While 2022 is coming to an end, it’s helpful to prepare your small businesses for the future by looking at the expected hiring trends of 2023. Experts expect the following hiring trends to grow in 2023: ongoing labor shortages, more frequent job hopping, more frequent background checks for existing employees, job seekers placing more importance on a potential employer’s morals and values, and the continual growth of remote work. All of these trends can be maximized by small businesses owners to set themselves up for their most productive year yet.
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When winter’s coming, some drivers switch to snow tires. Similarly, preparing for the upcoming hiring season can help position your small business for the best chance of success in the coming year.
The past year brought major changes to the American workforce. As the country settles into a post-pandemic normal and the workforce stabilizes, there are several important hiring trends you need to know about.
Below, you’ll find five major workforce and hiring trends expected by experts in 2023––and what you can do in your small business to make the most of them.
1. Ongoing Labor Shortages May Require Stronger Recruitment Strategies
After peaking in early 2022, the unemployment rate stabilized later in the year and has remained relatively fixed at under 4% since then, according to the Department of Labor. While this may sound good for the country, it’s created a major labor shortage. When unemployment rates are low, hiring can get more competitive because there are fewer highly-qualified people available for a larger amount of jobs.
Additionally, the Department of Labor also reports that, since the beginning of the pandemic, 3 million people have left the workforce earlier than expected. This combination of fewer workers and more open positions has left many businesses scrambling to find top-quality, reliable workers.
How to Maximize this Trend in 2023:
Ongoing labor shortages are expected to continue in 2023. With more employers competing for fewer workers, it’s critical to optimize your recruitment game and become a more desirable place to work.
Some specific strategies to attract and retain great employees include:
- Offering remote working opportunities
- Offering low-cost perks like pet-friendly offices
- Implementing employee recognition programs at all levels
- Setting clear expectations from the beginning with high-quality onboarding
2. More Frequent Job Hopping Means You May Have to Work to Retain Good Employees—or Else
Job hopping is becoming increasingly common. According to Pew Research, about 30% of American workers switched jobs in 2022––and over half found jobs with higher pay. Whether you’re recruiting millennial employees or those younger and older, it’s critical to know how to prevent good employees from jumping ship. If not, you may end up with a revolving door––and an unstable, unproductive team.
While a competitive, continually growing salary is important to job seekers, rising pay isn’t the only thing that encourages employees to stay put. According to Harvard Business Review, the biggest factor that leads to employee turnover is allowing a worker’s job to stagnate. This is the case even when accounting for other things like pay rate and job title.
How to Maximize this Trend in 2023:
As you prepare for 2023, focus on keeping your best performers by implementing these effective retention strategies for small businesses, which include:
- Giving regular, effective feedback from managers
- Setting goals to keep employers engaged
- Having a clear career path forward
- Working within a supportive company culture
- Receiving a competitive salary with regular increases based on performance and cost of living raises
3. Continuous Background Checks are on the Rise
When hiring new people, most organizations conduct several types of background checks. This makes sense, as screening job candidates helps protect your current staff, property, and livelihood from potentially destructive workers. However, very few companies ever screen candidates ever again once an offer letter is signed.
According to the Society for Human Resources Management (SHRM), only 11% of employers ran annual background checks in 2018. However, that number continues to rise every year.
In 2023, it’s predicted that the number of organizations conducting ongoing background checks on employees will continue to go up––and with good reason.
Skipping continuous background checks can be extremely dangerous. After all, a lot can happen in a year—or multiple years. How else would you know if one of your current employees has been convicted of fraud, violent assault, burglary, vandalism, or other relevant crimes that could potentially threaten your small business? It’s your responsibility to make sure the people you hired are still trustworthy, reliable, and are not a threat to your employees, customers, or bottom line.
How to Maximize this Trend in 2023:
In addition to the screening you run when bringing new people onboard, consider adding regular re-screening policies to your operating procedures. Make it a habit to screen everyone at regular intervals, such as annually, as well as after key incidents like fraud attempts or workplace accidents. The same SHRM article mentioned above pointed out that some of the most common recurring screening employers conduct include:
With ShareAble for Hires, you can get all of these reports in one convenient, affordable screening package. With near-instant, FCRA-compliant results you can feel more confident about the safety of your current staff without any bureaucratic hassle.
4. Employer Branding: Millennials and Gen-Z are Attracted to Company Mission and Values
As younger workers enter the workforce in 2023, they aren’t just looking for a paycheck. They want to make a difference. According to a LinkedIn survey, 80% of Gen-Z respondents said they desired to work for a company that shared their own personal values and interests, as compared to 59% of Millennials and only 47% of Baby Boomers. In 2023, the trend for finding mission-driven work is expected to grow.
How to Maximize this Trend in 2023:
Younger workers are more-drawn to work that aligns to their strongly-held personal beliefs. They’re also more likely than previous generations to choose employment based on a company’s ethics and avoid working places that violate their own values.
To maximize this growing trend, make it easier for potential and future employees to know who you are and what you stand for. Define your mission and highlight the company’s values when writing your job description.
5. Remote Work isn’t Just Staying Put—It’s Growing
Remote work is a flexible, well-liked perk of many organizations and can be a great draw for recruiting and retention. According to Forbes, 25% of the entire U.S. workforce will be remote by the end of 2022. It’s expected that this trend will only become more popular in 2023.
How to Maximize this Trend in 2023:
Consider offering remote working opportunities where it makes sense. However, be warned: just because someone is remote doesn’t mean they can’t harm your company. Don’t let your background check policies slip just because you’re hiring remote workers. Make sure to screen all remote workers with a reputable company like ShareAble for Hires.
Help Gear Up for 2023 with ShareAble for Hires
Some things, like the unemployment rate, change with time. Others, like the necessity to protect your business with high-quality pre-employment screening never do. Help prepare for whatever 2023 has in store with ultra-fast, affordable background checks through ShareAble for Hires.
Remote workers may never set foot in your business, but that doesn’t mean that they can’t cause devastating harm. Criminal record checks scour 370+ millions federal and state-level crime databases searching for a match to your job candidate. Meanwhile, identity checks help ensure your candidate is really who they say they are––no matter where they are. Learning what your potential employee’s past contains can help you make more confident hiring decisions.
Speed is everything in a competitive job market. ShareAble for Hires reports are conducted entirely online. Completed from anywhere and delivered in moments, you don’t have to wait around for results and risk a great candidate taking an offer elsewhere. With instant sign-up and no barrier for screening, simply create a free account and start screening immediately. Pay only for what you need and only when you need it with no hassle, subscriptions, minimums, or other hidden fees.
Help make 2023 your most successful year yet with fast, affordable screening through ShareAble for Hires.
