2023 Staffing Trends

Hiring and recruiting in 2023 will continue to be shaped by the lasting effects of COVID-19. As some companies emerge from remote work environments and others retain their virtual or hybrid setup, staffing looks different than in years past. Additionally, the ‘Great Resignation’ will force recruiters to be especially proactive in anticipating their staffing needs.

Below, we discuss a variety of trends that are expected to influence staffing in 2023.  

2023 Staffing Trends

Alternative Sources of Labor

In an economy struggling to find employees, companies are often turning to alternative sources of labor like staff augmentation and managed services. Staff augmentation is when firms hire temporary workers to bolster a firm’s workforce. In contrast, managed services is outsourcing the work to a third party. While both have their pros and cons, they ultimately allow companies to hire the employees that they need either short- or long-term. 

Internal Mobility

The practice of upskilling, or retraining current employees with new skills, will continue to help relieve hiring needs for firms. Rather than seeking new employees, a company can retrain current employees and transition them to new roles. This can also increase employee retention rates and loyalty. 

Automation

Artificial intelligence (AI) is a powerful tool that recruiters will continue to use to parse job applicants. Computers can quickly search for ideal candidate qualities in both résumés and video interviews. As a result, AI recruiting companies cite a 90% increase in firms’ speed of hiring. This can be especially important for large firms that need to efficiently sort through huge quantities of applicants. It’s even estimated that 50% of firms currently use AI to find and evaluate candidates. 

Gen Z

Generation Z, those born between 1997 and 2012, will continue to become a larger segment of the workforce in 2023. This young pool of talent may be a boon for recruiters struggling to fill IT roles because of their familiarity with technology. Additionally, it’s estimated that Gen Z will compose 27% of the workforce by 2025.  

Data and Analytics

Firms have demonstrated that they value HR analytics to make the best recruitment decisions. Key quantitative metrics about candidates enable companies to increase the quality of hires, reduce recruiting costs, and create benchmarks. This data can also be used to discover internal skill gaps so that recruiters can proactively seek new employees. Ultimately, firms will certainly utilize more analytics in their staffing processes as talent-management software continues to evolve.  

Social Media

Social media platforms continue to bolster recruiting efforts. Business-focused platforms like LinkedIn will continue to serve as a marketing tool and for direct application to job boards. In 2022, it’s been found that 87% of recruiters regularly use LinkedIn and 300,000 remote job postings were made in the U.S. alone. The power of online marketing, especially for a digital Generation Z, is tremendous and is expected to grow in 2023. 

Conclusion

Ultimately, staffing trends are influenced by many factors outside of recruiters’ control. HR departments, however, should still be proactive in their search for new hires, especially as large numbers of employees continue to resign. Anticipating the trends that affect every business function can help mitigate the risks of unexpectedly being short-staffed.  

At Bull City, we are prepared to help your business meet 2023 staffing trends with our recruiting and hiring expertise. Contact our team today to learn more.