As we’ve entered the new year, we’re looking at some of the changes and trends that will be happening in recruiting in 2023. Times are changing and so is the employment landscape and recruitment market.
Here are six 2023 recruitment trends we will be keeping our eyes on.
Increasing use of technology
Research conducted by Jobscan in 2018 found that over 98.8% of Fortune 500 companies use applicant tracking systems, and a Kelly OCG study found that 66% of recruiting organizations used some form of ATS. These systems help with resume sorting, recruiting analytics, and job posting, saving time and resources and helping companies make more informed decisions.
ATS aren’t new but they are improving. AI is also being used to conduct background checks, reference checks, and interviews – HBR reported in 2022 that up to 86% of employers use technology to meditate job interviews, a growing portion of which are automated video interviews (AVIs) – and to identify talent gaps and help with onboarding.
As companies work to become more efficient and do more with less, technology will play an even bigger role in recruitment than it does now.
More recruiters serving in hybrid sales/talent sourcing roles
Market shifts are common in the recruiting world, moving from candidate markets to employer markets to something in between, and back again. Immediately post COVID-19, many industries were working in a candidate’s market and now the pendulum is shifting back the other way, meaning it’s much less difficult to source, attract, and hire candidates than it was just a few months ago. The downside of this is that many recruiters are getting laid off. Savvy companies, however, know that keeping good people in leaner times is more cost effective than mass turnover, and will be training their best talent sourcers to become business developers. This means those with the skills to find the right people to fill roles will be also finding the roles to fill.
Educating and training teams to do double duty will become more common practice as companies catch on to the value of working with what we have.
Employers will be thinking about courting Gen Z and Boomers at the same time
Gen Z is aging into the workforce and recruiters will have to start thinking about how to attract that talent. The cohort is born between approximately 1997 and 2009 and consists of roughly two billion people globally who are growing up and entering the workforce in big numbers. The eldest members are about 26 years old in 2023. Like every generation before them, Gen Z is looking for particular things in a workplace, like diversity, purpose, and flex work options. Employers will have to adopt policies and programs to meet these demands.
Meanwhile, the workforce is also seeing the return of retirees, who are seeking employment either because they need the income or to keep themselves busy. Tapping this experienced talent pool should also be high on employer priorities.
Finding ways to appeal to a broad spectrum of generations will be key to sourcing and hiring the best people in 2023.
Diversity & Inclusion is a necessity
Speaking of Generation Z, did you know that 48% of Generation Z in North America are considered member of racial or ethnic minorities (via NPR) and 56% of Gen Z in the UK is hesitant to take on a role with a company that does not have diverse leadership (via watchthisspace.uk)?
No longer a nice to have or just a talking point, diversity & inclusion is now expected from and required in a workplace – at every level, from entry to senior management.
Some more interesting stats about D&I from builtin.com include that groups formerly seen as minorities may reach majority status by 2044; diverse companies enjoy 2.5 times higher cash flow; diverse management has been shown to increase revenue by 19%; and 75% of job seekers and workers prefer diverse companies.
A 2020 survey by Glassdoor found that a majority of UK workers who identified as part of underrepresented racial/ethnic groups, LGBTQ, and female felt strongly that they would not apply to a job at a company where there is a lack of diversity and that their current employer should be doing more to increase the diversity of its workforce.
Employers should be taking a look at their workplaces and asking themselves if it’s time to implement some D&I initiatives to attract talent.
Employer branding will increase in importance
Competitive pay and benefits are no longer enough to attract talent and companies that consider the needs and values of the people they want to have working for them will fare better in all areas of business, including talent acquisition and retention. If a company doesn’t align with what the candidate is looking for, they will find one that does.
Workers expect more from companies than they once did, particularly younger workers – Generation Z expects, as mentioned above, diversity and inclusion, flexible/remote work options, and a sense of purpose in their work. People are also looking for opportunities for advancement and corporate social responsibility initiatives. This is why building a strong employer brand that showcases why a workplace is a great one, and why it’s better to work for them than for the competition, is increasingly important.
It will be up to recruiters to communicate this to employers and showcase these brands to candidates and ensure a positive candidate experience as well.
Global candidate pools are now the norm
With more companies hiring people to work from anywhere, teams and talent pools are expanding to cover the globe. According to recruiter.com, one survey found that after COVID-19, 36% of companies are willing to hire a 100% remote workforce either in the United States or internationally, a significant increase from 12% before COVID. It’s also predicted that the level of remote employment will rise in 2023, and 25% of professional jobs will be fully remote by 2022. This will mean working across time zones, asynchronous schedules, and increasing reliance on technology, like video conferencing apps and collaboration tools.
This is exciting for businesses who realize the benefits of tapping into a global talent pool, which include more talent from which to choose, different cultural perspectives and experiences, broader networks, and access to international markets.
Companies that are not considering hiring from anywhere may fall behind those that are broadening their horizons. Recruiters will be looking at people from all over the world, learning new ways of communicating and of reaching global talent.
It’s an exciting time to be in recruitment but we will also see challenges. Change is happening at an accelerated rate. Let’s try to be ready.
