Talent Trends 2023
4th Jan 2023
As 2023 begins, effective talent acquisition and recruitment activities are becoming more refined. With the economic slowdown, businesses are expected to face increasing difficulty attracting skilled and qualified candidates in a sparse and competitive talent market.
The below 2023 Trends are aligned with workforce needs and demands that have been forever changed after the COVID-19 pandemic, resulting in Talent partners seeking a more efficient and streamlined approach to hiring and retention and are therefore forced to be more proactive than before.
Pivotal’s 2023 Top Talent Trends:
1) Demand Planning & Talent Pooling
In talent short markets - one of the most important facets of recruiting and TA is candidate nurturing. To do this effectively you need to understand demand, and create talent pools so you can nurture relationships.
Companies need to develop and engage with candidates - regularly, creatively & personally
This is time consuming, so the more you can do to automate via your ATS to ensure your nurture program is consistent and impactful the better.
2) Internal Mobility
We know people want to learn and grow at work, regardless of economic and market conditions. Candidates are constantly asking: “How can I do a better job so that I can get paid more, promoted, or land my next dream role?” if we ignore these questions, candidates will leave at the next opportunity. Employees who make an internal move are more likely to stay at their organization longer than those who stay in the same role.
The latest LinkedIn Talent Insights say you are likely to see a 19% uplift in retention at the three year mark as a result of internal mobility – this rises to 27% when broken down in the UK market
3) Employer Branding (& the ‘R’ word)
Employer brand is crucial to both retaining talent and reducing recruitment costs. Whilst hiring demand may slow in H1, the ongoing competition for digital talent will persist. Key to ensuring you maintain and develop a strong Employer brand (in more challenging times) are:
- Transparent and Frequent Communication - especially true if promises made during hiring cannot be fulfilled due to economic changes
- Every business will be faced with the fiscal challenges of a recession, and the way in which decisions are communicated have a direct effect on how people's perception of the company.
- A great way to check how you are performing in this area are Internal surveys that monitor engagement / happiness scores over time
4) Employee Engagement & Wellness
Distributed workforces will remain common (remote & flexible working), meaning employee engagement & employee wellness will remain important strategies. In fact (according to the lates LinkedIn Insights) behind compensation, employees value ‘work life balance’ and ‘flexibility’ most.
As Talent Leaders, we need to be prepared to speak to candidates about what our company values are, and how we support our employees.
What programs do you have in place to support Mental Well Being?
5) Recruiters as business leaders
In 2023, recruiting will increasingly be perceived as a strategic role. Leaders and recruiters are expected to provide perspective, push back, and lead the way forward. As recruiting becomes more creative and complex as the most administrative and mundane parts of work become automated it will become less about execution and more about people strategy.
Recruiters are expected to be responsible for anticipating hiring manager’s needs, solving their problems, and identifying hiring opportunities for them.
6) A blended approach to TA will become the norm
The recruitment market has changed dramatically over the last 4 years with the evolution of RPO and Embedded models working alongside in-house and 3rd Party recruiters.
Demand Planning for 2023 is difficult, so winning at recruitment will involve using a blended approach of inhouse, embedded/RPO and specialist agency. So being able to scale up and scale down depending on demand, forecasting and controlling your costs while ensuring consistent & reliable delivery will be key.
While recruiting are expected to face many uncertainties in 2023, the above hiring trends will help to hire the right talent to better capitalize on the opportunities next year presents.
As the competition for top talent intensifies, those that adapt quickly and attract the best candidates will come out on top. For any further queries, contact the Director and Co-Founder of Pivotal London, David Terry at david@pivotallondon.co.uk, 07554010308.