As a (possible) recession, inflation, and a troublesome labor market continues to loom over many industries, 2023 may not feel all that different from 2022. So, HR Brew asked HR and talent execs what they expect from the recruiting and hiring landscape in the new year.

Debora Roland, VP of people operations, CareerArc

“Talent acquisition heads into 2023 with a mixed bag: Tech and finance layoffs are making headlines, but many other industries remain desperate to hire. Though labor market shifts will persist, it’s clear that companies must continue to compete more fiercely than ever for the best talent in any market—talent that has become savvier than ever and less responsive than ever to the same old tactics. A strategy we’ve seen grow significantly in the past year and drive exponential returns is employee advocacy—activating your employees and employee networks for recruiting, especially on social media.”

John Patterson, head of talent, Macy’s

“I am expecting hiring in 2023 to feel a bit like the end of the roller-coaster ride that we experienced in 2022. Still exciting, but maybe not as exhilarating as [when] we entered 2022…Where we see the opportunity to acquire new skills or fill critical technology roles, there will be demand for these candidates, and we will be in the market recruiting. The candidates are there and willing to work! I am more confident going into 2023 than I have been since the pandemic.”

Matt Lavery, corporate talent acquisition manager, UPS

“In 2022, the hiring sector for entry-level, hourly employees was difficult…2023 will be more difficult for employers in this space. There are layoffs taking place right now, but not in the entry-level, hourly space. I expect 2023 to be even more challenging to hire entry-level workers.” Keep reading here.—AD

If you think hiring is going to get any easier in 2023, think again. As The Simpsons warned us: It’s going to get worse before it gets better.

The past two years have seen employers experience tremendous staffing challenges. At the same time, independent work has become more popular than ever. Flexible, cost-effective, and increasingly viable, thanks, in part, to the proliferation of remote work and global hiring, freelancers now make up 36% of the US workforce, according to McKinsey.

A new paradigm. While executives from freelance marketplaces Toptal and Upwork have told HR Brew that demand for independent workers is typically driven by department leaders, they said HR is starting to see value in freelancers as well, integrating them into their talent strategies.

Freelancers rising. “Folks have been much more receptive to hiring high-skilled labor, in pretty much every category,” Taso Du Val, CEO of the freelance platform Toptal, told HR Brew in November.

Small and medium-sized US businesses, for example, are primarily hiring independent workers for administrative, consulting, and creative work, according to a recent report from HR software firm Gusto.

Patrick Pettiti, CEO of Catalant, a marketplace where private equity firms and large corporations hire strategy consultants, has noted a recent increase in hiring independent consultants for mergers and acquisitions, supply-chain management, and strategic planning.

What about 2023? We asked HR Brew readers how much they expect to spend on freelancers in 2023. Some 32% said they plan to increase their freelance budget next year, while 41% said it would be the same, and 26% said they plan to spend less. What are your freelancer budget plans for next year? Let us know by responding to this email.—AK

This week’s poll:

In how many countries do you currently have employees?

1
2-4
5-9
🗺 10+

Today’s top HR reads.

Stat: US GDP grew by 3.2% annually between July and September, defying expectations set by the Commerce Department. (CNN Business)

Quote: “I had a tough time grappling with the sorts of executive functioning that our world operates by, like being able to set up meetings, follow through with things, focus, and be detail-oriented.”—Christian, a 31-year-old worker, on struggling to cope with ADHD on the job (BBC WorkLife)

Read: Gen Z employees are driving the sustainable commuting movement. (WorkLife)

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