Top Hiring Challenges of 2023
The article reviews the top hiring challenges of 2023, highlighting key trends such as the importance of internal mobility for employee retention and loyalty, and the substantial expansion of contract and gig work in the U.S., with around 59 million people engaged in such roles and demand expected to continue growing through 2027.
A Look Back at the Top Hiring Challenges of 2023
Dec 5, 2023
Applicant Tracking, ApplicantStack, Blog
At the start of 2023, we covered some of the expected hiring trends throughout the year. Now, we’re taking a look back to see which of those trends impacting hiring efforts for employers. Dive into the hiring challenges faced by recruiters and managers in 2023 as we prepare to start a new year.
2023 Hiring Trends
We mentioned internal movement as an expected trend, and that was certainly a thing in 2023. Internal mobility is a significant factor in employee retention and loyalty, so creating and offering opportunities for existing team members to advance are essential in your strategy. Contract or gig work also expanded substantially this year, with approximately 59 million people in the U.S. working in such roles. The demand surged significantly, and by 2027, it’s estimated that over 85 million Americans will perform some type of gig work.
Company culture remains an influential factor in the hiring market. It’s becoming more and more challenging for workplaces with toxic or unsupportive atmospheres to bring on and retain top talent. Investing in culture is a must for a business, regardless of size, to improve hiring efforts. Another trend was identifying ways to allow employees to i ntegrate their personal and professional lives, rather than just separating and balancing them.
Challenges in Hiring This Year
Recruiters and hiring managers faced unique challenges associated with these trends and economic swings in 2023.
Finding top talent
One of the most commonly discussed difficulties was finding quality candidates. Intense competition and low unemployment rates contributed to this challenge, which plagued employers of all sizes. However, small businesses tend to struggle the most with finding top talent, as they may have trouble getting their open positions in front of a wider audience. The right applicant-tracking system can make this easier, with tools to share job descriptions to hundreds of sites with a single click.
Training and skills gaps
It’s hard to keep employees engaged and happy if they don’t feel like their employer is investing in their growth and development. Skills and training gaps are significant issues in workplaces that haven’t made learning and development a priority. When these elements are lacking, people often look elsewhere, resulting in higher employer turnover rates.
Unpredictability in the job market
The economy has played a serious role in hiring and growth efforts among businesses of all sizes and across all industries. Instability and unpredictability have resulted in fewer people looking elsewhere for work, instead choosing to remain where they are to feel more stable. Layoffs in many industries have forced others into the job market, requiring creativity and adaptability among those responsible for filling open positions.
Younger jobseeker preferences
If your hiring tactics are geared toward baby boomers or millennials, you may be having trouble attracting younger jobseekers. Members of Gen Z expect their workplaces to prioritize digital communication and collaboration, and this expectation starts with the hiring process. Without a proven solution in place that simplifies the hiring process, your company likely won’t get in front of Gen Z applicants.
The best tool for overcoming these and other challenges impacting hiring managers and recruiters is an applicant-tracking system. ApplicantStack aligns with your needs while fitting into your small-business budget. Explore how this hiring and recruiting system can help you take your efforts to the next level and build strong teams, despite the difficulties.
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