Global hiring trends for 2023
Global hiring trends are constantly evolving due to changes in everything from the economy to technology. A look back in time shows how external factors can impact recruitment.
Take the financial crash of 2007-2008, for example. In the wake of the subsequent economic downturn, dubbed by some as "The Great Recession," the United States workforce saw significant job losses and decreased hiring.
Another example concerns how people are hired. As technologies like Zoom picked up following the COVID-19 pandemic, remote hiring became increasingly common.
What hiring trends might managers and HR leaders see in 2023? Read on for a sneak peek at what you can expect.
Economic uncertainties will affect hiring
Economists have been predicting a recession for some time. The prospect has many employers wary and eager to keep costs in check. As recession fears mount, the labor market will likely see slowed growth.
Turbulence is already evident in the tech industry, where big names like Google, Zoom, Yahoo, Amazon, Twitter, and Microsoft have slashed parts of their workforce in late 2022 and early 2023.
Economic uncertainty wracked the tech industry again when Silicon Valley Bank was closed by financial regulators in March 2023. Although the bank was tech-focused, a bank closure tends to have a ripple effect, and shockwaves were felt throughout the U.S. banking system and beyond.
Companies will look abroad for better talent at a cheaper cost
Companies seeking to keep labor costs down will likely start looking abroad for more affordable talent. This is possible thanks to the rise in remote work and an influx in technologies like cloud-based document storage, digital project management tools, and video conferencing capabilities.
Companies who want to stay at the forefront of hiring and accessing top talent should revisit their global talent acquisition strategy. For example, it's important to understand regional job markets and adapt your candidate selection process accordingly.
International talent acquisition also needs to consider onboarding strategies, tailoring the process to international employees as required. For instance, this could involve accommodating those who don't speak English as a first language with translations or captions.
Employee-centricity is coming to the fore
In the future, companies who want to hold on to talented workers must adapt to their expectations. For example, research shows that workers prioritize flexibility, including setting their own hours and working from anywhere.
Additionally, as economic uncertainty continues, employees may be less likely to switch employers and may instead seek new roles within their current company. Employers open to these transitions and accommodating them by providing internal development training, for example, will be able to keep their star employees.
Hiring managers and HR leaders can reap the rewards if they offer employees more flexibility and freedom of choice. This podcast provides tips on how to make it happen—by allowing asynchronous work hours, for instance.
Remote work is here to stay
Fun fact: Modern employees value flexible work above a pay raise. That includes remote work, with experts suggesting that the "remote work revolution" is here to stay.
In general, talent acquisition and management are melding into a single field. These days, hiring managers and HR professionals can't just think about how to get the best talent—they have to think about how to retain and nurture that talent. Keeping up with trends like remote work can help.
That means adapting not only policies, but also technologies. Ensure that your teams can collaborate remotely by adopting tools like project management software, chat apps, and video conferencing technology.
Culture will become increasingly important
Whether people can be productive when working remotely has been put to bed. Now, employers and employees alike are tackling the real challenges of remote work, like creating a remote work culture.
The "erosion of office culture" was already a concern noted in our 2022 Global Impact Report and continues to be a hot-button topic. Companies must find ways to help team members bond and establish meaningful connections, even if people aren't sharing an office.
An employee engagement survey that measures remote work culture is a good starting point and can help you find areas that need fixing. Including the culture component in your flexible remote working strategy is also a must.
Salary transparency is becoming a necessity
Finally, the days of secretive salary negotiations are long gone. In 2023, workers will become increasingly vocal in their calls for salary transparency, building on a trend that's been developing for the past few years.
Companies that fail to embrace salary transparency—for example, by publicizing their salary ranges—will be scrutinized. Workers have already started the push for transparency by proactively sharing pay info with one another.
What used to be taboo is now becoming the norm. Employees have realized that secrets surrounding salaries only benefit employers, making it easier for them to have disparate pay structures. A clear, fair, and transparent salary setup is something that modern workers value.
2023 will see significant changes in the hiring market. The right tech tools can help you keep up and adapt to become a more flexible, inclusive, and values-driven workplace.
Take a global hiring platform like Oyster, for example. Oyster makes it easy to manage payroll and benefits in more than 180 countries worldwide. This all-in-one, simplified solution also helps you stay compliant when hiring global contractors by guiding points like worker classification.
Oyster is a global employment platform designed to enable visionary HR leaders to find, hire, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
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