Trends in Talent Acquisition That Will Shape 2023
I've written a piece about the major themes influencing the talent acquisition landscape in 2023 as a recruitment specialist working in the creative sector situated in the UK. The universe of talent has shrunk as a result of the recent economic unpredictability, with high attrition rates, low unemployment, and hiring freezes. However, with a proper strategy in place, businesses can weather these difficulties and come out even stronger.
Here are 9 trends to watch out for and maybe try to incorporate this year:
1. Planning the workforce for a slowdown
As the financial downturn hits, businesses are responding with cost-cutting measures like hiring freezes and redundancies. But history has shown that those who plan ahead and have a robust strategy in place will have a better chance of recovery once the economy picks back up. The best teams are preparing multi-scenario plans and keeping an eye on market conditions.
2. The Recall to Work in the Office Studio
The pandemic has forced businesses to rethink their workplace policies, but now we're seeing a shift back towards in-person work. Some companies like Apple have already announced plans for a partial return to the office, while others are pushing for a full return. A recent survey showed that 37% of HR leaders expect employees to work from the office more, but 48% believe this could hurt their ability to attract and retain talent. 60% of our survey respondents considered flexible working a key factor in their career moves.
3. Upskilling and more internal mobility
With 40% of employees considering a job change in the next six months, businesses can reduce attrition rates by developing an internal mobility strategy. This not only creates a source of talent within the company, but also supports better retention. It's becoming more common for "rebound employees" to return to their former employers, bringing valuable experience and a familiarity with the organization. Companies should actively consider these candidates for open positions.
4. Recruitment Strategies Driven by Data
More teams are using data-driven strategies as DE&I becomes an essential component of hiring talent. Recruiters can spot equity gaps in the hiring process and correct them by using demographic information and KPIs like pass-through rates and interview comments. This data-driven approach is crucial for achieving more inclusive hiring outcomes. Additionally, the number of client inquiries about using wage benchmarking data has significantly increased. Primarily, businesses are keen to utilise this type of data to address wage inflation, ensuring their decision-making in line with where the industry is at and likely go.
5. AI and automation
Automation and AI are becoming more prevalent in the hiring process as technology develops. These technologies help reduce waiting times and boost productivity for everything from reviewing resumes to setting up interviews. But it's important to strike a balance and ensure that human interaction is still a key part of the process.
6. Workplace Referrals
Employee recommendations are still a great way for organisations to find talent. Companies can access a pool of pre-screened candidates and increase their chances of finding a suitable fit by rewarding current employees who recommend their friends and network.
7. Remote Work
The trend toward remote work has been increased by the pandemic and is likely to continue even when things start to feel more normal again. To recruit and keep great people, businesses must be adaptable and have a clear policy on remote work.
8. The Gig Economy
The gig economy is expanding as more people choose contract and independent work. In a highly competitive market, businesses must be prepared to adjust to this trend and discover innovative strategies to draw in and keep top personnel.
9. Wellness and Mental Health
Everyone has been affected by the pandemic, even workers. The well-being of people's minds will be a significant concern for businesses in 2023. Employers will focus on providing support and resources to employees, such as mental health days, virtual counseling, and employee assistance programs. Employers will also be paying close attention to their employees’ work-life balance and the impact their jobs may have on their overall wellbeing.
Businesses in 2023 will face new trends and challenges as the recruitment landscape continues to change. The economic downturn, the great return to the office, increased internal mobility and upskilling, data-driven recruitment strategies, and mental health and wellbeing will all shape the way organizations approach talent acquisition. It's crucial for businesses to stay ahead of the curve and adapt their recruitment strategies to meet the changing needs of the workforce.
I can tell you that these developments will have a significant impact on the talent acquisition landscape in 2023 as a recruitment specialist working in the creative industry situated in the UK. I hope this post has given businesses some useful information to help them get ready for the challenges that lie ahead. Keep an open mind and your finger on the pulse at all times!