Recruitment has faced many challenges in 2022 as companies from various sectors struggled to find and retain skilled workers while adapting to the changes brought about by the COVID-19 pandemic. Companies had to implement several operational changes such as remote interviews and hybrid work policies.

Additionally, there have been significant shifts in attitudes towards work-life balance. The trend of “The Great Resignation” continued to affect staff retention, with a June survey finding that 6.5 million UK employees planned to leave their jobs in the next year. Most employees who quit were seeking higher pay and better work-life balance, factors that are expected to continue influencing the recruitment landscape in 2023.

According to recent research, 70% of HR professionals consider the cost-of-living crisis as the biggest challenge for the upcoming year. This is because the risk of not being able to attract top talent increases with inflation. As a result, recruitment trend predictions for 2023 mainly focus on ways to address the impact of inflation on recruitment efforts. As an employer, what are the main factors that will shape recruitment efforts in 2023 and what actions can you take to attract and retain a skilled workforce? 

Hybrid working policies are the solution to flexible working

Hybrid working is now a permanent trend in the workforce. A large majority of 87% of UK office workers want to work from home at least some of the time for reasons like safety for immunocompromised individuals, improved work-life balance, and cost savings from reduced commuting, especially in the face of current inflation rates.

In 2023, employers who still mandate office attendance should consider adopting a more flexible approach. Flexibility will be an important factor for many job candidates in the new year, so it is crucial for employers to adapt their traditional working contracts to meet these changing expectations.

Company culture remains key to employee satisfaction

While flexible and remote working has many advantages, they can also lead to negative interpersonal effects for workers. Two-thirds of remote workers reported that working from home has negatively impacted their social interactions, with 36% citing loss of contact with work friends as a reason. This isolation can lead to increased stress, decreased productivity, and poor employee satisfaction.

To address this issue, companies should prioritise building a healthy and inclusive company culture through comprehensive onboarding procedures, regular check-ins, and a focus on employee wellness.

Power skills to become the new soft skills

Teamwork, communication and an eagerness to learn have proven essential in post-pandemic workplaces, giving rise to the new name for ‘soft skills’: ‘power skills’. This term describes transferrable skills such as creativity, flexibility and emotional intelligence that are at the heart of any successful team. 

Hiring managers will be looking for ‘power skills’ in 2023, as it becomes increasingly valuable to have employees that can adapt to the ever-changing business landscape and ensure operations do not fall short of the mark during the implementation of new procedures.

Win over applicants with transparent employee contracts

As job seekers’ priorities and expectations evolve, it is increasingly important for companies to be transparent about salaries throughout the recruitment process. A majority of UK workers are more likely to apply for a job if the pay is included in the job listing, particularly as the rising cost of living prompts more employees to re-evaluate their financial situation.

Additionally, salary transparency can help to eliminate disparities between equally qualified candidates from different backgrounds, which is especially important as issues of diversity and inclusion gain more attention and awareness of gender and ethnicity pay gaps grows.

Online presence and social media appeal to younger candidates

In 2023, it will be important for employers to have a strong digital presence in order to attract the next generation of workers, known as Generation Z. As these individuals are active on social media platforms like LinkedIn, it is crucial for companies to have a professional and engaging online presence that reflects their values and successes in order to attract top talent from this demographic. 

This includes marketing your brand on social media and regularly updating your website to showcase your company’s industry insights and thought leadership.

Benefits and perks aren’t wanted, they are needed!

 In today’s job market, employees are looking for comprehensive benefits packages beyond just basic pay and entitlements. Companies that offer employee development programs, flexible working options like four-day work weeks, and employee incentives like cycle-to-work schemes, complimentary refreshments, and retail discounts will have an edge in attracting and retaining talent. 

Additionally, many employees are still struggling with their well-being in the post-pandemic world, with 37% concerned about their mental health and 40% about their physical health. Employers can support their employees by implementing an employee assistance program (EAP) that provides practical advice and resources for any issues that staff may have.

Advanced technologies begin to mitigate the talent shortage 

In 2023, recruitment professionals will continue to integrate AI and data-driven solutions to improve the candidate selection process. By using AI-based software to evaluate variables like qualifications and personality traits, the process of screening applicants can be accelerated, allowing for a more efficient and effective recruitment process. 

Investing in technology will be essential to streamline recruitment and make the work of HR and recruitment teams more efficient. However, it’s important to remember that building human connections and fostering personal relationships with potential employees will continue to be a critical aspects of attracting and retaining top talent.