2022 was a challenging year for HR leaders. 2023 is a brand-new year – what should you expect? Take a look at our latest blog.

2022 was a big year in recruitment and with a demand for flexibility from jobseekers, new regulations with a new government and lasting acute skills shortages being a problem. The challenges in 2022 are certainly not over, but a new year often projects new challenges to be overcome.

Understanding what could impact your employment plans in 2023 will give you a head start in your attraction and retention prep. Below; we’ve put together a short list of what to expect as we move into 2023.

An Increased Need for Contract Work

It’s been predicted in 2023 that while employees still look for flexibility, they’re not jumping into new positions without careful thought. The economic environment is uncertain and so contract work seems to be a perfect medium.

Companies are still adjusting to an environment where more people are working from home and employees are requesting this flexibility, and they are looking to bring aboard certain skills for short-term projects.

This means that organisations need to ensure that they have those refined onboarding processes to help contract workers get up to speed as fast as possible. Businesses will be able to stay connected to those with in-demand skills with exit and alumni programs for employees beyond their contracts.

Immigration Review

The Labor Government announced a review of the immigration processes in Australia at the end of 2022. This review made promises to increase permanent migration levels by 35,000 between 2022-2023 so that Australia can sit more competitively when it comes to talent attraction.

Right now, visa processing times are high – as long as 15 months – which means that businesses often find it tough to secure the best talent in their area. A newer, more streamlined visa process would help businesses to look more confidently towards markets overseas to bring in the talent that they need.

The review also mentions the consideration of abolishing the skills list entirely and actively engaging with businesses to figure out the skills

Building Higher Value at Work

There is no doubt that remote working has proven productive and successful over the past couple of years. We’ve seen through the pandemic that people are better equipped when they are given the right support, but employers are now looking at what they could do to build that high value workforce they have been seeking.

The question for this year surrounds whether employees are connected enough. Leaders who are engaging with their teams are building empathy and transparency and in turn, this builds trust. This trust is a key ingredient for a secure work environment for everyone. Building the right culture is the focus for this year so that people feel encouraged to be themselves.

Connecting to your staff with better employee engagement methods will ensure motivation is high and people have a clear connection to the work that they are doing. You can forge those connections by upskilling your team members and investing in targeted professional growth.

Economic Uncertainty

We know that the economy across the globe is in a crisis and it’s not something that looks to be changing any time soon. In the next six to twelve months, CEOs and business leaders are going to look at ways that they can navigate growth. With economic uncertainty, this proves a little more difficult!

It’s the uncertainty that will affect the labour market in 2023, as hiring freezes are predicted as well as workforce resizing. Add the pressures of the rising cost of living, and it’s going to be a tough time in recruitment.


Attracting talent is not always the easiest thing to do in the best of times, but there are challenges ahead in 2023. The good news is that addressing these challenges can help you to ensure that your attraction and retention strategies source the engaged and motivated workforce you seek.

If you want some help with your recruitment strategy this year, reach out to our specialists. As a leading recruitment agency, we can help you secure the talent you need, whether it’s for full-time or temp jobs, our friendly team has you covered. With offices in Sydney, Melbourne and Brisbane, we can assist you with your next hire.

Author – Employment Group