Recruiting

Recruiting Trends 2023

Lasting and emerging trends: an overview

4 min read

The new year has begun, the Christmas break is over for most people, and recruiters are slowly getting back to work. We look back on an eventful 2022, which at first promised an upturn. For that year we predicted trends such as an intensifying skills shortage, more diversity in companies and remote work. We look at how these developed in 2022 and introduce some new trends to expect in 2023.

What became of the recruiting trends of 2022?

Many companies attached high expectations to 2022. After two years of pandemic, they hoped for a further economic recovery, which was clearly noticeable until the start of the war in Ukraine. But from February onwards, the next crisis followed. The skills shortage already present in many sectors, disrupted supply chains, the energy price crisis and the inflation that followed presented companies with additional challenges that still have to be overcome.

Nevertheless, the labour market has proved stable. And in numerous sectors there is still an acute shortage of specialists. Remote work, too, has become an integral part of many companies. A study published in September shows that very few Germans want to return to the office full-time. (Ifo Institut, 2022) The trend is evident not only in Germany but also in the USA: 25% of all executive positions were filled as remote roles in 2022, compared with just nine percent before the pandemic. (Lampart, 2022) Diversity played a greater role in most companies and was put to the fore in many employer branding campaigns. All of these trends continue to hold, accompanied by new ones that will also be highly relevant in 2023.

1. International talent search

The skills shortage remains a dominant topic in 2023. New working models such as remote work are gaining ground and thus offer companies new opportunities in recruiting. But that is not all: the rules for recruiting qualified workers from abroad are also becoming simpler. As is well known, specialists from EU member states have long since needed no work or residence permit to work in Germany. And for qualified workers from third countries, the Skilled Immigration Act (Fachkräfteeinwanderungsgesetz) of 2020 made things simpler. But that is not all. To make it easier for foreign specialists from non-EU countries to work in Germany in future, the Federal Government wants to introduce a modern immigration law. The government plans to bring its draft bill before the Bundestag in early 2023. This will make it easier for employers to recruit specialists from abroad, and also to integrate refugees and people with tolerated status into the workplace. (Haufe Online Redaktion, 2022)

2. Using social media recruiting and corporate influencers for employer branding

Social media marketing should long since have been established in recruiting. The reason is the younger generations, Y and Z, who increasingly use precisely these channels in their job search. They are the specialists of tomorrow and are just now taking over from the baby boomer generation in the labour market. They are particularly active on platforms such as Instagram, TikTok, YouTube and LinkedIn. While employer branding should already have found its place in companies' own social media channels some time ago, corporate influencers are being added to the mix in 2023. Corporate influencers are a company's own employees and managers who report on their working day. By posting in their own words, they come across as particularly authentic and thus create credibility, which appeals to the coming generations. (Striegel, 2022)

3. Using digital tools for recruiting

Last but not least, as in 2022, digitalisation will play a major role in recruiting processes. Algorithms increasingly help to identify suitable candidates. With CV parsing software combined with self-learning matching methods, recruiters gain more efficient ways to identify and analyse candidates. Skills, qualifications and professional experience can be captured and matched against the requirements of open positions. This saves a great deal of work and finds candidates who, at first glance, might not have been considered for a particular position. Particular attention must be paid to ensuring that the algorithms themselves work without discrimination.

To sum up for 2023:

Economically, a largely unpredictable time lies ahead. Because of current geopolitical tensions, the energy price crisis and inflation, companies have to pay closer attention to their costs. Fortunately, this has not yet affected the labour market, but an approaching recession could change that. We suspect, however, that the skills shortage will remain a dominant topic in 2023. One way of easing the shortage of qualified workers will be recruitment from abroad. It remains to be seen whether the new Skilled Immigration Act will be passed in the Bundestag next year. To find the right candidates, the use of social media and corporate influencers will become ever more prominent. But digital tools, too, should play a key role in the search for staff, because they make it even easier to identify candidates.

Sources

Haufe Online Redaktion. (05. 12 2022). www.haufe.de. Retrieved from https://www.haufe.de/personal/arbeitsrecht/zuwanderung-auslaendische-fachkraefte-beschaeftigen_76_472860.html

Ifo Institut. (16. 09 2022). ifo.de. Retrieved from https://www.ifo.de/pressemitteilung/2022-09-16/homeoffice-etabliert-sich-deutschland-mit-14-tagen-pro-woche

Lampart, B. (23. 11 2022). hr-heute.com/. Retrieved from https://www.hr-heute.com/magazin/recruiting-trends-2023

Striegel, J. (11. 12 2022). t3n.de. Retrieved from https://t3n.de/news/recruiting-trends-2023-das-bleibt-das-kommt-das-macht-niemand-mehr-1519564/