January 13, 2023
3 Talent Acquisition Strategies for 2023
To start the new year, we heard from candidates and employers to find out what the top priorities should be for Talent Acquisition leaders in 2023. Unsurprisingly, we found that agility will remain critical this year. However, we saw that speed isn’t everything and ensuring that you focus on strategies that will resonate most with candidates can make the difference between an opportunity or a setback. Here are the top three strategies Talent Acquisition leaders should consider this year:
1. Make smart use of recruitment automation tools.
Recruiters’ roles will be demanding this year. The ever-changing labor market, advent of new technologies, and expansion of recruiter responsibilities will make their jobs even more challenging, and an inefficient recruiting process could be very costly. 1 in 2 candidates has abandoned a recruiting process because it took too long to hear back, and 29% of candidates have ignored outreach because the job didn’t match their skillset.
Leaning on automation for recruitment marketing and candidate relationship management can empower recruiters to streamline the recruiting process, keeping more potential hires in the funnel and reducing attrition risk.
Adopting automation doesn’t mean the work is done, though. Recruiters will need to have clear objectives and understand the most effective ways to incorporate automated tools like artificial intelligence and pre-recorded interviews without making candidates feel like a cog in the machine. To that end, 4 in 10 Talent Acquisition teams plan to increase role specialization and transform recruiter roles from more transactional to strategic in 2023.
2. Prioritize employee retention.
Given the increasing challenges faced by recruiters, the first line of defense in today’s labor market is nurturing the talent you have. Reducing turnover can save time, money, and stress, but retention will only become trickier as another passing year steadily moves older generations out of the workforce and younger candidates into it. By 2025, all Baby Boomers will have reached retirement age, and Gen Z and Millennial talent will be the majority of the workforce. This means you’ll need a solid retention strategy, as Gen X and Boomers intend to stay at an employer for 5+ years, nearly twice as long as Gen Z and Millennials who anticipate staying 2-3 years maximum.
As retention becomes more critical, Talent Acquisition teams will need to effectively understand and address the key drivers of employee turnover. In our candidate pulse survey, we found that 1 in 2 candidates have left a previous employer because they felt they could not advance there, and 78% of candidates view promotion opportunities as very important or essential to their career development. Building a culture of internal mobility can help employees remain nimble and engaged as their skills and preferences evolve, allowing them to see themselves at your company for a longer time.
Talent Acquisition teams have taken note and showing candidates how they will grow and advance their careers with an employer has become a cornerstone of their strategies. 40% of TA teams aimed to increase their percentage of internally-filled roles last year, and 93% reported that retaining talent is a top five goal of their internal hiring strategy.
3. Consistently update your employer brand strategy.
Candidates want to know about you. 66% of candidates said that knowing a lot about a company is very important or essential to deciding to apply there. But what you highlight in your messaging is as important as getting the message out.
The most effective messaging will address what candidates value, which isn’t so simple in today’s volatile labor market. Candidate priorities changed rapidly last year. Compensation was most important to candidates in Q1, in Q2 work-life balance reigned supreme, in Q3 job stability took the lead, and in Q4 compensation rose to the top again.
Today, amidst continued economic concerns, candidates will be especially interested in companies’ stability and they’ll want to know that they won’t be “last in, first out” at a potential employer. Keeping up with candidate decision drivers throughout the year will allow you to customize your messaging to appeal to what candidates are looking for at any given time.
Ensuring your messaging keeps pace with shifting candidate priorities will be particularly essential as the number of companies adjusting their messaging grows. In our employer benchmarking survey, 1 in 3 Talent Acquisition teams said they’re changing their employer value proposition (EVP) messaging in 2023.
Agility is the name of the game in Talent Acquisition this year. Maximizing efficiency in the recruiting process, reducing employee turnover, and staying on top of candidate priorities will empower you to roll with the punches as the talent landscape shifts and becomes more competitive. As many companies adopt new initiatives to address these changes, the organizations that adapt strategically and with the most intention will stand out in 2023.