Global Recruitment Update- Challenges, Trends and Strategies

Recruitment and retention challenges 

while employees have lost some bargaining power since the heady day of the post-coved world, businesses continue to face significant workforce challenges 

• Skills shortages: while some economists are predicting 2023 to be the year the U.S. labour market will “return to normal, that will be a small comfort for industries that continue to face an intense battle for talent. Take durable manufacturing, where even if every unemployed person with experience was recruited, the industry would only fill 44% of vacant jobs. It is a similar story in sectors such as education, health, hospitality and food services, with employers needing to remain competitive to attract and retain talent.
  
  
• Changing expectations: the pandemic inspired a global wave of workers to question what they wanted from their jobs and, in many cases, whether they wanted them at all. That continued in 2022, with 4.1 million employees quitting their jobs in December alone, bringing the yearly total to more than 50 million. While there are reports that ‘The Great Regret’ is on the rise—that is, people who wish they had never quit their jobs—the reality is employers continue to face a talent pool filled with people who expect more from their jobs than ever. More money. More flexibility. More remote or hybrid work. More meaning. The days when people felt grateful to have a job seemed a long time ago.
  
  
• Wage pressures: while Forbes is right to say labor participation rates are slowly rising from historic lows, there are still more job vacancies than potential employees in the U.S., and that is bad news for balance sheets. Coupled with increasing inflation, the tight labor market inspired significant wage and salary growth in 2022, and that pressure is likely to remain for the foreseeable future. Data from the U.S. Bureau of Economic Analysis revealed wage growth soared 11.39% in just one month last year, while it was a similar story in markets such as the United Kingdom and Australia.

Top 3 recruitment trends 

• Candidate experience: recruitment is no longer solely about candidates selling their wares. These days, businesses need to put their best feet forward to ensure they are an attractive destination and that starts with enhancing the recruitment process. Candidates who have a positive experience with an organization during this phase are 38% more likely to accept job offers,11 and that is why job-seekers should expect more engaging recruitment experiences in 2023.
  
  
• Technology: digital solutions are on the rise in every aspect of business life and recruitment is no different. Technologies such as artificial intelligence and automation are helping recruiters find the right people for the right jobs, with the associated software market tipped to reach $3.8 billion by 2030. The next year will see more investment in AI solutions that can sort resumes, identify ideal candidates from large pools of talent, and even use facial recognition technology to help understand a candidate’s emotional intelligence.
  
  
• Staff retention: retention strategies will play a crucial role in resourcing in 2023, as there are huge benefits to keeping hold of employees rather than needing to recruit them. By investing in employee recognition initiatives, well-being support, and upskilling and reskilling programs, businesses give current staff fewer reasons to search for opportunities elsewhere and, in turn, foster a ready-made talent pool for internal promotions.