Quick look: Employers are dealing with their fair share of recruiting obstacles due to economic instability and workplace trends upending the status quo. However, as a recent LinkedIn report points out, it’s those able to transform these challenges into true change who will experience long-term success.
The state of the workforce is constantly fluctuating, which on one hand can feel unnerving, but on the other, can be exciting as employers look to the future. Talent acquisition has always been a top priority, but as the workforce grows more demanding, small- and medium-sized businesses (SMBs), in particular, must learn how to keep pace with creative, strategic growth.
LinkedIn released The Future of Recruiting 2023 report which shares analysis from billions of data points and predictions from global talent leaders and recruiting professionals. The findings cover the roles of recruiters, influence of employer branding, and other insights as part of a comprehensive exploration of the impact recruiting has.
Employers can use these analytics as guidance and engage in a PEO solution to create data-driven, innovative ways to keep their companies on the rise. Here are a few highlights of what the report reveals about the state of recruiting and where it’s headed next.
Recruiting will transform businesses
Recruiting has always been part of the fabric of building a strong business, but now 87% of talent acquisition professionals say their roles have become a more strategic function over the past year. The ability to recruit and retain quality employees requires changes across the entire organization and not limited to HR.
Recruitment strategy is reflected in bigger hiring budgets, better employer branding, and/or an increase in skills development and growth opportunities. Leaders from every department will be affected by what HR needs to get the right people in the right positions.
Recruiters will lead the compensation conversation
The report also reflects only 45% of recruiters saying their companies increased salaries to keep pace with inflation. The chief financial officer (CFO) typically directs hiring budgets, but it’s recruiters who will guide more of the conversation in the future.
As the team who is tuned into the latest in labor market trends (such as the rise of pay transparency), job candidate priorities, and recruiting effectiveness, HR leaders are in the best position to optimize budgets to align with the needs and wants of job candidates. They will forecast whether increases in compensation are a wise investment warranted by today’s competitive labor market.
Brand positioning will be paramount
In this candidate-driven workforce, presenting the unique qualities a company has to offer is increasingly important. The LinkedIn report estimates areas many companies have overvalued as “selling points” as well other areas which require more attention.
Though flexible working arrangements are on the rise compared to previous years, it’s not the only benefit employees value. Instead, employee happiness and opportunities to develop skills rank higher in what employees want. It’s especially valuable to tune into the influx of Gen Z workers who make up nearly 50% of the workforce. This generation is:
- 47% more likely than Gen X to prioritize company advancement opportunities
- 45% more likely than Gen X to prioritize developing new skills
- 17% more likely to prioritize inclusive workplace for diverse backgrounds
Skills-first hiring will be prioritized
Educational background and employment history have long been determining hiring factors. However, the Great Reshuffle illustrated the importance of including skills as part of the selection process.
With millions of people faced with furloughs and employment gaps, as well as increased learning of new technology and career switches, skills-first hiring has become central to for 75% of recruiters. 50% of recruiters were more likely to search by skills than experience on LinkedIn, and 25% were more likely to search by skill than they were three years ago.
AI will enhance the humanness of hiring
A report about the future has to include a nod to generative artificial intelligence (GAI). In terms of recruiting, 68% of those surveyed felt “very hopeful” or “cautiously optimistic” about the value GAI could have. Of those who were open to the possibility of using GAI:
- 74% want automation of repetitive tasks to prioritize more strategic work
- 67% want faster/easier ways to source candidates
- 59% want faster/easier ways to engage candidates
Evaluating intelligence and market data is beneficial, but it’s the human element which will make the difference when building a company.
Why recruiting efforts call for PEO support
Acquiring new talent requires a full-time effort, particularly in a time when serious changes have been made. The global pandemic and a near-majority takeover of a younger generation entering the workforce has forced everyone to view recruiting a bit differently.
For SMBs, staying competitive with bigger companies in terms of compensation, benefits, and time allocation is challenging to say the least. Therefore, the future of recruiting also includes a rise in professional employer organization (PEO) solutions. A PEO offers Fortune 500-level benefits and comprehensive HR services at cost-effective rates, all tailored to meet a company’s specific needs.
Yet, most PEOs offer recruiting as an a la carte service, rather than an automatic inclusion. But ExtensisHR does things differently by exclusively offering talent acquisition as part of an all-encompassing portfolio of services. SMB leaders have instant access to:
- Full-service recruiting for most staff level positions
- 30-minute phone consultations with a dedicated recruiting specialist
- Job advertisement samples, guidance, and creation
- Salary surveys
- Skills assessments
- Interview assistance
- Talent pool analytics
- Offer letter consultations
- … and more
Meanwhile, with ExtensisHR’s Recruiting Cloud Applicant Tracking System, job posting, application tracking, and candidate communication are streamlined and simplified. Therefore, SMB leaders can focus their time on revenue growth and other areas of operations while leaving the responsibilities of recruiting in the hands of HR experts.
Keeping up with workforce trends is demanding on its own, while also staying compliant with changing regulations from year to year. With so many moving parts, it requires the experience and expertise of a team like ExtensisHR. The tools and technology of a PEO solution move the process along, and the person-to-person approach is what helps SMBs attract and retain top talent.
Learn more about how our team can help optimize your recruiting efforts. Contact ExtensisHR today.