How tech is driving hiring in 2023

Hiring can be tricky to navigate in 2023. However, there are some persistent tech trends that can help organisations stay efficient in their recruitment efforts.

SmartRecruiters’ Global Hiring Trends 2023 report delved into these trends, discussing how the right tech investment can help to stay ahead of the competition.

“The best companies today have an open mindset, a focus on building relationships, taking a creative approach, and doing more than just administrative recruiting. They are open to change because they recognise the need to do something different than they are currently doing,” said Dennis Böcker, SmartRecruiters DACH vice-president.

According to the report, talent acquisition (TA) professionals are struggling due to the state of the workforce at the moment. This has caused companies to place a stronger emphasis on their talent teams, with 87 per cent of recruiters claiming TA has become a more strategic function this year.

One of the most recognised hiring trends is technology. Digitisation has taken over the workforce, and recruitment is no exception, as investing in the right tech can help companies remain relevant.

Not only can the right tech investment boost productivity, but it can even help businesses to remain more cost-effective, which is crucial during times of inflation. It’s a sound investment, too, as SmartRecruiters revealed that 99 per cent of executives reported positive returns on digital investments.

However, it’s a two-way street. You also need to educate and train employees on the systems you’re introducing if they’re to be effective. This is where agility comes in to play, as organisations need to ensure they’re remaining agile and adapting to the technology as it’s introduced.

The need to be agile rings true for budgets as well, as the report noted that 53 per cent of hiring managers believe their recruitment budget will stay the same or will decrease in the coming financial year.

This is why SmartRecruiters said it’s important to bridge the divide between technology and cost-effectiveness. Invest in the right tech, as it can help to reduce costs once implemented. But, make sure staff are given the correct training; otherwise, you won’t remain agile and will struggle to stay ahead during times of inflationary pressure.

“One of the direct ways to alleviate costs is to invest in a platform that helps optimise job board spending, has little to no integration fees, and eliminates barriers to making adjustments as business demands evolve,” said SmartRecruiters.

“Indirectly, a technology-driven streamlined approach to hiring can improve recruiters’ productivity, provide a better candidate experience, and facilitate recruitment marketing. Optimising these core recruitment processes enables hiring teams to focus on candidate fit, potentially improving new hire retention and reducing future recruiting costs.”

Allyn Bailey, executive director of hiring success services at SmartRecruiters, agreed: “There is no one tech stack to rule them all. The tech stack that will rule them all is not static; it’s the one that allows you to adapt based on the needs of not just your individual company, but your individual team and your individual recruiters in your individual regions.”

The right tech can also improve the candidate experience. Companies are realising the power of automation, as 60 per cent of businesses have increased automation investment in the past year.

“People want to be hired quickly. Automation helps companies hire more efficiently, and AI combined with human oversight has moved from something people are curious about to something that’s seen as helpful,” said Marc-Canisius Koffi, vice-president of SmartRecruiters South Europe.

Data has also emerged as a key driver in recruitment. In fact, over two-thirds of large companies track metrics like time to hire, source of hire, and offer acceptance rates.

David Novak, engagement manager of hiring success services at SmartRecruiters, commented: “Data has allowed talent acquisition to move away from its administrative, order-taker role. But reporting has to be pragmatic and accessible for the organisation. Sometimes the data is there, but it’s not presented in a way that people can easily understand.”