Long-Term Labor Market Trends Defining 2023

In recent years, organizations have faced a global pandemic, a shift to remote work, economic uncertainty, and inflation. All this has accelerated the evolution of the workplace, as the nature of work is constantly changing and the labor market is extremely competitive. What is in store for us in 2023 and how the dynamics of the labor market will affect the HR profession, shares Desislava Tsankova, deputy team leader for the Black Sea region.

What are the big long-term trends in the labor market?

Although the dynamics of the business world in the last few years have taught us to expect the unexpected, several big trends that we observe in 2022 will undoubtedly affect the labor market in the next 12 months as well.

For some time, for example, we have been observing how employees' perception of a good employer is changing. In 2023, HR will be increasingly focused on employer branding as a necessity to build awareness, and recruitment processes themselves will move closer to understanding good 'marketing'. Without a strong employer brand, companies risk missing out on top candidates.

Another strong trend that will accompany us in the coming year is the demand for a hybrid work model by talents. Many candidates filter job postings based on whether or not they have an office requirement, which is a priority for them in terms of work-life balance.

Digital recruiting through social media will continue to gain momentum. In a world that is driven by social media, using such online channels to find, attract and acquire candidates is one effective way. Posting job opportunities and targeting on social media platforms like LinkedIn, Facebook and even Instagram and Tik-Tok are an integral part of the future of recruitment. Social media has become an important indicator for job seekers. When it comes to searching for desirable job positions, young people today rely more and more on their social media channels, so there's reason to believe that social media recruiting will be a leading trend going forward.

What are expected to be the main tools to address the talent shortage in the coming year?

The realities of the new world of work have forced a shift in our perspective and how we should generally approach talent acquisition and human resource management. One of the big challenges in 2023 will be tackling the talent shortage and the way we think about recruitment.

We know that we are in the "age of the candidate" and this trend will continue in 2023. Applicants are increasingly selective and the competition for talent is increasingly serious. The days of randomly applying are long gone, and people aren't afraid to say no to offers. Some studies show that in 2022 candidates are 60% more likely to say no to an offer than before the pandemic. Moving from a passive to a proactive way of recruiting and using marketing strategies to attract talent will be fundamental.

Building a database of candidates who are open to being informed about new opportunities is undeniably one of the formulas that work. Recruiting trends will include actively seeking candidates for specific positions and maintaining warm contacts to be ready when specific jobs become available.

In such a tight market, the focus must now be on simplifying the selection process by streamlining the steps involved in lengthy rounds of interviews and skills assessment and showing candidates that their time is valued and important. For candidates choosing from multiple offers, slow hiring processes run the risk of losing good talent.

What will be the role and focus of HR in 2023?

The role of HR has completely transformed since the pandemic. Recruiters today are a key business partner in organizations and the strategic importance of this role will become increasingly clear. Rapid and constant changes require new skills to be developed, new metrics to be tracked and processes to be automated in recruitment departments.

As the role of talent acquisition becomes more difficult, deep domain expertise, proactivity, creativity and a strategic approach become increasingly important.

The winners will be those teams that address the most compelling and relevant messages to the right audience at the right time.