Data Report: 2023 Trends & Forecast for Cleaning and Security Companies
After a tough 2022 labor market, 2023 trends remain tight.
Global hiring rates, payrolled employee volumes and employment data shows increases throughout 2022.
Employees continue to quit at high rates around the world, although some regional data, particularly in the US, are more static.
Growth rates and labor participation globally continue to show one or less unemployed persons per job vacancy in the market.
Although many nations are reporting improvements in their labor markets from pandemic-driven lows, current statistics and first-hand industry testimony suggest the labor force remains the biggest challenge for cleaning and security industries today.
With the new year, there is continued worldwide fear of a recession, although recession probability indicators vary by region for the 2023 forecast. The probability of severe economic downturn is higher in the UK than in the US or Australia. To ensure your business’s survival, there are a few key variables to consider.
- Cash reserves and cash flow
- Job profitability
- Service delivery and client retention
In the global cleaning and security industries, the outlook remains tough, although TEAM Software by WorkWave is able to report these improvements compared to industry-wide findings*:
- Improvement in quit rates
- Increasing labor pools
- Steady or increased applicant volumes
- Wages at pace or above rising inflation
Common indicators for low labor participation include changing wants and needs of the labor force, including:
- Lack of flexibility
- Health conditions and disabilities
- Low wages and resource access
- Personal savings increases
- Lack of affordable childcare
- Resistance to job requirements
As participation rates remain tight, continued attention and strategy should be placed on retention. Remote work is difficult to duplicate for dispersed workforces, but there are opportunities for flexibility. Earned wage access can be a tactic for employee wage improvement without negatively impacting cash flow. Harder to implement tactics, but ones that could have a drastic impact on employee stickiness, include onsite childcare or other benefits. As competition increases, even in non-competing industries, there are opportunities to leverage industry competitors together to keep employees in-industry. Improved communication and transparency improve engagement and productivity.
To increase the quality of applicants in an age when the balance of power has shifted from the employer to the employee, opportunities exist through marketing efforts to diversify recruitment sources and improve the hiring funnel.
In almost all instances, these opportunities benefit from or require the use of technology to achieve. A technology solution built specifically for your industry can improve critical processes to save time and resources, helping fill gaps created by labor shortages. Additionally, a technology partner with deep industry expertise is imperative to gaining access to solutions that meet ongoing and unique business challenges.
Download the full, free data report below.
*key findings are based on TEAM Software by WorkWave US sample data findings