The global safety mega-trends every business leader should be aware of in 2023

We asked Larry Pearlman, Managing Director Americas, Mike Goddu, Co-Founder and Managing Director, and Anthony Park, Executive Director – International Markets, to share their thoughts on existing, and emergent trends in safety, sustainability, and performance. Here, we highlight the mega-trends they believe will most impact organizations everywhere in the year ahead:

1. Stagnating safety performance. According to OSHA, the top 10 most frequently cited safety violations haven’t really changed in the last few years, nor has the number of workplace fatalities. Knowing what to do to avoid citations, reduce risk and avoid loss of life will continue to be a struggle for many firms. Finding an answer will require strong leadership, thoughtful approaches to de-risking environments, and an integral approach to injury reduction. 

2. Technological acceleration. We’re already seeing organizations adopting new technologies in order to make significant safety improvements. Going forward, these will become more common, reducing the human risk element and making workplaces safer. As more technologies are introduced, advanced coaching skills will be needed to ensure the data is used to enable positive improvements, and not as a way to justify disciplining employees.

3. Digital transformation. As companies continue to struggle to find a place for 5G, Blockchain, Artificial Intelligence and Internet of Things (IoT) applications, leaders will shift focus to ‘fit for purpose’ applications. We expect to see increased interest in technologies with practical safety applications, such as transforming the hard hat into a digital tool, the use of geofencing, cameras and unique risk identifiers. In addition, the use of augmented reality to help employers train their workers for rare, risky, and costly situations, will accelerate. The use of AI will also become more common as cameras and software combine to become powerful tools for identifying and mitigating operational risks. Additionally, disparate sources of data will continue to be tapped to enable predictive analytics to become reality. 

4. Low unemployment. While the need for skilled people intensifies, the struggle to find qualified individuals is going to continue into 2023. The ‘great resignation’ will slow down because of the general economic downturn. However, new hires will still need to be trained, and employers will have to resist ‘just putting people to work.’ This means putting time and money into training, ensuring the safety ‘must wins’ are actually won, and shaping a positive safety culture.  

5. Employee engagement. The challenge of recruiting the right people will be exacerbated as companies large and small struggle to establish renewed, meaningful engagement with their workforce post-COVID. Workers are looking for more than ping pong tables and free snacks – the luster of cool workspaces doesn’t build a culture of high performance. Similarly, a charismatic leader does not engender the loyalty or discretionary effort they might once have. Companies seeking a step-change in employee engagement, while embracing technology and automation, are particularly challenged. Managers and workers are looking for companies that provide a meaningful product or service, show commitment to a sustainable future, offer roles that directly add to that service, and recognize and reward them for good performance. 

6. Cost pressures due to continued (if easing) inflation. The protection vs. production dilemma will accelerate and the pressure to cut costs will be stronger than it’s been in years. To mitigate the threat, firms will need to focus on stop-work authority, risk assessment and clarity of safety expectations. This HAS to be reinforced integrally, and the cultures need to be robust enough to support making the correct protection decisions.

7. ESG strategies at risk. Many of the risk factors outlined above, including a challenging economic environment and high inflation, are forcing organizations to shift focus away from ESG. A recent KPMG survey found that half of CEOs are thinking about pulling back on their efforts, while 34% had already pressed pause. Rather than halting initiatives altogether, consider the simple steps that can be taken in the short term, such as better waste management or managing consumption, which may cut costs. This represents opportunities for those firms committed to ESG and willing to play the ‘long game.’ Adopting a wider sustainability strategy will become a non-negotiable to protect the future of your business, and our planet.

There are challenging times ahead as companies continue to adapt to an unprecedented set of economic and geopolitical circumstances. Under scrutiny from workers (new hires and current), customers, regulators and governments, it isn’t enough for businesses to talk about their commitment to safety and sustainability. Instead, world-leading organizations need to be able to demonstrate that commitment. It isn’t going to be easy (it seldom is) but thriving in 2023 is possible. We believe that companies with a strong culture will have the advantage. Is it time to take a closer look at yours?

“Leaders drive culture, culture drives people, and the people drive business.”

–        Jim Bryson, former chair of 20|20 Research

What safety, sustainability and performance challenges is your organization facing in 2023? Where are the opportunities in your industry? We’d love to hear from you. Contact us.