Recruitment trends for 2023

Published: 16 January 2023
Author: Recruiter On Demand

It’s fair to say we’ve been through a lot over the last few years. And there’s little time to catch our breath, as 2023 kicks off with economic turbulence, a cost of living crisis and a recession. So how will recruiters respond to the uncertainty of the year ahead? We take a look at five recruitment trends for 2023.

Trend 1: Boosting employer branding

Last year saw a shortage of candidates, and that’s likely to continue throughout 2023.

Gartner found that recruitment is a top five priority for 46% of HR leaders. And The Firm (a talent acquisition membership organisation) found the biggest recruitment challenges facing its members in 2022/23 are ‘attracting candidates’ (19%) and the ‘quality and scarcity of skills’ (40%).

The need to appeal to job seekers and candidates – in a whole range of ways – is crucial. Jobseekers are becoming more discerning about employers, with 82% considering employer brand and reputation before applying for a job. That’s an increase of 7% over the last five years.

So employer branding needs to be spot-on, for every step of the recruitment process. That includes shouting about great work culture, making sure the candidate’s experience is exceptional and providing great communication – whether or not a candidate receives a job offer. Because people talk, and employer reputation matters.

The Firm also discovered that amongst its members, employer branding is being refreshed more frequently. It’s likely this is because many organisations experienced dramatic change over the last few years, and strong employer branding needs to truly reflect a company’s values and culture – as it stands right now.

Trend 2: Shifting power dynamics

Throughout 2022 candidates held the upper hand over employers. The candidate shortage meant jobseekers and employees had the power to bargain over salaries, benefits and flexible working.

That’s likely to shift this year. The recession could lead to cost-cutting and redundancies, making jobs harder to come by and it tougher for employees to switch roles – let alone be in a strong position to negotiate higher salaries or dream working arrangements.

Alongside the recession, the cost-of-living crisis is only set to exacerbate the situation, with some candidates being forced to take jobs solely to meet increasing financial needs, with or without their ideal work conditions. 

But as some of the power shifts back to employers, there are candidates who are likely to hold onto their power – and that’s for those working in sectors already experiencing a skills shortage, such as IT, healthcare, pharmaceuticals or engineering.

Trend 3: Fine-tuning hybrid working to attract candidates

The pandemic proved that for many of us, hybrid working is not only viable, but it’s also preferable. A State of Remote Work report in November 2022 found that if the ability to work from home was taken away, 66% would start looking for a new job immediately, and 39% would simply quit.

So hybrid working is here to stay. And while it’s now proven that productivity won’t be at risk (it might even increase), your company culture might be. With that in mind, it’s likely organisations will now focus their attention on protecting their company culture, rather than clock-watching their colleagues.

Korn Ferry makes the point that work-life balance will now be shifting towards ‘work-life integration’. Rather than defined working hours, people want the flexibility to be able to, for example, take thirty minutes out for the school run, or break for a dentist’s appointment. It looks like the work/ life dynamic will become even more fluid and flexible, which in turn, will only help to attract candidates.

Trend 4: Diversity and inclusion – playing the long game 

Creating a diverse and inclusive culture was never going to happen overnight, which is why it’s still going to be a high priority for recruiters during 2023.

According to Glassdoor, more than three in four employees and job seekers consider a diverse workplace an important factor when evaluating companies and pending job offers. And one study shows that job seekers are willing to explore jobs with lower salaries when the companies are more diverse.

In a nutshell, a diverse and inclusive culture makes organisations more attractive to candidates. It leads to greater creativity within teams, better decision making and greater job satisfaction.

And an added bonus is that an inclusive recruitment process increases talent pools – an essential component during the candidate shortage we’re currently experiencing. 

Trend 5: Flexibility for everyone

While flexibility is heading up the wish list for many candidates, it’s also going to be key for employers and recruiters this year.

It’s unpredictable out there. No one knows how tough the recession is going to be, how long it will last, or how the cost of living crisis will pan out. All those factors could create rapidly changing business needs – ramping up recruitment, rolling out redundancies, or hiring contractors rather than permanent team members. 

This sense of flux means that organisations need to be agile and adaptable, not only to survive but to thrive. For example, there may be much more focus on internal promotion and developing employees during the recession. But companies will need to be ready to bounce back into action when the economy picks up again.

Supporting you through the year ahead

With all that in mind, it’s likely you’ll need to be even more flexible this coming year. And that’s something we’ve nailed.

We can swiftly supplement your existing team without the need to permanently expand. That makes us a flexible and low-risk way to meet your recruitment needs.

Working with us can be hugely reassuring during a time of uncertainty. We’re here when you need us and you can choose exactly the level of support and expertise you need, each time you work with us. Take it from Fraser Sellar, Service and Operations Directors at Verifile:

“Recruiter On Demand really filled a gap whilst we didn’t know how much we were going to grow or if this was just going to be a spike and then get back to normal.”

We’re also skilled at promoting your employer branding. Because our TAs embed into your company, we fully understand who you are and what you’re about. Just like any member of your in-house team, we’re able to represent your brand in the best way – because we understand your culture and values from the inside.

Find out how we can help you find great talent – whenever you need us.