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ThefutureoftalentacquisitionThelastfewyearshaveseenunprecedenteddisruptionsinwhen,where,how,andevenwhywework.Aswelookto2023,KornFerrytalentacquisitionexpertsfromaroundtheworldoffertheirthoughtsonwhatthecomingyearwillbringtothejobmarket,howchangingmarketconditionswillimpactworkforceplanning,andwhatemployerscandotoevolvetheirstrategytoattract—andretain—thebesttalent.27trendsthatwillshapetalentacquisitionin20233Movingaround—butnotout.Thankstoadynamicjobmarket,professionalsarenolongerthinkingofcareergrowthintraditionalterms.Instead,theyareditchingtheladderforthelattice,makingmovestootherareaswithintheircurrentorganization,signalingagrowinginternalmobilitytrend.Inmanycases,companieswillusetalentanalyticsandworkforceplanningtodeterminewhichnewrolesareneededtofutureproofthebusinessandwhichemployeesmightbeagoodfitforthoseroles.Goingforward,employerswilllikelybegintoputmoreemphasisondevelopingtheircurrentworkforce,offeringregulartrainingsandcertificationprogramstoreskillorupskillinternalcandidates.Increasingly,companieswillutilizeAIprogramsthatusepredictiveanalyticstoauditemployees’existingskillsets,shortlistpromisinginternalcandidatesfordifficult-to-fillroles,providetailoredcareerdevelopmentcontent,andcreatepersonalizedcareerpathwaysbasedongoalsandinterestareas.Investingininternalmobility—andcreatingrolestomanageit—willnotonlyhelporganizationsmotivatetoptalentanddevelopmorediversepipelines,expertssay,butalsotofillopenrolesandmeetcriticalneedsamidstalledhiring.4EmployeeswhoEmployeeswhofeeloverworkedandundervalued,andseenoroomforgrowth,willnolongerstayintheirroles.5ConsideritanantidotetotheGreatResignation.EvenwiththeCOVID-19pandemicintherearview,expertssay,professionalscontinuetore-evaluatetheirworkandtheirpurpose;employeeswhofeeloverworkedandundervalued,andseenoroomforgrowth,willnolongerstayintheirroles.In2023,companiesdedicatedtocontinuousemployeeempowerment—wheretalentiscross-trainedanddevelopedintootherroles—willlikelyseeanincreaseinengagement,commitmentandloyaltyamongtheirworkforces.personalizedcareerpathwaysbasedongoalsandinterestareas.Investingininternalmobility—andcreatingrolestomanageit—willnotonlyhelporganizationsmotivatetoptalentanddevelopmorediversepipelines,expertssay,butalsotofillopenrolesandmeetcriticalneedsamidstalledhiring.6TalentAcquisitionandTalentManagement:From“it’scomplicated”to“inalong-termrelationship”Itdoesn’tpaytomakeagreathireifthatpersondoesn’tstickaroundforverylong.That’swhy,goingforward,talentacquisitionandtalentmanagementteamswillbegintoworktogethermoreclosely,fromthestartofthehiringprocessthroughcareerdevelopmentandsuccession.Forsolong,talentacquisitionandtalentmanagementhaveoperatedasseparatefunctionsunderthehumanresources(HR)umbrella.Butwiththepandemicupendingeverythingweknewabouttheworldofwork,andcompaniesseeingarecordnumberofresignations,thelastfewyearshaveunderscoredtheneedforacloseralliancebetweenrecruitersandtalentmanagers.Bypartnering,talentacquisitionprofessionalsandtalentmanagerscancreateaconnectedjourneythatstartswiththerecruitingprocessandcontinuesthroughtheemployeelifecycle,leveraginginsightsgleanedfromonepointacrosstootherstoturnmomentsintomomentumintheircareer.Thiswillhelpnewhiresfeelvaluedandrespected,becauseitshowstheirpersonalandprofessionaldevelopmentissupportedandsignalthattheiremployerisinvestedintheirsuccess.Inturn,expertssay,employeesaremorelikelytostayonthejob—forlonger—andbemorecommittedtotheirwork.Infact,onesurveyfound34%higherretentioninemployeeswhohadprofessionaldevelopmentopportunities.7What’smore,expertssayamoreconnected,integratedprocesswillallowemployerstobetterleverageandredeployexistingtalentasbusinessneedsdemand.In2023,recruitersandtalentmanagersshouldworktogethertoensurethatthedatacollectedduringtherecruitmentprocessisusedthroughouttheemployeelifecycle,makingsuretheemployeeisdevelopingthroughouttheircareer.Employerscanstrengthentheinterconnectivitybetweentheirtalentacquisitionandtalentmanagementteamsbyinvestingincloud-basedtalentplatformsthatallowrecruitersandtalentmanagerstoshare,capture,andleveragetalentdatatonotonlydeliveraprogressiveemployeeexperience,buttoalsohelpthebusinessgrowforinternalmobility.Andthebenefitistwo-fold:companiesthatdeveloptheirworkerswillretainmoreofitsworkforcediversityandbecomemoreagileandefficientinrespondingtochangingmarketconditions.Companiesthatdeveloptheirworkerswillretainmoreofitsworkforcediversityandbecomemoreagileandefficientinrespondingtochangingmarketconditions.8Executivesandprofessionalsfor(short-term)hireTheCOVID-19pandemicnotonlychangedwhen,whereandhowpeoplework,butalsothetypeofworktheydo.Overthelastthreeyears,moreandmoreprofessionals—ofallagesandalljoblevels—havedecidedtoleavetheirfull-timejobstopursueinterimorcontractwork.Andthenumberofglobalinterimworkersisonlyexpectedtogrowin2023:toroughly78millionfromabout43millionin2018,accordingtoonesurvey.Whymoreprofessionalsprefershort-termgigstofull-termworkvaries.InoneKornFerrysurvey,21%ofinterimprofessionalssaidtheyprefertheflexibility,48%saidtheylikeusingtheirskillstosolveuniqueproblems,and26%saidtheywantabreakfromthetraditionalcorporatelifestyle.Nomatterthereason,companiesaretakingnotice.Goingforward,insteadofrelyingonlyonfull-timeemployee(FTE)hires,employerswillalsolooktointerimexecutivesandprofessionalstomeetscalingworkforceneeds.Indeed,inthesameKornFerrysurvey,52%ofprofessionalssaidtheyseetheclientdemandforinterimemploymentgrowingin2023.Andotherresearchshowsthat80%oflargeorganizationsplantoincreasetheiruseofcontractworkersinthecomingyears.ThereareThereareseveralbenefitstoemployinganinterimemployeeapproach.Peoplewhochooseinterimorcontractworkareoftenhighlyskilled,mission-orientedandproject-basedindividualswhoassimilatequicklyintonewenvironments.Theycanbringuniqueskillsetsandexperiencesneededforfiniteprojects,duringmergersandacquisitions,ortotemporarilyfillrolesduringaleaveofabsenceorwhilethecompanysearchesforapermanentemployee.In2023,wewillseeanincreaseinpeopleseekingflexibleopportunities.Inturn,expertssaytalentacquisitionprofessionalswillputmorefocusonnurturingrelationshipswithcandidatesseekinginterimorcontractrolesandworkwithclientstodeterminethemosteffectivescenariosforfillingpositions.Insuchadynamiclandscape,expertsrecommendcompaniesmaintaina70/30FTE-to-interimworkermix.952%ofprofessionalssaidtheyseetheclientdemandforinterimemploymentgrowingin2023Productivity?Check.Now,whataboutculture?Thepastthreeyearshaveproventhatworkerscanbejustas,ifnotmore,productiveworkingfromhome.Theproblemis,howcanorganizationsmaintain—orevenimprove—theircultureifeveryoneisstillworkingattheirkitchentable?In2023,companieswillgetthebestofbothworldsbymakinghybridworkplacesthenorm.Expertssayhybridworkmodelswillallowemployeestoenjoythefreedomofremoteworkwhilereapingthebenefitsofbeingintheoffice—thinkbetteraccesstotraininganddevelopmentorimpromptubrainstormingsessions.64%ofrespondentssaidgoingbacktotheofficewouldimpacttheirmentalhealthnegatively.This,ofcourse,isnotonesizefitsall:thehybridenvironmentwilldependonanorganization’sneeds,roles,industries,andpeople,andshouldbebasedondata,employeesentiment,andindividualcases.Someemployersmaycreate“collaborationdays,”whereteamsmeetinpersononthesamedayeachweek(aKornFerrysurveyfoundthat88%ofprofessionalswouldcoordinateofficedayswiththeirteammatestoenhancecollaboration);othersmayaskemployeestobeintheofficeonlyafewtimesamonth.Nextyear,talentacquisitionprofessionalscanexpectmanymorecompaniestoofferhybridworkarrangementstoattracttoptalent,withsomerequiringremote-firstcandidatestolivewithinacertainradiustovisittheofficewhenneeded.Asworkingmodelschange,expertssaythesebusinesseswillcontinuetomaintainhighlyproductiveoutcomes.Buttheycaution,someorganizationsthatforceeveryonebacktotheoffice,despitewhatworkerswantorwhatrolesrequirein-personinteraction,willlikelyseeadipinproductivity—ifnotmoreemployeeshandinginresignationletters.Afterall,inthesameKornFerrysurvey,79%ofprofessionalssaidtheywillworkfewerhourswhentheyreturntoofficethantheycurrentlydowhileworkingremotely.Inanother,64%ofrespondentssaidgoingbacktotheofficewouldimpacttheirmentalhealthnegatively.Goingforward,talentacquisitionprofessionalsshouldconductfrequentpulsecheckstonotonlygainvisibilityintothecandidateexperience,buttoalsobetterunderstandtheirshiftingprioritiesinrealtime.88%ofprofessionalswouldcoordinateofficedayswiththeirteammatestoenhancecollaborationWe’remigratingfromwork-lifeimbalancetowork-lifeintegrationTheconceptofwork-lifebalancehaslongbeenagoalformillionsofprofessionals.Butthelastfewyearsofremoteworkhavemadeitevenmoredifficulttotuneoutthedailydemandsofthejobwhenofftheclock.Manyemployeeshavestartedtakinganewapproach,foregoingthetraditional9-to-5infavorofamorefluidschedule.In2023,morecandidateswilllookforcompaniesthatpromotework-lifeintegration:beingabletoputinhoursduringthedaywhenit’smostconvenienttotakecareofpersonalresponsibilitieswhenneeded(thinkworkingafewhoursinthemorning,takinganafternoonbreakforanappointmentortopickupkids,thenbacktoworkintheevening).Andinsomeregions,expertssay,companiesthatofferamoreflexibleworkingweek—where36hoursarespreadacrossfourdays—willlikelygaintheupperhandamongcandidateswhohavein-demandskills,knowledge,andexperience.Indeed,flexibilityisatoppriorityforcandidates.InarecentKornFerrysurvey,76%ofprofessionalssaidtheywouldprefertheirworkweeksshifttonon-traditionalhours;inanother,88%surveyedsaidreturningtotheofficewillmakehomedutiesmoredifficulttohandle.88%ofprofessionalssurveyedsaidreturningtotheofficewillmakehomedutiesmoredifficulttohandle.Thiscallstoanothergrowingtrendamongtoday’sworkers:establishingstrongerboundariestoprotecttheirpersonalenergy.Inresponse,recruiterswilllikelyseegreaterfocusonemployeewell-being,withmoreandmorecompaniesofferingworkflexibilityandinclusivebenefits,suchasmentalhealthsupportandchildcareassistance.Ifnothingelse,expertssay,thepandemichasshownemployersthatworkerscanbeconsiderablymoreproductiveandefficientwhenworkingontheirowntime.Andgoingforward,watchingtheclockwillbecomelessimportant,asmanagersassesssuccessbytheoutputofemployees,andnotthetimeframeoftheirworkday.Bouncingback:boomerangemployeesinboundItsoundedlikeagoodideaatthetime.Whenbusinesswasboomingandnesteggsweregrowing,manyprofessionalsdecidedtoretireearly.Otherstookthebigleaptoswitchjobs—orevenprofessions.Now,withanuncertaineconomyandshrinkingretirementaccounts,manyretireesareknockingattheirformeremployer’sdoor,asareprofessionalswhorealizethegrassisn’talwaysgreenerontheotherside.Ofcourse,boomerangemployeeshavealwaysexisted.Infact,onestudyfoundthat15%ofprofessionalswhoquittheirjobsreturntotheirformercompany.Butexpertsexpecttoseeanuptickinthistrendoverthecomingyear—especiallywithsuchadynamicmarketasthebackdrop.Indeed,accordingtoonerecentsurvey,boomerangsaccountedfor4.2%ofallUShiresfromjobspostedonLinkedIn;in2019,thatnumberwas3.3%.15%ofprofessionalswhoquittheirjobsreturntotheirformercompanyThiscanThiscanactuallybeabonusforcompaniesastheywelcomebackformerworkerswhohaveinstitutionalknowledgeandprovenskillsets.AwidelycitedstudyoutofCornellUniversityfoundthat,inonelargehealthcareorganization,boomerangemployeesoutperformednewexternalhiresoverall,particularlyinpeople-centeredoradministrativeroles(thinkHRspecialists,ITprojectmanagers,lawyers).In2023,organizationswillstarttoputmoreeffortintotheoffboardingprocess,maintainingprofessionalrelationshipswithemployeeswholeaveandmakingsurethoseemployeesknowthedoorisopeniftheychoosetoreturn.Andbyinvestingindigitalworkforceperformancetechnology,talentacquisitionprofessionalscankeeptrackofformerworkerstodiscoverwhomayhavetherightskillsandexperiencestofillhigh-demandroles.Tobefair,notallformeremployeeswillwantorneedtoboomerangbacktofull-timeroles.AccordingtooneKornFerrysurvey,68%ofprofessionalssaidtheyhadorwouldputoffretirementforacontractorinterimrole.Goingforward,recruiterscanalsotapintotheiralumnitalentpooltofindformerhighperformerswhomaybeinterestedincomingoutofretirementtocontributetotemporaryprojects.68%ofprofessionalssaidtheyhadorwouldputoffretirementforacontractorinterimroleWorkforceplanningisgettingsmarterTheGreatRecessionof2008/2009sawmanyemployersdrasticallycuttingtheirworkforcesjusttostayafloat,andwhentheglobaleconomydidstarttopickup,thosesamecompaniesscrambledtohirebackenoughpeopletohelpwiththerecovery.Duringthattime,theremainingemployeeshadtopickuptheslack,leavingthemstressedandburnedout,oftentothepointofquitting—apattern,KornFerryresearchshows,that’srepeateditselfrightafterthestartoftheCOVIDpandemicandlockdowns.Andburnouthasahugeimpactonthebottomline:employeeburnoutaccountsfor40%ofstaffturnover,andtheaveragecostofreplacementfortheseworkersis120%to200%oftheiroriginalsalary.Employeeburnoutaccountsfor40%ofstaffturnover,andtheaveragecostofreplacementfortheseworkersis120%to200%oftheiroriginalsalary.Ifthereisamarketdownturnin2023,companieswillneedtotakeamuchmoremeasuredapproachtoright-sizingtheirworkforce.Talentacquisitionprofessionalsshouldconductscenario-baseddemandplanningtopreparefortheworst,average,andbest-caseeconomicconditions.Layoutallpossiblescenarioslikelytounfoldandmakeflexible,long-termworkforceplansthatseizenewopportunitiesandmanageriskeffectively.Ineachcase,recruiterswillneedtofocusnotonlyonthedownturn,butalsoontherecovery,soorganizationscanrespondandadaptquicklytoaneconomyinflux.Still,ifthelastfewyearshavetaughtusanything,it’sthatevenwhenthingsseemstable,weneedtobereadyforanything—whichmeanstalentacquisitionprofessionalswillneedtogetsmarteraboutforecasting.Afterall,justbecauseyourworkforceplansworkedlastyear,there’snoguaranteethosesameplanswillsucceedinthenextone.Goingforward,recruiterswillneedtobemoredeliberateintheirdemandplanning,removingsilosandcollaboratingwithbusinessleadersacrossallfunctions
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