Marcus Richards
2023 has started out as a tough year for the UK labour market. The UK’s labour force is smaller than in pre-pandemic times. With virtually millions of jobs available, this means that job-seekers have the benefit of being more discerning or critical than they otherwise would be. Additionally, it means that HR departments are having an increasingly difficult time filling open positions. Though experts predict that this trend will not continue indefinitely, thus far, there are no signs that show it slowing down.
Now, more than ever, it is important for companies – regardless of what sector of activity they operate in – to hire smart. This is even more so the case for startups that often work within tighter budgets and have an even smaller margin for error. Hiring smart means understanding the job market, including the demands and expectations of job-seekers, identifying what attracts top talent, and taking advantage of tools specifically designed to make recruitment easier and more effective.
In this short article, we’ll take a closer look at today’s job market and some tools that empower startups to hire smarter in 2023.
Why Has the Labour Force Shrunk?
As is the case with all complex situations, there are several reasons why the labour market has shrunk (in the UK and elsewhere in the developed world).
Older workers who stopped working during the pandemic have seen little reason to return to work. Many have preferred to enter early retirement. An increase in remote work opportunities and outsourcing has created a boom in freelancing and the gig-based economy. And there has also been a slight dip in immigration, which otherwise would help curb the effects of a shrinking labour force.
It’s important to understand the factors that have caused the labour force in the UK to shrink, as these factors are unlikely to last. However, startups are not in a position to simply wait it out. They need to hire. And because of the increased difficulty in hiring, due in part to the labour shortage, startups need to hire smart.
What Are the Changing Expectations of Today’s Job-Seekers?
To hire smart, we need to have a firm grasp of what today’s job-seeker is looking for, which is quite different than in previous generations.
Technological advancements have made remote work possible. And the COVID-19 pandemic made it a necessity. Both employees and employers have seen the benefit of remote work, citing specifically its positive effect on work-life balance. While remote work doesn’t necessarily suit everyone, the focus that it has brought on work-life balance does. Therefore, to hire smart in 2023, the hiring company needs to express its commitment to work-life balance, which includes:
- Dedication to the physical and mental well-being of the employee
- A reasonable work week (Some startups lean into this with offers of a 4-day work week.)
- Lifestyle perks such as restaurant vouchers and access to fitness centres
- Paid holidays
Today’s employee – much like today’s consumer – sees the company or organisation they work for as an expression of their identity. The company’s messaging and mission statement should reflect the employee’s own values. These values are collectively called company culture. Staples of company culture include:
- Diversity and inclusion
- Environmental responsibility
- Fairtrade practices (specifically the sourcing of natural products)
- Transparency
Startups have earned a reputation for being especially concerned with these shifts in employee expectations. And it is startups that have brought radical changes in the expression of a company’s hierarchy and the physical design of the workplace. The revolution of the physical design of the workspace – a revolution brought about by startups – should not be taken for granted. This is why startups need to think about interior design.
Hiring smart in 2023 should lead to a continuation of this progress startups have fostered. In your job offer, emphasise your company’s commitment to work-life balance, and create an office environment your staff will love.
Tools for Hiring Smarter in 2023
While in many respects, hiring has become more difficult in 2023 – due to the labour shortage and an increase in employee demands – on the other hand, we have seen a multitude of software programs, platforms, and advanced AI systems that make the hiring process easier and more effective. To hire smart, taking advantage of these tools is imperative.
Here is a short list, far from exhaustive, of tools that will save you time in the hiring process and increase your chances of finding the right candidate.
Applicant Tracking System (ATS)
This software application functions much like a customer relationship management (CRM) platform but is designed for job applicants. It can handle the preliminary screening process, filtering applications for keywords and criteria. It is also a useful place to store data for future retrieval or analysis when defining subsequent recruitment strategies.
Notable ATS platforms include JazzHR, PinPoint, and Workable.
Collaborative Hiring Software
Aim at making the hiring process more of a team collaboration, collaborative hiring platforms are a more specific version of collaboration platforms such as Slack. Popular collaborative hiring software, such as Recruitee, uses artificial intelligence for better candidate matching. And they enable members of various departments (not just HR) to contribute to the important hiring process. Some of the more useful features include facilitating a multi-stage interview process, evaluation, and the creation of a company career site.
AI-Powered Jobs Portals
Most job searches are conducted online. This means that if you team up with a popular online job portal that uses the latest advancements in artificial intelligence, you will benefit from an exhaustive analysis of data, which helps refine your search, better target ideal candidates, and generally speed up the recruitment process.
Most online job portals worth their salt have adopted AI or machine learning to better serve both employers and job seekers.
Conclusion
The recruitment difficulties startups are facing in 2023 won’t last forever. However, we will most likely have to endure them for the foreseeable future. To help you get through these tough recruitment times of 2023, take advantage of the advancements in technology such as ATS, collaborative hiring platforms, and AI-powered job portals. Your job offer should also reflect the evolution of employee demands, notable that of work-life balance and company culture.
