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While things aren’t as challenging as they were this time last year, the key word here is as—the 2023 hiring landscape remains challenging. At the risk of utilizing a buzzword that has been vastly overused over the last couple of years, challenging may be the new normal we’ll just have to acclimate to…until it’s time for the next monumental shift in the world of work 🙂.
In this Q1 hiring snapshot, we’ll look at:
- Hiring in the Headlines: What trends and insights are the industry talking about
- Hiring Data: What data tells us about where hiring is going
- Businesses Can Meet Today’s Hiring Challenges Head On: Self-explanatory!
Q1 Hiring in the Headlines
The "Great Resignation" Morphs Into "The Great Rebalance"
Last year, the “Great Resignation” gave way to the “Great Reshuffle.” Many are predicting 2023 to be the “Great Rebalancing,” as quoted by a Forbes article titled Outlook for 2023: The Great Rebalance. Contributor David Morel writes, “The post-pandemic frenzy, when people quit on a whim, and there were two job openings for every person unemployed, is no more. That was a one-off. In 2023, less job hopping and fewer counteroffers are likely as the demand for talent and the supply of candidates evens out.”
Editor’s Note: According to FRED data, in January 2023, there were 10,800 job openings and 5,900 unemployed persons, so the two job openings for every one person isn’t necessarily in the rearview just yet.
The Bureau of Labor Statistics Releases 2022 and Q1 Numbers
Supply and demand may be evening out, but making career changes will still be happening, and something employers must strategize around. While roughly 4 million people quit their jobs each month in 2022, that’s expected to decrease in 2023. While the employment participation rate is steeply increasing, it remains to be seen if all of the individuals who have quit their jobs will return to the workforce. However, things are looking up as employment rose by 311,000 this past February.
SHRM Suggests We Brace for Challenges
The Society for Human Resource Management (SHRM) reports that employers should still be cautious regarding rebalancing and suggests 2023 may still be challenging. They propose giving flexibility to both job candidates and employees, that employers rely more heavily on internal mobility, and recommend a skill-based approach to hiring —”putting more emphasis on candidates' competencies and less on traditional criteria such as college degrees and work experience.”
"Quiet Quitting" is Done...If It Was Even Accurate, to Begin With
“Quiet Quitting” had a moment in 2022. When it comes down to it, this wasn’t as big a phenomenon as the media made it seem, as evidenced by The Atlantic article titled Quiet Quitting is a Fake Trend. Quiet quitting had more to do with more people creating healthy boundaries that establish a work/life balance than it did with slacking off at work, which still has implications for employers—you can no longer expect top-tier employees or job candidates to work “above and beyond” their salaries or hours without increased pay or incentivization.
The World Economic Forum Releases Their Top Work Buzzwords of 2023
Instead of “Quiet Quitting,” what about “Quiet Hiring?” Or “Rage Applying.” The World Economic Forum recently released the top workplace buzzwords of 2023. While some of these new terms have about as much real depth as “Quiet Quitting,” there are some, like “Boomerang Employees“ or “Copycat Layoffs,” have merit.
Gartner Identifies Top HR Expenditures of Q1
When it comes to HR investing, Gartner identified the top expenditures of 2023 as being HR tech, staffing, recruiting, total rewards (supporting employees not just financially, but physical and mental wellbeing), and learning and development. “HR leaders continue to face persistent high inflation, intense competition for talent, and global supply constraints,” said Gartner HR practice director Seyda Berger-Böcker. “Instead of opting for simple cost-cutting measures, leading organizations are focusing on growth and determining which investments will drive competitive advantage in the year ahead.”
Q1 Hiring by the Charts
Let’s look at the data obtained from the U.S. Bureau of Labor Statistics and handily tracked and charted by the Federal Reserve of St. Louis's Federal Reserve Economic Data (FRED).
Fewer People Are Working
While jobs have steadily increased since their pandemic plummet, you can see via this chart that they are nowhere near pre-pandemic levels. Fewer people are working now than once were, making competition for top talent much more fierce.
Open Jobs Remain Plentiful
It remains a job seeker’s market. There are more open jobs right now than there have been in the recent past, and per the last section, fewer people are trying to fill those jobs.
Layoffs Remain Steady
Though tech layoffs made big news at the end of last year, layoffs across the board have remained steady.
Quitting Has Steadied
You can see how quitting reached a pinnacle early last year and has steadily decreased. Fewer people are leaving their jobs than last year, but people are quitting easier than they did in a pre-pandemic world.
There’s Low Unemployment, By Choice
Unemployment rates are low, and you must consider that’s largely by choice. Many individuals are simply opting out of the workforce right now. If you’d like more insights into why, check out the “Why Aren’t People Working” section of our Talent Migration Report.
The Labor Demand Remains Higher Than the Supply
The main takeaway from the cumulative data represented in the FRED charts is that the demand for labor remains higher than the supply. In the next section, we’ll review some easy ways businesses can help mitigate this phenomenon.
Businesses Can Rise to Meet These Challenges
Growth Opportunity Will Be Limited by the Ability to Find Talent
Employers must work hard to attract and retain employees. What do your ideal employees want, and how can you provide them that? Check out The HiringThing Guide to Increasing Your Applicant Traffic for insights into how to create and utilize candidate personas (along with a host of other hiring best practices).
Great Talent is Hired Fast
Slow, tedious hiring processes will set your clients back. Did you know 92% of job candidates who apply to jobs online don’t finish their application due to length or complexity? We have a guide for shortening the application and ensuring candidates complete them.
Recruiting Technology Can Help You and Your Clients Succeed
68% of recruiting professionals say that investing in new recruiting technology is the best way to improve recruiting performance over the next five years.
SMBs Are Being Hit Hard by Labor Shortages
If you’re a platform that serves small and medium-sized businesses (SMBs), helping them achieve their recruitment goals is a major value-add. A private label applicant tracking system—hiring software built to strengthen recruiting a private label partnership allows you to present as a proprietary recruiting solution—empowers the SMBs you serve. Check out the benefits of a private label ATS here.
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