THE FUTURE OF WORK
Job Market Trends
for 2023
The State of
the Market
As the fear of a recession looms, business decision-makers and professionals alike are wondering what this will mean for the job market. But despite rising interest rates and inflation hitting its highest level in 40 years, the demand for labor continues to shine bright.
Having experienced extreme volatility over the last few years, the job market has returned to its pre-pandemic state.
The State of the Market
As the fear of a recession looms, business decision-makers and professionals alike are wondering what this will mean for the job market. But despite rising interest rates and inflation hitting its highest level in 40 years, the demand for labor continues to shine bright.
Having experienced extreme volatility over the last few years, the job market has returned to its pre-pandemic state.
The State of
the Market
Professionals and business decision-makers alike are wondering what’s in store for the job market in the year ahead. Between a spike of layoffs and a potential recession looming, to ongoing talent shortages and high turnover, the job market is certainly sending mixed signals. Job seekers may be feeling especially perplexed. Is it a good time to switch jobs? Is it better to stay put?
Though these trends may be confusing, the job market still looks quite strong.
The Workplace
Evolution
From the Great Resignation to Quiet Quitting, the job market has been moving at a rapid pace in response to fast-moving changes driven by job seekers.
Generations are shifting
Baby boomers no longer
make up the largest
percentage of
the workforce
ICIMS
Opens in a new window.
Employers are scrambling
63% of employers are
changing processes to
address labor shortages
PWC
Opens in a new window.
Remote work is staying
56% of companies are
still allowing hybrid
or remote work in 2023
SquareTalk
Opens in a new window.
Quit rates are high
The U.S. quit rate remains
at a high of 2.8%
BLS
Opens in a new window.Employees are leaving
40% of U.S. workers plan to leave
their jobs in the next 6 months
McKinsey
Opens in a new window.Competition is growing
65% of workers who left their
jobs in the last 2 years did not
return to the same industry
McKinsey
Opens in a new window.Generations are shifting
Baby boomers no longer make
up the largest percentage
of the workforce
ICIMS
Opens in a new window.Employers are scrambling
63% of employers are
changing processes to
address labor shortages
PWC
Opens in a new window.Remote work is staying
56% of companies are
still allowing hybrid
or remote work in 2023
SquareTalk
Opens in a new window.The Great
Attrition
Employers today are scrambling to hold on to the talent they have, while struggling to replace critical talent they lost. As teams shrink and skills gaps widen—we’re seeing what is known as ‘The Great Attrition.’
The Great Attrition
Employers today are scrambling to hold on to the talent they have, while struggling to replace critical talent they lost. As teams shrink and skills gaps widen—we’re seeing what is known as ‘The Great Attrition.’
Employee Attrition:
Employee attrition occurs when the size of your workforce diminishes over time. While employees are leaving through several unavoidable means, hiring is also challenging, creating long-term shortages.
Employee Attrition:
Employee attrition occurs when the size of your workforce diminishes over time. While employees are leaving through several unavoidable means, hiring is also challenging, creating long-term shortages.
Employee Attrition:
Employee attrition occurs when the size of your workforce diminishes over time. While employees are leaving through several unavoidable means, hiring is also challenging, creating long-term shortages.
Employee Attrition:
Employee attrition occurs when the size of your workforce diminishes over time. While employees are leaving through several unavoidable means, hiring is also challenging, creating long-term shortages.
Employee Attrition:
Employee attrition occurs when the size of your workforce diminishes over time. While employees are leaving through several unavoidable means, hiring is also challenging, creating long-term shortages.
Employee Attrition:
Employee attrition occurs when the size of your workforce diminishes over time. While employees are leaving through several unavoidable means, hiring is also challenging, creating long-term shortages.
Employee Attrition:
Employee attrition occurs when the size of your workforce diminishes over time. While employees are leaving through several unavoidable means, hiring is also challenging, creating long-term shortages.
Workplace Trends to Watch
We’re experiencing one of the greatest workplace evolutions in generations, and the pace of change will not slow down in 2023. To improve hiring outcomes, reduce turnover, and future proof their companies, employers are proactively taking steps to adapt their workforce and workplace planning strategies.
Flexible work is here to stay
Across many businesses, flexible working has now become the norm. Employees have proven that they can be just as productive outside of traditional working arrangements, and as a result, now expect more flexibility in their schedules and work locations. Realizing that offering flexibility is no longer a differentiator, but table stakes, employers are reassessing their flexible work options.
64% of employees would consider quitting if asked to return to the office full time
70% of employers have either expanded or have plans to expand permanent remote work options
Enhanced benefits
With remote work opportunities becoming the standard of today, location should not be a limiting factor. Not only can you retain talent by offering remote work opportunities, but you can also attract skillsets you don’t have access to in your region—allowing your organization to be more diverse in nature and ultimately more successful.
of professionals want to see more flexibility permanently implemented by their employer
Tandym Group's 2022 Hiring OutlookWith remote work opportunities becoming the standard of today, location should not be a limiting factor. Not only can you retain talent by offering remote work opportunities, but you can also attract skillsets you don’t have access to in your region—allowing your organization to be more diverse in nature and ultimately more successful.
of professionals want to see more flexibility permanently implemented by their employer
Tandym Group's 2022 Hiring OutlookWith remote work opportunities becoming the standard of today, location should not be a limiting factor. Not only can you retain talent by offering remote work opportunities, but you can also attract skillsets you don’t have access to in your region—allowing your organization to be more diverse in nature and ultimately more successful.
of professionals want to see more flexibility permanently implemented by their employer
Tandym Group's 2022 Hiring Outlook
Employees have been demanding better benefits for years, and recent events have forced companies to act. They realize that comprehensive benefits are essential to employees’ productivity, engagement, and success at work. As a result, they are making enhancements to their benefits and support initiatives to better meet the needs of today’s workforce.
Two thirds of companies are planning to enhance their health benefit offerings in an effort to improve employee recruitment and retention
MercerOpens in a new window.Skill-building rises as a priority
Former employees can bring a lot to the table. Not only are they simpler to onboard, but they have also broadened their experience outside your organization and can offer a unique perspective. Depending on why an employee departed, it may be beneficial to keep them top of mind when recruiting. If you have more to offer, and the employee was in good standing, consider reengaging them for a role.
Former employees can bring a lot to the table. Not only are they simpler to onboard, but they have also broadened their experience outside your organization and can offer a unique perspective. Depending on why an employee departed, it may be beneficial to keep them top of mind when recruiting. If you have more to offer, and the employee was in good standing, consider reengaging them for a role.
Upskilling and reskilling have taken on a new urgency for many organizations. Rather than sticking to more familiar (and reactive) approaches to training and development, they are shifting to a learning organization model—one that helps employees learn new skills or advance existing skills for future business needs. As your industry continues to evolve, these opportunities can help you stay competitive in your career.
82% of employees + 62% of HR directors believe that employees will need to reskill or upskill at least once a year to maintain a competitive advantage in a global job market
Making your next career move
With ongoing conversations around the Great Resignation and its subsequent phases, including terms like the Great Reflection and Quiet Quitting, the bottom line is this: millions of people are still feeling confident in the market, and are ready for their next career move. If you are looking to make a change, here are some ways to get started:
Determine your priorities
If your priorities have shifted over the last few years, you may be on the search for an employer that better resonates with your values today. To identify a job that aligns with your needs, consider your priorities when it comes to these factors:
- Compensation
- Benefits + perks
- Work culture
- Flexibility
- Skills development
Assess your toolkit
It’s important to start your job search from a place that allows you to stay organized, efficient, and focused on finding the right job. As a result, before you jump into applying, you’ll want to take a step back and take stock of the following:
Your resume + cover letter
5 resume tips + tricks to get you hired
Opens in a new window.Transferable + essential skills
Top skills employers look for
Opens in a new window.Your network
How to network like a pro
Opens in a new window.
Be open to flexible opportunities
In today’s evolving environment, employers are embracing flexible hiring strategies to broaden their talent pool and attract top talent. From creating fully remote roles to increasing their hiring of contractors or consultants, this presents job seekers with several new types of job opportunities that are worth exploring.
40.7 million American professionals will be fully remote in the next five years
67% of companies utilize contract, freelance, consulting, or contract-to-hire staff
Prepare for interviews
You cannot skip on interview prep—even if it continues to be a job seeker’s market. Flip the script; if you were planning on hiring someone for a new role, wouldn’t you expect the person to be prepared to make a strong impression? Exactly. That is why you shouldn’t let yourself fall into the trap of thinking you can “wing” it. To increase your chances of interview success, skim this prep checklist:
- Do your company research
- Prepare for common interview questions
- Bring some questions of your own
- Have a thank you note ready