What does our 2023 talent market look like going forward in Australia? The latest recruitment trends
If someone had told us five years ago, candidates would be expecting to be able to work from home and wear trackie pants in meetings in 2023 - there is no way we would have believed them. If the same person told us that some jobs would be paying upwards of 30 per cent more than usual just to secure talent, we’d still be in disbelief.
However, the same would’ve been said about a global pandemic that has completely flipped the way Australians work and our talent market into the near future.
Many recruitment trends that employers, employees and recruiters have seen throughout 2022 are unlikely to change moving into 2023 but there are a number of things talent acquisition specialists, employers and employees must keep in mind as we move into the New Year.
Recruitment trends in 2023
- Candidates and employees run the world
A bit like Oliver Twist, in 2023 the phrase, ‘Please Sir, may I have some more’ will remain or even increase in prevalence. This year, candidates know they are in high demand, so they are asking for higher salaries as they know it won’t last forever. We expect this will continue into 2023 as cost-of-living increases and inflation rears its head. With this in mind, time will be of the essence to snag top talent. More HR specialists are finding counteroffers are becoming more common - often sabotaging placements at the very last minute.This means some talent acquisition teams are testing the waters early in the recruitment process to see if it will be something that may hinder them come contract signing time. The re-rise of ‘old-school’ recruitment tactics like poaching or headhunting as a result of a small talent pool will continue to play out in 2023. So if an employee is feeling dissatisfied in a job, a well-timed Linkedin message could result in a hire and is something many employers need to be aware of when it comes to employee satisfaction.This links to the importance of strong culture and employee wellbeing as we move into 2023.
- Looking inward to see outward
As difficult as it might be for recruiters and employers to hear, current talent shortages will not be solved the moment the clock strikes 12 into 2023. However, research has found that organisations believe about 10 per cent of their open roles could be filled internally. Following that, close to 90 per cent encouraged workers to apply for openings within their companies - showing that C-suite professionals were beginning to understand that within a climate of severe worker shortages, retaining and upskilling is a far better business decision. Rather than creating a pressure cooker situation for both recruiters and employees by piling unrealistic expectations on, employers must allow time and resources in building their team from within to be successful in 2023 and beyond. Not only does this help with productivity but also, we expect company culture will shift from creating an engaging office environment to ensuring employees, regardless of location, feel valued, heard and set up to succeed. Creating strong, personalised progression plans into higher roles and allowing employees to see a clear trajectory in their role, whether it is now or five years away, will be a major contributor in retention at a time when staffing is tough.
- The knack of nurturing
If there was one thing that Covid-19 accentuated, it was the importance of employee wellbeing. You’d be walked out of the office today if you came in with a runny nose, while as five years ago, it was the expectation that you’d work through. But to take it to a deeper level, studies found that employee well-being and mental health was the area CEOs said their brands struggled with most amid the pandemic. In 2023, managers will and must tackle this head on in order to have any chance at retaining key talent. This trickles down into the recruitment space too. We all know the art of talent acquisition has always come down to adequate nurturing and connection - a personalised touch when it comes to candidate outreach is key as well as support and mentoring throughout the entire process.
- Flexibility is the new black
Geographical boundaries have become a thing of the past when it comes to hiring pools. From some organisations opting to hire people in different countries to deal with worker shortages to entire workforces going remote to save on office costs – remote working is a pandemic hangover that we will struggle to shake into 2023. Work from home has allowed workforces that couldn’t have returned to a pre-pandemic workplace, such as new mothers, to re-enter earlier but with higher flexibility needs. We wouldn’t be alone in saying that having the work-from-home option and hour flexibility are two key demands from candidates in the current job market that we expect to see moving forward. Job location is no longer critical to selection as some employers take comfort in seeing better employee output and efficiency from their couches. However, it isn’t all roses as critical sectors that involve physical work are suffering from severe talent shortages as a result. For instance, the United Kingdom saw a 132% growth in Construction roles and a 62% growth in Real Estate roles in 2020 fueled by people moving away from cities enabled by remote working.
Final thoughts on the talent market in 2023
The talent market will remain tough moving into 2023 – however, if there is one thing we’ve learned from the past few years, it is that pressure breeds innovation.
From offices moving fully remote and bumping up productivity to the increase in technologies to nurture and care for employee’s wellbeing like never before.
Retention, wellbeing and flexibility are the buzzwords of 2022 that we will carry into 2023 and used in conjunction with one another will create better workplaces throughout Australia.
To find talent in 2023, make an enquiry today with the Drake team or call 13 14 48