As 2023 begins, companies are still facing significant recruitment struggles. Labor shortages continue, and shifting perceptions about work are influencing candidates in new ways. Plus, economic uncertainty is affecting the landscape, altering the mindsets of employers and professionals alike.
Since that’s the case, employers need to be aware of top trends to ensure they can hire effectively. Here are some areas that deserve your attention in 2023.
Labor Market in Connecticut Remains Tight
While there were some headline-worthy hiring freezes and layoffs in late 2022, those aren’t indicative of a broader trend. Unemployment is generally still low. Even if there’s an uptick in layoffs and hiring freezes, those won’t necessarily shift the climate to favor employers for quite some time – if at all.
Many assume that a recession would alter this landscape. However, the size of the workforce is generally declining, and many existing skill gaps are so pervasive that even a recession may not lead to higher unemployment in some sectors. As a result, it’s best to plan as if labor shortages will remain, keeping hiring challenging throughout the year.
Remote and Hybrid Arrangements Continue for Connecticut Employers
Today, companies aren’t barred from reopening and bringing employees back to offices. However, that doesn’t mean remote and hybrid arrangements will soon be a thing of the past. Instead, many professionals find that these alternatives suit them personally and professionally, so they’ll continue to favor employers that offer flexibility.
While companies may get more leverage in industries that are impacted more dramatically by shifting economic conditions, many sectors will still favor candidates. As a result, not supporting fully remote or hybrid arrangements will continue leading to hiring challenges, so companies shouldn’t abandon these programs if they want to stay competitive.
Enhancing Benefits Packages Is Increasingly Essential
Regardless of whether employees have to work on-site or are able to work remotely, companies are enhancing their benefits to attract the best talent. Additional paid time off, robust healthcare coverage, wellness programs, mental health care, education assistance, and similar options are increasingly common. Further, companies are advertising their benefits in job listings, using them to differentiate themselves from competitors and attract more candidates.
Companies need to reevaluate their total compensation to ensure they’re at least keeping pace with other employers. However, it’s best to work to outpace what else is available, particularly if competition for top talent in your industry locally is fierce.
Greater Emphasis on Diversity, Equity, and Inclusion
Diversity, equity, and inclusion (DEI) initiatives are becoming increasingly common across employers in practically all industries. Often, DEI programs are essential for attracting candidates that are part of younger generations, as lacking proper DEI support is often a reason a younger professional may turn down a job. Many members of older generations feel similarly, though the percentage that is willing to reject a job offer due to the lack of DEI initiatives is smaller in those groups. As a result, it’s typically best to clearly dedicate to DEI as an employer in today’s climate.
Looking to hire? Contact Connecticut’s top staffing agency!
If you’d like to learn more about how your company can remain competitive as an employer, A.R. Mazzotta can help. Additionally, whether you’re looking for temporary, temp-to-hire, or permanent team members, A.R. Mazzotta offers customizable, affordable hiring solutions for any need. Request an employee from A.R. Mazzotta today.