Recruitment trends for 2023 - were they right?

1 - The talent shortage will continue
2 - Remote working will remain a priority
3 - Equality, diversity, and inclusion
4 - Data-driven recruiting will grow
5 - Employer branding means effective messaging

Back in December, we highlighted 5 recruitment trends to watch out for in 2023. These predictions were made when it was particularly turbulent with the rise in cost of living at a particular peak of worry and uncertainty. This had initiated some huge layoffs from big tech companies which unfortunately has remained the case going through the year.

We’ll be looking at whether our 5 trends to watch out for this year have come to light and where they currently stand going forward.

The talent shortage will continue

According to the British Chambers of Commerce, 8 in 10 businesses attempting to recruit new staff have faced challenges, with hospitality and manufacturing firms the most likely to come across issues. Coupled with the fact that almost 60% of businesses are actively trying to recruit staff, the current hiring shortage will not be going away anytime soon.

Economic uncertainty very much remains at the forefront of many would-be available candidates who are unwilling to leave secure jobs. This means it will continue to take more than just a big salary to attract new talent, other factors are as important now as they were 6 months such as flexible hours or options on where you can work from.

Result: 🟢 – Talent shortages are showing no sign of slowing down.

Remote working will remain a priority

The debate between remote and office working is still continuing well into 2023. In a perhaps surprising turn, returning to the office is becoming more accepted by employees. Analysis by Adzuna in March had found that there has been a 6% drop in remote jobs advertised on their job board. However, they also found some sectors, such as Administration, seeing a 15% rise in the proportion of remote jobs advertised.

With reports of loneliness on the rise, 8% between March and April of this year compared to 5% between April and May 2020, it may go to some way explaining a return to the office. The cost of living has also led to workers rethinking the need to stay at home when utilities are covered at the office.

Result: 🟢 – Remote working looks set to continue but change is on the horizon.

Equality, Diversity and Inclusion

EDI will continue to be a talked about part of recruitment. April’s analysis of the government’s gender pay gap reporting clearly shows we are way off when it comes to equal pay between genders. The median pay gap is currently at 9.4%, the same level as in 2017-18 when employers were first required to publish this information.

Challenges still remain in 2023 when it comes to this side of recruitment and will continue to do so beyond this year. Employers need to take more care and ensure they are using the correct language and screening candidates fairly to avoid bias. Open and honest discussions can help with this to guarantee employees feel that they work in an inclusive environment.

Result: 🟢 – EDI continues to be at the forefront of recruitment trends in 2023

Data-driven recruiting will grow

Perhaps a hard one to measure in only 6 months but data-driven recruitment will continue to be talked about as it has been for years. As we enter a seemingly new era of AI, the data that feeds into these sophisticated and ever-growing AI models will be crucial to get the best out of this powerful technology.

With continuing talent pipeline issues, getting the most out of your data will be crucial to help address these issues. Targeting the right kinds of candidates in the right places is knowledge that can be derived from data analysis. Data-driven recruitment will also help address EDI challenges discussed previously, analysis of how you perform on these fronts can help set the markers on recruitment decisions for 2023 and beyond.

As mentioned in the previous recruitment trends article, our webinar with Gary Towers, Talent Intelligence expert, remains prevalent now and worth a watch if you’re serious about being data-driven.

Result 🟢 – Data-driven recruitment could become even more relevant with the rise of AI.

Employer branding means effective messaging

Another aspect of recruitment that will continue to be discussed is how the employer is perceived by the employee. As more and more Gen-Z workers enter the workforce, issues around the environment, diversity and employee well-being are becoming more crucial in candidates decision-making.

A survey of 5,000 working adults has suggested that 35% of those aged 18 to 34 years old would be willing to stay with their current company long-term thanks to opportunities to develop new skills. This goes against the idea that young employees are quick to switch jobs. If they are happy with their current employer, they will stay. So, getting your branding and reputation up to scratch is pivotal for employee retention, especially during a talent shortage.

Result 🟢 – Continue to work on your brand if you want to attract and retain talent.