Posted: 20 Dec, 2022
2023 is just around the corner and while the economic climate feels tough now, it’s set to get even tougher as we head into the new year. Statistics show that the economy shrank by 0.3% between August and October and economists predict the UK will remain in recession for the whole of next year.
The Office for Budget Responsibility predicts the recession will cause an overall drop of 2% in GDP.
Recession is challenging for businesses and many will be thinking about what they can do to meet the challenge and survive, or even thrive, during the coming year. Here are a few things businesses can prioritise in 2023.
Invest in technology
At this point, there is very little excuse for businesses not adopting technology and not understanding how AI and other emerging technologies will impact their business and industry.
Automation, cloud services, AI, blockchain and other technologies are important for businesses to understand and adopt for their roles in helping to reduce expenses and increase profits. While new technology takes money and time to implement, it is an investment worth making, allowing the business to be more agile, adaptable and efficient, all of which are crucial in challenging economic environments.
Listen to staff
This year, we have heard a lot about the so-called ‘Great Resignation’, the name given to the trend of people choosing to quit or change their jobs, often due to work and life changes caused by the Covid-19 pandemic. Microsoft’s 2022 Work Trend Index found that 43% of employed people surveyed said they were somewhat likely or extremely likely to consider changing jobs within the next year. With so many employees considering leaving their roles, it’s vital for employers to listen to their staff’s needs and take active steps to retain their top-performing people. Whether staff want to continue to work remotely on a regular basis, want increased remuneration or other benefits, companies should open a dialogue with their staff and find out what they want from their employer or risk losing them.
With less money to go around in 2023, businesses need to find ways to set them apart from the competition and those that innovate will have the advantage. Economic downturns are often catalysts for innovation as people and business look for a way to weather the storm by identifying new ways of working and new streams of revenue. Why not ask your employees to contribute ideas? Not only will it make your staff feel valued, but it could yield some interesting ideas you hadn’t thought of
Do better on sustainability
It is undeniable that the climate disaster will pose a much bigger challenge in the coming decades that anything we have experienced before. Businesses have a responsibility to do what they can to lessen their impact on the planet. In 2023, businesses should look to move their environmental, social and governance (ESG) processes to the centre of their strategies and build it in to everything they do. And to really make a difference, impact assessments and action plans should go beyond the company walls and cover the entire supply chain.
While every new year brings with it the chance to make improvements and identify new opportunities, this is particularly crucial in times of recession. When identifying your business priorities for 2023, consider adding these to your list to ensure your business not only survives, but thrives.
TMA UK is part of TMA, a global organisation that represents the interests of turnaround professionals as its members who have the skills needed to assist companies in challenging times. If you need assistance, please contact our helpline on 0844 804 0116
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