In the last 20 years of recruiting, 2022 saw the tightest labour market to date, and unemployment rates have remained at their lowest numbers since the 1970s.
It is predicted that the RBA will continue to increase interest rates during 2023 to address rising inflation. The slowing of the economy could prompt continued skills shortages, with some seeking new roles with higher wages to afford increased living expenses. The opposite effect may occur with employees retaining their positions due to the fear of recession.
With these factors in mind, trends may appear in recruitment that both jobseekers and businesses should be on the lookout for. Some of these trends include:
Salary
Many candidates will follow pay increases as the cost-of-living rises, and candidates still have the power to negotiate wages. Realistic expectations need to be set around wages, however, as businesses will be ensuring they place their money into candidates with the most knowledge and experience
Job Security
Increasing interest rates and talks of a possible recession means that many employees are hesitant to move on to other roles, and don’t want to be the first to leave when employed in a new position.
Workplace flexibility
Although lockdowns are behind us, many employees value working from home and are less likely to consider a position that requires working in an office full-time.
Internal promotions
Many businesses may be reluctant to add new employees into their team, and would rather opt for internal talent to step into senior roles. This is both an efficient and cost-effective method of retaining knowledge and skills within the business.
Increased use of contractors and ’Rightsizing’
With a period of uncertainty ahead, many businesses are seeking fixed or casual contracts, rather than permanent positions that will increase headcount. This allows businesses to fill positions immediately whilst having the ability to upscale or downscale as required.
Rather than adding new positions, businesses will focus on filling vacant positions. Businesses will seek to improve the productivity and efficiency of existing employees, rather than hire new employees.
Whether you’re an employee or employer, it is important to keep a watch over these trends and determine how they may affect your business or role.
If your business is looking to hire new employees, or you’re a jobseeker looking for work, the team at Impact are more than happy to provide assistance.