LinkedIn recently dropped it’s ‘Future of Recruiting 2023’ report giving some killer insights into the global recruiting market (and local markets – although the bigger picture doesn’t seem to differ too much)
The report, despite being pretty much brand new feels like old news in places given the whipsaw market we’re in right now but there are some really valuable thought starters including where recruitment will fit in businesses in the future, and employer branding.
LinkedIn have 17 key predictions, here are the ‘need to knows’.
Recruiting will double down on employer branding as talent regains leverage.
64% predict that the future of recruiting will be more favourable to candidates and employees (as opposed to employers) over the next five years.
As the war for talent amongst businesses continues to rage (particularly in development and tech roles) well over half of respondents to the LinkedIn survey predicated that the recruitment and onboarding process is going to favour the candidate.
This likely means demand for better benefits, and higher pay for employees in the face of shrinking recruitment budgets.
This indicates that the remainder of this year could see a return of job-hopping amongst the most in-demand candidates, and a renewed focus on employer branding.
Employers will hire more contract workers as a hedge against uncertainty.
“The share of US job posts for contractor roles increased 26% YoY, while fill time role sonly grew by 6% YoY”
With growing uncertainty amongst Q1’s cascade of layoffs in the tech sector businesses are looking to hedge against more uncertainty in the market.
The most obvious way to de-risk in this uncertain market is by leaning more on contract positions and agency expertise, enabling rapid scaling based on demand.
This increased elasticity in the market bodes well for contract recruiters, and also those operating in the agency and outsourcing space.
Recruiters will have more say over pay.
“Only 45% of recruiting pros say their companies increased salaries enough to keep pace with inflation”
Unsurprisingly, compensation ranked at the top priority for candidates across the world, and is one of the least available levers to recruiters due to contracting budgets.
Stacked with inflation, and an increasingly competitive market for talent its down to recruiters to set the brackets for pay AND make the ‘why’ of increasing pay understood to the C-Suite. Not only to attract and onboard talent, but to retain it.
Companies will keep a closer eye on what candidates want most.
The war for top talent is ongoing and is expected to be won by the highest bidder for the next five years. However, in order to fight back, employers without huge budgets for hiring and retaining talent will need to revaluate their employer branding, and ensure it aligns with what candidates are looking for today.
Good pay, balance, and flexibility — they’re essential and we absolutely provide that. But honestly, it’s not what makes us stand out. In today’s job market, offering those benefits is expected. In our employer branding, we prefer to emphasize what makes us unique.
Conclusion
All told, the report predicts that recruitment will double down on employer branding as talent regains leverage, and employers will hire more contract workers as a hedge against uncertainty. In addition, recruiting will have more say over pay, and companies will keep a closer eye on what candidates want most.
It also alludes to the fact that that the recruitment and onboarding process is going to favour candidates more going forward, meaning demand for better benefits and higher pay for employees. This could lead to a return of job-hopping amongst the most in-demand candidates and a renewed focus on employer branding. As the market becomes more uncertain, businesses are looking to hedge against this by leaning more on contract positions and agency expertise, enabling rapid scaling based on demand.
Unsurprisingly, the report highlights compensation is a top priority for candidates, but is one of the least available levers to recruiters due to contracting budgets. Recruiters must set the brackets for pay and make the ‘why’ of increasing pay understood to the C-Suite to attract, onboard, and retain talent. Employers without huge budgets for hiring and retaining talent will need to re-evaluate their employer branding and ensure it aligns with what candidates are looking for today to fight back in the ongoing war for top talent.
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