This past year we've seen the effects of the pandemic in labor shortages, the Great Resignation, and signs of another recession — now's the time to rethink recruitment and hiring strategy for 2023.
While we can't predict the future, we can identify and interpret the biggest hiring trends we've seen emerging at the tail end of 2022. In this post, we'll go through the most talked about topics that can improve your hiring strategy and get your business off to a great start.
Hiring Trends to Watch in 2023
- Economic uncertainties will affect hiring.
- Candidates are looking for more competitive compensation.
- Gen Z will be joining the workforce.
- Employer branding will be more people-oriented.
- More streamlined interview processes will be necessary.
- Remote and hybrid work isn't going away — it's getting more popular.
- Incorporation of social media for recruitment.
- Data-centric recruitment is a priority.
- Businesses are increasing the use of AI and HR automation tools.
- Hiring for soft skills is on the rise.
- Talent pools are more relevant.
- Upskilling will lead to internal recruitment more often.
- More companies will look into rehiring former employees over new ones.
- More emphasis on inclusive language.
- Salary transparency is becoming more critical.
Recruitment Strategy Trends
1. Economic uncertainties will affect hiring.
As a possible recession looms and inflation rises, candidates and employers can expect economic uncertainties to impact their ability to find work and hire in the coming year. Many industries are experiencing budget cuts amidst slowed economic growth and inflated pricing — and across all teams, especially hiring, have to rethink their approaches for 2023.
2. Candidates are looking for more competitive compensation.
Candidates are entering the new year expecting salaries that can sustain them as best as possible amidst inflation concerns. Recruiters should expect to negotiate between candidates with more than one offer on the table and provide offers that reflect their level of experience, education, and mindset.
3. Gen Z will be joining the workforce.
According to Forbes, Gen Z will make up 27% of the global workforce by 2025. The new wave of employees will come with a different set of workplace expectations and priorities than the generations before.
4. Employer branding will be more people-oriented.
Your brand identity is how candidates will perceive you at first glance. They'll look at your company values and goals when they visit your website or landing page. Suppose your brand lacks an ethical or people-oriented motivator. In that case, it won't appeal to the newer wave of job seekers — especially those driven by social responsibility.
5. More streamlined interview processes will be necessary.
54% of Gen Zers won’t complete an online job application if the hiring process is too long, antiquated, or complicated. Prioritizing a straightforward interview process, with proper communication through each step, will help recruiters reach talent while they're still engaged.
6. Remote and hybrid work isn't going away — it's getting more popular.
The push for workplace flexibility will only become more popular in the new year. In 2022, there was a lot of controversy on whether in-office work was more productive, but on average, remote work productivity was higher than those in-person. Hiring managers should keep hybrid work or work-from-home as an option to attract top talent with varying priorities.
7. Incorporation of social media for recruitment.
Social media is a powerful hiring channel, and it works both ways. Candidates can digitally showcase their talents in more ways than job boards, while recruiters can post information about newly published jobs and opportunities in relevant online communities.
Candidates can learn about opportunities in more spaces and showcase their work experience for visibility. At the same time, recruiters can share job listings in online communities centered around their target demographic.
8. Data-centric recruitment is a priority.
When posting job listings, you want to use technology that targets suitable candidates with the skills and previous experience that your business needs without the manual hours to sift through each application. Resume screening that runs verifiable and accurate historical data can be a major tool to invest in to improve the quality of hire.
9. Businesses are increasing the use of AI and HR automation tools.
Hiring managers are looking to optimize their time better when scouting candidates. In fact, 67% of HR professionals believe that AI has many benefits and a positive impact on the recruitment process.
Streamlining your recruitment and interviewing process can reduce the time and labor needed to identify your top candidates and help them secure a job smoothly. Automatic resume vetting can reduce the time to hire.
10. Hiring for soft skills is on the rise.
Soft skills are quickly rising in importance to companies across the globe. The pandemic brought about a skills deficit and decreased the amount of business done in person. While this may not have hindered their ability to learn hard skills, candidates proficient in soft skills are becoming more scarce.
The top soft skills to look for in the foreseeable future are:
Employee Retention Trends
11. Talent pools are more relevant.
Today’s labor market is experiencing a skills deficit, and talent pools offer companies an effective way to address their labor needs. Offering current vacancies to pre-existing talent pools like intern alums or agency workers encourages talent retention and increases company loyalty.
12. Upskilling will lead to internal recruitment more often.
Companies should be trying to train up their employees for leadership positions. Not only is it more cost-effective than hiring externally, but you'll reduce employee turnover by offering upward mobility. Candidates well-versed in your product, systems, and processes may already be sitting on ideas to innovate and improve your business.
13. More companies will look into rehiring former employees over new ones.
Remember to consider the benefit of a boomerang employee. Throughout the "Great Resignation," one in four employees regret their decision to leave their company amidst quarantine. As businesses try to fill in pre-existing or new roles into the new year, make it a priority to reach out to former employees.
Diversity and Inclusion Trends
14. More emphasis on inclusive language.
Candidates want to apply to companies with clear values that will make them feel safe to be themselves. After all, you can only do your best work if you come as you are. Hiring teams will have to be more attentive in hiring automation tools and during interviewing to be respectful of more diverse pools of applicants.
While it may seem like a small detail, it could be a barrier that stops top talent from considering a position.
15. Salary transparency is becoming more critical.
Some states, like California or Colorado, have laws requiring employers to provide salary ranges in job listings. This is a massive shift from the typical guessing game that candidates play as they're well into interviewing. Candidates don't have time to start interviewing for multiple businesses only to be presented with an offer that isn't near their expectations.
In addition, salary transparency also leads to more diverse candidates and more equitable pay for women, people of color, and other historically underpaid groups to gain fair wages.
What do hiring trends mean to your business?
Despite the uncertainty of 2022, hiring managers can adapt their strategies to find candidates to help your business succeed. We hope this post helps you boost your talent search and build the employee pool you need for the new year.