Despite layoffs and economic uncertainty, 87% of staffing, recruiting, and HR leaders have a positive outlook on hiring

Despite headlines about inflation, a sluggish economy, and job cuts by tech companies (current estimates stand at 40,000), the job market remains favorable for candidates, according to HBR. Furthermore, BLS data shows recent layoffs are low by historical standards. 

How are recruiting, staffing, and hiring professionals weathering the storm of uncertainty? So what do hiring professionals believe? Glider AI surveyed 130 staffing, recruiting, HR, and contingent workforce leaders to gauge their perspectives. The survey revealed a more positive outlook and insight into their obstacles and intentions for 2023. 

Insight #1: A strong job pipeline and positive revenue outlook 

In line with the BLS and HBR findings, most hiring professionals reported a more robust job pipeline for 2023 compared to 2022. Only 13% expressed worry about the state of their job pipeline.

Insight #2: DE&I / hiring for diversity hiring remains critical

Commitment to diversity, equity, and inclusion (DE&I) continues as a priority in 2023, with 90% indicating it as a medium-to-high hiring focus. Participants also shared a need to grow diversity awareness across the entire organization outside of HR and talent acquisition teams, including with external vendors. 

The general public sentiment about DE&I is that there is more talk than action. One of the study’s participants, Jessica Smith of Savant Recruitment, echoed what many other DE&I leaders talk about, sharing: 

“I would love companies to advance their thinking about DEI and focus on implementing rather than just saying they will do it with no action behind it. Generationally, Millennials and Gen Zers are trying to move the needle. With the pandemic, more and more women have left the workforce to start their own ventures. I think that if we don’t see more change in diversity, equity, and inclusion needs, e.g. mandating back to the office, we are going to have a huge staffing challenge, if not worse for 2023.” 

Insight #3: A growing trend toward skills-based hiring 

The mass layoffs by big tech have not quelled demand for technical talent; 70% reported prioritization for technical hiring. And although the need for non-tech positions was lower, 34% identified recruiting top non-tech talent as their top priority. Ninety-eight percent of the hiring leaders, whether recruiting for technical or non-technical positions, shared alignment on validating candidate skill and fit as a top priority. 

To validate the move to skills-based hiring by the enterprise, an HR leader from PwC shared how they think about staffing for the future as a  “[F]ocus on core forward-looking skillsets, and reusability of resources across work streams.”

Unsurprisingly, due to the demand for skilled talent, skill development programs for existing employees was also seen as a top priority for more than half of all hiring leaders. 

Though what isn’t always apparent to employers is the relationship between skills-based hiring and other efforts like DE&I, and ESG programs, as shared by staffing leader, Arthur Ransier, 

“Going into 2023, investors and consumers demand greater accountability from those with which they do business. Notwithstanding concerns and inconsistencies with how ESG is measured, investors and consumers want businesses to make an impact on their community, make responsible decisions, and otherwise prioritize long-term value creation over short-term profits.” 

Read more: Prepare your clients’ benefits strategy to withstand economic and workforce challenges

“These expectations translate into greater investments in upskilling & reskilling, supplier diversity, workforce diversity, job taxonomies & eliminating barriers to employment, fairness in compensation & promotions, inclusive business practices like open strategy, and otherwise further democratizing the world of work.”

For additional data points, you can access the report here.