The war for tech talent continues, but employers seem to be experiencing a lull in the battle. In 2021, a skills shortage in tech held back 67 % of organizations, preventing them from adopting emerging technologies and, thus, from generating higher revenue. However, that was before another recession loomed on the horizon and impacted IT recruiting trends.
As the global economy cools down, the list of tech companies that are freezing hires or even announcing large layoffs keeps growing. This job market trend provides businesses struggling to attract tech talent with a nice opportunity to hire qualified candidates from a larger-than-average applicant pool. Yet, they also need to survive these turbulent times, and learning the newest recruiting trends for 2023 will help them find a balance.
1. Tune Your Hiring Process to Quality, Not Quantity
Expense trimming is inevitable during economic downturns, and 2023 recruiting trends address this challenge. It places the utmost importance on the quality of hires since companies will need to lower recruitment costs and distribute their workloads among fewer employees.
- Recruiters should rethink their talent acquisition strategy, reducing the number of hires in favor of attracting the best talent who can handle multiple responsibilities. Although it may require crafting a larger compensation package for the valuable asset, this will still reap more benefits than hiring a bunch of applicants who may not cover all the needs.
- Hiring teams should focus on job seekers with more general skills as opposed to narrow specialists; they should also prioritize applicants who have experience in a broad range of projects. A crossover of skills will let the employees fit into different roles within the organization, which chimes well with the next point in 2023 recruiting trends.
2. Shift Your Focus to Internal Hiring
As global 2023 recruiting trends are affected by the current market uncertainty, many employers are becoming more cautious with hires. As such, they tend to look for potential candidates inside their organizations rather than spend their tight budgets on talent acquisition. Luckily, LinkedIn’s utmost importance on the quality of hires report lists upskilling and advancement within a company among employees’ top priorities by the end of 2022, so the demand meets supply at this point.
According to figures provided by Josh Bersin, the founder of the Josh Bersin Academy, the cost of recruiting a mid-career software engineer can exceed $30,000, including recruitment fees and advertising—not to mention onboarding issues. By contrast, training and reskilling an internal employee may cost less than $20,000, saving a lot of money in the long run. Besides, the average turnover rate of an internal recruit is 2-3 times lower than that of an external candidate, which makes internal mobility even more beneficial.
3. Adopt a Consistent Approach to Diversity, Equity, and Inclusion
Do you know that some top talent won’t even apply for a job in a company perceived as non-inclusive? But that’s what a social listening report by McKinsey & Company says, backed up by Glassdoor’s survey revealing that 76% of employees evaluate job offers with an eye toward workforce diversity.
By failing to shape and introduce a systematic approach to diversity, equity, and inclusion, businesses miss out on the chance to access a vast pool of diverse talent, which only keeps expanding with the recent shift to remote work. Some of the best DEI practices suggest:
- Establishing DEI leadership and accountability, for example, through key requirements specified in job descriptions;
- Adjusting employee value proposition to core DEI needs, such as reskilling for veterans or better work-life balance for single parents;
- Integrating DEI into the entire talent-management process based on the organization’s tech needs.
Commitment to DEI is one of the hottest recruiting trends for 2023 since diverse and inclusive companies tend to excel in innovation and resilience, which will be of great help to businesses recovering from the crisis.
4. Keep Up With Job Seekers’ Expectations
Obviously, IT recruiting trends cannot run afoul of employees’ top priorities, some of which were mentioned above. Gig workers’ expectations don’t differ much from those dominating the labor market in general, but recruiters have to keep in mind one crucial difference — IT workers have a 10.2% lower intent to stay than employees in any other industry. And since the Great Resignation triggered by the pandemic remains in place, a recruitment process and retention efforts should go hand in hand to offer the most sought-after benefits for top talent.
- Provide pay transparency to set expectations, outline career growth opportunities, and establish pay equity.
- Embrace flexible working and remote workplaces to build a human-centric working environment, ensure better work-life balance, and foster loyalty and engagement.
- Create a strong employer brand and maintain company culture to get an edge in the competitive tech job market
5. Choose Freelancers Over Full-Time Employees
While over 80% of US business owners polled by the Fiverr freelance marketplace admit to using freelance services, the demand for a contingent workforce is predicted to grow, with 78% of employers saying they would prefer contractors over regular staff. The trend stems from the desire to cut down costs during the slowdown, but the transition from full-time employment to contract work also allows companies to be ready to scale up or down depending on various economic scenarios.
However, they are not ready for the proper management of contract workers. Surprisingly, many business leaders still fail to consider them as an integral part of their human resources, although the switch to hiring freelancers is anything but new in IT recruiting trends. Some company executives are even unaware that up to 50% of their teams are actually contractors.
In 2023, this approach is expected to change, with HR managers assigned to work with freelancers specifically and more attention devoted to contingent labor management.
Whatever the future has in store for the global economy and the information technology industry, current recruitment trends suggest relying on smart planning and a data-driven hiring process instead of knee-jerk hires aimed at filling seats at any price. IT outsourcing is a cost-effective strategy, which perfectly aligns with this approach and eliminates the headaches of talent acquisition. Ardorsys Technologies, an India-based team of experienced developers who already helped 500 clients leverage tech, will add to your cultural diversity and deliver agility to your projects — contact us and let our experts resolve your problems!