Charlie Stainforth – Founder and CEO at Circl
Individual leaders and companies are still, understandably so, trying to wrestle with what the defining leadership norm for this decade is. For a while in 2022 it looked like the big theme would be how to navigate hybrid working whilst keeping teams engaged, productive and avoiding the quiet quitting trend. However, 2023 will see ever growing uncertainty around the wider political and economic landscape meaning employees are looking for more stability from their employers. Stability in terms of job security, workplace benefits and role progression. What will be different is that leaders will be in a position where they have to make a conscious decision to prioritise their existing workforce rather than using budget to invest in innovation. They will have to get comfortable with being transparent in communication with employees about what is happening and, more importantly, why it is happening in the hope that employees reward them with loyalty in the near term, for business payoffs in the long term.
In 2023, what will be the most prominent trends in performance management?
Performance management is continually evolving to cover in person, fully remote and hybrid working teams, all with an array of growing flexible working conditions to be aware of. 2023 will be the year when companies build more structure around these variables to allow a consistent discussion and approach to performance management. This is crucial to keep workplaces inclusive and where everyone’s contributions are recognised, regardless of working situations. Line managers will continue to be a crucial population to keep up to date with training on how to communicate and navigate performance conversations with employees, many adopting a more ‘coach approach’ style of feedback where they make space to share feedback on themselves first and encourage a mutual style of feedback conversation with their direct reports. I&D metrics that have been gathered in workplaces around social mobility and disability in the past 2 years will be integrated into a more inclusive performance management process ensuring that the right support for the advancement of underrepresented talent groups internally is provided as a given and not at request.
What D&I trends will define 2023?
There is no doubt that next year is going to be a challenging year, but especially so for DEI practitioners. In a world of economic uncertainty, the most defining trend of 2023 will come from those who stick to their plans and don’t bend to budget constraints. A lot of progress has been made in the past 2-3 years, but now will be the time to stand up and prove that investing in DEI was not just lip service. We will see which companies actually believe that building organisations that work for everyone is good for the bottom line. It will be a defining moment for the industry to truly understand how much progress has been made over the past few years. If DEI investment continues in the face of a deep recession, then we will know that we really do have a platform for change to build from.
What would be your one piece of advice for businesses looking to hire more diverse candidates in 2023?
It starts at pipeline building. You need to meet underrepresented young people where they are, well before they are entering the job market. Part of that includes investigating alternative routes into your company. Apprenticeships are a growing pipeline for organisations who are focused on creating opportunities for people from all socioeconomic backgrounds. If you are serious about diversifying your talent pool, you need to diversify how you access that talent. Get out into the communities, prisons, schools, universities, and areas that your brand doesn’t naturally reach. It’s so important to put a face to your organisation and to make people realise that your company is an option for them. Actively tell people that you want them to apply. So often, people from underrepresented backgrounds think that some companies are not spaces for them, so it’s our responsibility to literally tell them that they are not only welcome but also wanted. Representation matters. Hearing the experiences and stories from your leaders from underrepresented backgrounds helps to overcome barriers and allows people to see themselves at your company.
Are there any other DE&I and leadership trends that you’ve noticed appearing, or you think will become more popular in 2023?
More companies are starting to understand the importance of empathy building. We need to ensure that we are creating workplace environments which support and nurture people so that everybody can flourish. Organisations are starting to see how we need to actively set people up for success and unlocking empathy in leadership is crucial for this. As we lean into equity versus equality, we better appreciate how talent from underrepresented backgrounds might need more support in the initial stages of their career to have the same equity of opportunity as their more privileged peers. Leaders need to be trained in the tools and practices to lead and nurture a diverse workforce with empathy. As a result, more companies are investing in their leaders by teaching them skills, like coaching, to equip them with the means to hear and understand the needs and challenges of their employees.