As the world emerges from the impacts of the COVID-19 pandemic, change is the only constant. This year’s big news — the newest round of big tech layoffs (which might already be over) and the unprecedented speed of impact in the advancement of AI (which is more likely to generate employment).
You’ve seen headlines and read about these trends repeatedly, so that’s not what this article is about. Instead, we are taking a deeper look at what both employers and professionals can expect from the world of hiring in 2023 and beyond. We’ll cover:
- The key drivers and demands in global hiring
- New players and new norms emerging in the market
- Top trends in HR practices
- The skills and sectors on the rise for those staying behind
- Must-know for employers and employees
Read on to learn about the latest trends in global hiring.
Key Drivers: Technology and Automation
We may have said that this article isn’t about AI, and it’s not only about it. But it’s hard to ignore the impact of technology and automation on the global labor market. There is no denying that digitalization generally and artificial intelligence specifically, are changing the way we work.
Over 75% of companies surveyed by the World Economic Forum are looking to adopt cloud, big data, and AI technologies in the next five years if they haven’t already. That’s going to create an uptick in demand for those skills. Technological literacy will become not just important but essential for job-seekers.
Meanwhile, traditional manual labor and industriesare already seeing a rapid change in operations. Automation is becoming the mainstay. Despite fears of mass layoffs, research predicts that more jobs will be created than lost.
However, the skills companies are looking for are different from the past. As such, many will see their professional profiles obsolete, posing important challenges to companies and governments in upskilling and re-skilling those who will lose their jobs due to automation.
Key Demands: Remote Work and Work-Life Balance
While companies look for new skills, workers will continue searching for a healthy work-life balance. They’ve now tasted freedom, and they like it. Despite the many reports of companies mandating staff back to the office, the hybrid model is here to stay; and remote work will continue in its popularity.
The advantages of remote work are undeniable. Working remotely has been proven again and again to increase productivity, retention, and happiness among employees. While many prefer a hybrid workplace, there is no denying that the flexibility of working from home at least part of the time adds value.
In Canada, 80% of employees found that hybrid work positively impacted their work-life integration and overall well-being; 50% said they would look for another job if asked to return to the office full-time.
In the US, 12.7% of employees worked from home in 2023, and 28.2% followed a hybrid model, according to one report. Another study notes that 58% of workers could work remotely at least some of the time. Of all workers surveyed, 98% want to work from home at least some of the time for a healthier work-life balance. While the exact numbers may vary, it’s clear that remote work isn’t just a temporary fad.It’s here to stay.
Interviews and studies have shown that remote and hybrid work policies create more diverse and inclusive environments. People with different mobility or neurodiverse abilities, for example, find it easier to work remotely. Women and parents benefit from the flexibility of hybrid workplaces, which gives them more control over their work hours and personal life.
And ultimately, so do organizations, as they have access to a wider pool of local and international talent, happier employees, and a more productive workforce.
New Players: Gen Z
That’s right, Gen Z — those born in the late 90s and early 2000s — have begun joining the workforce over the past few years. And yes, many of them got their first job during the pandemic. This has had a significant impact on their soft skills. While Gen Zs are incredibly skilled in emerging technologies, they may need support in face-to-face environments.
They also have different priorities. The top three factors that matter to Gen Zs in the workplace are opportunities for advancement, training and development, and diversity and inclusion. They are also looking for a good work-life balance.
Just like millennials, Gen Z will disrupt the world of work. They are self-aware, have high expectations, and will make up over a quarter of the workforce by 2025. Companies must adapt to these new entrants by offering more training and flexibility than before. But they will also reap the benefits of advanced knowledge of the latest tech.
New Norms: Gig Economy
The gig economy is booming. Amid economic uncertainty, employers prefer short-term workers and contractors. They also benefit from accessing specialized skill sets by turning to freelancers. For example, contract job postings in the US grew by 26% in 2022, while full-time positions grew by only 6%.
But it’s not just employers making the shift. Poor work-life balance and declining mental health have also encouraged professionals to take on contract work over a stable job. Many prioritize their personal time and personal relationships over long hours spent on the job.
Taking on contracts with multiple clients offers better work-life integration, giving them control over their time. Plus, they benefit from diversifying their income sources, not relying on one company to ensure their economic stability.
HR Trends: Applicant Tracking Systems (ATS)
HR practices haven’t escaped the impact of AI. The use of applicant tracking systems is rising and continues to grow in talent acquisition.
An ATS helps HR departments sort through job applications and streamline hiring processes. The centralized database and management system t handles job applications, resumes, and candidate information.
The efficiency ATS offers is unprecedented. Companies note that using an ATS can shorten the screening cycle to 48 hours from three weeks.
Besides faster screening and hiring — which are crucial in the competitive job market — ATS can help companies eliminate bias during hiring processes. The systems can anonymize candidate profiles so hiring teams can make more data-driven decisions without letting subconscious bias impact their hiring processes.
There are, however, downsides to using an ATS. Because it responds to present filters and conditions, candidates with alternative profiles may fall through the cracks. This can prevent companies from accessing bright talent who doesn’t have a traditional resume that exactly matches the job description.
HR Trends: Diversity, Equity, and Inclusion
Another big trend that continues to dominate HR practices is diversity, equity, and inclusion.
There is no denying that strong DEI practices come with many benefits for companies. Not only do they create a better company culture, but organizations also enjoy up to 33% higher profitability thanks to ethnic and gender diversity. Plus, prospective employees prioritize companies with strong DEI initiatives over others.
Even amid the sluggish economy, most companies are not lowering their commitment to DEI. But despite their efforts, progress in this area is slow. In tech, for example, both gender and ethnic diversity are hard to come by. Thus, companies looking to compete must spend time investing in effective DEI policies.
Some core strategies for more inclusion include using inclusive language throughout the hiring process and workplace policies, encouraging salary transparency, using ATS to remove hiring bias, implementing flexible work policies, and encouraging learning and development within your organization.
Top Skills: Analytical and Creative Thinking
In 2023 and beyond, companies will continue prioritizing soft skills as an important factor in their hiring decisions. With the advent of AI, these are increasingly crucial for professionals to remain competitive.
Sure, AI can automate many tasks, but it’s not yet capable of complex human thought processes that aren’t driven by its training data.
As such, companies are prioritizing the following skills, according to the World Economic Forum:
- Creative thinking
- Analytical thinking
- Technological literacy
- Curiosity and lifelong learning
- Resilience, flexibility, and agility
- Systems thinking
These skills will place candidates ahead of the competition in the future job market.
Growth Sectors: Education, Agriculture, and Digitally-Enabled Roles
Interestingly, tech isn’t the only sector that will continue to see net job growth. Several industries will experience an uptake in the number of jobs and skills requirements.
The education sector at all levels is expected to add 10% more jobs, amounting to about three million new posts over the next few years.
Agriculture, particularly operating machinery that facilitates agricultural processes, will grow a whopping 30%. This is also expected to create about three million new jobs.
Finally, roles outside of the technology sector but enabled by technology will also continue to grow. This includes digitalization specialists, e-commerce workers, digital marketers, and other roles that use digital tools to facilitate tech-driven processes within organizations.
Decline Sectors: Traditional Administration, Manufacturing, and Commerce
As we transition into an AI and tech-enabled world, there will also be jobs that disappear as they have with every technological revolution. The sectors that will take a big hit in the near future include traditional administration, manufacturing, and commerce.
For example, companies will automate most record-keeping and admin processes. Retail will switch to digital clerks and tellers, no longer needing as many workers on the retail floor. Anything that involves manual repetitive tasks like bookkeeping and data entry will largely be replaced by automated systems.
Manufacturing is likely to experience a different shift. While many traditional jobs will disappear, like factory line work and manual processes, others will be added. Staff will be needed to control and manage the machinery in manufacturing processes, requiring upskilling and reskilling of many workers.
A Must for Employers: Global Hiring
With the rise of remote work and increasing competition for top talent, companies are turning to international job markets to onboard the best talent. No longer constrained by local hiring, organizations that want to stay ahead will embrace global talent and reap the benefits.
Hiring globally has many benefits for employers, so the trend is here to stay. Companies benefit from access to a wider pool of talent and a more diverse workforce, which creates more global opportunities. They can also tap into new international markets and enjoy a wider range of skills profiles at the best market value.
Of course, global hiring is not without its challenges. Global employers will need to stay up-to-date on international hiring laws as country policies slowly adapt to the evolving need for remote and international hiring and tax regulations.
A Must for Employees: Reskilling and Up-skilling
With the imminent changes, employees will need to re-skill and up-skill to remain relevant in tomorrow's job market. With AI automating much of today’s manual processes, it will be crucial to develop new skills. Those who adapt quickly will be on the winning end of the global competition for talent.
Employers will play a crucial role in making this happen. We are quickly moving into a market with many skill gaps as new needs emerge driven by the latest tech. Companies that implement robust learning and development policies will be able to attract and retain top talent.
Organizations are increasingly looking toward internal candidate mobility and silent hiring to fill those jobs where specialized skill sets are required. This trend will only continue as employees look for companies that provide strong re-skilling and upskilling programs.
Learning and development will also play a crucial role in enabling DEI. It will be the thread that connects successful organizations — attracting top talent, increasing retention, promoting inclusion, and benefiting from scarce skill sets other companies won’t be able to access.
Catch the Latest Trends with Borderless Insights
Enjoyed this article? Don’t miss a beat when it comes to global hiring trends on our Borderless blog.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
