20 per cent) have turned down a job o er when the company’s ESG commitments were not in line with their values.