Trend #5: Talent Attraction and Retention in a Candidate-Driven Market

2023 1st Quarter Update

Several questions came to my mind as I think about talent attraction and retention in Q1 2023. Is the market still a “candidate-driven” market, given the recent and ongoing layoffs at large companies? Is the “great resignation” tapering off now that we are better adapted to the COVID pandemic?

For the most part, the number of hires and total separations remained relatively stable as of January 2023 (Bureau of Labor Statistics, 2023). Many (e.g., DePillis, 2023; Tarki, 2023) were optimistic about the U.S. job market despite concerns with layoffs and inflation. An article in The Wall Street Journal said that staffing in one sector (e.g., hospitality and transportation) could be making up for job losses in others. With a low unemployment rate and new jobs being added, U.S. employers are still facing fierce competition in attracting and retaining talent (see Steemers, 2023; Dennison, 2023).

Some of the most talked about trends are policies and strategies around competitive pay, the possibility of a four-day work week, remote and hybrid work, upskilling, internal mobility, and employee experience (see resources from Indeed and Glassdoor, Gartner, Kornferry, and Mercer). Those from the academics have also talked about opportunities around corporate reputation and employer branding. More specifically, they discussed how an inclusive and considerate workplace can offer an advantage in the talent attraction and retention space.

We are seeing news of additional layoffs, slowdown of economy, and bank system failing in the last month of Q1 2023. This leaves us with a lot of uncertainty about the job market and talent practices. We may see people holding on to their current jobs. We may see employers being more selective over talent. We may see prosperity being shifted from one industry to another industry. As we move into 2023, we will learn more about these trends and see where they take us in the world of work.