Darren Findley, President of Engage2Excel Recruitment Solutions, has a unique perspective on today’s job market based on three decades of recruiting experience across all major industry sectors. He shared the following key statistics* in our last Trendicators Report, along with insights on trends and how to optimize recruiting for 2023:
- Unemployment Rate: 3.4%
- Participation Rate: 62.4% (well-below pre-pandemic levels)
- Open Jobs: 11 million
- Quit Rate: 4 million per month
- Wage Growth: 5.28%
- By 2030, all Baby Boomers will be over the age of 65
- Global fertility rates are declining annually
*Updated stats since eBook was published
Demographics Over Economics: Darren has changed his perspective due to these converging factors. He believes demographics will replace economics as the dominant force driving labor market trends. Understanding and responding to a diverse demographic segments’ unique needs and interests will be essential for attracting and retaining top talent.
Technology Challenges: HR leaders report that their top technology challenges include:
- Siloed HR systems
- Data gaps and poor reporting
- Inability to make quick, informed decisions
- Subpar candidate and employee experiences
Record Investment in HR Tech: HR technology with talent management, including recruiting tools, was at the top of the spending list with a 9% increase. While tech stocks have taken a beating this year overall, HR tech stocks have outperformed the market over the past several years. With a record of 400 exhibitors at the 2022 HR Tech Conference, there is no shortage of SaaS solutions to today’s HR challenges.
Experience Matters Most: Organizations that fare the best in today’s talent war must focus on and improve experiences for candidates and employees. Listening and responding to the needs and desires of candidates, employees and gig workers are the keys to building long-lasting relationships.
Technology-Enabled Engagement: HR tech stacks are expanding to include everything from chatbots, texting features, video job previews, video interviews, TikTok job previews and even TikTok resumes. Eventually, sourcing, candidate generation, interviewing and hiring will be part of an analytics-enabled talent ecosystem that includes onboarding, learning, skill taxonomies and performance management.
Challenges for Hiring Managers: Technology is important, but hiring managers are linchpins in improving hiring effectiveness. Our Trendicators 2022 Job Seeker Survey Report revealed that experiencing recognition in the hiring process was the most important influence on a candidate’s acceptance of a job offer. Additionally, 39% of candidates said that a positive experience with the hiring manager was either “important” or “very important.” However, fewer than 5% of U.S. hiring managers have one hour of professional interviewing training1.
Optimizing Hiring Outcomes: To help hiring managers become more effective, Darren recommends training in the following areas:
- Behavioral interviewing
- Demonstrating recognition, appreciation and respect
- Enunciating your Employer Value Proposition (EVP) and competitive differentiation
- Identifying opportunities for career growth and advancement
The past year has been challenging with rising inflation, wage growth, talent shortages, global instability and supply chain disruption. Even though we are seeing these challenges early into 2023, we are optimistic that this year will be a year of recovery.
Authors Note: This article originally appeared in our Overcoming Talent Challenges on the Road Ahead eBook.