Looking Ahead to 2023 – A Few Measured Predictions
Take the following musings with a grain of salt. They are a compilation of gut instincts informed by conversations with business leaders, job seekers, and my own reading of various news sources. Here are my best guesses for what the labor market will look like for 2023 and some tips to navigate it.
Growth Hiring Will Slow
2021 and early 2022 was nonstop, rapid growth hiring for many companies. My clients weren’t just asking for one new customer service rep to replace someone who was retiring, they wanted three more to accommodate growth. They didn’t just need one more person for production, they wanted ten more! That pace has slowed. We’re going back to a more measured growth strategy that doesn’t involve adding mass amounts of employees.
Fewer Counter Offers
In the height of the frenzy, job seekers were getting multiple offers as employers entered into a bidding war to get the top candidates. As the labor market settles, you’ll find job seekers coming to the table with slightly less bargaining power, but only in certain industries.
Labor Positions Will Stay in High Demand
If you’ve got a role that requires someone to do physical work—construction, manufacturing, distribution, installation, mechanical, landscaping, etc.—you will continue to see a shortage of candidates as fewer young people are entering the skilled trades. Hardest hit has been “on the road” labor positions. Manufacturing and distribution roles with their set hours and under roof work have the upper hand. The good news is that sharp increases in wages and on-the-job training is starting to draw in more candidates, especially with inflation putting pressure on family budgets.
Job Marketing is an Essential Skill
With hundreds of job ads competing for the attention of job seekers, knowing how to apply marketing principles to your job ads will be a key to success. Adding “Search Engine Optimization” to your job ad will be critical to getting in front of the right candidates. Telling the story of your job and your company will help you stand out from the crowd. Ask yourself: What is the “hook” that will catch the attention of my ideal candidate? Make that hook the very first bullet point in your job ad.
Keep Rolling Out That Red Carpet
Your top candidates are interviewing you just like you are interviewing them. For as long as the labor market stays hot, how you treat candidates during the interview process will inform them on how you will treat them as an employee. It will also directly correlate to how likely they are to accept your employment offer. I have seen candidates turn down a job with higher pay for a lesser paying job with a company that had a healthier culture and more positive work environment. This judgment call is made during the interview process. Be prompt with communication. Be relational and friendly. Be respectful of their schedule and timeline. Make them feel welcomed and appreciated (even if you don’t hire them).
Whatever 2023 holds, the staff at Team Builder Recruiting is available to consult with you and help you put the right strategy into place to build a successful team. It is our hope and prayer that you enjoy God’s richest blessings in the New Year and beyond!
Merry Christmas, Happy New Year, and Happy Hiring!
“And the angel said unto them, Fear not: for, behold, I bring you good tidings of great joy, which shall be to all people. For unto you is born this day in the city of David a Savior, which is Christ the Lord.” (Luke 2:10-11)