While the job growth in 2022 was impressive, the number of workers leaving the labor force offset some of the gains. Many employers struggle to find qualified candidates to fill open positions, leading to increased competition for talent. There is a growing skills gap in many industries, with insufficient workers with the skills required to fill open positions. What trends will shape 2023?
Here are five talent acquisition and recruitment strategies organizations can use to source, attract, and retain talent this year.
- Automation of recruitment tasks
The recruitment process is evolving rapidly. In 2023 more companies will look to artificial intelligence (AI) and automation to assist in automating repetitive tasks, improving candidate matching, and enhancing the candidate experience. Only about one in four organizations currently use automation or artificial intelligence (AI) to support their human resources efforts—including recruiting and hiring.
- Streamlining the hiring process: Artificial intelligence in the recruiting and hiring process integrates AI-powered tools to streamline administrative tasks common in the early stages of the hiring process—saving time and resources. 85 percent of recruiters think AI can replace some parts of the hiring process, and 67 percent of HR professionals believe it has many benefits. These automation benefits include freeing up the recruiter’s time (44 percent), making his/her/their job easier (39 percent), and providing valuable insights during the recruitment process (41 percent).
- Candidate nurturing: Candidate nurturing involves keeping job applicants engaged throughout the hiring process. AI offers a personalized candidate experience through automated nurturing. Chatbots and virtual assistants communicate with candidates and answer questions. Emails can be automated and sent to job applicants letting them know their application was received along with a timeline of the next steps in the hiring process. Once a recruiter is ready to schedule an interview, tools like Calendly help to make scheduling interviews easy.
- Increased focus on data-driven recruiting
In 2023, data-driven hiring will become necessary to source and attract top talent in a streamlined manner. There are currently around twice as many job openings in the U.S. as there are unemployed people, with the lowest unemployment rate in over 50 years. At the same time, a demographic drought is shrinking the world’s working-age populations. Hiring managers and recruiters need to be able to find and reach workers who are available and willing to work.
Hardly a new concept, data allows organizations to relate to candidates better and provide recruiters with easily accessible and understandable metrics to make decisions. Data-driven recruiting allows talent acquisition professionals to leverage real-time analytics to examine trends and gain greater visibility and insights to be more strategic throughout the recruitment process. Organizations that don’t embrace data will fall behind their competitors in the war to source, nurture, and hire top talent efficiently and consistently.
- Promotion of internal mobility
76 percent of employees are looking for opportunities to expand their careers. In 2023, to retain talent, organizations are promoting internal mobility as a way to invest in and develop their workers. Career growth no longer means employees must leave their current employer to enhance their skills and climb the corporate ladder. Internal mobility refers to the ability of workers to move within a company to different roles or positions. This can include promotions, transfers, or lateral moves and opportunities for employees to grow and develop new skills and advance their careers within the organization. Companies use analytics and workforce planning to predict which roles, skills, and capabilities will be required in the future and then train and develop their employees to expand their skill sets to meet these needs.
Investing in internal mobility can provide many benefits for organizations:
- Retaining top talent: By providing opportunities for career growth and development within the organization, employees are more likely to stay with the company rather than seek outside opportunities.
- Cost-effective talent development: Investing in internal mobility can be more cost-effective than external hiring, as it allows organizations to leverage existing talent and provide development opportunities that may not be available elsewhere.
- Better succession planning: Companies can better prepare for leadership transitions and key role changes by identifying and developing internal talent.
- Diversification of skills and perspectives: Internal mobility can help to bring new skills and perspectives to different parts of the organization, which can help to drive innovation and improve overall performance.
- Improved employee engagement
Before the pandemic, engagement was trending up, but now the ratio of engaged to actively disengaged workers in the U.S. is the lowest it’s been since 2013. However, 71 percent of executives know that employee engagement is critical to their company’s success. Key areas of focus in 2023 should include:
- Work-life balance: A healthy work-life balance is essential to employee engagement. Companies can foster engagement by offering flexible work arrangements, paid time off, and other benefits that support employee well-being.
- Strong company culture: A strong company culture is not just about creating a fun and enjoyable work environment, but it’s also about making sure that employees feel valued, supported, and empowered to do their best work. This includes regular communication, recognition, feedback, and fostering a culture of inclusion and collaboration.
- Transparency: In a challenging economic environment, employees are likely to be more focused on job security and the stability of their employer. To retain top talent, organizations must demonstrate that they have a plan for navigating uncertainty and are committed to supporting their employees through difficult times.
- Focus on employee well-being
Over 38 percent of the workforce feels burned out. However, people who are not burned out feel 217 percent more supported by their employer than those experiencing burnout. These statistics indicate the role organizations play in their workers’ well-being.
In 2023, employers can focus on well-being by implementing strategies that support their employees’ physical, mental, and emotional health.
- Offer wellness programs: Offering wellness programs can help employees improve their physical health and reduce stress. This can include exercise classes, mindfulness and meditation programs, and healthy eating initiatives.
- Promote mental health: Promoting mental health in the workplace is essential to employee well-being. Employers can offer mental health resources such as counseling services, support groups, and employee assistance programs.
- Encourage time off: Encouraging employees to take time off is critical to employee well-being. Employers can promote the importance of taking vacations and provide opportunities for personal time, such as paid time off or unlimited vacation policies.
The talent acquisition and recruitment landscape is evolving rapidly, with new technologies, shifting candidate expectations, and changing market conditions shaping the industry. By staying abreast of these trends and adapting their strategies accordingly, organizations can position themselves for success in 2023 and beyond.
This blog was written by Acara Regional Director of Business Development Damian Scandiffio.