7 Talent Acquisition Trends for 2023 (And How to Succeed)

A team discussing talent acquisition trends, preparing for 2023.

Break out those fireworks, talent teams, because 2023 is almost here. But if you want to start the year with a bang, you can’t go into it blind. To thrive in the new year, you must prepare for what the next twelve months have in store—and that means getting familiar with the upcoming 2023 talent acquisition trends.

We’re not psychics, but based on where 2022 left off, we predict that these will be the seven more important trends in talent acquisition next year.

1. Labor Shortage Sparks Challenges

The supply of working-age people will continue to decrease throughout 2023. In fact, over the next decade, the number of working-age people in the U.S. will decline by 3.2%. On top of this, the pandemic still wields a visible impact; there are over 3 million fewer working Americans today than there were pre-pandemic.

When you combine the aging population with the pandemic’s effects, you have a significant labor shortage. Sorry to say, but attracting and hiring candidates won’t get any easier.

Two Strategies for Success: 

  • Diversify your candidate pool. Struggling to find candidates? Tap into different talent pools. For instance, advertise on diversity-driven job boards or take advantage of the fresh Gen Z candidates entering the workforce.
  • Set realistic expectations. Hot take, but the “perfect” candidate doesn’t exist. If you’re dead set on finding a unicorn candidate, you’re likely overlooking plenty of other viable options (and you can’t afford to do that in a labor shortage).

2. Retention Grows in Importance

About 40% of HR professionals said talent acquisition was a major priority for 2021. In 2022, that percentage dropped to 17%. Now, HR teams are focused on strategies that fuel talent retention: employee engagement, compensation, and L&D.

It’s no surprise that retention is becoming a priority. When the job market is tight and finding talent is difficult, employee churn deals an even greater blow to companies. (Not to mention that replacing workers is expensive.) 

Two Strategies for Success:

  • Emphasize internal mobility. Employees who move around within their own companies are more likely to stay for the long haul. Giving employees meaningful opportunities to grow and develop through internal moves leaves them with fewer reasons to leave.
  • Revamp your benefits and perks. Perhaps your employee benefits and perks could use a makeover. To ensure that what you’re offering still aligns with what your employees value the most, ask for their feedback.

3. Rise of the Employer Brand

Your employer brand encompasses how others perceive your company. It’ll be essential in 2023, yet for varying reasons depending on your industry and place in the hiring sphere.

Perhaps waves of layoffs have hit your company this year (we’re looking at you, tech industry). Candidates value job security, and catching wind that your company laid off a sizeable chunk of its staff makes them weary. How does your organization plan on assuaging these fears and improving your public image in 2023?

Or maybe misperceptions of your industry have made it difficult to attract workers, specifically young candidates. This is especially true for the manufacturing industry; less than 50% of young workers see manufacturing as a viable career.

Two Strategies for Success:

  • Freshen up your employee value proposition. Remember: candidate values change all the time. Does your EVP still resonate with what modern candidates care about? If not, it’s time to revamp it.
  • Actually commit to DEIB. Candidates want to know where you stand on DEIB before they accept a job offer. Audit your career page and hiring process for opportunities to showcase your DEIB initiatives and values. 

4. Impending Recession Inflicts More Damage

The looming recession is the elephant in the room for 2023 strategy meetings. Companies have begun to trim their budgets and their workforces in response to economic uncertainty.

But while some companies are bracing for what’s to come, most tech companies are already wondering, “When will this end?” Thus far in 2022, over 140,000 tech workers have been laid off. Each month, more and more high-profile workforce cuts make the headlines (sorry, not all talent acquisition trends can be fun).

Two Strategies for Success: 

  • Refine your tech stack. Want to emerge from the downturn stronger than ever? Then implement recruitment technology. Investing in the right tech places you in the best position possible once you revert back to your normal hiring cadence.
  • Maximize what you have. When faced with a smaller budget and fewer resources, you must do more with less. Instead of spending time and money hiring external candidates, consider your current employees. And instead of throwing everything at the wall to see if it sticks, use your hiring data to make informed, precise decisions. 

5. Skills Gap Continues to Widen

As technology continues its high-speed evolution, the global skills shortage worsens. Old skills die out just as fast as new skills emerge, and not every company can keep up. In fact, most companies worldwide—87%—say that they have a skills gap or will have one within the next few years. 

Companies say that their skills gaps are the widest in the areas of data analytics, IT management, and executive management. Looking to the future, these same companies agree that the need for advanced data analysis and mathematical skills will grow dire.

Two Strategies for Success:

  • Upskill your current workforce. In the age of digital transformation, upskilling your employees is a must-do. Your company can’t keep up with the latest trends if your employees don’t have the latest skills.
  • Rethink how you evaluate candidates. Don’t weed out promising talent just because of “red flags” that don’t even reflect a candidate’s abilities, like having gaps in a resume. When assessing candidates, focus on the knowledge, skills, and capabilities displayed in their application. 

6. Automation Takes the Spotlight

Automation is a growing topic in the world of talent acquisition. It takes care of the time-consuming parts of your recruitment process so that you have more time to spend on high-value initiatives.

Looking to the future of recruiting, automation adoption is sure to increase as more teams discover its benefits. And with a recession, labor shortage, and a workforce skills gap on the horizon, leveraging automation could mark the difference between hiring teams that thrive and flounder.

Two Strategies for Success:

  • Don’t wait to shop for tech. The sooner that you automate your workflow, the sooner you’ll reap automation’s rewards. Automating the interview scheduling process reduces your time-to-hire, delivers a better candidate experience, and moves you closer to hitting your goals.
  • Leverage the right automation. You’ve been warned: not all automation is created equal. Subpar scheduling automation can’t handle the challenges of everyday scheduling. You want automation that can intelligently select interviewers, schedule for speed or for “best fit,” and identify interview options spanning one or multiple days.

7. Evolution of Pay Transparency

Pay transparency made a splash in 2022. New York City joined the ranks of Colorado and Connecticut in requiring companies to include salary ranges in job postings, and California is soon to follow in 2023. 

By the beginning of 2023, one-fifth of U.S. workers will be covered under pay transparency laws. As workforces and candidates demand discussions on salary, HR and talent acquisition must respond. Are you prepared?

Two Strategies for Success:

  • Determine your transparency level. Not every organization is ready to go all-in on full transparency. As a starting point for identifying where you want to be on the spectrum, survey employees to understand what they’d like to know about salaries.
  • Get real during the interview process. Don’t wait until the last moment to disclose the true salary offer. Yes, candidates want to do meaningful work, but they also want to be paid well while doing it. They want to discuss compensation in early conversations to know if the role is worthwhile.

Ring in the New Year With Powerful Recruitment Tech

Now that you’re caught up on the biggest talent acquisition trends coming in the new year, we have one final suggestion to make 2023 your team’s best year yet. Start the year off on the right foot with best-in-class recruiting tech.

GoodTime Hire helps reduce your time-to-hire, crush your goals, and deliver a seamless candidate experience. Hire automates the entire interview scheduling process to create the optimal schedule for candidates and interviewers and get to the offer stage faster than ever.

See how Hire can transform your recruiting process today.

4 Ways to Compete with Big Tech Recruiting for Top Talent

Tech recruiter talking on the phone

The tech recruiting world is changing — and fast. 

Between the tumultuous years of 2019-2021, the tech recruiting landscape faced notable shifts. Tech hiring growth strongly recovered in 2021, with the overall advertisements for tech jobs in 2021 being nearly double the number for 2019 and 2020. Even though the world’s tech giants continue to expand their influence, non-Fortune 500 tech companies made up the bulk of recent hiring growth.

While tech hiring surges, applicant pools dwindle. Compared to the average candidate pool sizes from 2020, the sizes were 35% lower in 2021. Not only that, but amid the Great Resignation, candidates have had a change of heart. Candidates no longer want to waste time at organizations that don’t live up to their expectations of the ideal employer. In fact, three-quarters of candidates say they’re considering leaving their jobs.

It’s prime time for growing tech companies to stand out from Big Tech recruiting and snag the best candidates, but only if they can handle the shifting state of applicant pools and their expectations.

To keep pace with the ever-changing world of tech recruitment and to differentiate your company from the competition, take a good look at your recruitment strategies — they’re probably long overdue for a makeover. 

Here are four key ways you can compete with Big Tech recruitment teams and land top candidates.

1. Offer Remote Work Opportunities

The gravitational pull between candidates and remote work opportunities is undeniable. To stay competitive with the big tech recruiting teams, you need to consider making remote work a reality for your organization.

If you’re not offering remote opportunities, you’re missing out on candidates. 75% of tech industry workers say it’s important for their company to allow them to work remotely indefinitely. Despite the desire to work remotely, it seems that each day a top tech company discloses their plans for an eventual return to office.

The fact is that a growing majority of people don’t want to work unless it’s from home. Offering remote options is the way to go, but there’s one caveat: it’s common for tech industry candidates who seek remote work outside of Big Tech companies to expect Big Tech salaries. If your organization can’t meet these expectations, be prepared to upgrade other elements of your compensation and benefits.

2. Show Leniency in Degree Requirements

With a number of Big Tech companies no longer requiring degrees and 90% of employers reportedly open to accepting candidates without four-year college degrees, it’s time to change your expectations on a candidate’s education.

The idea that a college degree is the surest path to a career is now antiquated. Boot camps, digital badges, vocational programs, and self-taught skills demonstrate just as much, or more, competencies necessary to excel in a professional environment.

Removing your degree requirements isn’t just a way to keep pace with the tech talent competition — from a DEI standpoint, it’s also the right thing to do. A college degree is a pricey investment that a wide range of applicants cannot afford. By removing degree requirements, you’ll create an equitable playing field for candidates of all socioeconomic backgrounds, benefit from a diversity of educational experiences, and widen your talent pool all in one fell swoop.

3. Emphasize Your Company’s Continuous Growth

Working at a tech giant with a household name may sound alluring, but don’t discount how enticing it is to work for a company with much untapped potential. 

When carving out your employee value proposition, emphasize the immense learning opportunities that come with working at a company with a focus on growing and scaling. This may be just the thing that attracts the attention of Gen Z, the future leaders of the tech workforce.

Among Gen Z-ers  who plan on leaving their current roles, 76% of this cohort indicate that they’re looking for more opportunities to learn and gain new skills, which is more than any other age group before them.  To win the hearts of Gen Z, capitalize on the growth potential of your organization. Turn your growth potential into a selling point that speaks to the opportunities that you offer in thinking outside of the box and contributing to innovation.

4. Provide What Candidates Expect: Strong Candidate Relationships

If your tech recruitment team doesn’t instill energy into generating memorable candidate relationships, you’ve already lost in the competition for tech talent.

A great candidate experience might have won candidates over in the past, but not anymore. Today’s candidates expect something deeper. Candidates want to feel valued before, during, and after the hiring process, yet more and more companies find themselves losing out on desirable candidates due to their own impersonal processes.

Don’t make that the reality for your organization. GoodTime Hire leverages Candidate Relationship Intelligence to help you transcend temporary experiences and create the type of high-quality connections that win the best talent.

Request a demo to see how Hire provides the edge that talent teams need to need stand out from the competition.

Hiring Gen Z? Here’s What They Want in the Candidate Relationship

Gen Z is the newest demographic entering the workforce, and they’re here to make waves. As the youngest, largest, and most diverse generation in United States history, Gen Z stands out from any generation that’s come before them. They’re already redefining the workplace with their unique preferences, and with Gen Z employees set to comprise 27% of the workforce by 2025, their influence will only continue to expand.

From a hiring perspective, teams need to consider how to cultivate a strong candidate relationship with the Gen Z job seeker. Talent leaders who want to win over this next generation of workers will need to get acquainted with their expectations— and fast. Forming an authentic connection with your Gen Z candidates throughout the hiring process is crucial to maintaining their interest amid a sea of other attractive job offers. 

Read on to learn how you can attract and engage Gen Z at every touchpoint in the interview process by living up to their expectations of the candidate relationship

Demonstrated Emphasis on Company Values

Despite being new to the workplace, Gen Z already knows what they value, and they don’t want to compromise. If an employer doesn’t demonstrate their principles, Gen Z will find a workplace that does. In fact, nearly 70% of young professionals in this cohort are likely to switch industries to locate opportunities that align with their values.

Work-life balance is among this group’s top principles; 42% of Gen Z candidates make a healthy work-life integration a top priority when job hunting. Gen Z seeks out employers that recognize the need to unplug and recharge once in a while to avoid burnout. It’s unlikely you’ll find this age group sacrificing their well-being for the sake of a paycheck.

Companies that don’t emphasize their values are setting themselves up for disappointment when it comes to attracting Gen Z talent. Taking time to clearly communicate what matters most to your organization in the interview stage goes a long way in cultivating a relationship with Gen Z candidates.

Commitment to DEI

DEI (diversity, equity, and inclusion) holds a special place in the hearts of Gen Z. 48% of United States Gen Z-ers are racial or ethnic minorities, and they want to see the diversity of their demographic reflected in the workplace.

Gen Z is leading the charge in shifting a heavier emphasis on DEI, and much of their interest comes from first-hand experiences with discriminatory workplaces. A recent study shows that 67% of Gen Z employees reported witnessing racial, ethnic, sexual, or gender-driven discrimination in the workplace, and 44% have been on the receiving end of this discrimination themselves.

In turn, this means that this generation is even warier regarding if an organization really cares about facilitating an inclusive and equitable work environment. Gen Z wants companies to champion DEI at all stages of an employee’s journey— even the pre-employment stage. 

Evaluate your pool of interviewers; do your interviewers come from a variety of backgrounds and characteristics? If not, you’re presenting an image of a workplace devoid of a diversity of perspectives. The interview is Gen Z’s first impression of your company, and failing to promote DEI starts the candidate relationship on the wrong foot.

Transparency on the Compensation Package

Gen Z candidates want their future employers to have a strong social conscience, but they want to be paid well, too; 70% say that salary is their top motivator when considering a job offer.

Salary transparency is becoming a widely discussed topic, and Gen Z is oftentimes at the forefront of these conversations. A healthy workplace culture now includes better salary transparency, and 70% of Gen Z would consider switching jobs for more of this transparency.

As a generation defined by money-conscious mindsets and honest discussions on compensation, Gen Z is not likely to tolerate companies that withhold details regarding salaries and benefits. Companies seeking to form trusted candidate relationships with Gen Z must be transparent with their compensation packages, and this means facilitating candid discussions in interviews.

Open Communication on Growth Opportunities 

To cultivate a genuine candidate relationship between Gen Z and your hiring team, it is essential to include discussions on growth opportunities within the interview process. The data doesn’t lie: in a survey, 64% of Gen Z workers identified growth opportunities as one of their top career priorities. 

Gen Z candidates want to know that they can have an exciting future at your company, but this doesn’t mean that they want to hear all about how they can someday fulfill their dreams of becoming a top executive. In the same survey, only 3% of Gen Z cited having a “fancy job title” as a priority. 

Instead, Gen Z wants their hiring process to include open dialogue surrounding how they’d be able to pick up new skills and grow their learnings in their potential future job. Overall, these candidates are looking for additional responsibilities at companies that are dedicated to maintaining their values and prioritizing the well-being of their employees.

Tech-Driven Candidate Experience

Gen Z learned how to scroll before they could speak. They were born with technology in their hands, and they expect the hiring process to keep up with their fast-paced, tech-driven lifestyles. In fact, a staggering 54% of Gen Z job seekers won’t even submit their applications if your hiring process seems outdated or unnecessarily time-consuming.

Arming your tech stack with intelligent recruitment software allows you to keep pace with Gen Z’s expectations. Prioritizing a tech-driven candidate relationship will save you both time and energy, all while ensuring that outdated hiring procedures don’t hold you back from securing top talent.

The Bottom Line: Prioritize the Candidate Relationship

Every generation has preferences in what they want in the candidate relationship, and Gen Z is no exception. This new demographic is redefining not only what an ideal work environment looks like, but also what a desirable hiring process looks like. Staying up-to-date on their expectations is crucial to winning them over.

Cultivating candidate relationships doesn’t have to be complicated. Download our eBook to learn more about the key pillars to a strong candidate relationship.