The end of the year gives us time to reflect on the past year and prepare ourselves for a fresh start with vigor. Today, we’re taking a look at some of the biggest trends we’ve noticed over the past 12 months and are looking ahead at what organizations can expect in 2023.
A Look Back at 2022
Organizations Struggled to Hire Top Talent
In 2022, organizations faced one of the largest and most complex hiring markets on record. With employees leaving positions in droves and more open jobs on the market than talent available, companies and hiring managers needed to find unique ways to identify and engage with candidates.
To compensate for this, many organizations increased their focus on engaging with passive candidates, or working professionals that are currently employed and not actively looking for a new job. While this talent pool is more challenging to recruit, it offers many benefits, like decreased competition over candidates and the assurance that the candidate you’re engaging with is skilled enough to complete the job requirements.@TalentData breaks down the biggest #HiringTrends from 2022 and gives employers a first look at what to expect in 2023: Click To Tweet
The tough hiring market in 2022 also led to record levels of recruiter burnout, as many recruiters and hiring managers were overwhelmed with the amount of stress and work attributed to finding and securing top talent. What we saw was a shift in how organizations addressed burnout among their employees. Employers were more proactive in identifying the signs of burnout and flocked to webinars, resources, and advice from other talent leaders to find ways to keep their teams engaged and healthy. With the hiring market for 2023 looking very similar to what we experienced this past year, we can only assume that these strategies will remain in place.
The Candidates Had the Power
2022 proved to be the year of the candidate, as job seekers were given more power in the process to be picky about the roles they do and do not want to take. With so many jobs available, candidates began to expect more from potential employers if they were to be swayed to jump jobs.
Some of the most common things job seekers wanted from a new employer included:
- Flexible work environments, whether that means remote work, hybrid work, or flex scheduling
- A better focus on work/life balance
- Updated benefits that address mental health demands and family leave
- Companies to have a clearly defined and implemented approach to DEI
- Clear development and growth plans
To compensate for this, we saw organizations focus their efforts on cultivating a strong employer brand. By using social media, employee testimonials, and their website presence itself, organizations strived to demonstrate the ways in which they addressed the “must-haves” for candidates. In 2023, we expect this to continue, as companies are working to show why they are an employer of choice.
Data Showed A Continued Need to Address DEI
With enhanced analytics and data tracking becoming more and more available, talent leaders got an in-depth look at their organization and its makeup. What many employers found was that there still remains a clear lack of diversity in their organizations.
In 2022 we found:
- Only 8% of Fortune 500 companies have female CEOs
- 76% of companies lack clearly defined DEI goals
- 55% of people say they’ve experienced discrimination at work
While DEI efforts have taken many strides in recent years, there is still much that can be done to create a truly equitable and inclusive workplace. In 2023 DEI will remain a focus, and for a good reason. Outside of the clear need for a diverse and inclusive workplace, there are many quantifiable benefits to hiring diverse employees:
- Companies with a diverse workforce can see revenue increase by up to 41%
- Diverse organizations outperform competitors by 35%
- Diverse teams are 87% better at making decisions.
Employers aren’t just realizing that they should work to create a diverse team; they’re recognizing that it’s a necessity. Job seekers today desire a workplace that represents the world around them – full of people from different backgrounds, beliefs, and methods of thinking. To stay competitive in this tight labor market, employers need to show that they’re actively investing in initiatives that support diversity.
Looking Ahead to 2023
The Rise of AI and Conversational Chat Bots
Over the past year, we’ve seen an increase in the use of AI as it relates to recruitment. And it’s entirely clear why – AI and automation are making the jobs of recruiters and hiring managers easier by taking out the need for manual oversight and input and giving them back time to focus on building connections with candidates. As organizations increasingly adopt AI tools into their tech stack, there are a few things to keep in mind.
Over the past few years, many states have begun to adopt legislation aimed at ensuring AI is used fairly within the hiring process. The first few states to pass these measures include Maryland, Illinois, California, and New York, but many more will follow suit over the next few years. These measures are no reason to shy away from using AI-powered tools; they’re simply put in place to ensure that the technologies you are using are not embedded with unconscious biases that disqualify minority populations.Make sure your team is prepared for the new year by brushing up on @TalentData’s biggest #HiringTrends for 2023: Click To Tweet
In 2023, we expect to see more organizations embrace AI in their tech suite. One notable piece of AI-powered technology that is sure to change the game for recruiters and hiring managers is the use of intelligent chatbots. ChatGPT is an emerging technology that is currently free for recruiters and hiring managers to use. An AI model that is built to communicate in a conversational way, ChatGPT can be leveraged by organizations to speed up candidate outreach and communication, refine job descriptions, and even generate customized job interview questions. As a relatively new tool, ChatGPT is the current buzz in the recruiting space, and we only expect its user base to grow in the new year.
Internal Mobility + Employee Retention Will Be Paramount
Employee turnover is a dreaded statistic for every organization. Companies are always looking for ways to decrease turnover, as the costs of recruiting and hiring new employees are high. In 2023, we expect to see many employers place emphasis on enhancing employee retention and focusing on internal mobility.
Recent surveys have found that 74% of organizations consider internal mobility a priority investment. One of the greatest things about implementing a strong internal mobility program is that it benefits both employers and employees. Access to developmental resources and career growth opportunities increases the rate of retention for companies and gives employees a sense of belonging in the organization.
To help support these measures, organizations are relying on advanced technologies. One such technology is career pathing platforms, or platforms that help to visualize the potential growth and arc of any given employee’s career. These tools help to showcase the current skills and abilities of your team and highlight the ways in which they can expand their strengths. Employers can lean on these tools to identify opportunities for development and then connect their employees with the people or resources that can help them reach their potential.
Workforce Planning is Crucial
Did you know that less than 50% of organizations use data to forecast hiring needs and headcount planning? With all the advanced data platforms available, it is discouraging to see that so few organizations are leveraging data analytics to make informed decisions. The result of this lack of data-driven decision-making is keeping employers from attracting and retaining highly skilled, diverse talent. In 2023, we expect to see a significant change as organizations are starting to recognize the benefits of using data in their decision-making processes.
Strategic workforce planning, or using your current workforce to determine the business’s future hiring needs, will be a large part of organizations’ hiring efforts in 2023. Not only does strategic workforce planning help you to set and accomplish your goals, but it also has clear benefits across the entire organization.
- It aligns your strategy with your processes – by leveraging your data, you can see whether you’re adequately supporting your team in reaching your goals.
- Employee retention can be increased – strategic workforce planning helps you identify your top performers so you can work to keep them satisfied and engaged with their work, reducing the likelihood of employee turnover.
- It prepares you for the future – rather than flying blind, you can leverage your organizational data to highlight trends, predict future hiring needs, and remain flexible in the event of a disruption.
- It highlights the gaps that exist in your team – when organizations analyze their data, they can identify the skills and talent gaps that currently exist. Then, you can take that knowledge and refine your hiring efforts to find the kinds of candidates you need most.
By focusing on strategic workforce planning, you can ensure you’re recruiting and hiring the right kinds of candidates the first time around, saving your team time and money.
With a new year coming around the corner, now is the time to reflect on 2022 and prepare your team for a fresh start. PREDICTIVEHR can help you hit the ground running through our advanced data analytics, workforce planning, and talent consultancy. We’re working to help simplify data, bringing a truly unified platform that turns people data into actionable insights. To see more about how our cutting-edge solutions can help you gain a leg on the competition, reach out to our team and schedule a free demo.