Recruitment Trends In 2023
Current recruitment trends are not what any of us expected they would be. It’s been a strange couple of years. We’ve seen the world shut down, remote working soar and now many are slowly returning to the office. Now, as we’re in 2023, it’s looking like the world is continuing to become more ‘normal’.
Though, recruitment is still challenging. 2022 brought a huge shift in the market, with job vacancies at an all-time high and the number of economically active decreasing. The power in the hiring process is really in the candidates’ hands. But could this all change? We will have to see.
So, what are the recruitment trends in 2023? This is what I’m going to talk about in this blog, along with the state of the recruitment market and the challenges we will all be facing. So, let’s begin.
What is the current state of recruitment in 2023
The economy
The economy in the UK is looking to enter a modest recession in 2023 (although it’s expected to swiftly exit this). The end of Q4 2022 predicted interest rates soar to 11%, so, businesses and people alike changed their habits to cope with the change. Although this is expected to slow by the end Q4 2023. Many businesses have (or will see) their profits squeezed. As a result, they’ve had to make cuts internally.
The shift in workers’ expectations
We’re still seeing that there is a heightened focus on work-life balance. This was brought around by the covid pandemic. However, because of the changes in the economy, employees are now also looking to their employers for assurance that the business is solid. As many organisations look to make cuts, employees can start to feel as though their jobs could be on the line or their pay prospects could be affected. Additionally, with more younger workers coming through the ranks employers need to start pushing on their diversity, equity, and inclusion policies. This generation in particular places a lot of emphasis on this, according to research from Glassdoor.
The Aging UK Population
2022 saw more generational mixing (Baby Boomers, Generation X, Millennials and Generation Z) in the workplace at some point. If you couple this with the fact that by 2030 half of all adults will be over 50. Businesses need to adapt to this. So, they will need to create strategies that support a multi-generational workforce and help the older generation to continue working.
Recruitment Challenges in 2023
1) Finding Talent
In 2022, the number of unemployed people per vacancy fell to record lows. On top of this, many people are reluctant to move jobs because of the current market. As a result, finding talent that is actively open to work is so difficult.
2) Identifying talent based on soft skills
Whilst having the core skillset required for the job will always be important, many organisations are having to look at ways to find soft skills instead. This is because of the widening skills gaps in many industries and the lack of talent in the market. However, this presents a new challenge in terms of training new hires to develop the skills needed for the job.
3) Creating a talent pool for future hires.
Recruitment can be like a firefight. Businesses only hire when there is a need to. However, with the market as it is, businesses need to begin to think about how they’re going to engage pools of talent to tap into. Rather than starting recruitment from scratch every time they need to hire.
4) Engaging talent throughout the process
Communication is so important. Both in business and recruitment. However, one of the recruitment challenges in 2023 is going to be how organisations engage with talent throughout the entire process. Many organisations neglect the pre/post-hire aspects of communication, focusing just on communication during the process. However, by doing this, they’re missing an easy opportunity to stand out in this noisy market.
What are the Hiring Trends in 2023
However, this is all manageable with a good plan, by staying on top of the latest trends and being open to pivoting strategies when needed. So, let’s start talking about what the 2023 recruitment trends are looking like.
Recruitment Trend 1: The Power of Employer Branding and Recruitment Marketing
This will be one of the main mindset changes for 2023. When looking to hire, businesses should really think like marketers and not HR to draw applicants to roles.
Employer branding and marketing is not a new topic. It has however evolved dramatically over the years; this is due to the changes in what resonates with talent. In 2023, brands that can create a “people-first” identity will set themselves apart. But this needs to be a genuine reflection of the business. One that celebrates the individuality, inclusivity, and diversity within the company. Ways that businesses can look to enhance their brand is:
- Creating content from employee stories and testimonials
- Making their office space reflect the values
- Creating benefits that align with the values of the team and brand.
With the most trustworthy content being videos and images, organisations should look to implement this as part of the employer branding strategy. Ideally distributing this on their website, via socials and even email. What you can then do is work on your team to become advocates for your brand, which will help amplify messages further.
Recruitment Trend 2: Promoting a Work-Life Balance
In 2023, organisations that continue to promote work-life balance and healthy mindsets will shine. Now, work-life balance isn’t just focused on remote or flexible working (although these are still important in some industries). It’s also about promoting a culture that enables your team to find balance. Focussing on key concepts like effective time management, stress management, burnout prevention and enabling channels to ask for help.
It’s work mentioning that a few industries are considering enforcing a return to the office. In hopes to boost productivity during a recession. However, these organisations should recognise that if they’re reluctant to listen to their teams’ requirements, attraction and retention strategies could struggle. As employees will continue to be vocal about their working requirements and want to be heard.
Recruitment Trend 3: Reactive Employee Packages
This does tie into the 2nd trend. However, organisations will find greater success if they implement reactive employee packages. So long as these are reflective of the market and the actual wants of your team. Whilst salary will still be an important consideration for many applicants, employers should look to enhance their packagers beyond this to help stand out from the competition.
So, what can businesses do to enhance their packages:
- Offer flexible working.
- Consider things like mental health days (some companies also do duvet days), charity days.
- Look to subscriptions to things like meditation, fitness, or wellness apps.
- Fuel allowances or fuel cards.
- Even things like a discount at the dry cleaners.
However, the first thing that employers should be doing in 2023 is surveying their teams and then using the results to plan.
Recruitment Trend 4: Making Pay Transparent
I don’t just mean saying the salary on job adverts for this one. Although you should be doing that in 2023! I mean talking about pay in the business. This has been something that wasn’t really talked about. However, in today’s world, employees are now looking for this transparency to figure out where they sit in the business. This is also a consideration when employees are considering a career move. So, although this won’t be easy for some, employers should be open with the pay structure within the business and not discourage conversations on this topic.
Even if it means that you need to revise the current salary banding, take the time to foster this transparency and reap the rewards- improved retention.
In summary…
In summary, organisations need to make a conscious effort to get themselves out there with their employer branding, focus on the entire package they offer and listen to the market (and their team!) to quickly pivot strategies. However, the goal of hiring should always be on the long-term hiring goals, and not focus on short-term factors like the slowdown in the economy.
A note from Employal
As we kickstart our year at Employal, we’re going to be focussing on how we can support employers with the challenges mentioned in this blog. Along with how to capitalise on the trends mentioned- like with recruitment marketing. So, if you’re hiring (or thinking about hiring) reach out for a 5 min discussion about your strategy. Alternatively, you should check out the services we offer and see which service matches your needs.
