How to predict the future: Key catalysts shaping hiring trends in 2023

With the fast-paced progress of today’s society, it’s common to have a blend of excitement and worry. Organizations are driven to innovate and transform their operations due to external factors acting as catalysts. Think of it as a series of dominoes, where one action creates a chain reaction.

Before we delve into the possibility of preparing for the hiring challenges of 2023, let’s reflect on the past few years and identify three key factors that have impacted the labor market.

It may come as a surprise to know that the COVID-19 pandemic still ranks among the top three challenges on the global front.

While some companies have embraced remote work, others are attempting to reintroduce elements of in-person office culture. However, the trend towards fully remote work is predicted to decrease from 56% to 19% by 2024. On the other hand, the AT&T Future of Work Study surveyed CEOs and found that the hybrid work model will increase from 42% this year to 81% by 2024, making it the most famous work format for organizations shortly.

Although there were optimistic predictions, the study also uncovered alarming statistics regarding the present state of remote work.

According to recent data, 72% of companies need a well-defined plan for remote work. Additionally, the same percentage of companies have yet to establish internal policies that can support their employees in working remotely. Around 71% of these companies also require a clear communication strategy for their internal operations. Lastly, 61% of companies require more technological infrastructure to facilitate efficient remote work.

Furthermore, job seekers today have more power than ever before.

They are seeking greater flexibility and autonomy in their work and working conditions. According to the Harvard Business Review, employers must prioritize safety and value their employees’ contributions, which will be crucial in a professional’s decision to choose their next employer.

The nature of job search and recruitment has undergone four distinct waves of transformation. It started with Career 1.0, also known as “Company as Career,” from the 1950s to the 1980s. During this era, companies provided functional career models, HIPO (High Potential) models, moderate career development opportunities, and retirement at 65 was the norm.

During the 1980s and 1990s, professionals began taking control of their careers, seeking growth opportunities and publishing their resumes online. This period was known as “Career 2.0 — You as Career.”

In the 2000s and 2020s, the focus shifted to “Career 3.0 — Your Work as Your Career.” Here, the experience became the determining factor in a professional’s career. The main objective was to find the best opportunities and digitalize professional skills while discovering one’s true purpose.

In today’s work environment, known as Career 4.0 — Your Skills as Your Career, having the right skills is paramount. Many companies now offer internal talent marketplaces, on-the-job training, and T-shaped career development maps to help employees grow. As a result, specialists are now viewed as a service function.

Employers prioritize competencies, potential, and the right mindset over seeking experienced candidates in the current hiring landscape. This shift is significant, as a recent McKinsey study revealed that 45% of individuals who changed jobs in 2021 transitioned to a different industry altogether. This level of adaptability and change is unprecedented.

However, we must remember that rapid inflation was also a significant factor.

In March 2023, a Silicon Valley bank’s collapse severely impacted tech companies during economic instability. Amazon, for instance, had to lay off approximately 18,000 corporate employees, the highest reduction among all tech companies.

Despite the passage of time, The Great Resignation shows no signs of slowing down. The shortage of skilled workers has risen to its highest point in a decade. It’s estimated that over 85 million positions could remain unfilled by 2030 due to a shortage of qualified professionals. Furthermore, McKinsey reports that 40% of the global workforce intends to leave their current employment within the next twelve months.

In addition to the challenges mentioned, our country faces the impact of war on its territory, a struggling economy, increasing unemployment, a decline in the number of working-age individuals, and other obstacles hindering the organization’s normal functioning.

That was a brief overview of the topics we will be addressing today. In my following communication, I will share my top 5 priorities that will assist you in adapting to current challenges and developing a successful hiring strategy. Stay tuned!