Major Hiring Pain Points From 2022 + How We Can Fix Them In 2023

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Major Hiring Pain Points From 2022 + How We Can Fix Them In 2023

2022 has come and gone, so with the arrival of 2023 it’s important for managers to look at the toughest pain points in hiring from the past year and how they can change them for the year ahead. Finding the right candidate to hire for your company can be a challenge, especially with all the major hiring shifts that have been made since the pandemic. The long-term effects of the pandemic on hiring and the workforce are still being unraveled, but plenty has changed since the economic uncertainty of 2019 in both hiring and recruiting top talent. Both employers and staffing agencies have struggled to source their talent in the last couple of years as the job market has rebounded. In this article, we will cover the biggest hiring pain points that companies faced in 2022 and how we can fix them for 2023 and beyond.

The End of 2022 Could Mean Growth in 2023

As 2022 ended, massive layoffs in the tech sector shocked the workforce but there was still hope for positivity as the labor market posted 1.4 million layoffs in November, almost a historic low. Workers were still quitting their jobs going into the end of the year as well with 4.2 million people voluntarily leaving their jobs in November. The year ended with 18 straight months of four million or more people quitting their jobs, but there are still plenty of job openings with about 1.7 vacancies per available worker.

With so many people available to work, why were companies still having problems finding qualified candidates to fill their job postings in 2022?

The Major Hiring Pain Points from 2022

Many companies experienced struggles in hiring and recruiting in 2022. Here are just some of the major pain points that managers, staffers, and recruiters faced during the last year.

The Remnants of The Great Resignation

After the economic downturn from the pandemic, our economy bounced back with an interesting trend. Employees started quitting their jobs at a record pace, creating what has been known as “The Great Resignation”. This trend continued well into 2021 and then into 2022, proving to still be one of the major hiring pain points. The unemployment rate has dropped significantly, yet workers are still quitting their jobs at a high rate meaning that employees are quitting their jobs for other roles, rather than quitting the labor force. As the talent pool continues to grow, employers will have to be more aggressive in their recruitment and hiring process in order to attract potential candidates who are looking for the best opportunity.

Job Seekers Have the Upper Hand

One of the biggest changes made post-pandemic was the large shift from on-site work to remote or hybrid working environments. Because of COVID, many offices were forced to make the shift to distance working and since then, many companies have adopted it as a new norm. Additionally, job seekers have started preferring positions that have higher salaries and have flexible working options like remote or hybrid. This has forced companies to change their recruitment strategy, as more than half of surveyed job seekers have noted that they are seeking jobs that allow them to work from home due to workplace safety concerns and childcare or family needs. Job seekers now have the upper hand when it comes to employers being able filling open roles, but it is causing a divide between the two parties.

Retainment of Top Talent is Harder than Ever for Employers

The recruitment of skilled employees is difficult enough as it is in the current job market and employers are finding it equally as difficult to retain their top workers. With so many job openings offering better wages, better benefits, flexible working options, and better company culture, companies are having to re-examine their corporate culture, compensation, benefits packages, and policies in order to retain good employees rather than attracting other ones. Losing good employees is less about the loss of a good person and team member, but more about the negative impact on the culture when that person leaves. It’s important for employers to stay at the top of their game when it comes to compensation during a time of interest rate hikes and high inflation.

What to Change for 2023

Looking back at 2022, employers and recruiters alike are going to be looking at a multitude of different ways to avoid these hiring pain points in 2023. The best way for companies to improve this is by focusing on their corporate culture and the needs of the employee, rather than the needs of turning a profit. Focusing on things like diversity, equity, and inclusion (DEI) is a great way to change the culture of a company from within and in turn, attracts new talent that is diverse in a number of ways. Additionally, employers can add top talent by expanding their roles that were originally only on-site positions to allow for the option of hybrid or remote work. This allows recruiters to widen their search and find potential candidates with completely different skills that they would not have been able to find previously.

The recruitment challenges that many employers have faced in 2022 can be changed in 2023. There is still tons of work to do in order for companies to get back to the levels of talent acquisition that were seen pre-pandemic, but they must be able to look internally and make the necessary changes to their company policies, recruitment process, and to the overall candidate experience in order to keep up in this competitive job market.

Find Top Talent with Scion Staffing’s World-Class Recruitment Team!

If you’re looking to hire the ideal candidate in 2023, Scion Staffing has a team of experienced, award-winning recruiters looking to match your company with job candidates so you can avoid the major hiring pain points! With years of experience in creating hiring plans and navigating through the toughest hiring challenges, Scion’s recruiting team of talent acquisition professionals stay up to date with recruitment trends to bring you the top talent in today’s tight job market. To get started today, visit our website or contact a recruiter today to find your next top employee!