Five Hiring Trends for 2023

Five Hiring Trends for 2023 

As we welcome a new year, we also welcome new trends in hiring. 2022 demonstrated that employment remained strong despite uncertain economic conditions and rising interest rates. We also saw an increased emphasis on retaining employees, new technologies such as automation, and an organizational focus on streamlined interview processes. As we move into 2023, we will see some similarities and differences from 2022.  

Paige Pezzato, Account Manager at Hunter International explains, “As we move into 2023 amongst a still uncertain economic climate, talent leaders should closely monitor trends and new innovations to ensure that their teams are equipped to meet their company’s growth goals for the year.” She continues, “As new generations move into the job market, more will be expected of employers as it relates to employee benefits, internal mobility, as well as environmental and social issues.”  

What does this mean for employers? Read on for five trends you can expect to see in 2023.  

Continued Emphasis on ESG and DE&I  

In 2022, we saw employers take an increased focus on environmental, social and governance (ESG) issues. As we move into 2023, we can expect to see ESG continue to be at the forefront of business decisions as more employees, customers, stakeholders and investors will be expecting companies to have solid ESG practices and initiatives in place. ESG also has been shown to bring bottom-line results, with a 2022 Deloitte study finding that executives anticipate benefits from enhanced ESG reporting to include increased employee retention (52%), improved return on investment (52%), stronger stakeholder trust (51%) and elevated brand reputation (49%). 

ESG and diversity, equity and inclusion (DE&I) often go hand-in-hand, with DE&I falling under the “S” in ESG. In 2023, companies will likely invest more in DE&I efforts and look at innovative practices for attracting and retaining diverse talent. Talent leaders are smart to do so, as a study by McKinsey shows that companies with a diverse workforce are likely to see higher performance, better decision making and increased profitability. We can also anticipate that as Gen Z moves into the workforce, companies will be expected to already have effective DE&I strategies in place.   

Emphasis on Internal Mobility  

As the tech industry faces mass layoffs, the U.S. is threatened by the potential of a mild recession and high turnover reportedly not going anywhere, employers will need to look at new hiring and retention avenues in 2023 if they want to reach their headcount goals. One place to start is with existing employees. Internal mobility has not only been shown to save organizations time and money, it also improves employee retention, with LinkedIn reporting that employees stay with their company 41% longer when their companies hire from within.   

Some ways employers can increase internal mobility is to offer leadership and development opportunities, create recognition programs and implement a formal process for open positions to be posted internally. These strategies will be expected of employers as we continue into 2023. 

Boomerang Employees  

Boomerang employees, or employees who leave your organization and later return, are also another group that can help your company meet its headcount and growth goals. Recently, employers, who have experienced high turnover following the COVID-19 pandemic, saw an uptick in previous employees returning to their organization. Data from Visier found that 28% of new hires in the first quarter of 2022 were boomerang employees and we can anticipate this trend to likely continue into 2023.  

Employers who leverage this population can expect increased performance, as a 2021 study from Academy of Management showed that returning workers consistently outperformed new hires. To attract this population, employers should create an effective offboarding process, expand benefits and create a culture that is welcoming of returning employees. More information and tips for leveraging boomerang employees can be found in our article, Boomerang Employees: How Employers Can Tap Into This Unique Talent Pool 

Human Recruiters Will Still Beat AI 

In 2022, we saw an increase in recruitment automation tools and artificial intelligence (AI) in the hiring process. While these new technologies brought an increase in efficiency for recruiters, they also bring issues that will likely bleed into 2023. While AI tools promise to be able to find the best candidate for the job, and “weed out” applicants who are not qualified, there have been questions about the ethical nature of these tools in regards to candidate privacy and bias. And, as government regulations on privacy tighten, we can expect these technologies to face more barriers.  

Despite these technology challenges, human recruiters will continue to remain as important resources to corporations in 2023. The candidate shortage that we’ve seen over the past few years, amplified by the COVID-19 pandemic, is expected to continue into the new year and beyond. To combat this shortage, employers will need to rely on professional staffing and recruiting services, either internal to their organization or external, to find and attract the best talent for their company.   

Flexibility is Here to Stay 

The COVID-19 pandemic forced many organizations to adopt a more flexible working model. Whether that included remote work, hybrid schedules, flexible start and end times, or other flexible options, there is no doubt that businesses look different today than they did three years ago. In 2022, we saw flexible options continue, despite the virus threat generally decreasing throughout the year. 

In 2023, we expect to see this trend continue, as job seekers highly value having autonomy over where they work and when they work and workplace flexibility being a top reason that McKinsey respondents accepted new jobs. Employers who leverage flexible working conditions can stand out to new talent, and retain current talent, at higher rates than their non-flexible counterparts.  


Want expert guidance to help your team navigate hiring in 2023? Contact us today to get in touch with our team of talent experts!