At the start of 2023, headlines shifted from the Great Resignation to layoffs. However, job seekers are likely to maintain more power than they think, as the labor market remains strong and demand for tech employment remains high. Despite the layoff surge from Big Tech such as Microsoft, Google (Alphabet), Meta, and Salesforce, they only represent a portion of the tech industry. Many opportunities still exist, particularly for all small to medium-sized tech companies needing tech expertise.
Meanwhile, workers have continued to leave their jobs to look for companies that align more with flexible lifestyles and provide a greater sense of purpose, well-being, and skills growth. With a strong job market and the ongoing shift to appease workers’ desires for flexible, remote, and hybrid workplaces, leaders are still undertaking the best ways to manage their workforce. Here are some of the ongoing trends for 2023 that companies are focused on to attract A-list employees and leverage top-performing freelancers in the modern workplace.
Mental, physical, and sound financial health are the main drivers for employee retention. Top priorities for 2023 include human leadership training to support a human workplace. According to a recent Gartner Report, “This is a priority for 60% of HR leaders, and 24% say their leadership development approach does not prepare leaders for the future of work”. What makes up human leadership? Gartner Research has identified the following:
While these qualities have always been important, top performers consider the above leadership components vital to their work contribution and engagement.
Organizations with more human leaders will have higher engagement and less turnover. Employees show higher engagement rates when reporting to human leaders versus employees who don’t consider their leadership to be practicing human leadership qualities. Highly engaged employees improve team performance by up to 27%, leading to more revenue and higher profitability.
The trend for creating human workplaces with remote and hybrid work options remains strong, even though some companies demand their employees return to the office full-time. Many organizations know that pressing their workforce to return to the office will exacerbate turnover rates. According to Gallup, more than half of Americans can work remotely, and up to 60% want a long-term hybrid option.
Employers are focusing on making their organizations more adaptable to the fluid-changing business conditions. Gallup also noted that nearly one-third of employees would more than likely look for work elsewhere if their employer didn’t offer an option to work remotely. Companies are listening, and several organizations are planning to design a workforce that reflects a combination of workplace options, such as:
Flexible, hybrid, and remote work models give employees more opportunities to strike a work-life balance. They have more time to manage their lives between family, friends, and physical and social activities that support overall well-being. The time savings on commutes and gas, parking, and public transportation costs during sharp increases in inflation give workers a chance to save money.
Companies with Diversity Equity and Inclusion (DEI) initiatives aim to produce more equitable outcomes. They address systematic inequality and ensure fair treatment and opportunities for all employees attracting and retaining the best and the brightest.
A diverse and inclusive workplace attracts a broader pool of candidates in a tight employment market where a highly skilled workforce is in high demand. Companies promoting positive and inclusive human workplaces where all employees feel valued, respected, and heard will attract and retain top performers.
Employees are more likely to stay with a company that values and respects them. When employees feel included and valued, they’re more likely to be engaged and satisfied with their work, improving morale and performance. McKinsey & Company’s 2020 Diversity Wins report underlines DEI as a significant driver for better business results and financial performance over time.
Diverse companies provide a more comprehensive range of perspectives, which leads to more effective decision-making. Diversity helps companies find solutions to problems that might otherwise go unsolved if they had been tasked with a group of people who think alike. Effective decisions lead to efficient processes and innovative solutions, boosting creativity and productivity.
Companies focusing on DEI best practices also provide better customer service because they accurately reflect a diverse population driving brand loyalty. A Deloitte study found that 57% of consumers are more loyal to brands that commit to addressing social inequities in their actions.
Consequently, companies with strong DEI practices improve a company’s reputation. They create more positive and productive work environments while positioning themselves as industry leaders. As a result, DEI-leading companies reduce turnover, increase engagement and drive revenue.
In 2023 purpose-driven employers are better positioned to attract top talent and younger Gen Z workers in a tight employment market. As more and more employees want to have a purpose within their work. Purpose-driven employers also provide more significant opportunities for growth.
According to Deloitte, “Purpose-driven companies witness higher market share gains and grow three times faster on average than their competitors, all while achieving higher workforce and customer satisfaction.” They’re often mission-driven and give their employees opportunities to develop new skills and take on new challenges helping them grow personally and professionally.
So it’s not surprising that organizations are looking for ways to align their purpose with their employees’ personal and professional aspirations. They understand that their employees are a source of growth. Studies from Gallup show that employees who feel a strong sense of purpose and connection to their employer are more likely to be engaged, motivated, and productive, leading to company hire earnings.
The Gallup study also shows that high employee engagement boosts retention. Low-engagement teams typically endure turnover rates that are 18% to 43% higher than highly engaged teams. Employees are less likely to look for other work during economic uncertainty.
In the rapidly changing job market, upskilling and reskilling are increasingly important for employers to attract and retain a highly skilled workforce. Many companies are investing in their employees by providing opportunities to develop new skills and enhance their existing ones.
One way employers provide upskilling and reskilling is through training programs and workshops. These programs cover a wide range of topics, from new technologies to soft skills like leadership and teamwork. Employers are also investing in employees through online learning platforms offering various courses and certifications.
The following are examples of companies that have implemented successful upskilling and reskilling programs.
IBM has a comprehensive reskilling program it launched to provide 30 million people with new skills needed for the jobs of tomorrow by 2030. The program offers employees access to thousands of online courses and certifications. This program has helped IBM stay ahead of the technological curve and allowed its employees to develop their skills continually.
These programs have helped companies attract and retain a highly skilled workforce, leading to increased productivity and improved job satisfaction.
Upskilling and reskilling initiatives help employees grow professionally and help companies stay competitive in the job market. Employers who invest in their employees will reap the rewards of increased productivity, improved job satisfaction, and a stronger, more skilled workforce
Artificial intelligence (AI) revolutionizes how organizations recruit and hire new talent. In the past, the recruitment process was largely manual and relied heavily on intuition and guesswork. But with the advent of AI, organizations can now leverage data-driven insights to make more informed and objective hiring decisions. The[ AI market expects to expand to US$1,597 billion by 2030](https://www.precedenceresearch.com/artificial-intelligence-market#:~:text=The%20global%20artificial%20intelligence%20(AI,USD%20147.58%20billion%20in%202021.).
AI accesses data-driven recruitment through the use of machine learning algorithms. Machine learning algorithms analyze large amounts of data and identify patterns and correlations that would be difficult for humans to detect. For example, an AI-powered recruitment platform can analyze resumes, job descriptions, and candidate performance data to identify the essential skills and qualifications for a particular role. This information can create targeted recruitment campaigns, streamline the application review process, and determine the best candidates.
Another way AI leverages data-driven recruitment is by automating specific tasks that recruiters and hiring managers perform. For instance, an AI-powered platform can automatically screen resumes and applications, eliminating the need for manual review. It can also automate the scheduling of interviews and provide real-time feedback to candidates, saving the recruiter’s time and effort. It also helps to reduce bias and ensure a more objective and fair selection process.
AI can also personalize the recruitment experience for both candidates and recruiters. For example, AI-powered platforms can suggest job openings matching a candidate’s skills and knowledge, reducing their time to search for the proper role.
Finally, AI can investigate the performance of a company’s recruitment efforts and identify areas for improvement. For instance, an AI-powered platform can analyze the time-to-hire, cost-per-hire, and candidate experience metrics, providing recruiters with actionable insights to improve the efficiency and effectiveness of their recruitment process.
Ultimately, AI makes the entire recruitment process more efficient and convenient. It helps organizations to make more informed and objective hiring decisions, improving the candidate experience and finding the best talent for an organization.
Freelancing is a growing trend. In 2023 up to 78% of companies are expected to hire freelancers versus adding staff. Companies rely on more contract and freelance workers to meet short-term business needs. Freelancers offer businesses access to a broader pool of talent and expertise, which is becoming increasingly important in a fast-changing job market. Companies working with freelancers can quickly and easily bring in specific skills and experience as needed without having to invest in full-time employees.
Many companies have found that freelancers are a flexible and cost-effective solution for filling skills gaps, particularly during economic uncertainty. Hiring freelancers is a way to reduce costs and manage workforce expenses more effectively.
Overall, the need for businesses to stay competitive and adapt to changing market conditions drives the demand for freelancers. Companies leveraging the benefits of freelancers can adapt to changing market conditions and meet the challenges of the latest job market.
The adoption of Talent Experience Platforms (TXP) continues to impact the hiring landscape in 2023. TXPs are becoming increasingly popular as organizations look for ways to improve the candidate experience and streamline recruitment processes.
TXP solutions provide HR organizations with a centralized platform to bring all the tools and processes needed to manage talent acquisition. From job postings and candidate sourcing to interviewing and offer management. TXPs encompasses content, learning, and analytics, driving employee unity and engagement with the following benefits:
Ultimately the adoption of TXPs is changing the hiring landscape providing HR organizations with the tools and processes they need to improve the candidate experience, increase efficiency, and provide better data and analytics.
In 2023, corporate alumni networks will be seen as a valuable alternative tool for HR organizations. They’re a way for companies to leverage former employees for recruitment.
Alumni networks can help maintain seasoned relationships with employees and tap into their expertise and personal networks. They aim to keep former employees connected with their previous employees, providing an opportunity to attract experienced professionals back to the organization.
These networks can benefit companies looking to fill a skills gap or seek experienced talent. Internal HR departments are finding alumni platforms and networks to be effective because they:
Overall, corporate alumni networks are helping organizations attract top talent and improve their hiring outcomes.
Salary transparency is becoming increasingly important in the hiring process for 2023 moving towards more open and honest compensation practices. Many organizations recognize the following benefits salary transparency practices offer.
Companies’ transparency about compensation can improve their hiring outcomes and support their employees in making informed career decisions.
While no one can fully predict final hiring outcomes for 2023, insightful organizational leaders wanting to attract top performers will continue exploring trends to create workplaces with a strong purpose and the ability to maintain lifestyles with work-life well-being.
Leaders will also continue to focus on delivering DEI initiatives, upskilling, and reskilling opportunities while leveraging TXP platforms and AI data recruiting best practices. They will also maintain relationships with former top-performing employees through alumni networks, practice salary transparency and continue finding ways to provide workers with remote and hybrid work options. While the current job market may be facing uncertainty, there are still plenty of opportunities for insightful organizational leaders to attract top talent and create a thriving and dynamic workplace.