The past year has presented us with several challenges as we exited the changes brought about by the COVID-19 pandemic. The global economic outlook has remained cloudy, inflation has affected buying power, and political instability continues. With continued uncertainty, what will hiring look like in 2023?
One aspect that will remain, is a workforce shortage. Even before the pandemic, we were facing a tight labor market, and that will continue for the foreseeable future. The most significant change brought about by the pandemic was the change in the power dynamic as the workforce realized their value, and companies have struggled to keep top talent.
The Indeed Hiring Lab collaborated with the Glassdoor Economic Research team to release their inaugural Workplace Trends 2023 report. In it they look at trends that they believe will affect the workforce over the long term.
According to Indeed’s Chief Economist, Svenja Gudell, “COVID deeply impacted the way we work. What is critical for leaders to understand is that these changes and shifts are not temporary. There will be no return to ‘normal’ that many seem to be awaiting. The five trends we have identified explore the labor market of tomorrow, and what a new normal will look like. These trends are driven by hard data — both within our organizations and beyond. Together, they paint a clear picture: Looking past any near-term business cycle shifts, hiring will remain challenging for years to come driven by demographics and evolving preferences.”
Difficulty in Hiring
The labor supply will continue to present challenges, as noted above, due to the aging population and demographic shifts. In the United States, there is an expected drop of just over 3% in the population aged 15 to 65. Historically this gap could be made up by immigrants, but that number is also dropping.
Remote Work isn’t Going Anywhere
The adoption of remote work is here to stay. Remote jobs listed on LinkedIn were at 14% in September, down from 20% in February, according to Business Insider. Before the pandemic, that number hovered around 3%. The benefit of remote work for employers is that they can hire from a larger labor pool and bring in better talent. For workers, the benefits are we know the benefits of no commute, more time with the family, and in some cases, the ability to work hours that fit their schedule.
More Money and Better Benefits
With inflation and supply chain issues driving up prices, it’s no surprise people are switching jobs for higher compensation and better benefits. The survey shows that this is happening at all pay grades. Companies should be proactive, and this includes their existing employees.
Focus on Happiness and Wellbeing
Another aspect brought to light by the pandemic is the desire for happiness and well-being at work. Roughly 90% of the workforce believes that how they feel at work matters. As job satisfaction scores go up, unsurprisingly, turnover decreases.
Keep Working on Diversity, Equity, and Inclusion
Millennials and Gen Z are more focused on Corporate Social Responsibility (CSR) than previous generations, including DE&I initiatives. Nearly 75% of workers between 18 and 34 would consider turning down a job if the company was perceived as not supporting DE&I programs. And if the company doesn’t have diversity in the executive ranks, roughly two-thirds would turn down a job offer.
The report states, “As the global economic tides continue to turn, companies may face further whiplash. While they have been scrambling for over a year to find workers, the immediate macroeconomic outlook remains gloomy. The Covid pandemic ushered in a new world of work, and even as the immediate pandemic shocks recede, business leaders will continue to grapple with the aftermath.”
For more hiring articles, visit our blog.