As ongoing economic difficulties driven by rising energy costs, inflation and the cost of living crisis mean organisations are less able to invest in recruitment, many business leaders will instead be looking to maximise the potential of their existing workforce. However, the quiet quitting trend hasn’t gone away, and so while business leaders are contending with increased running costs, they’re also relying on employees who may have mentally checked out of their roles to drive results for the organisation.

UK employers report a buoyant labour market with the Net Employment Outlook rising to +21%, up two percentage-points since last quarter and down ten percentage-points on Q2 2022. In the context of record low unemployment and a historically tight labour market, employers continue to struggle to attract skilled talent, and in demand workers can’t find employers that fit their pay and skills needs. ManpowerGroup is advising employers revisit their essential skills requirements and consider what can be learnt on the job.

As talent demand continues to outstrip supply and a digital skills shortage is exacerbated by one third of the UK’s ‘digitally literate’ workers being unable to even complete a single digital skill, it is not surprising that businesses report their number one impediment to growth is a lack of skilled talent.

After a year where the number of open vacancies outstripped the number of unemployed for the first time on record, UK businesses have revealed a slight cooling in hiring sentiment as we enter 2023. However, even though recruitment intentions have lowered, hiring intentions are still an average 19% net positive and 72% of UK companies are reporting difficulties securing the workers they require.

We believe we are embarking on a New Human Age — a time where people are utilising technology and digital tools to enhance human connections, be more productive, and live more meaningful lives. In our latest report, The New Human Age Workforce Trend Report, we explore the workforce trends that are accelerating The New Human Age and key insights impacting talent demands and the workforce.

Staff attrition is turbo-charging the UK’s current talent shortage. As fast as businesses hire new talent, they lose existing talent – it’s like forever filling a leaky bucket. Meanwhile, high competition for new talent and extended time to effectiveness for new hires is eating into productivity, accelerating recruitment costs and making businesses less competitive.

The next generation of consumers expect businesses to have a point of view on societal and environmental issues, and to be doing right thing for people, communities and the planet. With more focus than ever on progress over pledges, organisations must move beyond target-setting to accelerate meaningful advances against Environmental action, Social impact, and good Governance (ESG).

Whoever has the talent has the power…but will a recession slow down the race to hire tech talent? Or will companies double down to gain competitive advantage?