Employer & Job Seeker Recruiting Trends for 2023
This article is part of a larger series on Hiring.
Learn how small businesses are finding top talent and how job seekers are looking for a company that caters to their specific needs.
Current hiring trends show that unemployment rates are decreasing, leading to a decrease in the number of available candidates. Additionally, job seekers are changing their approach to finding employment. A growing percentage are relying more heavily on online resources, such as job boards and social media, to find open positions.
The job market has been improving in recent years, but competition for jobs remains fierce. While the unemployment rates in the US are declining, they are still relatively high in many countries. This means a lot of qualified candidates are looking for work. As a result, companies are receiving more applications from international candidates.
Unemployment in the US has been on a steady decline. In recent years, states have been working to improve their economies by investing in new businesses and recruiting out-of-state workers.
The average national unemployment rate in 2019 was 3.7%. It shot up to 8.1% in 2020 with the rise of the pandemic and settled back to 5.3% in 2021.
Qualified job seekers from across the globe are open to opportunities in the US and Canada as other regions haven’t seen the same job market recovery levels. As such, many small businesses are choosing to partner with international contractors for specific projects instead of hiring an on-site employee.
Recruiting costs can vary widely, depending on the position being filled and the method used to find candidates. Using technology and software to screen candidates, such as through online assessments and video interviews, are among the most cost-effective ways to recruit.
When it comes to recruiting, a strategic budget is necessary to get the most out of the effort. Job boards and online postings are relatively inexpensive while using a headhunter or placement agency will cost more.
Did You Know?
Some 40% of recruiters say recruiting budgets increased as a result of COVID-19. The average cost per hire in 2021 was nearly $4,700.
Recruiting technology and software can help find the best candidates while staying within a budget. Various recruiting technologies and software are available, many of which include artificial intelligence (AI). Consider company needs and budget when selecting a tool, ensuring it is compatible with existing systems.
The global recruitment software market was valued at $2.55 billion in 2021 and is expected to surge to $3.85 billion by 2028. AI is quickly taking over when it comes to recruiting and sourcing talent. In fact, 63% of companies are investing or plan to invest in AI solutions in 2022 vs 42% in 2020.
While a referred candidate will still go through the hiring process, it is less costly for a company in the long run (at least according to 55% of respondents in a Clutch study) as the company doesn’t have to spend money on advertising or other recruitment efforts.
An existing employee who is already a good fit is likely to refer someone who is often a better match for company culture and the required job duties. In fact, current recruiting trends show that a referred candidate is 18 times more likely to get the job compared to those that apply from job boards.
An employer brand showcases a company’s identity, mission, and culture. By giving insight into how the business works and the community within, potential job seekers can determine if they want to work for a particular organization. Hiring trends show that over half (52%) of active job seekers cited poor employer brand and reputation as one of the reasons they left a previous job, while 27% said it was the main reason.
Job seekers typically use social media sites to learn about a company. The top sites employees and candidates visit to review employer brand and reputation are Facebook, LinkedIn, and employer review sites like Glassdoor.
LinkedIn is one of the most popular social media networks, with 50 million people using the site weekly to look for jobs, and the only one dedicated to business and professional networking.
Social media/social recruiting software is becoming more prevalent for screening, with 67% of employers using it to research potential job candidates. It is a powerful tool that can be used for employer branding and recruiting.
It is no secret that job candidates today face a lot of competition. With the current economic conditions, many people are searching online and vying for the same position. In fact, according to historical talent acquisition trends, the average job candidate uses up to 16 sources during their job search.
So, what does this mean for employers who are looking to fill a vacant position? By knowing what candidates want and where they are looking for jobs, companies will have a leg up on the competition.
In today’s job market, candidates are looking not only for a paycheck but also job satisfaction. They want to work for a company that will invest in their growth and development, as well as make them feel like they are part of a team and that their work is meaningful. Current recruitment trends show that higher compensation and flexibility are the top two things job seekers want from new employers.
According to our talent acquisition trends research, the vast majority of job seekers said they use online job boards to find open positions. Career sites and social media also ranked highly as a source of jobs, while personal connections and print advertisements were much less popular among respondents. This suggests that employers wanting to reach the widest pool of potential applicants should focus their recruiting efforts on online job boards and websites.
Source for all Job Candidates tables: Jobvite
As the US workforce continues to evolve, so does the way companies recruit employees. With the rise of gig workers—freelancers, contractors, and other non-traditional workers—more businesses are turning to flexible staffing solutions to find the best talent.
According to a current recruiting trends study, the number of freelancers has been growing steadily over the past few years, with more people choosing to freelance full time. In recent years, there has even been a growing trend of workers leaving traditional 9-to-5 jobs in favor of freelancing. This shift is being driven by the rise of the gig economy, as well as the growing availability of flexible work arrangements.
As a result of this trend, businesses are increasingly turning to freelancers and contractors to fill roles that would traditionally be filled by full-time employees. This is especially true in the fields of technology and marketing, where freelancers can often provide more specialized skills than traditional employees.
According to a recruiting trends study, the majority of workers in creative industries (arts, design, entertainment) are freelancers.
The number of freelancers in the US has soared from 57 million to more than 70 million in 5 years.
*Studies show numbers will continue to rise and are projected to reach 90 million by 2028
SOURCE: Statista
More and more businesses are shifting to remote work models. This means that there is an increasing demand for freelancers and gig workers who can work remotely. According to HR consultants, if a business doesn’t offer flexible or remote staffing options, they are missing out on 50%-70% of candidates.
When it comes to work, not everyone is looking for the same thing. Some people want the stability that comes with a traditional employer, while others prefer the freedom of freelancing.
For those who prefer traditional employers, the security of a steady paycheck and benefits are often cited as key reasons. Traditional jobs also tend to offer more opportunities for career advancement. However, research shows that more people want to work on their own, with the flexibility to make their own schedule and work from a location of their choice as deciding factors.
SOURCE: Upwork, Freelance Forward 2021 Report
The majority of freelancers are between the ages of 25 and 34, and when comparing education levels, post-graduates are most likely to freelance. With higher incomes and more skills to leverage, college graduates in general can often prioritize work-life balance and other desired flexibilities more than workers without those attributes.
Bottom Line
The data collected on recruiting trends provides valuable information for companies to consider when making decisions about their hiring processes. The current trends appear to be moving toward a more efficient and cost-effective use of technology in the recruiting process. This shift could save companies time and money while still maintaining a high quality of applicants.
Additional Resources
The most current recruitment statistics illustrate dramatic changes in hiring, especially over the last few years. These changes are brought about by different sources—some by emerging trends from applicant behaviors and evolving practices, and others influenced by societal and environmental changes.
Remote work statistics show dramatic changes in where and when employees are now working. While remote work has been on the rise for many years, the number of people working remotely has skyrocketed during the COVID-19 pandemic. Using data as the guide, your small business can adapt to the changing work environment and stand out to potential employees while retaining, or increasing, your company’s productivity.
The cost of hiring an employee includes more than just a new employee’s salary. While labor is typically a company’s largest expense, the actual financial impact of hiring includes job advertisements, your recruitment staff’s salary and collaterals, the charges for HR and recruitment software and even workplace integration and engagement costs.
