Modern Hire’s Fifth Annual Hiring Trends Report Reveals Quality is the New Mandate for Hiring Success and Retention In 2023
Report highlights quality of hire, the ethical use of AI and intelligent interviews as critical success factors for talent acquisition this year
CLEVELAND – January 11, 2023 – Modern Hire, the enterprise hiring platform that uses
advanced selection science to mitigate bias and predict candidate fit, today released its fifth annual Hiring Trends Report. The report integrates Modern Hire’s survey work, client feedback, and industry-specific data analysis to identify three notable hiring trends for 2023 leading with quality as the overarching theme of the year.
“Market conditions and stressors over the past couple of years have led both companies and candidates to make impulsive hiring and technology decisions that have not always worked out for either party,” said Karin Borchert, CEO of Modern Hire. “In 2023, we expect to see HR professionals leave reactionary measures behind, and focus on quality hiring techniques that drive efficiency, effectiveness, engagement, and ethical outcomes.”
Although chaotic labor conditions are expected to continue in 2023 with some industries scrambling for candidates while others experience layoffs to reset or survive, companies are anticipated to make progress in better understanding and optimizing their hiring technology. This will help them find and retain quality candidates that will have a positive impact on business success. According to Modern Hire’s industry analysis, the following three trends support this outlook:
Renewed focus on Quality of Hire. Feeling pressure to fill positions over the last year, many organizations relaxed standards to maximize speed-to-hire. As noted in Modern Hire’s recent Talent Acquisition Technology survey with Aptitude Research, leading organizations have recognized that hiring right the first time is vital to retention and creating value in a well-run organization. Additionally, the skills and competencies needed for most jobs are more complex and more urgent than they were even a few years ago, as digital, 21st Century skills become table stakes. More advanced science-based tools provide the needed insights to match competencies and candidates for quantifiably better outcomes and reduced turnover.
More responsible use of AI in hiring. Research shows that AI has come of age as a tool that can effectively accelerate quality hiring at scale, while minimizing the bias that is inherent with human evaluations. Globally, nearly half (45%) of companies are using AI to improve recruiting and HR. But not all AI is created equal, and AI-powered automation and scoring have been scrutinized by city and state agencies and regulators worldwide for their potential to introduce different types of discrimination into the hiring process.
The new year will bring meaningful steps forward with more laws encouraging transparency, fairness, and the protection of individual privacy to help address the confusion, misuse, and uncertainty in the marketplace.
Intelligent interviewing. The traditional interview process – long fraught with inefficiency, inconsistency, bias, and poor experience – is on the chopping block in 2023, as science and next-gen technology address the urgency felt by companies, and frustration felt by candidates, to move the interview experience to the next level. The next level “intelligent interview” is one that uses data and candidate feedback to continuously learn, improve, and evolve. More specifically, an intelligent interview embraces:
- the use of science, analytics, and AI for greater automation and insight and reduced bias;
- clarity, accessibility, transparency, and humanity in the candidate experience;
- global candidate reach through multilingual capabilities and support for international talent markets;
- seamless workflows and extreme ease of use.
In 2023, advanced interview technology will include built-in structured interviews across job families and roles, featuring questions that are proven to be job-relevant and focused on factors related to job success. This will help create a process that is more objective, authoritative, and consistent. Augmenting this with automated AI-based scoring provides an objective and fair way to evaluate candidate responses to an interview, yielding job-relevant, competency-based scores and rankings that can be used in decision making.
“Because metrics such as on-the-job performance is not consistently tracked, quality of hire is often the hardest metric to measure accurately,” said Borchert. “By leveraging trusted science-based interview and assessment tools based on job relevancy and fair candidate experiences, hiring teams are relieved of these stressors, and can rely on the technology to deliver data-driven insights and quality outcomes.
To download Modern Hire’s 2023 Hiring Trends Report, visit https://learn.modernhire.com/rs/510-BPV-943/images/2023%20Hiring%20Trends%20Report.pdf.
To learn more about Modern Hire’s award-winning, science-based enterprise hiring platform, visit www.modernhire.com.
About Modern Hire
Modern Hire’s intelligent hiring platform transforms each step of the process with screening, assessment, interview and workflow automation tools that make hiring more effective, efficient, ethical and engaging. Modern Hire is differentiated by its advanced selection science and its commitment to the ethical use of AI and is trusted by more than 700 leading global enterprises and nearly half the Fortune 100. To learn more about the company’s commitment to seriously better hiring, visit www.modernhire.com.