January 25, 2023 – 2022 was another trend-setting year in the workplace, and there’s still a lot in motion as we begin the new one. Derek Gracey of search firm Charles Aris has highlighted four key talent trends the firm expects in 2023 in a just released report.
“It might seem hard to believe, but candidate compensation expectations continue to rise, and we don’t expect that to stop any time soon,” said Mr. Gracey. “There are certainly nuances around this depending on the industry and job function, but we expect human capital compensation data to continue reflecting higher figures this year. What’s driving this? There are a few factors at play.”
This is in part due to the continued rise of the human capital function that we’ve been noticing for several years, according to Mr. Gracey. “It’s also due to the human capital function historically lagging behind its peer functions and trying to play catch-up. HR leaders and their teams are adding significant value to their organizations, so to attract and retain top-notch talent leaders, companies will have to continue paying more,” he said.
Increased Salary Transparency
Salary transparency is on the rise throughout the country. Mr. Gracey explains that similar to the pay equity legislation that banned employers from asking candidates for their current compensation details this year will bring a similar wave of legislation throughout the country requiring employers to post specific salary ranges for open positions. He notes that even if they are not directly affected by this, many companies will likely get ahead of the curve as this type of legislation grows more common throughout the next few years.
Charles Aris has already seen significant layoffs taking place in recent months, specifically with tech companies, and the search firm expects this to continue – at least in the first half of the year.
Some of these companies are claiming to have over-hired amidst the mad dash for talent coming out of the pandemic, while others are chalking it up to slowing business projections, according Mr. Gracey. “While some industries are more prone to these reductions in force than others, manufacturing and industrial services businesses seem to be relatively unaffected,” he said. “We also anticipate smaller scale reorganization efforts as companies continue to focus on having the right organizational structure – whether that means elevating and increasing the talent acquisition team or decentralizing part of a corporate function to be better aligned with the business. Remember, reorganization isn’t always a bad thing.”
Charles Aris expects recruiting efforts and trends to be nothing short of a rollercoaster this year. The firm notes that some companies have already started slowing down or pausing their hiring efforts, while others are going full steam ahead. Charles Aris notes that this is partly due to uncertainty about market conditions and a looming recession, but the firm thinks lessons learned from the past two years are also a big factor in how companies are hiring. The firm foresees highs and lows, ups and downs, and accordion-like processes with a mix of ‘lightning-fast interviews” and pauses altogether.
Executive Hiring Predictions for 2023
With market uncertainty on the minds of senior executives as the new year has started, ON Partners recently asked its consultants to offer predictions and insights about the executive jobs they expect to be in demand in 2023. The past few years have seen one of the most volatile business environments in memory. Political, social, economic, health, and regulatory factors combined to form the perfect storm, creating a turbulent path for boards and those in the C-suite to navigate.
“Another important trend to keep an eye on is the hiring of former employees,” Mr. Gracey said. “We saw an increase in boomerang hiring during the pandemic, but more and more individuals are continuing to leave their current employer and return to their former one. Perhaps during the Great Resignation candidates made hasty decisions and have since realized that the grass may not be as green as they expected, or perhaps the former employers have improved upon their areas for development thus further increasing the employee value proposition for a returning employee. Regardless, it will be interesting to see how that pans out throughout the year.”
Veteran Search Consultants
Established nearly 50 years ago, Charles Aris is a search industry pioneer focused on senior-level assignments within the strategy and business development, private equity, consumer/ retail, finance and accounting, sales and marketing, education, executive leadership, engineering and operations, chemicals, and agribusiness sectors.
Mr. Gracey is a senior associate practice leader with a functional focus on human capital. He specializes in placing A-level human resources and talent leaders with organizations throughout corporate America and private equity. “Derek has been tenacious about finding great talent for our clients since day one at Charles Aris,” said senior associate practice leader Ashlee Wagner. “On top of the work he does for his clients, Derek is also a cultural beacon here, spearheading changes to our associate recruiting program, taking part in our training committee, and being a formal and informal mentor to new associates.”
Related: A Varied Outlook for the Year Ahead
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media