The wave of layoffs that gained momentum in 2022 persisted into 2023, affecting numerous companies of varying sizes. While a majority of mid-size companies remained resilient, reporting minimal reductions in hiring, 81% of them reported zero layoffs. 

Notably, the sectors most affected by layoffs were IT services, computer software, and financial services. Companies in these sectors are expected to maintain a cautious approach in the future.

These findings surfaced in a recent Mercer study, shedding light on how companies turned to layoffs in 2023 as a strategy to enhance financial performance. Drawing from survey responses from over 1500 HR leaders in 20+ industries across India, the Mercer | Mettl report foresees trends that are poised to reshape hiring strategies, equipping organisations with the insight needed to proactively adjust to upcoming changes.

77% of HR leaders affirm that rehiring top talent is an effective method for recovering institutional knowledge. The evolution of remote and flexible work models, along with the prominence of gig economies, remains prominent among Indian recruiters. The statistics show that 74% of HRs continue to engage freelancers, and 58% reported the hiring of remote workers in the past year.

HR leaders foresee proficiency in generative AI as the most sought-after skill in 2024. The pervasive influence of AI and automation is expected to reshape job roles across various industries. Among job profiles, content writers and customer service roles face the highest risk of obsolescence, with 51% and 46% of HRs, respectively, anticipating these jobs to be replaced by AI. 

Simultaneously, there is an anticipated surge in demand for AI-centric roles, including machine learning engineers and AI product engineers.

Siddhartha Gupta, Chief Executive Officer, Mercer | Mettl, said, "As we navigate through an era where skills are becoming redundant at an unprecedented pace, empowering the workforce is key. Companies need to embrace inclusivity as a mindset now more than ever to better understand their workforce and plan effectively for the future. At Mercer | Mettl, we are leading the way by helping organisations redefine their work design. With AI as our ally, organisations can upgrade their people to build winning teams that deliver.”

As we enter 2024, organisations are anticipated to place increased emphasis on skills. Inclusive hiring is projected to take precedence as the top diversity, equity, and inclusion (DEI) priority, with 68% of companies prioritizing equal opportunities for all genders in their strategic talent acquisition planning for the upcoming years.

The future of work is currently taking shape, with forward-thinking organisations at the forefront. These organisations are pioneering work designs that delineate how individuals engage with AI and harness its capabilities to their benefit.

Organisations are poised to meet the workforce's needs by prioritising work-life balance, promoting and facilitating regular upskilling opportunities, and offering financial incentives. This year is expected to establish a trend for the development of superior skills and an open mindset within Workforce 2.0, marking 2024 as a watershed year that significantly shapes the future of work.