Learn how to change up your strategy for 2023 to keep attracting top talent with our guide

The Top 10 Recruitment Trends Employers Should Look Out for in 2023

The recruitment landscape is changing faster than ever, and 2023 is no exception. To keep attracting top talent and stay competitive, employers need to stay informed about the latest trends and best practices in recruitment.

This article will explore the top 10 trends shaping the industry, including Gen Z’s entrance into the workforce, the growing importance of soft skills, and the rising prominence of remote and hybrid work. Let’s dive in and discover how you can change up your recruitment strategy for 2023 to stay ahead of the curve!

 

1. Gen Z is entering the workforce

As the Gen Z workforce enters the job market, organisations must adapt to emerging recruitment trends to attract and retain top talent. Reevaluating essential skill sets, embracing a STEMpathetic workforce that combines technical and cognitive skills, refining sourcing algorithms, and shifting from traditional recruitment methods are crucial for staying competitive. Innovative collaboration-based hiring processes, such as pairing candidates to work on assignments, can help organisations identify individuals with strong cognitive and interpersonal skills.

As Gen Zers begin to enter the workforce, they are bringing with them a strong sense of social awareness and a commitment to inclusivity. A recent BBC study underlines this generational shift, indicating that Generation Z exhibits significantly greater concern for pressing social issues such as LGBTQ+ prejudice, gender equality, and racism than their older counterparts. This heightened sensitivity to diversity and inclusiveness will likely shape the workplace culture, policies, and dynamics, fostering an environment that is more open, equal, and accepting for all.

By staying ahead of these trends and adapting hiring strategies accordingly, companies can better position themselves to succeed in an ever-evolving job market with a skilled Gen Z workforce.  

 

2. Hiring for soft skills

The growing significance of soft skills has reshaped recruitment trends, as the pandemic-induced skills deficit and decreased in-person interactions demand greater collaboration, problem-solving, and communication skills. Studies show that 85% of job success depends on well-developed soft skills, prompting HR professionals to seek candidates with outstanding soft skills, such as communication, problem-solving, and adaptability.

With 89% of bad hires lacking essential soft skills, recruiters face challenges in identifying these attributes. Consequently, there is a need to revamp assessment processes, emphasising both soft and hard skills and evaluating candidates’ behaviour, communication, and decision-making abilities. Organisations must prioritise soft skills and create innovative strategies to attract well-rounded candidates, helping to bridge skill gaps, expand talent pools, and enhance employee satisfaction.

 

3. Diversity and inclusion

Business leaders worldwide acknowledge that a culturally diverse workforce fosters innovation, creativity, and profitability. Yet, only one-third of recruiters track candidate diversity, and diversity metrics are rarely used. This trend will shift in 2023 as more companies invest in diversity and inclusion initiatives. Recruitment agencies must adopt innovative evaluation tools to eliminate bias in the hiring process.

Candidates prefer companies with clear values, where they feel safe and authentic and can perform at their best. Hiring teams must be attentive to diverse applicant pools, as small details could deter top talent. A diverse and inclusive workplace ensures all employees feel involved and supported.

Key aspects of assessing workplace diversity and inclusion include recruitment processes, departmental representation, and gender balance in management roles. A diverse and inclusive workplace offers benefits such as higher revenue growth, increased innovation, broader talent recruitment, and improved employee retention. Companies must strive to create a workforce reflecting the labour market, ensuring equal representation and preventing exclusion based on differences.

You will see more and more companies advertising jobs in places that attract a more diverse workforce. We have seen a growth in recent years in job boards created for particular protected characteristics; you can tap into these talent pools by using something like the Get Staffed Diversity & Inclusion package.

 

4. Talent pools are becoming increasingly relevant

Talent pools have emerged as a widely adopted strategy to help organisations and recruitment agencies identify the best candidates for their labour needs. With a vast database of job seekers who have applied for positions within a company and passive potential candidates referred by others, talent pools enable businesses to track, engage, and understand how to connect candidates with job openings.

Gaining popularity in today’s labour market, which faces a skills deficit, talent pools help HR professionals create and nurture a pool of internal and external candidates to optimise the hiring process. Benefits include reduced recruitment costs and time-to-hire, identification of qualified candidates for future hiring, and keeping top talent acquisition in the loop. Offering current vacancies to pre-existing talent pools, such as intern alums or agency workers, can encourage talent retention and increase company loyalty.

In 2023, creating and maintaining talent pools will be an essential component of recruitment strategies. Organisations increasingly turn to external and internal talent pools to address skill shortages in a highly competitive market. Traditionally, the recruitment approach has focused on external hiring, but the growing skills deficit now necessitates that businesses search broadly, both outside and within their organisations. As a result, offering current vacancies to existing staff will become more common, helping foster loyalty and ensuring that companies successfully recruit the best talent available.

 

5. Employer branding

A strong employer brand directly correlates with increased user engagement, which can greatly impact a company’s popularity and reputation. The effectiveness of marketing recruitment trends in conveying a company’s vision to customers and employees is crucial to shaping that reputation.

Employer branding is the practice of promoting what a company or organisation stands for. It plays a vital role in attracting, engaging, and connecting with candidates genuinely impressed by its services or products.

In today’s highly competitive job market, businesses are strategically leveraging their branding as part of recruitment trends to streamline their hiring processes. Within recruitment, the employee value proposition (EVP) is utilised to assess the effectiveness of retention strategies and candidate attraction to a company’s brand image.

Recent studies indicate that businesses boasting exceptional employer branding attract 50% more potential candidates than those with less effective marketing strategies. A strong company brand, supported by advanced technology, enhances recruitment efforts on social media and career websites.

 

6. Increasing use of AI in recruitment

In 2023, the use of Artificial Intelligence (AI) in recruitment is expected to increase significantly, becoming one of the industry’s leading trends. As agencies and staff augmentation firms continue to adopt AI and HR automation tools, like recruitment automation systems, the entire hiring landscape will be transformed.

The streamlined recruitment process enabled by AI will cover various stages, such as discovering, attracting, nurturing, engaging, and onboarding candidates, ultimately enhancing efficiency and expediting the process. Modern Hire’s survey highlights the growing number of companies incorporating AI into their hiring processes for candidate sourcing, screening, and interview scheduling.

AI’s ability to automate time-consuming tasks like screening, eliminate bias during interviews, interact with applicants using chatbots, and assess candidates through video interviewing will only become more prevalent in 2023. Furthermore, natural language processing (NLP) tools integrated with voice recognition software will allow personalised communication with candidates and seamless analysis of audio interviews.

As AI and automation continue to gain traction, HR managers will see a significant improvement in efficiency, enabling them to secure top talent in a competitive labour market. For instance, tools like ChatGPT can be utilized by recruiters to craft compelling job adverts. At the same time, candidates can take advantage of the technology to create persuasive cover letters, further enhancing the hiring process and fostering an inclusive work environment.

 

7. Remote and hybrid work is here to stay

Workplace flexibility, including remote and hybrid work options, is set to remain a prominent trend in 2023 and beyond. In 2022, remote work productivity was higher on average despite debates over in-office work productivity. Consequently, hiring managers should consider offering flexible work arrangements to attract top talent with diverse priorities.

Remote teams are here to stay, with 85% of recruiters believing they will continue to grow, according to research conducted by EmployeeCycle. McKinsey and Co. found that job seekers value autonomy over where and when they work, indicating that remote teams have helped companies attract candidates and streamline their operations cost-effectively.

Initially popularised as a response to the COVID-19 pandemic, work-from-home policies are expected to persist long after the pandemic subsides. Job candidates increasingly anticipate such policies, and organisations must adapt accordingly. Even as economies reopened in some parts of the world, many companies preferred remote work for their employees.

This shift has expanded opportunities for companies to access global talent without geographical limitations, leading to increased demand for collaboration tools and software that facilitate remote work. As remote and hybrid work options continue to gain prominence in 2023 and beyond, they will play a crucial role in attracting and retaining top talent.

 

8. Focus on internal upskilling for better retention

In 2023, one of the prominent recruitment trends will be a focus on internal mobility and talent development within organisations. Companies should prioritise cultivating their employees for leadership positions, as it is more cost-effective than external hiring and promotes employee retention through upward mobility. Employees already familiar with the company’s products, systems, and processes are well-placed to contribute innovative ideas for improvement.

In response to an uncertain job market, professionals are shifting their focus from traditional career growth to internal mobility, moving to different areas within their organisations. This trend allows for a more adaptable and resilient workforce. Companies can use talent analytics and workforce planning to identify new roles to future-proof their businesses and determine which employees might be suitable for these positions.

Employers should enhance their internal talent mobility efforts in 2023 by concentrating on the talent development of their existing workforce, and offering regular training and certification programs to reskill or upskill internal candidates. Companies increasingly utilise artificial intelligence (AI) platforms with predictive analytics to identify promising internal candidates, provide tailored career development content, and develop personalised career paths based on goals and interests.

Investing in internal mobility will not only help organisations attract top talent and develop more diverse pipelines but also fill open roles and address critical skill gaps amid stalled hiring. As such, fostering internal mobility will be an essential recruitment strategy for companies in 2023 and beyond.

 

9. Gig economy: project-based hiring

In 2023, hiring trends indicate that companies will increasingly adopt contract employment and project-based hiring rather than relying solely on full-time employee (FTE) hires. This approach is particularly notable in tech companies and creative industries, and its popularity is expected to grow as more people embrace remote working.

Contractors and interim executives often possess unique skill sets and experiences, making them ideal for finite projects, mergers and acquisitions, or temporarily filling roles during a leave of absence or while searching for a permanent employee. These individuals are typically highly skilled, mission-oriented, and project-based, able to adapt quickly to new environments.

As more people seek flexible opportunities and are willing to compromise the security of full-time jobs, talent acquisition professionals will focus on nurturing relationships with candidates seeking contract employment. They will work with clients to determine the most effective scenarios for filling positions in this dynamic landscape. Experts recommend companies maintain a 70/30 FTE-to-interim worker mix.

Project-based hiring enables companies to access a range of experts without incurring additional costs, as contractors work on specific projects and their contracts expire upon project completion. In this evolving workforce landscape, businesses worldwide will increasingly adopt project-based hiring and contract employment as the new norm for meeting workforce needs.

 

10. Incorporation of social media in recruitment processes

As a recruitment trend for 2023, social media channels and collaborative tools are gaining prominence in talent acquisition, outperforming conventional career sites. Maintaining a robust presence on platforms like LinkedIn, Facebook, Instagram, Twitter, and Snapchat can assist companies in discovering top talent for various job roles. Industry research reveals that 94% of recruiters currently use or plan to use social media for recruitment, 70% intend to boost their investment in social recruiting, and 49% of employers have noted improvements in candidate quality through social media.

This effective recruitment trend allows for job postings and video interview guidance for job seekers through social media channels. These platforms are especially valuable for promoting remote work opportunities, employer branding, and highlighting a company’s work culture, new launches, products, and reasons to join. Studies show that 54% of candidates will not complete a job application using outdated recruiting methods, while 46% favour mobile-friendly applications or job postings for submitting their resumes.

Social media allows candidates to showcase their skills beyond the limitations of traditional job boards, and recruiters can share job openings and opportunities in relevant online communities. Candidates can explore various opportunities and enhance their work experience visibility, while recruiters can post job listings in communities that align with their target demographics.

 

Final thoughts

As we navigate 2023, the recruitment landscape is constantly evolving. To stay ahead, employers must adapt to trends such as Gen Z entering the workforce, a focus on soft skills, diversity, and the growing importance of talent pools. Additionally, employer branding, AI integration, remote work options, internal upskilling, the gig economy, and social media in recruitment processes are shaping the future of hiring.

If you want to enhance your recruitment strategies and stay competitive in this ever-changing job market, Get Staffed is here to help! Our team of online recruitment specialists can help you navigate these trends and find the top talent you need for your organisation.

Don’t let these recruitment trends pass you by! Reach out to Get Staffed today, and let’s work together to build a diverse and innovative workforce that drives your business growth. We can’t wait to hear from you!