The Top Talent Acquisition Trends for 2023: What the Experts Are Saying
The start of 2023 was riddled with layoffs resulting in nearly 60,000 tech workers losing their jobs. Yet, despite these surprising numbers, the unemployment rate in December was 3.5%.
The Recruiter.com Recruiter Index survey also indicated that recruiters are still hiring for companies, even if they aren’t hiring for brand-new roles. However, with so much uncertainty in the job market, many companies wonder what 2023 will look like.
Recruiting and talent acquisition experts made their best predictions for what talent acquisition trends for 2023 we’ll see. Keep reading to learn how to prepare your company for the year.
Increased Use of Recruiting Technology
The year started with one of the most powerful AI tools everyone had access to: ChatGPT. Naturally, this prompted the conversation about artificial intelligence (AI) and its applications in every industry, including recruiting.
However, this is only the start of the talent acquisition technology trends in 2023. Angela Mangrum, the founder and president of Mangrum Career Solutions, anticipates that companies will rely even more on these technologies to hire top talent.
“With the general financial uncertainty and impending recession, a leaner, more efficient recruiting process is the need of the day. Leveraging technology and AI for better talent-hunting, out-of-the-box onboarding ideas, efficient candidate screening, and comprehensive training will be top HR priorities in the coming year,” she said.
Focus on Retention
According to the latest SHRM data, hiring a new employee will cost about $4,700. As companies worry about a recession, this is one cost many companies can’t afford. Because of reduced budgets, many companies will also focus on retaining employees.
Vera Petrovicheva, the Head of the Recruitment Team at Usetech, argues that retaining current employees will be the primary trend for talent acquisition in 2023: “It will cost the business less than hiring a new employee.”
In another effort to reduce recruiting costs, Petrovicheva said, “HR will increasingly resort to aggressive headhunting. In this case, all the methods of aggressive attraction are used: development of a cooperative approach when not only the HR department but all the employees participate in the search; referral programs which imply rewarding those who bring good specialists to the company; and outright poaching of personnel.”
Improved DEI Initiatives
As companies struggle to retain top talent, they must also focus on improving their DEI initiatives.
Ankit Bhardwaj, the founder and CEO of VPNHelpers said, “Diversity has always been a major goal for companies, but it has been especially highlighted recently as organizations strive to create an equitable workplace culture that welcomes people of all backgrounds. As a result, companies will likely emphasize diversity initiatives in 2023 to attract and retain diverse talent pools.”
After the COVID-19 pandemic, many employers have struggled with whether to offer remote work, bring employees into the office, or offer a mix of both. But unfortunately, even though many employers want to get their employees back into the workplace, employees don’t want to return.
Companies who offer remote work will see increased applications on their open job postings, and they’ll get to hire from a qualified talent pool. Because of this, employers will need to consider shifting to allow remote work.
“The ease with which people have grown accustomed to remote employment is not expected to change any time soon,” said Shaun Martin, the CEO of We Buy Houses in Denver. He is an expert in leading teams of qualified talent.
“Prepare for a hybrid workplace by being familiar with the most recent developments in asynchronous hiring, video interviewing, and remote collaboration tools.”
More Focus on Employer Branding
Companies hiring in 2023 will also need to focus on employer branding. Employees are constantly checking Glassdoor and other review sites to decide whether or not they want to work for a particular company. Therefore, you must focus on employer branding to win great talent.
“The importance of employer branding will continue to grow as job seekers become more discerning and selective about the companies they work for,” said Michael George, the founder and CEO of MichaelHR.
More Hiring Freezes and Layoffs
The beginning of 2023 has been about hiring freezes and layoffs, but many companies are still hiring. As a result, it can take time to predict what the economy will look like for the rest of the year.
Robin Salvador, the owner of Flightradar Online, works closely with recruiting experts and said that hiring freezes will likely last only a short time. “Employers may be hesitant to hire new employees due to economic uncertainty, but this is not likely to last long. After all, businesses must keep their costs down to remain competitive.”
Marc Hardgrove, the CEO of the HOTH, anticipates that there will be a surge in hiring, but some industries will hire more quickly than others.
“With more businesses looking to experiment with decentralized structures, more and more roles as communication specialists will open up. These roles will maintain strong relationships between teams within the corporation. Businesses will look for individuals who are open to working in multiple roles at the same time.”
Updated Recruiting Processes
One of the trends in talent acquisition for 2023, to reduce recruitment costs and stay competitive, will be a need for updated recruitment processes.
Sylwia Smietanko, an HR Specialist and Recruiter for Passport Photo Online, said, “A lot of Gen Zers will enter the market, applying for Junior and Intern positions, and they find old-fashioned recruitment methods repellent. Thus, HR departments will try to make them more innovative, mobile-optimized, and most importantly, fast-paced with no space for unnecessary formalities.”
Skills-Based Hiring Strategy
One theme in 2023 will be companies being asked to do more with less. Because of this, many companies will have to focus on skills-based hiring.
Shirley Borg, Head of Human Resources at Energy Casino, claims that skills-based recruiting will be the future of hiring.
“More companies will finally switch to this approach, as it’s becoming the standard to use the agile approach in all industries. HR has to keep up with general industry trends in its hiring processes.
“The recruitment process is the first time a candidate will meet the company and its values. If it needs to be updated, it might make the company lose great hires. That’s why refreshing old systems will be the main priority in 2023. In addition, more companies will invest in skill tests and on-the-job training instead of requiring experience in certain positions.”
Utilization of Social Media
One thing that recruiters will continue to utilize is social media. Social media recruiting can be very powerful, and it’s a cost-effective solution for many companies looking for ways to reduce costs.
Nate Nead, the CEO of Recruiters.co, anticipates that this will be a big trend in 2023. “Social media is an excellent way to discover potential candidates who may not be actively searching for a job.
“Utilizing platforms like LinkedIn, Twitter, and Facebook allow recruiters to build relationships with candidates and foster connections that can lead to quality hires. Social media also enables employers to brand their company as an attractive employer of choice.”
Richard Nola, the Chief People Officer at Epos Now, also said that social media platforms would be necessary for recruiting.
“Recruiters have been using social media platforms such as LinkedIn for quite some time now, but platforms such as Facebook, Twitter, and Instagram have started gaining traction lately due to various specialized jobs-related communities.
“Employers can post job openings or send direct messages to reach correctly-targeted skilled professionals across different industries. This improves hiring accuracy greatly when compared to traditional methods like newspaper ads, cold calling, etc.”
Prepare Your Business for These Talent Acquisition Trends
These are only a few talent acquisition trends for 2023, but it can be challenging to predict the economy.
Regardless, companies should focus on hiring great talent while staying within budget. That’s where Recruiter.com can help.
We have affordable and flexible recruiting solutions proven to help your company find top talent. If you’re interested in these solutions, contact us today!