Looking Ahead: Insights into the 2023 Market Trends
Anna Bramlette | 04/20/2023
If you’re a recruiter, you probably already know that the market is getting a little tough right now. Roles are getting harder to fill as we move farther into our post-pandemic era. After some research, we’ve found these top market trends that may have an impact in the staffing industry this year. While we aren’t able to predict the future, we’ve taken a look back at the hiring landscape from 2022 and noticed these top 5 trends that might make a stronger appearance in 2023.
Our ability as society to adapt during the Covid-19 pandemic has transformed the recruitment industry. and we’re excited to share with you how it will continue to evolve. These trends will revolutionize the hiring process and help organizations stay ahead of the curve.
Whether you’re an employer or a job seeker, these trends will give you the insight you need to attract and retain top talent. Let’s get to it!
Cross Training, Upskilling, & Promoting from Within
In the past, HR has had a habit of window-shopping for talent when faced with business challenges. However, things are changing in 2023. We anticipate that companies will prioritize employee retention over external hiring, choosing to develop and upskill their existing workforce first.
By working closely with your employees to improve their skills, you will form a better relationship with your team, resulting in higher retention rates. In fact, the Society for Human Resource Management (SHRM) reports that employees who were promoted within three years were 70% more likely to stay with the company, and those who moved laterally were not far behind.
Integrating Hybrid or Remote Schedules
Back in the midst of the pandemic, we expected remote work to be a short-lived fad. However, as we move through the post-pandemic years, we’ve seen a larger demand for remote or hybrid work schedules. Most of our potential prospects usually ask if the role is hybrid or remote before they show any interest.
Although there are plenty of companies out there still implementing the hybrid work schedule, there is still a good handful of companies pushing for their employees to return to the office. This has been an ongoing debate over the last few years, actually, but we don’t see it going away any time soon.
Flexibility & Employee Well-Being
Piggybacking on the hybrid/remote topic, there are also other ways to adapt to the higher demand for flexibility. True Gorilla outlined a few alternative ways to create a more flexible work environment, including:
- Flex-time – Rather than a straight 8-hour workday, employers can offer a flexible work day to allow employees to integrate personal things like school drop-off and pick-up, appointments, or other personal events while getting their work done in non-conventional times of the day. This option still requires a full number of scheduled hours, but not necessarily all in a row.
- Results-based work environment – Pay your employees for the work they do, not the hours they spend working. This alternative allows employees to work at their own pace to complete the tasks at hand without needing to be present for the full work day.
- Job sharing – Here, two or more employees tag-team working on the same task to get quicker results. This could increase productivity and speed up work timelines.
- Compressed work week – A widely-discussed topic lately: the compressed work week. This could include longer hours on working days to make up for the lost time, or it could simply be a cut in hours entirely. A compressed work week can help employees feel more rested and ready to tackle each work week.
- Unlimited PTO – Studies show that when offered ulimited PTO, employees are more likely to take vacations only when they need it. Although the PTO is uncapped, this can benefit your company because employees don’t accrue vacation days that need to be used or paid out.
- Reduced hours – This one is simple and piggybacks onto the compressed work week with shorter working hours. This could mean a traditional 5 days in the office with shorter hours, for example, a 6-hour workday instead of 8, or shorter hours altogether.
When flexible working policies are coupled with strong diversity, equity, and inclusion initiatives, they can widen your pool of potential candidates and offer employees a chance to work in a manner that positively impacts their mental, physical health, and overall performance. It’s crucial to ensure that your employees feel heard, understood, and valued.
This one might sound scary, but automation and artificial intelligence are next in line to be the next big thing. In the last few years, an online tool called ChatGPT has taken over the internet, acting as almost a personal assistant. Setting up things ahead of time, such as automated emails, social media posts, or even articles like this one, can save you time and help you become more efficient.
Adapting to the Gen Z Workforce
It’s understandable that businesses will prioritize attracting Gen Z workers in 2023, as they are the demographic entering the workforce. Gen Z, born from 1997 onward and known as “zoomers,” are prone to be more digitally savvy, having grown up with technology and social media. They also prioritize personalization in their careers.
To attract Gen Z candidates, businesses can utilize many of the recruiting trends mentioned earlier, including implementing flexible working policies. This is especially important to Gen Z, with 77% of them engaging with workplace flexibility compared to just 30% of Millennials. Additionally, project-based hiring is likely to appeal to Gen Z, as 50% of them freelance at least some of the time and are well-suited for short-term, project-based work.