The recruitment industry is almost unrecognizable from just a decade ago. The rise of remote work is transforming the industry and looking ahead to 2023, companies and HR departments will need to brace for even more disruptions to the status quo.
In particular, the following trends stemming from the Great Resignation are set to continue changing how companies source top talent.
The talent shortage continues
The Great Resignation sparked a worldwide talent shortage, trenching a gap between skills and company needs. The movement may continue in 2023. For example, more than one-third of U.S. workers plan to leave their job in 2023, according to data published by CFO.com. At the same time, in a survey conducted by the National Federation of Independent Business, 90% of U.S. business owners reported few or no qualified applicants for open positions and 23% reported the talent shortage as the top problem facing their business. With numbers like these, it doesn’t appear companies are out of the woods when it comes to sourcing talent – especially for hard to fill roles in technology, sales and client service.
Skills eclipse experience
Owing to the talent shortage, hiring companies will naturally prioritize skills over other credentials in the recruitment process. In the past, HR teams tended to focus on experience as they believed it directly correlated to skill. However, out of necessity, this mindset is shifting. Companies now have an immediate demand for skills in their workforce – and they don’t have the luxury of focusing on experience. There are simply not enough applicants. And this shift may be for the best. According to research published by Harvard Business Review, a skills-based approach to HR can bolster a company’s talent strategy, both in hiring and engagement.
Remote work can give companies a leg up
Even as more companies push for workers to return to the office, it’s becoming increasingly clear segments of the workforce would prefer to work remotely. According to data from Pew Research Center, 61% of remote workers say they prefer to work from home. Similarly, about 60% of job seekers are willing to quit an in-person job for a remote job, according to a recent ZipRecruiter report. For many companies, remote work will be the lever that allows them to recruit, engage and retain top talent. The added benefit: remote roles can be filled by talent from anywhere in the world and businesses can look beyond their immediate geographic area.
Diversity, equity and inclusion (DEI) is a must
The idea that a diverse, equitable and inclusive workforce enhances business is now a proven fact, thanks to numerous studies on innovation and productivity. In the face of a talent shortage, diversity metrics like ethnicity, gender, generation and neurodiversity become even more important. The continued rise of remote work will allow companies to be more flexible and, as a result, more inclusive of segments of the workforce often overlooked – such as caregivers or those with disabilities who physically can’t get to an office five days a week. To advance DEI, organizations will have to retool their HR processes so they can eliminate biases and expand recruitment efforts.
Cross-border hiring is becoming commonplace
Geographic location is losing its edge as a prerequisite for hiring, with remote work opportunities allowing companies to look beyond their borders for job candidates. In addition to opening up wider talent pools, there are other benefits to hiring a remote global team. Tying back to DEI, cross-border hiring inherently builds more inclusive, diversity teams that blend a range of cultures, ideas and perspectives. To drive success in international hiring, more companies will likely turn to an Employer of Record (EOR), which can help them hire quickly, compliantly and with localized HR support.
Looking ahead: winning the ‘Race for Talent’
The Race for Talent is on, with recruitment in 2023 being heavily shaped by a high demand for workers and hard-to-fill positions. In the next installment of this series, we will dive deeper into more trends and explore how solutions in remote work and global recruitment will help companies stay ahead of their competitors.
GoGlobal is your partner in the Race for Talent. Contact us to learn more about how our one-of-a-kind, unique-to-the-market Recruit & Hire solution can help you stay pace with recruitment trends – and engage new talent pools around the world.