--- title: "2023 Recruitment Trends: What Source2 is Watching" description: Dive into our comprehensive analysis of these trends and equip yourself with the knowledge to attract and retain top talent. image: https://www.source2.com/hubfs/Source2-2023-Trends-Artwork-1024x680.jpg --- # 2023 Recruitment Trends: What Source2 is Watching ![David Nuxol](https://www.source2.com/hs-fs/hubfs/Images/David-Nuxol.jpg?width=120&height=120&name=David-Nuxol.jpg) by [David Nuxol](https://www.source2.com/blog/author/david-nuxol) Jan 14, 2023 3:33:00 PM ![2023 Trends](https://www.source2.com/hs-fs/hubfs/Source2-2023-Trends-Artwork-1024x680-1.jpg?width=1024&height=680&name=Source2-2023-Trends-Artwork-1024x680-1.jpg) Starting a new year is traditionally an opportune time to reflect on the previous year and look ahead to growth in the future. Many set goals or resolutions for themselves – drinking more water, exercising more, being more present, taking more trips, etc. In the ever-changing world of high-volume recruitment and retention, both candidates and employers also set goals, whether that be increasing diversity in the workforce (from the employer side) or earning a higher wage (from the candidate side). At Source2, a national high-volume recruitment and retention firm specializing in mid- to large companies, our experienced and dedicated talent acquisition professionals have been keeping a close eye on the trends they forecast will be key in 2023. In no particular order, the top talent acquisition trends Source2 is watching as 2023 unfolds are: ## **![Source2-2023-Trends-Tile1-20230117](https://www.source2.com/hs-fs/hubfs/Source2-2023-Trends-Tile1-20230117.jpg?width=500&height=350&name=Source2-2023-Trends-Tile1-20230117.jpg)** ## **Impact on Business Performance** When the labor market is squeezed, the chain reaction of impacts is felt far beyond that of the employers looking to fill positions. Unfilled positions lead to two negative outcomes. First, the opportunity cost of lost volume for most companies is immense. Second, the option of requiring existing employees to pick up the slack is fraught with negative consequences. Overtime pay quickly adds up, as do the levels of frustration of those employees who feel overworked and burnt out, resulting in increased turnover. These challenges are exacerbated by reduced productivity, compromised quality, greater levels of job-related accidents, and missed deadlines, all of which could have disastrous impacts on the reputation of a business. ![Demographic Shifts](https://www.source2.com/hs-fs/hubfs/Source2-2023-Trends-Tile2-20230117.jpg?width=500&height=350&name=Source2-2023-Trends-Tile2-20230117.jpg) ## **Compensation Driving Moves** While the tight job market in 2023 looks to be adjusting to more ‘red hot’ versus ‘white hot,’ the job seeker knows they are still very much in the driver’s seat, and inflation is a main cause for desiring an increased salary. We’re monitoring state government policies impacting pay transparency and job board salary range disclosures. We also know that with compensation being the #1 reason people are seeking alternative jobs, we can expect job hopping to remain a trend in 2023 as a way for candidates to increase their salaries [by as much as 30 percent](https://www.cnbc.com/2022/08/11/millennial-recruiter-how-to-use-job-hopping-to-make-more-money.html). ![Source2-2023-Trends-Tile3-20230117](https://www.source2.com/hs-fs/hubfs/Source2-2023-Trends-Tile3-20230117.jpg?width=500&height=350&name=Source2-2023-Trends-Tile3-20230117.jpg) ## **Demographic Shifts** The U.S. labor market will remain tight as the number of individuals entering the workforce or currently seeking employment is significantly lower than those exiting the workforce. This trend is fueled by several factors, including a large portion of Baby Boomers retiring and skilled workers opting to leave the workforce or start their own companies in the gig economy, where they have more control over their schedule and pay. Restrictive immigration policies are starving the economy of new labor. In [our November blog](https://www.source2.com/blog/looming-recessions-impact-on-recruiting-hiring) we discuss 'fair chance hiring,' which is built on the premise that everyone deserves fair consideration for jobs. This remains front of mind for Source2 and leading talent acquisition professionals as a potential option to offset candidate supply shortages in the labor market. ![Focus on DEI](https://www.source2.com/hs-fs/hubfs/Source2-2023-Trends-Tile4-20230117.jpg?width=500&height=350&name=Source2-2023-Trends-Tile4-20230117.jpg) ## **A Focus on Diversity, Equity & Inclusion (DEI)** DEI is becoming increasingly important for job seekers, with [72% of workers aged 18-34 saying they would turn down a job offer or leave a company](https://www.hiringlab.org/wp-content/uploads/2022/11/Indeed-Glassdoor-Workplace-Trends-Report-.pdf) if the company's leadership does not actively invest in and support DEI initiatives. A report released late last year by Indeed and Glassdoor noted: "Diversity, equity, and inclusion will remain top of mind, as employees continue to deeply care about these initiatives, as well as the progress employers are making, or not.” As the new year gets underway, Source2 client managers have underscored this point, stating they have had several clients ask to place more of an emphasis on diversifying their candidate pools in 2023 and beyond. ![Streamlined Hiring Process](https://www.source2.com/hs-fs/hubfs/Source2-2023-Trends-Tile5-20230117.jpg?width=500&height=350&name=Source2-2023-Trends-Tile5-20230117.jpg) ## **Streamlined Hiring Process** This is a trend that has proven consistent over the past 5+ years, as a more mobile and connected workforce seeks hiring processes that meet them where they are. Beyond the discussion of virtual - or remote - working, virtual hiring processes from the start of the candidate journey through onboarding are here to stay. Expect technology to drive this trend even further as companies employ automation, screenings, and even artificial intelligence in their hiring processes. As always, the focus on a streamlined process is going to be key to avoiding the dreaded candidate “ghosting” and subsequent fallout.  If the start of the latest Congressional session is any indication, we’re in for another year of tumult in varying aspects of the U.S. and global economies, and the labor market is going to play a key role in how Americans feel the country is working (or not) for them. At Source2, we’re always closely monitoring the latest trends and investing in the tools that provide a competitive advantage to employers looking to attract the best talent to the companies. [Reach out](https://www.source2.com/contact) to a Source2 Executive today to ask about how your company can leverage Source2 to drive talent acquisition successes. **Tags: ** [Trends & Thought Leadership](https://www.source2.com/blog/topic/trends-thought-leadership) ![David Nuxol](https://www.source2.com/hs-fs/hubfs/Images/David-Nuxol.jpg?width=120&height=120&name=David-Nuxol.jpg) Post by [David Nuxol](https://www.source2.com/blog/author/david-nuxol) Jan 14, 2023 3:33:00 PM As president and CEO, David brings 30 years of experience in outsourcing and recruitment to our clients, working closely with all our partners since founding Source2 in 1999. [Follow me on LinkedIn ](https://www.linkedin.com/in/davidnuxol/) ### Related Articles ##### [![From Reach to Relevance: The New Rules of Talent Attraction](https://www.source2.com/hs-fs/hubfs/S2_Hub_0430-RecruitmentMktg.jpg?width=520&height=294&name=S2_Hub_0430-RecruitmentMktg.jpg) Trends & Thought Leadership • May 4, 2026 3:34:24 PM From Reach to Relevance: The New Rules of Talent Attraction 2 min read](https://www.source2.com/blog/from-reach-to-relevance) ##### [![Responsible AI in Hiring Assessments: Building Confidence Through Structure and Transparency](https://www.source2.com/hs-fs/hubfs/S2_Hub_0217-ResponsibleAI.jpg?width=520&height=294&name=S2_Hub_0217-ResponsibleAI.jpg) Trends & Thought Leadership • Feb 17, 2026 1:58:17 PM Responsible AI in Hiring Assessments: Building Confidence Through Structure and Transparency 2 min read](https://www.source2.com/blog/responsible-ai-in-hiring-assessments) ##### [![Stop Guessing, Start Predicting: The Business Case for Assessment-Led Hiring](https://www.source2.com/hs-fs/hubfs/S2_Hub_0109-Assessments.jpg?width=520&height=294&name=S2_Hub_0109-Assessments.jpg) Trends & Thought Leadership • Jan 9, 2026 11:45:41 AM Stop Guessing, Start Predicting: The Business Case for Assessment-Led Hiring 2 min read](https://www.source2.com/blog/assessment-led-hiring) ![Source2-David-PP-VideoImage-2024](https://www.source2.com/hs-fs/hubfs/Source2-David-PP-VideoImage-2024.jpg?width=500&height=250&name=Source2-David-PP-VideoImage-2024.jpg) ### Low-Risk Pilot Program **The fast, flexible, low-risk way to test drive our capabilities** At Source2, we understand that every business has unique hiring needs. That’s why we offer a flexible pilot program – allowing you to test-drive before making a long-term commitment. Designed to quickly solve an immediate recruiting challenge with a variable pricing model, a 30-day ramp-up process requires minimal time from your team, you only pay when a candidate starts working – a true pay-for-performance approach that sets us apart from traditional recruiting firms.  **[Book an appointment with us today! ](https://www.source2.com/cta-landing-page)** ###### Categories - [Trends & Thought Leadership](https://www.source2.com/blog/topic/trends-thought-leadership) - [Talent Acquisition](https://www.source2.com/blog/topic/talent-acquisition) - [Recruiting Delivery](https://www.source2.com/blog/topic/recruiting-delivery) - [Company News](https://www.source2.com/blog/topic/company-news) ###### Recent Posts - [From Reach to Relevance: The New Rules of Talent Attraction](https://www.source2.com/blog/from-reach-to-relevance) - [Responsible AI in Hiring Assessments: Building Confidence Through Structure and Transparency](https://www.source2.com/blog/responsible-ai-in-hiring-assessments) - [Stop Guessing, Start Predicting: The Business Case for Assessment-Led Hiring](https://www.source2.com/blog/assessment-led-hiring) - [Smarter Recruitment Marketing: Maximize ROI and Lower Cost per Apply](https://www.source2.com/blog/smarter-recruitment-marketing) - [Source2 Named Orlando Sentinel Top Workplace for Eighth Consecutive Year](https://www.source2.com/blog/source2-named-orlando-sentinel-top-workplace-for-eighth-consecutive-year) ![](https://dc.ads.linkedin.com/collect/?pid=415273&fmt=gif) [![Recruiting Brief](https://widget.aggregage.com/images/recruitingbrief/badge-clear.gif "Recruiting Brief")](https://www.recruitingbrief.com) [![Recruiting Brief](https://widget.aggregage.com/images/recruitingbrief/badge-clear.gif "Recruiting Brief")](https://www.recruitingbrief.com) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "David Nuxol", "url" : "https://www.source2.com/blog/author/david-nuxol" }, "dateModified" : "2023-12-12T15:29:08.695Z", "datePublished" : "2023-01-14T20:33:00.000Z", "headline" : "2023 Recruitment Trends: What Source2 is Watching", "image" : [ "https://www.source2.com/hubfs/Source2-2023-Trends-Artwork-1024x680.jpg" ], "mainEntityOfPage" : { "@id" : "https://www.source2.com/blog/2023-trends-source2-is-watching", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.source2.com/hubfs/Source2%20ARS%20Logos/Source2_ARS_Logo_TM_Side_2C.png" }, "name" : "Source2" } } ```