The US is in the midst of a record-high labor gap, as the Bureau of Labor Statistics shows that there are now 2.8 million more jobs than employees to fill them, and this situation is mirrored in many advanced economies around the world. There is pressure for talent acquisition leaders to create strategies that will enhance talent sourcing, improve candidate engagement, speed up the hiring time, and enable their organization to compete for top talent in the market. Facing the current norm of unpredictability, how can companies respond to the challenges while developing the structure necessary to prepare the organization for long-term stability? How can you place workers at the center of your business growth?
It's time to change and recharge global talent acquisition strategies, refresh the talent experience needed and renew skills across your company's workforce to have a competitive edge. It's time to put employees first to future-proof your company.
10 Global talent acquisition trends to watch in 2023
The pandemic has shown the need to be both risk-aware and opportunistic. Workers are seeking a sense of freedom and joy to reshape their lives. Companies have solid plans for reinvention but are they directing their focus toward what will really make a difference?
Here are 10 trends that define the current global talent acquisition.
1. Finding talent in emerging markets
Countries and locations that businesses may have previously ignored are producing more productive talent pools that can help employers solve talent shortage issues.
According to a report, 77% of recruitment professionals said skills shortage is the leading hiring problem. This has been an ongoing problem for recruiters and will continue to be that way in 2023. As such, talent shortages in home countries have forced some companies to explore further across their borders for the right talent. Tapping into emerging markets provides companies with a competitive edge.
For instance, tech companies may want to explore unexpected locations like Uruguay for the future of global talent in technology. In one study of the 20 top companies involved, India emerged as the only economy expected to maintain a talent surplus between 2025 and 2030. Most developed markets will be adversely affected by talent shortage and will have to turn to emerging markets for the skilled workers they need.
2. Resumed efforts toward global expansion
Because of the global pandemic, the business world will never return to how it was before 2020. Many companies had to pause or slow down their international expansion efforts due to travel bans and several other concerns. While companies aren't sure of the future regarding the lasting effects of the pandemic, many expect to return their focus to global talent acquisition.
Covid-19 created temporary challenges to global expansion, but for some companies, it also shed some light on the potential benefits of global talent acquisition. Developing international teams and acquiring more remote workers can be a strategic approach to diversifying and preparing for the future.
3. More flexibility to required qualifications
Although some emerging markets show impressive growth in their citizens' education levels, talented individuals in these markets may still lack the credentials your company usually looks for. If you want to recruit an individual with a master's degree in your field, for example, and at least five years of experience, chances are that you'll miss out on some valuable talent in a location where workers aren't likely to have the qualifications you want.
The best approach is to consider relaxing your usual standards in order to find qualified candidates. This doesn't mean lowering your standards regarding the candidates' skill sets; it could mean reducing some degree or certification requirements that might hinder your company from acquiring genuinely talented workers in your field.
4. Focus on agile and teachable talent
Apart from shifting their focus from formal qualifications and leaning more toward skills, companies must also focus on attracting and hiring agile and teachable employees. Increasing digitization, a changing and evolving global economy, and the pandemic-related challenges have all demonstrated how important it is to keep your business agile. So for your company to solve the new challenges and adapt to trends, you need workers who are able and willing to learn new skills and allow their roles to evolve as needed.
This trend will be an integral talent acquisition strategy for many employers in the future. Having the skills to do a good job now doesn't necessarily mean that workers will deliver the same value next year or in ten years. Harvard Business Review states that talent reskilling is no longer simply a good idea — it's a significantly necessary strategy for economic recovery after the global health outbreak.
There are some aspects of agile thinking that companies want to see in their new employees. Preparing for and understanding multiple business situations is the most in-demand skill. Other key skills needed include managing opposing views, innovation and handling ambiguity and complexity.
5. Emphasis on diversity and inclusion
Diversity is no longer a new concept in the business world. According to a 2019 survey, 71% of UK, US, France and Germany employers said their companies hired a diverse workforce. This statistic still provides plenty of room for growth. How companies embrace diversity and inclusion will continue to define global talent acquisition trends. This may include removing potential bias sources in the recruiting process or finding strategies to integrate domestic and international teams.
Companies that have globally expanded their operations understand the unique advantages of diversifying a team. Workers with different cultures and backgrounds can bring new perspectives and valuable insights to the team. In addition to cultural diversity, a well-balanced diversity of ages, genders, experience levels, and belief systems can help you build a truly diverse team.
Diversity and inclusion benefit your company and enhances employee morale. An Employee Survey by Globalization Partners 2020 found that 90% of employees in a diverse company report higher levels of trust, happiness and inclusion. Particularly, they are more likely to trust leadership. If your current workforce is mainly homogeneous, you need to push for a more diversified workforce as it continues to emerge as a top global talent acquisition trend.
6. Increased remote workers
Remote work has been increasingly gaining traction for several years now. The Covid-19 pandemic then transformed it into the new normal even for employers who were mainly against this model in the past years. This necessary transition will have a lasting impact, according to experts. For example, in the US, it's expected that 26.7% of employees will be fully remote by 2021 compared to the 12.3% before the pandemic.
If you want to develop international teams but lack the resources or the need for a physical business entity in a specific country, you need to consider hiring local remote workers. Use the experience and insights your company gained during the pandemic managing remote teams to acquire remote employees that can help you grow and thrive in the evolving business world.
7. More use of tech tools
As with several other global talent acquisition trends, technology, especially artificial intelligence (AI), isn't an entirely new concept. Technology has continuously assumed a more prominent role in defining how we do almost everything, including talent acquisition. However, many employers are still used to traditional processes.
Companies can use various digital tools to digitize and automate their hiring processes through an applicant tracking system (ATS). This software program helps facilitate your recruiting process in several ways. One of ATS's primary functions is filtering applications depending on keywords and other criteria to reduce the list of applications you'll have to review manually. Without these programs, you'll likely have to dedicate a great deal of effort and time to activities that could be automated.
Employers are also expected to employ AI-powered chatbots more regularly. While you may already have a chatbot on your site to help customers with questions about your product or company, you should use the same feature to assist job applicants with their questions. By developing a chatbot approach, your company's application process can be helpful for both job seekers and your company.
8. Focus on virtual communication
Workers worldwide point to communication and collaboration as the largest struggle they face when working remotely. Whether you are recruiting international or remote employees, you'll discover that a lot of virtual communication is included as one of the global HR trends. Online communication tools will be critical, especially if travel bans and the inability to hold in-person meetings continue to be challenging. For instance, recruiters will have to employ video conferencing tools and programs to interview candidates. The option may seem weird to some, but it provides some benefits. Hiring remotely saves you travel costs, and conducting all communication online from the beginning can help you understand how well candidates communicate.
To prepare for this global talent trend, employers must find the best virtual communication tools for their needs. Additionally, they need to learn video conferencing etiquette which may vary from place to place. The most popular platforms or apps for virtual communication may as well be country-specific. Thus, the key is to find online collaboration and communication tools that will serve you and your employees best during recruiting process and beyond.
9. Emphasis on recruitment marketing
The job market has increasingly become employee-driven. Instead of workers trying to conform their needs and expectations to match what employers are offering, the opposite is happening; Companies are tailoring the benefits and perks offered to appeal to modern employees. This also means employers are creating job ads with similar goals as their marketing campaigns, essentially trying to sell the job position and their company to interested job seekers.
Recruitment marketing software is a current technology trend shifting the face of talent acquisition. This software brings marketing strategies to enhance the hiring process and help you appeal to the right talent. Recruitment marketing describes how you write your job ads and where you market them to ensure they won't be ignored or missed.
Recruitment marketing is particularly crucial if you are recruiting in a tight market like Japan. When employees are bound to receive numerous job offers or may be reluctant to change their current positions, your company needs to persuade them to join your team.
10. Easier international recruitment through an EOR
Global expansion was a critical goal for top companies while small to mid-sized ones maintained a more local focus— this trend is changing. Small companies are now broadening their focus, and most businesses use an Employer of Record (EOR) or a Professional Employment Organization (PEO) to help. Companies of different sizes can use an EOR to acquire international workers without building a business entity in the country from where they hire.
For example, the National Association of Professional Employer Organizations in the U.S has reported a sustained growth pattern in the PEO industry since 2008. More businesses are discovering how valuable this kind of partnership can be. You can't afford to jump on recruitment trends for international workers if you're bogged down by building a subsidiary in another location and researching the employment laws you'll have to comply with.
Since an EOR will already have an established business entity in the country, you'll simply need to understand how to follow employment laws and be ready to add your workers to the payroll right away. Partnering with an EOR can save you significant money and time and free up your time to focus on finding the best candidates to join your team.
Looking to the future of recruitment
The year 2023 presents a continued transition to new styles of working across industries. Considering international talent trends and staying connected and engaged with your workers, as well as understanding what they value most, is now crucial.
As the focus transitions to survive in an evolving world, these global talent trends based on nurtured workers, conscious work culture, stronger teams, upskilled employees, transparency, flexibility and regular check-ins - all enhance growth with long-term rewards. Learn more here.