As the world continues to change and evolve, so too does the way we approach hiring. In 2023, businesses will be presented with an array of unique challenges that have never been seen before. From increased competition to the lack of available talent pools, companies will face numerous difficulties when it comes to finding and assessing candidates. In this article, we’ll take a look at some of the key issues that businesses are likely to encounter in the years ahead.
According to a survey from The Harris Poll commissioned by Express Employment Professionals:
- 85% of U.S. hiring managers expect challenges in 2023, with 75% saying it keeps them up at night
- Top hiring difficulties include increased competition (35%), available talent pool not matching company needs (29%) and difficulty assessing candidates’ skills during the hiring process (23%)
- Contributing to sleepless nights is the labor shortage continuing (29%), increases in employee turnover and demands for better benefits from job seekers to accept offers (27%), as well as an inability to fill open positions currently or in the future(27%).
- Market uncertainty, supply chain issues, low labor force participation, an increasing number of retirements and potential economic downturns are all contributing factors leading employers feeling overwhelmed.
- Rising wages is a top concern for business owners with inflation being an issue if kept out of control; moderating wages without losing the workforce is difficult due to still-hot job market conditions.
The first challenge that businesses will face is increased competition for new hires. With more companies competing for top talent and a greater number of job seekers on the market, employers may find themselves struggling to attract qualified candidates. This is especially true in industries that are experiencing rapid growth or those that rely heavily on technology and innovation. Additionally, wages and inflation could potentially become an issue as companies compete with each other to offer higher salaries in order to land top-tier job applicants.
Lack of Available Talent Pool & Difficulties Assessing Skills During the Hiring Process
Another key challenge for businesses in 2023 is the lack of available talent pool and difficulties assessing skills during the hiring process. Companies will have to grapple with a shortage of qualified candidates due to automation, artificial intelligence, and other technology tools being adopted by organizations across all sectors. Moreover, employers may have difficulty properly evaluating skills during interviews due to the inability to interact with potential employees in person or virtually due to pandemic protocols still in place throughout much of the world.
Labor Shortage Continuing & Employee Turnover & Benefits Demands from Job Seekers To Accept Offers
The labor shortage is expected to continue into 2023 which could lead to increased employee turnover as well as demands from job seekers regarding benefits they would like included with their employment offer before they accept it. Another concern is market uncertainty due to supply chain issues, low labor force participation rates, an increasing number of retirements, and potential economic downturns which could further impact businesses’ ability to fill positions with quality personnel who can help them achieve long-term success.
Businesses must also consider rising wages as a top concern for owners when it comes time for budgeting decisions each year. Moderating wages without losing their workforce can be difficult but necessary if profitability goals are going to remain achievable despite challenging financial conditions within many industries worldwide.
Despite these hurdles, there are some positive signs such as more applicants entering interviews across offices globally as well as a slowdown in what has been dubbed “the great resignation trend” by some observers recently which is cause for optimism moving forward into 2023 and beyond when it comes hiring strategies employed by savvy business owners around the globe!
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