Recruitment and Retention in 2023
2022 has been quite a ride.
We returned to a ‘new normal’ post Covid. Where the first question on most candidates’ lips was; “How many days a week will I be in the office?”
We have seen the Great Resignation, quiet quitting, hybrid working, golden handshakes, and counter offers, the likes of which we’ve never seen before.
We finish the year with political and economic turmoil (not mentioning Brexit), rising interest rates, high inflation, strikes, and a cost of living crisis, affecting employees at all levels.
So, what might recruitment and retention look like in 2023?
1 .Talent shortage will remain
Survey after survey indicates that hiring intentions remain strong next year, particularly in key areas such as finance, IT and marketing. Whilst there may be some easing of the supply of candidates with redundancies looming, many of those available candidates are unlikely to have the requisite skills to plug the gaps which exist without retraining.
If you’re looking for ways your business can overcome the talent shortage in 2023, read our blog.
2. Generation shift
Millennials (born 1980-2000) will make up the largest working cohort as Baby Boomers retire. Add to that the fact that Gen Z is set to account for 30% of the workforce by 2025. Hiring managers are getting younger, and so the hiring market is changing, and employers will need to adapt. This generation is riding a wave of uncertainty, with Brexit providing the cherry on the cake. For them, a job-for-life is an urban myth, an old-fashioned notion spoken about by their grandparents. Their motivations and expectations are very different from previous generations.
With this lack of security they seek instant gratification. They have grown up with technology that promotes immediacy; be it access to information, instant communication, or shopping with prompt delivery. On demand services and immediate credit agreements furnish easy access to luxuries and brands. Debt (including student debt) is now expected, rather than feared.
In the workplace, this translates into higher expectations for quick career progression, recognition, and promotion. Something Baby Boomers were happy to wait longer and serve their time for.
3. Career Mobility
The shift in generations will mean employees are willing to leave their current job due to a lack of skill-building and career-mobility – with 27% of UK workers stating they’d leave if better opportunities for progression were offered elsewhere. The message to employers couldn’t be clearer: offering career development and upskilling opportunities should be a priority.
Practically, this might mean creating personal development plans for employees, standardising training, including workplace training, and subsidising upskilling opportunities, such as external qualifications. Career progression is linked to greater job satisfaction, boosted productivity, and increased confidence, so is an important factor when it comes to retaining employees in 2023.
4. Mental Health and Wellbeing Support
Burnout, the cost-of-living crisis, impact of menopause, and the lasting impact of Covid, all pose a threat to mental health, and productivity. Aside from the moral obligations, employers who prioritise mental health and wellbeing are more likely to see boosts in productivity, motivation and engagement, as well as increased retention and reduced attrition.
5. Help with Cost of Living
We have mentioned the cost-of-living crisis throughout this blog, and with strikes in some quarters clearly demonstrating the level of concern, employers need to respond with appropriate, and affordable measures.
With most employees wanting to see more action from their employers within the next 6 months, there is an opportunity for business owners to step up, in order to attract, and retain top talent. With over half of employees wanting an increase in salary, nearly half wanting a pay boost, others wanting subsidiaries for daily expenses, such as energy, or travel, and a quarter wanting a one-off cost of living payment.
6. Hybrid And Remote Working needs constant tweaking
It’s pretty clear that hybrid and remote work is here to stay, with 48% of employees citing this as a priority in the aforementioned LinkedIn report. In 2022 we saw arguments between traditional minded executives who want employees back in the office, and workers who want to retain flexibility and work-life balance. This means we’ll likely continue to see compromise as hybrid working models are perfected, and further resources put into making the transition between the two as simple and seamless as possible.
This provides opportunities for managers to find more effective ways of connecting with and engaging remote workers, as well as taking advantage of the abundance of technologies that have entered the market specifically to support remote and hybrid workforces, opening up a wider talent pool.
7. Equality, Diversity and Inclusion
We now have greater numbers of Gen Z in the workforce than ever before – a demographic known to value inclusivity and equality. Aside from the difference a commitment to ED&I can make to employees’ well-being, research has long shown companies’ bottom lines also benefit from the prioritisation of diverse workforces.
Love it or hate it, artificial intelligence is here to stay. Right now, the focus for organisations is mainly trying to eliminating repetitive tasks such as back-office processing and data management.
Ultimately, 2023 will challenge organisations to consider the long-term trends for hiring, and look beyond the short-term distraction of a potential economic slowdown. Amidst high inflation and cost-of-living concerns, job seekers and employees will want to see companies willing to invest in their professional future through upskilling, as well as in measures that will improve mental health and wellbeing.
Organisations will continue to iron out imperfections in hybrid working models and find new ways to connect, and will also need to adjust to the shifting demands of an increasingly younger workforce.
By highlighting these trends we aim to support employers and jobseekers to meet each other’s aspirations. If you need help finding talent or are maybe looking for a new role in 2023, please be in touch.