Fewer people in the United States are actively seeking work across all industries, making hiring difficult for many staffing businesses. Experts say this trend will continue as demand outpaces candidate supply. But there are changes you can make, both small and big, to help you land the talent vital to a firm’s success.
Amid this remarkable demand, talent acquisition leaders are experiencing a decrease in overall applicant volume and an increase in candidates not showing up for their interviews or the first day of work. Let’s dig in further to understand the outlook for talent supply and demand.
2023 is shaping up to be an interesting year for talent supply and demand in the United States. The economy is expected to continue to grow, but the rate of growth is expected to slow down. This will have an effect on staffing businesses, as companies will be more cautious about hiring and will be more focused on cost-cutting measures. There will be a greater emphasis on using temporary and contract workers, as well as outsourcing. This will create a more challenging environment for staffing businesses, but those that are able to adapt and change will be well-positioned to succeed.
Talent Supply
Older employees are retiring
The pace of Baby Boomer (people born between 1946 and 1964) retirements has been accelerating. This issue was exacerbated by the Covid-19 pandemic. With the majority of them out of the workforce by 2030, younger generations will not necessarily have the experience or training necessary to fill many of the jobs left behind
Changing needs and expectations
It’s clear that the pandemic has forever changed the employment landscape. More workers want better work-life balance, flexibility, and the ability to work remotely. As a result, organizations that want to succeed and close the talent gap need to evolve with the times. Businesses know they have to get creative to attract and retain top talent. And the ones that do will reap the rewards.
Talent Demand
Employers Brace for More Quits
While an increase in pay is the top motivator for making a job change (71%), this is not happening in a vacuum. The Great Resignation didn’t just happen because employees are looking for better pay opportunities. The pandemic brought in a complete rethink of work values and the place they occupy in workers’ personal lives.
Vacant Tech Positions Remain Unfilled
Despite the headlines about mass layoffs at tech startups, US employers have posted a record 1.6 million job openings for tech professionals so far in 2022, an increase of 40% compared to the same period last year. Positions for software developers and engineers accounted for nearly 30% of all employer tech job postings in April.
By 2030, Korn Ferry estimates that the global talent shortage could reach 85.2 million people, resulting in the loss of trillions of dollars in economic opportunity for companies. Here are a few emerging trends that are worth considering to stay ahead in the staffing business.
Companies Will Be Diversifying Talent Sources:-
It will be harder for businesses to recruit and retain people as the employment market becomes more and more competitive. They’ll need to start looking elsewhere for talent. As a result, they will be contacting talent pools that they have not yet utilized. This includes those who do not work at the moment, those who are underemployed, and those who reside in other regions of the nation.
Employer Branding Will Be Critical to Face Talent Disruption:-
A global, always-on talent market has been produced by the globalization of employment and technology. Organizations are being forced to reconsider how they find, hire, and keep people as a result of the talent disruption. In order to deal with this talent disruption, employer branding will be essential.
Conclusion
The US talent acquisition landscape is always challenging, and it is not easy to know what trends will prevail in 2023.
Two Takeaways: how difficult it will be to find talented workers and how employee demand will outpace supply due to the labor shortage in both the short and long term.
Suppose you want to remain proactive and competitive in 2023. In that case, you must protect your business and implement the right talent acquisition strategies, like diversifying your sources, using technology to recruit efficiently, and outsourcing.