A Lookback in 2022: What Should We Do for Hiring Strategy in 2023?

2022 Lookback: The Ups and Downs of Hiring Wave??

Last year, in 2022, we witnessed a fast shift of hiring/recruitment trends where we started strong as many start-ups and tech companies are growing & hiring many talents. However, it takes an unexpected turn in the second half due to unemployment caused by the so-called tech winter. Tech winter is a popular term that describes the situation in which technology-based startups begin to fall one by one. Tech winter is also referred to as a decline in interest and investment in the technology sector.?

According to the Minister of Communication and Information (Menkominfo), the tech winter has caused a 60 percent decrease in the flow of digital startup funding in Asia. Most Indonesian tech industries and start-ups were affected by the tech winter, forcing them to tighten their belts and cut costs. As a result, several startups have decided to lay off employees in order to maintain business efficiency, including hiring and promotion freezes for some employees.?

However, prior to the tech winter, a talent survey conducted by a research/consulting firm revealed that 43% of respondents have worked for less than two years in their current roles and 84% of respondents across every age group, industry, market, and seniority level plan to look for new career opportunities. This data indicates that there is a high employee turnover rate despite the unprecedented uncertainty caused by the COVID-19 pandemic.?

2023 Prediction: What To and Not To Do???

With 2023 in our hands, and the tech winter also coming with a recession issue, what should we do??

Indeed [the recruitment tech industry], in their research report predicts that this year's global recession is caused mainly by the geopolitical issue and thus expected to be unlike its predecessors. This means it’s unlikely to lead to pay freezes or mass redundancies across many industries.??

Although, companies may face additional whiplash as the global economic tides continue to turn. While they have been looking for workers for over a year, the immediate macroeconomic outlook remains bleak. The COVID pandemic ushered in a new world of work, and even after the initial pandemic shocks have subsided, business leaders will be left to deal with the fallout. Real-time data, insights, and forward-thinking will assist company leaders at all levels in making informed long-term decisions.?

The first strategy that businesses can implement in their recruitment is to align their hiring strategy with EBITDA. Business needs to ensure that the appropriate hiring roles are in place to support each of the most value-creating entities, supporting the organization’s short- and long-term objectives. Hence, the business needs to make sure the opening position is contributed to the company’s revenue and/or supports important divisions. After that, all you need to do is to find the right talent that has all the needed background & skills to support the roles.??

The second one that is aligned with the retention strategy is to consider reviewing salaries and developing non-monetary strategies as employee preferences, including compensation and benefits, are shifting, with inflation playing a significant role. Company culture is one of the values in both attracting and retaining employees, as a way for employers to further distinguish themselves from their competitors. One way to ensure the talents are aligned with company values and culture is to create a candidate experience.??

Luminare Consulting as Your Reliable Partner?

“Despite recovering from COVID-19 and a strong start to the year, 2022 was unexpectedly concluded with employment uncertainty and very selective hiring. Many companies were forced to relook at their future manpower growth plan and revamp their recruitment process,” said Tony Rianto, CEO of Luminare Consulting?

We understand your needs and recognize that each company is unique, which is why we use our expertise to thoroughly understand the client's need for excellent deliverables. In 2023, we are confident that hiring strategies will need to be refreshed by meticulously calculating the impact of role and talent on company growth and profitability. Luminare will continue to work hard as your trusted consulting partner to find the best fit for your company.?

"Experts are seeing 2023 as a year of potential economic slowdown. This could in turn impact the way we hire. Many companies would prioritize hiring for critical roles in the most cost-efficient and effective way. Nonetheless, it is also important for companies to be adaptive to changes in the market that are likely to come," said Stephanie Onggo, Managing partner of Luminare Consulting?

In line with our solution-oriented value, we strive to find the right talent for you by being proactive in providing solutions based on the job market and our research for our clients' benchmarking. At Luminare, we’ll support your company in hiring qualified talents by:

• Building a qualified candidate pool?
• Having the right assessment method by our expert consultants?
• Aligning our recruiting work with relevant market insights?

Contact us if you have any hiring needs, and we will listen to you [email protected]?