2023 Hiring & Recruiting Trends

In 2023, we will continue to see a switch from reactive to proactive recruitment, with HR employing key strategies to locate talent before demand to fill a position becomes critical.

Competitive Compensation and Benefits

Recruiters must understand that offering attractive compensation and benefits packages will make a company significantly more competitive in the current market. Candidates report greater overall satisfaction with their job when offered compensation that aligns with their skill level and experience, as well as valuable and meaningful benefits. More companies will find investing in higher salaries and enticing benefits packages will become the leading way to attract and retain talent in 2023 and beyond.

Salary Transparency

California passed a law in 2022 requiring more transparency with regard to the availability of pay range data on job listings. Whether required by law or not, transparency when it comes to telling applicants what they’ll be paid has been linked to closing wage gaps. A study from PayScale found companies voluntarily practicing pay transparency experienced a close in the male-female wage gap: Women earned $1.00 to $1.01 for every dollar a man earned.

Creating Candidate Pools

As more recruiters report they’re actively searching for candidates with valuable talent and skills, they’ll create pools of potential applicants prior to jobs availability. This way, when jobs open up, the proactive recruiter can be the first to reach out and secure a candidate. Proactive recruiters also make efforts to build relationships with their talent pools and stay on top of emerging recruitment trends.

Social Media

In the past decade, proactive recruiters have turned to social media to discover and monitor potential candidates. Social media can also be used as a tool by human resource professionals to emphasize employer branding and values. A study by MRINetwork revealed that 69% of job seekers would refuse to work for a company with a negative reputation, so maintaining a positive image for the company should be one of the foremost priorities for HR.

Turnover rates are on the rise, and many human resources departments are taking a more proactive approach to developing and applying strategies to increase talent retention.

Meaningful Raises and Employee Recognition Programs

Today’s workforce wants to feel both appreciated and adequately compensated for the time, work and effort they put into a company. In addition to yearly scheduled raises, cost-of-living raises and other inflation-related adjustments, bonuses in response to exceptional work will help promote continued motivation and top performance. Openly recognizing employee accomplishments is another great way to show your team its work is valued, but it won’t remotely compare to money in your workers’ pockets.

Creating Diverse and Inclusive Environments

Diversity, equity, inclusion and belonging (DEIB) initiatives and values are a critical component for companies that want to keep up a productive and positive workplace culture. According to Glassdoor, two out of every three job seekers specifically look for companies with diverse workforces during their search. Deloitte has reported that 47% of candidates actively pursue companies that value diversity and inclusion when considering potential employers, and that 83% of millennials are more engaged in an inclusive environment. Research has long shown companies’ bottom lines benefit from the inclusion of diverse workforces.

Internal Recruitment Through Upskilling and Reskilling, Learning Opportunities and Career Development

Upskilling and reskilling existing employees offers a great way to fill talent gaps within a company and cut down on hiring and other costs. Providing employees with education and opportunities for career development and upward mobility is also a great way to increase engagement and retention. According to a survey by ClearCompany, 76% of employees report a desire for growth opportunities. A recent go2HR survey reports 40% of employees who receive inadequate training will leave a company within a year of hire.

An increasing number of companies have begun integrating the use of digital tools or ATS software into the hiring process, often adopting a blended approach between digital and in-person methods. ATS software and digital tools can:

• Source, vet and engage qualified candidates and applicants
• Administer standardized assessments
• Perform digital interviews
• Categorize candidates based on key qualifications
• Optimize the onboarding process
• Decrease missed touchpoints and increase response time
• Improve efficiency and lower costs

Adopting the use of ATS software and digital tools can help save valuable time and effort in the recruitment process, help recruiters locate talent they might otherwise have missed, keep potential candidates and applicants more engaged throughout the hiring process and help human resource professionals make more informed choices when interviewing and hiring candidates.

The world of recruitment and hiring is changing. HR departments must adopt a more proactive approach to focus on emphasizing values important to potential candidates, utilize digital tools to make traditional recruitment systems more efficient and effective, and support retention and engagement. Selecting a recruiting software that works for your company can be challenging. Consider consulting our list of the top recruiting software options to help you choose the one that best fits the needs of your operation.