Hiring in 2023: How Talent Leaders Are Navigating a Changing Market
If you feel like you’ve been on a stomach-churning roller-coaster ride lately, you’re not alone. Just a year ago, hiring was soaring, and recruiters were in high demand. But now as the economy cools, LinkedIn’s Global Talent Trends, October 2022 report shows that hiring rates are slowing globally:
This rapidly changing hiring landscape means recruiting teams are having to constantly shift their strategies and master new skills. But while this presents challenges, there’s good news too: According to talent leaders, talent acquisition’s role in navigating the pandemic and Great Reshuffle has given them a meaningful seat at the table and more influence in the C-suite.
We sat down with 11 talent leaders from companies around the world to understand how they’re navigating the uncertain hiring market going into 2023. Here’s what they’re doing:
Table of contents
Making every hire count Preparing recruiting teams for the unknown Addressing candidates’s shifting priorities Future-proofing by continuing to focus on strategic priorities Strengthening skills that are becoming increasingly important for recruiters Capitalizing on talent acquisition’s rising clout
As the global economy weakens, many employers are proceeding cautiously. More companies are hiring internally, tapping gig workers, and pausing hiring.
Proceeding with caution
Many companies are tightening their belts and that means a more judicious approach to hiring. Employers are carefully considering which hires are truly necessary and they’re increasingly looking inside the organization to fill open roles. In addition, many are hiring contract workers to lower costs and more easily pivot as demand rises and falls. Some employers are resorting to hiring freezes and layoffs.
Emphasizing quality of hire and generalists over specialists
As employers grow more cautious, they’ll likely become more focused on the quality of their hires, says John Vlastelica, CEO of Recruiting Toolbox.
While employers always strive to hire the best candidates, the focus on quality tends to increase during economic downturns as workers are required to shoulder more responsibilities.
Recruiters are feeling uneasy these days and talent acquisition leaders are taking steps to keep them busy, preserve their jobs, and prepare them for future shifts in the talent market. This in turn helps set the company up for success.
Exploring the “what ifs”
What will you do if we enter a recession? Conversely, are you prepared for a sudden surge in hiring? Talent acquisition teams are engaging in scenario-based planning to make sure they’re ready for whatever comes their way.
Supporting talent team members during tough times
Talent acquisition leaders stressed the importance of thinking long and hard before letting go of recruiters. Companies should strongly consider the toll such moves could take on their employer brands and business overall.
Employers may be regaining the upper hand, but recruiters must still focus on candidate priorities if they want to recruit the best talent. What do candidates want? A good paycheck, balance, and flexibility, according to LinkedIn’s Global Talent Trends, October 2022 report.
Providing more pay transparency
While work-life balance trumped compensation for job candidates last year, inflation and an uncertain economy have made compensation the No. 1 priority today globally, according to LinkedIn’s Global Talent Trends, October 2022 report.
Continuing to promote work-life balance and flexibility
Candidates also continue to seek out employers who care about their well-being. Work-life balance and flexible work arrangements, two priorities that rose significantly during the pandemic, remain high on their list.
Clearly communicating company values
Likewise, candidates continue to seek out employers that are committed to making a positive impact on the world, our talent leaders say. A recent survey by Qualtrics supports that notion: 56% of U.S. job candidates said they wouldn’t even consider a job at a company that has values they disagree with.
Companies are continuing to invest resources in areas like candidate experience, internal mobility, and DEI. Our TA leaders tell us what actions they’re taking and why.
Making the most of candidate interactions
When we asked talent leaders where they’ll devote more attention in the coming year, many of them cited candidate experience.
It’s easy to see why. Job seekers who have dissatisfying interactions with a prospective employer are not only apt to walk away, they’re also likely to share their negative experiences with others, research shows.
Shifting momentum to building over buying talent
Talent leaders also plan to focus more on developing internal mobility programs. One reason: As companies cut costs and freeze hiring, they’ll need to identify and retrain existing workers to fill open jobs.
Committing to plans to improve diversity hiring
Regardless of the economic uncertainty, the talent leaders we spoke to will be working hard in the coming year to engage and recruit individuals from underrepresented groups. These efforts will include improving their diversity recruitment programs, writing more inclusive job descriptions, limiting bias in the interview process, and tracking their diversity hiring progress.
Which skills are key for recruiters going into next year – and beyond? Our talent leaders weigh in.
Talent acquisition proved it could deliver during the recent hiring binge. Now TA leaders are becoming more frequent collaborators with peers in other parts of the organization and trusted advisors to the C-suite.
Expanding talent acquisition’s influence into areas beyond recruiting
The idea that talent acquisition’s only role is to fill open positions is history. TA leaders gained a lot of respect from the C-suite as they navigated the pandemic and then stepped up to recruit during the Great Reshuffle. Now, they’re increasingly viewed as trusted advisors whose insights help senior executives achieve their most important business objectives.
Encouraging a more holistic approach to talent
As talent leaders become more influential, they have more opportunities to speak up and influence areas that have not traditionally been in their domain, such as compensation and retention.
The talent leaders we spoke to came from many different industries, regions, and backgrounds. Even so, they shared a common message.
TA teams have the insights and experience to help employers identify, engage, and hire the best talent. They’re equipped to advise company leaders on strategic decisions that will have a direct impact on the bottom line. Those capabilities will serve them well in the year ahead, regardless of economic ups and downs.
Thank you to the incredible talent leaders who shared their insights with us: Amy Schultz, Chris Louie, Gautam Shetty, Hannah Gardiner, Jackye Clayton, Jennifer Shappley, John Vlastelica, Kerstin Wagner, Sharlene John, Timothy Sanchez, and Vikas Baghel.
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