Top 5 Hiring And Workplace Trends For 2023

Learn how to set recruiters and HR professionals up for success

Employers, HR professionals, and recruiters typically take the beginning of the year to review highs and lows and strategize how to improve upon or build new processes, procedures, or standards regarding hiring and retention. As they do, it is critical that these groups understand the labor market – both in its current and potential future forms as trends indicate – to know what to expect for recruiting, hiring, and retaining talent moving forward.

A firm grasp on what the future of work looks like will set recruiters and HR professionals up for success, allowing them to set priorities based on trends we expect to see come to fruition in 2023.
 

Today, we are taking a closer look at what these trends are, as identified by Indeed and Glassdoor economists, and what they mean in 2023.

#1: Hiring Challenges Ahead

Hiring was at a boom in the earlier part of 2022, with one in five workers indicating they planned to quit their job this year. For employers, this meant a focus on recruiting – doubling down on efforts to land top-tier talent and creating efficiencies to quickly move from application to interview and to hire. Just a few short months later, a looming recession seems more likely, and as rapidly as we saw hiring increase, we are now seeing layoffs and hiring freezes emerging just as fast.

One key trend to anticipate is that attracting, hiring, and retaining workers will remain challenging in 2023 and beyond. We expect that these hiring difficulties will be driven by demographic trends – particularly from an aging labor force which is the result of increased retirements and slowing U.S. birth rate.  In a tight labor market where we may face labor supply constraints, coupled with layoffs and hiring freezes, HR professionals and recruiters must get more creative and open-minded with hiring practices when needs arise.

This includes implementing tactics like attracting and hiring workers from abroad while looking strategically at company and state immigration laws and policies. Also, looking at overlooked pools of workers to deepen the well of potential prospects. This can mean finding ways to open up talent pools of workers that may be typically passed over despite the skill set they offer, like many of those with criminal records. Additionally, employers may consider altering or adopting flexible workplace practices to accommodate those with disabilities or those caring for children, among other groups.

#2: In the Office vs. Remote

If employees have any say, remote work is certainly here to stay – if it is offered as an option. For about one-third of the workforce where jobs can be conducted remotely, these workers have become accustomed to working from home. Employers have recognized the same level of productivity and efficiency where we have seen some shutter brick-and-mortar offices and locations entirely to cut costs.

This leaves two-thirds of the workforce in jobs where remote work is not possible or suitable, but a growing trend shows this contingent of workers is increasingly interested in pursuing opportunities that allow them to work remotely. Glassdoor and Indeed show job searches mentioning remote work increased to 9.8% in September 2022 from 1.7% in September 2019.

To address this trend, employers and recruiters must keep flexibility in mind and look to meet worker needs and desires where remote work may not be an option to attract or retain talent. For example, a recent Indeed survey showed flexibility on days worked and flexibility on hours worked top cited as most valuable to them when choosing to stay at a job.

But respondents also cited having social opportunities, financial advisory services, and family planning benefits offered as top-valued reasons as well, showing flexible work is just one area of high concern among many for HR professionals and recruiters to address.

#3: Higher Pay Desired, but Benefits as well

We have seen more employees advocate for higher pay than ever before, especially as priorities and desires have been updated and altered due to the Covid-19 pandemic and other worldwide events. However, employees have increasingly recognized that more than pay, well-being contributes to their work.

In 2023, employers and HR professionals need to take a close look beyond pay and explore offerings that can set them apart from other companies. They must also ensure they maintain any practices or standards introduced during the pandemic, as workers have become accustomed to these perks and may seek alternate opportunities should they go away.

A recent Indeed survey showed that lack of learning opportunities, lack of support from management, and lack of achievement all rank higher than lack of fair pay as issues most likely to make workers leave their current job. With this sentiment, it is clear certain benefits, support, and opportunities can differentiate employers in the recruiting stage – and that HR professionals and employers need to continue to think outside of the box and increase the benefits offered.

For example, we have started to see more employers offering mental health resources and employee assistance programs – Glassdoor’s data shows in 2022, 63% of the benefit reviews on its site reported their employers offering mental health benefits.

#4: Culture and Well-being Are Critical to Success

Workers have always desired a fair and balanced division between their work and their personal lives. This notion has been heightened and put under a magnifying glass as remote work has increased and priorities have shifted over the past few years. We have seen some workers pivot to entirely different careers to better suit the lifestyle they want, while others have placed greater responsibility on their employers to deliver the work-life balance they desire.

For recruiters and HR professionals, happiness will remain a top concern for workers. Culture will continue to be a buzzword to promote and differentiate open positions. HR professionals and recruiters will need to get even more specific moving forward on what culture truly equates to at an organization.

A recent Indeed survey did show that 82% of workers responded that they are happy at work most of the time. A separate survey showed 86% of people say how they feel at work impacts how they feel at home.

Happiness has a different definition for every worker, so employers must explore a wide spectrum of benefits, perks, and resources that address or improve overall worker well-being. This can include anything from offering personality testing so workers are better aware of their individuality and how it contributes to their teams and company culture, volunteer time off so workers can get fulfillment from giving back, or family planning services to feel better equipped and supported by their employer should their lifestyle change.

#5: DEI Remains Paramount

Employees care deeply about diversity, equity, and inclusion in their workplace.

A September 2022 survey from Indeed and Glassdoor showed 72% of workers aged 18-34 said they would consider turning down a job offer or leaving a company if they did not think their manager (or potential manager) supported DEI initiatives. Despite layoffs and hiring freezes, we can expect this sentiment to remain strong given the importance workers have placed on it.

While HR professionals and recruiters have placed more emphasis on creating diverse teams, DEI efforts must remain consistent and top-of-mind in 2023 and beyond. They must implement a lens of DEI across hiring and retention strategies and ensure benefits and resources are in place and highlighted that can set an employer apart from others, including diversity training, mentoring programs, and more.

The Way Forward

If 2022 taught us anything, it is that we can expect 2023 to witness the same potential fluctuations in the labor market. With this, employers, HR professionals, and recruiters must be prepared to pivot strategies at any given time – to combat layoffs and hiring freezes or to manage an influx of workers seeking new opportunities.

In 2023, happiness and well-being will continue to be top of mind for workers as they further dictate what they want out of their careers. It will be up to employers and recruiters to meet – or exceed – these updated expectations to attract and retain top talent.

Author Bio

Cory Stahle is an Economist at the Indeed Hiring Lab with a focus on the U.S. labor market. Prior to joining Indeed, he worked in finance as a Statistician with a focus on risk management and macroeconomic modeling. Prior to that, Cory worked as a Researcher and Economist for the Utah State government.