The new year is upon us. And as companies of all sizes embrace 2023, and the uncertainty that comes with it, it’s important to look at trends from other talent leaders, HR decision makers, and recruiters to determine how to prioritize recruiting investments this year.
Employ data from more than 18,000 customers and a survey of more than 1,200 HR leaders and talent professionals reveals that one-third (33%) expect their recruitment spending to remain the same over the next 12 months. However, more than half (54%) expect to increase recruitment spend in their company this year. Spending increases are most expected in medium-sized businesses (66%), while 53% of large enterprises and 43% of small businesses anticipate increasing budgets for 2023.
So when it comes to focused investments, here are the top five recruiting trends we will likely see in 2023:
#5: Enhancing DE&I Programs
Diversity, equity, and inclusion (DE&I) initiatives continue to have greater priority and focus for organizations of all sizes as companies realize their value for attracting higher quality candidates and contributing to workplace performance. In 2023, 33% of HR decision makers plan to increase their investments in DE&I programs. This is an increase of five points since June 2022 for spending on these initiatives, and reflects the importance of creating a workforce that values a diversity of perspectives.
#4: Bolstering Employer Branding Initiatives
Investing in employer brand initiatives continues to be a priority this new year. In fact, more than one-third of employers (35%) plan to increase their budget in this area. Why? Candidates seek companies that align to their own values and want an idea of what it’s like to work in the company before applying. Staying competitive in a tight labor market means continuously investing in your employer brand, and remains a top priority for companies in 2023.
#3: Hiring New Recruiting Team Roles
Employ data reveals that 45% of talent teams plan to add new recruiting team roles in 2023. Investing in the recruiting function and the resources to help keep up with demand in finding high quality talent is widely seen as vital for companies of all sizes, especially during periods of growth. Even in the midst of economic uncertainty, large and small businesses continue to invest in their teams, knowing they need the right people to meet the hiring demands of their business and to combat the tight labor market.
#2: Expanding Job Advertising Presence
In 2023, companies can anticipate increases in job advertising. Employ data reveals 57% of companies expect to increase advertising budgets for open roles and to attract higher quality talent. Posting open positions on job boards is a solid approach for broadening your company’s talent pool. It also expands awareness of positions that passive or active candidates may not have previously had visibility to and enhances your employer brand online. Ensuring that you use targeted job advertising is imperative and can help find the right candidates who will best fit your open positions.
#1: Increasing Investments In Recruiting Technology
As the labor market continues to see a high volume of open positions and the potential for recession continues, companies both large and small need to increase their hiring efficiencies and reliance on automation to streamline hiring efforts. That’s why it’s the number one trend for 2023. In fact, 59% of HR decision makers, recruiters, and talent professionals expect to increase spending on new recruitment technologies. This includes an increase of more than 17 points since June 2022 for spending on applicant tracking systems, an increase of eight points for candidate texting solutions, and an increase of five points for candidate relationship management systems.
Remember, Scalability Is Key to 2023
Planning during times of uncertainty is one of the biggest challenges HR decision makers, recruiting experts, and talent acquisition professionals face when guiding their organization’s future. Now that your company has entered a new year of recruiting, pursuing a scalable hiring strategy will be essential to attracting, hiring, and onboarding quality talent to drive organizational performance and alleviate the pressures from market slowdowns. As you begin to put your hiring programs into practice, remember to keep scalability at the forefront of your strategy. Ask the following questions:
- What must-haves should we focus on in our recruiting process?
- How can we find the right people in a challenging labor market faster?
- Where can we do more with less or the same with less?
- How can we become more efficient while improving outcomes?
The insights available in this article are only a starting point. For more data, key takeaways, and actionable insights, download the full Employ Quarterly Insights Report here.