With only a few days left for the new year, recruiters and candidates wonder how the landscape will look in the coming year. The labor market so far has been quite uncertain. However, the unemployment rate is low, and most industries' job outlook is decent.
With inflation, rising interest rates, and higher living costs, recruiters are becoming more worried. Not to mention the demand for higher salaries. With all this combined, it is imperative to look out for the recruiting trends that will dominate the labor market in 2023.
Recruitment Trends For 2023
Below, we have discussed some trends you should keep an eye out for.
1. Remote Work
Remote work became the norm back in 2020 with the coronavirus pandemic unexpectedly hitting. However, two years into it, the perks of remote work are being recognized worldwide. Remote work offers flexibility not only for candidates but also recruiters and employers.
It saves employers office costs and travel expenses for the employees. Moreover, hiring remotely also allows companies to recruit international talent and make their workplace more diverse and inclusive. This will allow you to recruit candidates from a larger talent pool and have a more robust group of employees.
Other than remote work, hybrid work modes are becoming more popular. People now want a situation between going to the office and staying home.
2. Using HR Automation and AI<
Everyone knows that recruiting is a challenging task. There's repetitive work, and the entire process is time-consuming and exhausting. However, integrating AI technology into recruiting has simplified the processes and made manual and repetitive tasks less time-taking.
For instance, tasks like candidate shortlisting, screening, and interviews have become automated with the help of tools like an email finder, taking time off recruiters' hands. Automation or AI certainly cannot replace human recruiters since the human touch is a significant factor in recruiting.
However, AI solutions can rescue and make the processes much easier for recruiters for a high recruitment volume. Furthermore, AI solutions are great for minimizing bias in the recruitment process.
3. Diversity and Inclusion
As briefly mentioned, diversity and inclusion are becoming big factors in the recruitment process. Recruiters are looking to build an inclusive workforce with workers from all social, economic, and ethnic backgrounds. This leads to a strong, innovative, and creative team of professionals.
This also leads to a wide variety of thinking, education, ideas, and opinions. While inclusive hiring isn't anything new, it is currently more prominent, especially among the Gen-Z demographic. Bias regarding certain identity factors is common, so blind hiring is encouraged to build a more diverse work team.
4. Project-Based, Contract and Freelance Work
Gone are the days when work only meant the generic 9-5 hours. The employment landscape has become much more flexible, and project-based, contract, and freelance tasks are becoming very common. This allows companies to get their tasks done easily and in a fast, efficient, and cost-effective manner.
Moreover, contract-based jobs allow employees to bag projects easily in between looking for more serious positions. They trade the security for the flexibility that they receive with contract-based jobs. There is a misconception that contract workers are less skilled but are often results-oriented and highly talented individuals who give the company what they need. In contrast, the company looks for permanent candidates.
Additionally, with the hiring freezes that we witnessed in 2022, it makes sense that companies want to hire project-based or contract-based workers to achieve goals fast, and that too with less overhead costs.
5. More Young Talent
Hiring young talent has become an imperative factor for companies, especially startups trying to kick off in this crowded landscape. The days of the boomers are gone, and the Gen Z crowd is here to rule. Previously, companies wanted mature candidates with maybe a few years of experience.
However, that has changed, and now freshers are also welcome, and most importantly, young talent is appreciated due to their fresh worldview. Young professionals bring an energetic workplace atmosphere and creative solutions to the scene.
As the boomers move on, the millennials and Gen-Z crowd are slowly becoming the face of the corporate world. Moreover, young professionals are known for making riskier moves and being rebellious and aggressive in their corporate approach, which helps companies establish themselves and stand out.
6. Candidate Experience
Just like making the processes easier for recruiters is important, so is making it easier for the candidates. Especially after the pandemic, the importance of employee well-being has been recognized, and as a result, organizations are now eager to provide future-proof candidate experiences. How the candidates perceive your organization during the recruitment process carries much weight.
Thus, companies are now focusing on providing better work-life balance for the employees, encouraging and establishing programs for the employees' better physical and mental health, and offering an overall positive experience in the workplace.
This is especially important because candidates have many options nowadays. So, give them reasons to stick to your organization. The candidate experience also includes an upgraded career website, offering surveys for feedback, and improved interview schedules to accommodate the candidates.
7. Result-Driven Recruiting
Recruitment shouldn't only be based on your instincts and whether or not you believe the candidate is right for the job. Your gut feeling can only get you so far, and if you wish to hire a candidate you're certain about, you need results and recruitment metrics that speak for themselves.
For that, organizations have started conducting task-based interviews where they assign simple tasks to candidates to assess their performance and determine whether or not they're the right fit. Furthermore, online skills assessments are also used. This makes the recruitment process more objective and not simply based on the recruiter's opinions.
8. Focus on Quality of Hire
Recruitment doesn't mean you will end up hiring every candidate who walks through your door. While expanding your talent pool and workforce is essential, recruiters are now looking to focus more on the quality of professionals they are hiring. Highly skilled candidates mean better retention rates, reducing costs since the companies won't have to start from scratch again when they lose an employee.
Thus, skill-based assessments are becoming more popular for understanding the quality of the candidates. Bad hires can be a waste of time and money, so a thorough interview and hiring process is becoming more mainstream now to not lose those employees halfway down the road.
Additionally, competent generalists are more in demand now than specialists who are skilled in only one particular niche and don't have much knowledge outside of that area. These professionals can juggle between responsibilities and take care of the workload.
9. Passive Recruitment
As we approach 2023, the land of uncharted territory in recruitment and economy, recruiters are more worried than ever about what's to come. As a result, passive recruiting is becoming common, with recruiters focused on building a talent pipeline full of skilled professionals.
Passive recruitment is critical for more niche and skilled roles. This helps recruiters quickly get hold of a candidate instead of going through the draining steps of recruitment every time they have to hire a candidate. Passive recruiting means that you have to proactively approach candidates who are open to hearing about new opportunities.
This is a long-term strategy that helps companies save time and resources down the line once a vacancy is available. Keep in touch with passive candidates and keep them updated about your company news. The purpose of passive recruiting is to receive more immediate results than you normally would with active recruiting; this certainly helps to think ahead about your company's future.
There's no doubt that the recruiting landscape is changing. Automation, shifting social trends, and focus on candidate well-being: these are going to be the markers of the year ahead. It gets difficult for recruiters to keep up with the changing scenario, which is why we have outlined the top recruitment trends that we are likely to see in 2023.
One thing that must be kept in mind is that recruiters must become more transparent with their candidates. As the workforce shifts mostly to the young generation, candidates and employees will demand more honesty and transparency from employers. Therefore, recruiters need to adapt accordingly. This means being open about salaries, work responsibilities, and other factors.
Stay ahead of the curve and conquer the year ahead with these recruiting trends.