Talent Supply & Demand in 2023:A Quick Outlook
Talent acquisition in the US will be even more challenging in 2023. You need to know what to expect in an increasingly bloody war for talent. Below is my second article on this burning subject.
"Many small businesses tend to neglect the importance of a strong, stable HR presence."
4. Remote Work a Major “Selling” Point for Many Jobs Seekers
COVID did create a unique, new trend in the employment market, as many organizations realized that one can be as (or even more) productive when working from home. This led to more flexibility in hiring remote employees. The remote factor even became a strong advertising feature. According to LinkedIn research, 85% of recruiters believe the remote work is there to stay. In 2022, job postings promoting both fully and hybrid remote work showed a 31% higher job seekers attraction rate.
We strongly recommend that you offer remote possibility, even if it is just hybrid-type (partially remote), for the following reasons:
- Schedule flexibility
- Work-life balance
- Avoiding long commutes
- Employee mental health and wellness
- Reduced stress at work
5. Increase in Contracted and Freelance Work
In 2022, the freelance economy grew by 1,000%. 2023 will continue to see an increased demand for outsourced workers, partly because more job seekers are recognizing the value of a freelance status. We suggest that you evaluate the benefits of converting some of your positions from W2 to 1099, for the following reasons (in compliance with related laws):
- Growing trend (per the numbers above)
- Status is attractive to experienced, older executives and professionals
- Higher flexibility in manpower periodical needs
- Freelance workers tend to be more performance-driven and more self-managed
- Some admin/HR costs are transferred from the employer to the freelance workers.
6. The rising importance of Human Resources
Many small businesses tend to neglect the importance of a strong, stable HR presence. It is estimated that over 70% of organizations employing between 25 and 100 employees do not operate a well-established HR Department. Such negligence was in fact worsened during the pandemic, with a turnover of 37% in HR staff beating any other function.
More than ever, we strongly recommend that you strengthen your organization with a strong HR presence. One person at least should be fully devoted to Human Resources functions in any organization with 10 - 25 employees. The benefits far outgrow the costs:
- HR represents the human side of any business – reminding everyone that any company or practice is in the people business
- Lack of attention on people’s well-being at work has been a major factor in the “great resignation.”
- It costs up to twice a yearly salary to replace any position. Paying a HR staff member well is worth it if you can reduce personnel turnover – especially when considering that the ones to quit are usually the very valuable ones.
- Talent acquisition has become THE major condition to growth. Empowering your HR staff to attract and select the right people may offer the higher return on investment for any expansion-driven organization.
To your success,
CEO Hirebox LLC.
If you need help to build a better employer branding strategy or to attract the right people, simply click on the “Contact us” button below.
Click here to read Part 1