Top 3 Recruitment Trends 2023
A Changing Recruitment Landscape
With tumultuous times never far behind in the rear-view mirror, 2023 is poised to be another challenge as inflation and labour shortages continue to push the economy toward a recession. However, with challenge also comes opportunity, and those that can predict and prepare for challenging times will be able to adapt and grow where others struggle.
As every company is comprised of people, recruiting and retention are key to organizational resiliency. Here are three trends the recruitment industry will grapple with in 2023.
The talent shortage will continue but ebb slightly
While initially, businesses may find some relief, the market will face the same problem it has for the last year: the lack of job suitability for applying candidates. The job market will be flooded with unsatisfied candidates looking to move companies. However, their qualifications, skillsets, and experience will not align with what companies need.
As has been the case since 2021, retention becomes even more critical in 2023. Qualified, engaged, and high-performing candidates will be well-taken care of and unlikely to be seeking a move. Already considered the passive candidate pool, these candidates will become even more passive, meaning there will be a distinct scarcity of qualified candidates this year.
Unless your organization has a robust networking strategy and the resources to seek out and engage this passive candidate pool, finding qualified candidates will be a tremendous challenge.
2. Employer branding will take the main stage as a means of attracting talent
2023 represents an opportunity for companies to redefine their brand and purpose to attract talent in the long term (for the next 5 years). Hiring on attitude and behaviour will be critical for companies to shape their culture. Impacting the candidate recruitment process will require a consideration of the candidate experience touchpoints.
In the next few weeks, we will release a resource on how to plan and create an Employer Branding strategy for 2023. Stay tuned.
3. Many agencies seeking to exploit market conditions will lower recruitment standards across the industry
Unprepared agencies over-hired during the post-covid boom and offered inflated salaries to new hires. Now, as economic conditions cool, they are overexposed to recessionary times. As these agencies seek to entice hesitant clients, many will drop pricing in an effort to win business.
Once faced with tightening financial conditions, they will only be able to sustain lower pricing by sacrificing service levels and exploiting the market conditions in the short term.
Not all firms will follow suit, ours included.
We will continue to maintain the highest standards in the recruitment industry, addressing whatever challenging market conditions head-on and with transparency. Our long-term vision will serve Alberta businesses with integrity through 2023 and beyond.