Want to hear more from us?


A look ahead: The top 6 HR trends for 2023

Tuesday 24th January

A look ahead: The top 6 HR trends for 2023

Over the last year we’ve faced a skills and labour shortage, the lasting effects of the pandemic, the ‘great resignation’, along with rumblings of ‘quiet quitting’ - and now we’re in the early stages of what is predicted to be a long recession. Yesterday’s solutions won’t work for today’s challenges. So what are the emerging talent acquisition trends to help you stay ahead of the competition?


1. The economic impact of hiring 

The recession will inevitably have an impact on employers and candidates, but not in the way we’ve previously seen. The office for national statistics reported that there are an estimated 1.2 million jobs available, but one thing we do know is that candidates in this economy become less keen to leave secure and established jobs. For employers, this means creating more meaningful work experiences to keep the current workforce happy. With this in mind, expect to hear more about values-based recruitment in 2023, this is where companies try and hire people who want something more than just their monthly salary - they want to be a part of something bigger that aligns with their personal core values and this economic climate provides the perfect opportunity to spend time on creating the company brand that others want to work for. 

2. Automation tools and AI will become more  important 

As budgets are streamlined, finding talent efficiently and as quickly as possible becomes the top of the agenda. Automation and AI tools have evolved rapidly over the last few years, providing the hiring industry with better analytics, and more time to create and attract talent pipelines. Automation can help with scheduling interviews and creating touchpoints for a great candidate experience. AI will enable time-saving for tasks such as transcribing calls, information-gathering, and even calculation tasks. We’ve all seen how ChatGPT has caught everyone's attention, and it’s the perfect example of how this new technology is causing ripples of excitement across multiple industries. So, while the recruitment and HR industry as a whole is trying to find ways to trim budgets, automation and AI are key investment areas to enable teams to thrive in 2023. 

3. Social media recruiting

While not new, social media recruiting has only continued to gain strength, especially as a new generation enters the workforce. Younger generations use social media like a search engine, so it’s no wonder that recruitment via social media is the next step. As such, social platforms are now being used by companies to showcase employer brands and to connect with specifically targeted demographics like graduates. This bypassing of traditional methods helps employers to save time on candidate sourcing while helping them to build relationships with potential hires and to introduce them to the employer brand before they even apply for the intended position. 

4. Pay transparency is the new 'normal'

It was reported at the end of last year that pay transparency was at its lowest in six years, so is it any wonder that in 2023 we’ll see pay transparency gather even more momentum? It’s become a subject that is being pushed by candidates, and due to secrecy, it can be near impossible to determine the pay rate for a role for candidates or long-standing employees, and this secrecy had only allowed gender and racial pay gaps to continue to widen. While some EU countries already have their own laws around this, the EU Pay Transparency Directive will come into force in 2024 which is designed to address the gender pay gap across the European Union. This won’t be an easy transition as some employers will have to adjust the salaries of their current staff, but pay transparency is a first step towards more equitable pay.

5. Employees are creating the workplace of tomorrow 

As the high ratio of job openings to applicants continues to widen, candidates are increasingly aware of their upper-hand position. From ghosting employers due to multiple job offers, to the expectation of higher starting salaries - candidates have a stake in creating the workplace of tomorrow. Now that Gen Z is entering the workforce (27% of the global workforce by 2025), millennials are making up more management positions. 2023 will see new workplace values and priorities pushing to create the new workplace of tomorrow - this leans toward prioritising flexibility and well-being.

6. The switch from experience to soft skills is underway

Organisations across the world are facing an acute skills crisis, with the increasing digitisation of work and the post-pandemic landscape, 2023 will see employers needing to adapt rapidly. The Digital Economy and Society Index found that 4 out of 10 adults who work in Europe lack basic digital skills, and as such 2023 has been classed as the European Year of Skills, following the announcement by President Ursula von der Leyen in her 2022 State of the Union address. This initiative is built around the idea that nobody is left behind, to ensure that the digital transition is socially fair and just. Hiring with experience and a minimum degree qualification creates a barrier for candidates and limits talent pools. The need to assess soft skills and potential has never been greater, and as the year progresses more companies will follow the lead of PwC, Santander, and Siemens to put soft skills at the forefront of hiring.

As we continue into 2023 one thing is certain, change is coming, and these are just some of the clear recruitment and hiring trends to factor into your new strategy to remain competitive. Get in touch today to find out how you can build your future workforce by switching from experience to soft skills.

Read Next

Sign up for our newsletter to be notified as soon as our next research piece drops.

Join over 2,000 disruptive TA leaders and get insights into the latest trends turning TA on its head in your inbox, every week