2023 Recruitment Trends

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After time off to relax and reflect over the festive season, my thoughts turn to the cyclical world of employment and recruitment. I ponder what it has in store for us in the new year. What has become apparent in recent years, particularly in Australia, is that nothing is constant and recruitment is no exception.

As we look ahead into 2023, there are new innovations and reoccurring trends on the horizon which I expect to gain momentum. This evolution is exciting and challenging, and today I’m sharing my top 7 to keep an eye on in the world of talent:

1. VR as in Virtual ‘Recruitment’ is here to stay

Virtual recruitment and remote hiring exploded during the COVID-19 pandemic, causing disruption to the standard recruitment and business models. 2023 is sure to see this trend continue as businesses explore methods to cut expenses and boost productivity. In a candidate short market, VR and remote hiring allows businesses to reach a far larger pool of talent to recruit, onboard and manage without the need for in-person interviews and in-office commitment. Challenges remain in improving the user experience, maintaining employee engagement, and reducing the time taken from application to hire.

2. AI speeds up hiring time and enhances user experience

AI-powered recruiting solutions can assist businesses in automating repetitive tasks, finding the most qualified applicants for a position, and making better hiring decisions. It's crucial to remember that AI is not a substitute for hiring people; rather, it is a tool to support recruiters to prioritise areas where they can have the greatest impact.

3. DE&I focus to continue to grow

Diversity, Equity, and Inclusion (DE&I) will gain further popularity in 2023 as companies are realising how important it is to foster a diverse and inclusive workplace. Recruitment teams are putting more effort into writing job descriptions that are inclusive, finding candidates from underrepresented groups, and employing bias-free hiring practices. The current generation of candidates entering the workforce we know are becoming more interested in working for companies with strong DE&I in their employee value propositions.

4. Referral Programs get a reboot

Employee Referral Programs are not new and employers have historically relied on employee recommendations when looking for new workers. In a crowded marketplace with plenty of options and low employment levels, we can anticipate more businesses investing in referral programs for employees and rewarding them for referring friends and coworkers in 2023.

5. Ads out, socials in

Finding passive candidates has become vital in a candidate short market. Whilst SEEK has a dominant position for the Australian job seeker, social media and other apps have become increasingly important in reaching a wide audience of potential employees. Facebook, Twitter and LinkedIn will continue to be used for recruitment (despite Facebook removing their job post feature last year) and Instagram is definitely a strong contender as it grows in popularity along with Tik Tok for younger audiences. How businesses use these and other platforms in 2023 remains to be seen, but the landscape is constantly evolving providing an exciting and challenging prospect for reaching ‘hidden’ talent and sharing a company’s culture and employee value proposition.

6. The demand for flexibility

Flexible and hybrid working is no longer a ‘pipe dream’ for employees. In industries where this remains possible, it’s become a high demand option for candidates. Businesses who have resisted the change will likely start to provide part time, flexible and hybrid working arrangements to meet demand and attract and retain talent.

7. Staying competitive

Australian businesses will continue to compete with multinational corporations for top talent in the global labour market. Competition can be particularly tough in sectors like technology and finance, and businesses find it challenging to recruit and retain global talent due to cost of living pressures. Opportunities to work and live abroad may be appealing to some employees, especially those that provide a lower cost of living and a wider range of cultural experiences. To compete, Australian businesses must continue to improve their Employer Value Proposition (EVP) and concentrate on producing competitive wage packages, offering chances for professional advancement, and cultivating a supportive and inclusive work environment.

The world of hiring and recruiting is continually changing, and these trends will continue to influence how organisations approach their recruitment or who they partner with to provide them with the right advice and support in 2023. Companies who can adapt and navigate these changes by using the newest tools and techniques for hiring will be in a good position to attract personnel in a very globally competitive marketplace.

Written by Nick Gabrielidis - Executive General Manager, Chandler Macleod

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