After a protracted period of strong hiring, the talent market shows signs of a “pressure release” in 2023. Manpower’s much anticipated Net Employment Outlook – calculated by subtracting the share of employers that say they are going to reduce staffing from the share of employers who say they plan to rent – is +23% in the primary quarter of 2023. Despite the positive ratio, that number is down 6% in comparison with Q4 2022.
To search out evidence of a throttling back in hiring, one need only seek the advice of the business media where news about layoffs dominates. Big Tech corporations like Alphabet, Amazon, Meta, and Microsoft were among the many first to announce consequential layoffs, but many other tech corporations followed suit. In Europe, tech-related layoffs mount; Aiven, Paddle, Brainly and others have announced staffing reductions.
“We see a subtle but meaningful pivot within the talent market immediately,” says Richard Mosley, Global Client Director at Universum. “Specific talent segments, corresponding to experienced cybersecurity engineers, have as much negotiating power as they did 12 months ago – which is to say, so much. But others who were in high demand in early 2022 may find it less easy to change jobs in 2023.”
This demand evolution may ultimately help address the critical talent shortage of frontline and blue-collar staff, says Dave Gilbertson, vice chairman at UKG. As he explains, “Demand for workers, especially for frontline and hourly roles, stays strong. We expect to see a ‘blue-collar boomerang,’ as recently laid off white-collar and salary staff take up well-paying, highly expert frontline jobs within the 12 months to come back, further easing the labor shortage.”
Many COVID-era expectations at the moment are the norm on the hiring market in 2023
At the same time as hiring cools barely, staff still think they’ve the upper hand within the employer-employee relationship. A BCG study of over 90,000 staff found most (68%) say they’re in a powerful negotiating position when looking for a latest job; just 14% say employers are in the ability seat.
And what do employees want most with regards to offer negotiations?
Compensation
Pay continues to be one of the vital essential aspects when considering a latest job. Pandemic-era changes haven’t altered that fact. In 2022, global inflation put upward pressure on compensation. In Universum’s research, “competitive pay” jumped from #8 to #3 in the worldwide rating of crucial attributes for university students considering a future employer, matching the third place importance registered year-on-year amongst young professionals.
Hybrid and virtual work opportunities
In keeping with the BCG study, most individuals (65%) who can complete their jobs off-site wish to work remotely or in a hybrid format. Forrester research shows some corporations may roll back hybrid and distant work in the approaching 12 months, but they risk backlash from employees who regard virtual working as right. Katy Tynan, principal analyst at Forrester, says half of those that attempt to tighten their policies will fail. “In 2023, we predict acute confrontations in the businesses that don’t hearken to and collaborate with employees in shaping hybrid-work policies,” she says.
Work-life balance
A robust job offer must also address work-life considerations – and this is very true for Gen X and millennials. The bottom line is flexibility – the flexibility to work on the time and place that most closely fits their skilled and private needs. (Some call this trend “anywhere work” or “productivity anywhere”.) A research report from Korn Ferry underlines this: “In 2023, more candidates will search for corporations that promote work-life integration: having the ability to put in hours through the day when it’s most convenient to deal with personal responsibilities when needed (think working a number of hours within the morning, taking a day break for an appointment or to select up kids, then back to work within the evening.)”
What does this mean for Employers?
The general outlook for the talent market in 2023 shows potential for a slight swing in power, because the talent shortages begin to ease and employers begin to re-evaluate their hiring activities. Despite in-demand talent segments still holding bargaining power, others may find it tougher to hunt down latest employment. As seen lately, compensation, hybrid work opportunities, and work-life balance proceed to be rise in popularity and are frequently at the highest of the list for potential and even your existing employees. Employers that fail to hearken to the talent they need to draw and retain will most definitely risk failing to find the most effective talent. Because the talent market is ever changing, each candidates and employers must remain adaptable to make sure the most effective outcomes for all involved.
Universum has recently released their Talent Outlook 2023 eBook. We canvassed recent research, analyst commentary, and business news to bring you the newest insights. On this report, we also highlight and translate key findings from Universum’s body of research – from the World’s Most Attractive Employer rankings to our annual employer branding survey. Download the eBook today to find the important thing trends, findings, and essential takeaways for capitalizing on the talent market in 2023!
