Hiring and Workplace Trends 2023
Hiring and Workplace Trends 2023
Hiring and Workplace Trends 2023
Table of Contents
Foreword 05
The Changing Workforce Is Pushing Diversity, Equity, and Inclusion to the Forefront 34
Conclusion 39
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Indeed & Glassdoor Report 2023 Hiring and Workplace Trends
Foreword
Svenja Gudell, PhD, Indeed chief economist | Aaron Terrazas, Glassdoor chief economist
The Top Long-term
The labor market has been forever reshaped by the COVID pandemic. Labor Market Trends From
While a bleak economic outlook, cost of living crisis, and political turmoil Indeed and Glassdoor Include:
have been grabbing the headlines around the world, fundamental changes
have continued to take place and the world of work isn’t going back to the
way things were before.
Demographic shifts and aging populations
Demographic trends mean countries like the Together, using data-driven analysis, Indeed
mean hiring will remain challenging for years,
US, Canada, the UK, France, Germany, and and Glassdoor economists share and examine
as labor supply issues will remain.
Japan will experience five trends of the modern workplace that will
COVID didn’t an ongoing shortage reshape the labor market in the long-term. The
of workers as their Indeed Hiring Lab—an international team of
Remote work, which was a necessity during
reverse the long-
run demographic populations are aging. economists and researchers whose insights the pandemic, will continue to thrive.
trends that will Without sustained drive the global labor market conversation—
drive tight labor immigration, an along with Glassdoor Economic Research What employees want is changing, including
markets for the increase in labor team, whose deep understanding draws their compensation and benefits needs, with
next decade, but productivity, or a focus from a rich database of millions of employee inflation playing a key role.
it did accelerate on attracting workers reviews, salaries, and conversations—worked
changes to the on the sidelines of together to create their first-ever joint Hiring
workplace. Company culture is valuable in both
the labor force, these and Workplace Trends Report. The economists
attracting and retaining employees, as a
countries simply won’t at both organizations explored the current
have enough workers to fill long-term demand state of the workplace and what it means for way for employers to further distinguish
for years to come. the labor market of tomorrow. The goal of this themselves from their competitors.
report is to support employers as they navigate
COVID didn’t reverse the long-run
this watershed moment in history. Diversity, equity, and inclusion will remain
demographic trends that will drive tight
labor markets for the next decade, but it did The trends identified will persist beyond the
top of mind, as employees continue to deeply
accelerate changes to the workplace. Perhaps near-term fluctuations in the business cycle, care about these initiatives, as well as the
most importantly, it helped workers wake up to and the companies that focus on them will progress employers are making, or not.
the fact that they have the leverage to demand ensure their workplace survives, even thrives,
change in the workplace—and left many into the future.
employers at a loss about how to deal with
this new dynamic.
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But the tight supply of workers has a The principal reason for this can be summed
fundamental impact on the workplace as a up in one word: demographics. Over the next
whole. Not only will hiring be more difficult, decade, the number of people of working age
but workers will have more power to demand (between 15 and 65), will decline in a variety of
changes. The following trends in this report countries, according to World Bank projections:
will be persistent because of this supply and
demand gap within the labor force.
0%
-2%
-3.1 -3.2
-3.3 Fewer people of working age mean the supply of workers will dwindle. Combine this aging
-4% population with other trends, such as reduced immigration, and the stage is set for chronic
-3.8
recruiting challenges. Of course, this will play out differently from country to country:
-6% are projected to exceed births by 2025. forecasted to fall from 128 million in 2010 to
below 100 million by 2050, while the share
• In Canada and Australia, populations will
of those ages 65 and older soars.
continue to grow—in Canada thanks largely
to migration. But the share of people over • A shrinking population is projected in a
-7.2
65 will rise rapidly in both countries. variety of other countries, including China,
-8% which is poised to overtake the US as the
Canada France Germany United United • In Germany, the population is aging and the
world’s biggest economy sometime in the
Kingdom States labor force is shrinking. Migration is still not
next decade.
back to pre-pandemic levels.
Source: World Bank
• The French labor force is expected to
expand slowly until 2040 and then contract.
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42%
Canada France United Kingdom Immigration:
China Germany United States Attracting workers from abroad is an effective way to promote hiring in tight labor
markets. National policies that allow immigrants quick access to employment widen
avenues for recruitment. Even Japan, known for strict immigration limits, has eased
40% visa requirements for certain categories of workers.
34.7
34.3
34%
33.7
Investing in productivity-enhancing technology:
Replacing workers with machines has been controversial since the debate over
2026 2031 2036 2041 2046 2050 automation decades ago. Data shows, though, that technological advances can
boost productivity without pushing up joblessness. For example, in the US, thanks
Source: World Bank to online booking, ticket and reservation agents represent much smaller shares of
airline employment than they did five decades ago, while the share of customer
Despite looming talks of recessions, Indeed The fact that hiring will remain a challenge will service employees in the industry has climbed more than tenfold. Machines—and
and Glassdoor economists believe that hiring impact every aspect of the labor market, and digital technology in its ever-expanding range of applications—can actually help
will remain challenging for years to come is the driver behind the additional long-term fill gaps in the labor supply.
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The acute need to work from home has While COVID may have unlocked this trend, And while recruitment is still largely confined them stay home.
ended, yet the ability and option to work from this successful proof of concept, a tight inside national frontiers due to tax codes and Employers trying On Indeed, in-person
anywhere is thriving. On Indeed, job postings labor supply and workers’ preferences will other barriers, many hiring managers are
to fill in-person employers are
jobs may find
advertising remote work are above where ensure remote work will persist for some jobs. competing with employers across the country, responding by offering
themselves at
they were prior to the pandemic, albeit their Employers also benefit—remote work offers and even across the globe. signing bonuses
a disadvantage
numbers have slightly decreased since their expanded talent pools. relatively more heavily
However, there will always be a large number as workers
pandemic heights. Searches for remote work than their counterparts
A recent study by Indeed suggests that of jobs that are not compatible with remote gravitate toward
remain popular with job seekers. In fact, on work that lets recruiting for remote-
positions that offer remote work have work.It’s estimated that only about a third of
Indeed, searches for jobs not fully tied to work them stay home. friendly occupations.
substantial potential to attract a global pool occupations are suitable for remote work.1
sites continue to command much higher shares In fact, in July of
of candidates. Because remote jobs can Hamburgers can’t be flipped, trucks can’t be
of overall searches than they did in 2019. 2022 some 5.2% of US job postings on Indeed
theoretically be done from anywhere, they driven, and surgery can’t be performed from
advertised signing bonuses, more than three
are a particular draw for foreign job seekers. home offices. Employers trying to fill in-person
times higher than in the same month in 2019,
jobs may find themselves at a disadvantage as
but below the December 2021 peak.
workers gravitate toward work that lets
Remote job postings remain elevated Remote job searches still outpace pre-pandemic levels
% of job postings mentioning remote work by country % of job searches mentioning remote work by country
15% 15%
12.4%
11.2%
10.1%
9.8%
8.6%
10% 10%
6.1%
4.6%
5% 5%
2.8% 2.8%
0.6%
3.0% 3.7% 3.0% 2.9%
0% 1.6% 0% 1.7%
0.6% 0.7% 0.1% 0.3%
Canada Germany France United United
Kingdom States Canada Germany France United United
Kingdom States
Source: Indeed. Data is 7-day moving average as of September 30. Source: Indeed. Data is 7-day moving average as of September 30.
1. Jonathan I. Dingel and Brent Neiman estimate that 63% of US jobs require significant onsite presence and that the
15 remaining 37% can be performed entirely at home. 16
Indeed & Glassdoor Report 2023 Hiring and Workplace Trends
Men Women Some companies have been faced with petitions from employees who’ve been asked to come
back into the office several days a week. Other corporate leaders have taken hard stances on
Higher pay return-to-office protocols—and have even dismissed employees who did not follow the policy.
31% Despite those headlines, remote work is here to stay, and many companies hiring for hard-to-fill
30%
roles are leaning into it. Some trends we’re seeing include:
Want remote job
11%
16%
Software development job postings lead in advertising remote work across markets.
Change career path
17% • In the US, Canada, France, Germany, and the UK, software development job postings
15% is the job title most often advertising remote work as of September 2022.
More flexibility • It’s not just software development job postings that consistently advertise
11%
12% remote work. Other tech jobs like IT Help Desk and Information & Design also
have substantial remote work advertisements in each of these markets.
Unhappy with manager
9%
11%
Shorter commute In Canada, 30% of marketing job postings mention remote work. That’s a sizable
9% increase from 5.9% before the pandemic. It’s a similar story in Germany where 10.2% of
8%
marketing job postings mentioned remote prior to the pandemic but that number now
Relocation sits at 39.5% as of September.
7%
6% • In the US and the UK respectively, around 27% of marketing job postings advertise
Job is temporary remote work, a significant climb from the US’s 7.1% and UK’s 4.5% in September 2019.
7%
• France bucks the trends, with only 11.8% of its marketing job postings mentioning
6%
remote work as of September 2022.
Source: Indeed Hiring Lab job Search Survey. Data from July 2021 to February 2022.
Respondents were able to choose multiple reasons.
Even with reports of financial institutions trying to get employees back into an office,
With workforces spread far and wide, with disabilities to find and maintain banking and finance job postings continue to advertise remote work at elevated levels.2
employers and policymakers have much to employment. In addition, remote work has the • Germany leads, with 30% of its finance and banking job postings mentioning remote
ponder as the long-term impacts of remote potential to create much more diversity in the work while France is slightly less than half of that at 13%.
work are yet to be determined, or fully felt. workforce. Remote work at this scale is new
Remote work could intensify economic territory for employers, and it is imperative • In Canada, 23% of banking and finance job postings mention remote work, compared
inequality and gender roles (women seek they continue to monitor and adjust their to almost 20% in the UK and US.
remote jobs at higher rates than men). policies to ensure the inclusivity, equity, and • Pre-pandemic, only Germany’s banking and finance job postings mentioning remote
At the same time, remote work eliminates diversity of their workforce. were in the double digits. None of Canada, the UK , France, and the US’s remote
the commute, which has allowed workers banking and finance job postings reached 10% of the sector.
L O N G -T E R M T R E N D S
#3: As Workers
Seek Higher Pay,
Benefits Can Set
Employers Apart
Compensation remains king for job seekers.
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Across wage levels, there have been substantial differentiate their organizations and sweeten
Searches mentioning $20 surpass those for $15 nominal wage gains over the last 12 months as job offers, especially in occupations at the lower
employers try to find workers. end of the wage scale that typically require
Share of US searches per million on Indeed containing dollar amount
in-person attendance, like childcare or food
So how can employers set themselves
preparation and service.
apart, especially as raising wages is not
always possible? This trend can be seen in job ads on Indeed’s US
$15 $20 $25
platform. Advertisement of Indeed employment
As hiring challenges persist, due in part to the
ads in three major benefit categories—
shrinking working-age population, holistic
healthcare, retirement, and paid time off
800 benefits have become an even more critical
—has climbed across the US labor market.
part of compensation packages. In the US,
these benefits provide employers ways to
50%
400
40%
30%
200
20%
10%
0
01/19 09/19 05/20 01/21 09/21 05/22 0%
01/19 09/19 05/20 01/21 09/21 05/22
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But the rise has been most pronounced in sectors where employers have been scrambling Access to health coverage, time off with pay, As employers compete for talent in a tight labor
for workers, and many of those jobs pay lower wages and require attendance at a worksite. and retirement plans are important to most market, they have not only advertised better
From August 2019 to August 2022, for instance, in low-wage sectors like personal care and job seekers. Thus, it’s and more benefits to job seekers, but workers
home health, paid time off rose from 21.3% to 38.8%. not surprising that have also noticed an increase in their “portfolio
The message?
relative job-seeker of benefits” on the job.
Employers in
interest has skewed
lower-paying In recent years, stocked kitchens and free
Paid time off advertisement doubles in low wage job postings and in-person
toward higher-paying,
lunch became a baseline benefit at many
more remote sectors
Growth in % of US job postings advertising benefit by wage tier—Aug 2019 to Aug 2022 sectors will have technology companies. Post-pandemic, the
to stretch if they where it’s assumed
lunchtime landscape is shifting. According to an
want to attract employers offer these
analysis of benefit reviews on Glassdoor, free
Health insurance job seekers in benefits. The message?
lunches are on the rise in perhaps unexpected
low wage 79.6%
tomorrow’s labor Employers in lower-
corners of the economy, like manufacturing
(<$15) market, and may paying and in-person
and transportation/logistics. Meanwhile, fewer
need to get a sectors will have to
middle wage 59.7% employees are reporting free lunch or snacks
little creative. stretch if they want to
($15-$20.38) at technology companies, which is partly driven
attract job seekers in
high wage 44.3% by many of those employees still working
tomorrow’s labor market, and may need to get
($20.39+) remotely. For these workers, free lunches and
a little creative.
snacks used to be an incentive to work longer
hours; now they are an incentive to come into
Paid time off
the office at all.
low wage 100%
(<$15)
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Similarly, access to commuter benefits grew in many of the industries that do not have a remote Percent of benefit reviews on Glassdoor reporting
work option. These benefits could include free parking, public transportation reimbursement, “mental healthcare”, median across US industries
and even money for gas.
65% 63%
Change in the share of benefit reviews on Glassdoor
60% 59%
reporting “commuter assistance”: Q1 2019 - Q3 2022 57%
55%
Top five rising industries
50% 49%
48%
1. Arts, entertainment, and recreation +4.1 ppts 45%
45%
20%
The priorities by industry for in-office food labor market, it impacted the mental health of 15%
and commuter benefits have shifted in the many, which was reflected in the workforce.
10%
post-pandemic era between office workers Soon after the start of COVID in the US, an
and those who worked, and continue to work, upward shift occurred in the share of employee 5%
in person. benefit reviews on Glassdoor that say that their
employer offers mental health benefits. This 0%
Perhaps the most critical benefit that seems to
trend steadily increased throughout 2022. 2017 2018 2019 2020 2021 2022*
be growing across all industries is mental health
care. In addition to the havoc COVID had on the
Source: Glassdoor
* through end of Q3 2022
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According to Indeed’s Work Wellbeing 2022 Glassdoor research shows similar trends. Across the US, the UK, Germany, and France,
Insights Report, 90% of people believe that how workers who are more satisfied with their current jobs are less likely to begin an application
46%
we feel at work matters, yet only 49% of people for a new job elsewhere:
report their company is measuring happiness
and wellbeing.3 Measuring and understanding
of people say their expectation
2x -6%
employee wellbeing is becoming vital to
attracting and retaining talent. around happiness at work has
increased in just the last year.
This year’s research indicates that
US employees who rate their A 1-star increase in a US
expectations around wellbeing at work
companies 2 stars (on a 1 to 5 employee’s Glassdoor rating is
continue to increase and have been
scale) are twice as likely to begin associated with a 6% drop in the
accelerated by a global pandemic:
an application to a new job on likelihood that they begin an
86%
Glassdoor than those who rate application for a new job.
their companies 5 stars.
UK
In the UK, a 1-star increase in an employee’s Glassdoor rating is
associated with a 19% decline in the likelihood that they begin
Stress
an application to a new job on Glassdoor within the next week.
FR
of satisfaction, and happiness In France, a 1-star increase in an employee’s Glassdoor rating is
are the leading reasons people associated with a 25% decline in the likelihood that they begin
look for new opportunities. an application to a new job on Glassdoor within the next week.
DE
In Germany, a 1-star increase in an employee’s Glassdoor rating is
associated with a 15% decline in the likelihood that they begin an
application to a new job posting on Glassdoor within the next week.
3. Indeed Work Wellbeing 2022 Insights Report: Indeed commissioned Forrester Consulting who surveyed 5,026 active US workers (adults
ages 18+ who reported either working full-time or part-time or actively searching for a job, assuming they haven’t been unemployed for
more than 2 years).
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6%
5%
4%
3%
2%
1%
0%
1 2 3 4 5
Rating
Source: Glassdoor reviews and job search activity by full and part-time US employees, 01/01/2021 - 05/23/2022
“Application Rate”: The percentage of employees who clicked “apply” on another job within one week of leaving a rating
To help ensure employees are satisfied, and thus more likely to stay at an organization, there
must be a greater focus on better understanding, measuring, and supporting the wellbeing
and happiness of employees.
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A September 2022 survey from Indeed & Glassdoor shows that age and generation—more so
than gender, race/ethnicity, geography, sexual orientation, or parental status—determine whether Percent of benefit reviews on Glassdoor reporting:
someone believes DEI is important in the workplace. diversity program
10%
The share of Glassdoor benefit reviews indicating that a company offered a DEI program—
benefits such as employee resource groups, diversity training, and mentoring programs—surged 5%
in 2020 and 2021 in the US, Canada, and the UK as social justice and equity issues were front and
center. Through the first three quarters of 2022, however, this progress has slowed in the US and
0%
UK, with the share of benefit reviews citing these programs dipping from 2021. Canada remains an
exception, with an increasing percentage of reviews mentioning DEI benefits. 2017 2018 2019 2020 2021 2022*
Source: Glassdoor
* through Q3 2022
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For employers, this slowdown in DEI efforts Hispanics (77%), Black/Non-Hispanic workers
could have a negative impact on their hiring (79%), parents (80%), and Asian-American/
and retention efforts. Nearly two-thirds (62%) Pacific Islander workers (82%).
of workers in the Indeed & Glassdoor survey
4
62% 74%
of workers in the Indeed & of US workers say that
Glassdoor survey of US workers corporate investment in
said that they would consider diversity, equity, and inclusion is
turning down a job offer or “very important” or “somewhat
leaving a company if they did important” to them when
not think that their manager (or considering a new job.
potential manager) supported
DEI initiatives.
4. Survey Methodology: This survey was conducted online within the United States by The Harris Poll on behalf of Indeed and Glassdoor
from August 30 - September 1 and September 6 - 8, 2022, among 4,049 adults ages 18+, of whom 2,688 are either currently employed or
not employed but looking. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the
sample data is accurate to within +/- 2.8 percentage points using a 95% confidence level.
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Conclusion
While no one can know exactly what will happen with the labor market,
these five trends clearly show that attracting, hiring, and retaining
workers will remain challenging for employers for the foreseeable future.
As employers continue to grapple with an aging and more competitive
workforce, they must be innovative about where to find workers and how
to set themselves apart.
The strength of an organization’s employees As the global economic tides continue to turn,
is directly associated with its business companies may face further whiplash. While
success. Beyond a competitive wage, offering they have been scrambling for over a year to
employees top-notch benefits, positive, find workers, the immediate macroeconomic
engaging company culture, and commitment outlook remains gloomy. The COVID pandemic
to DEI initiatives will remain incredibly ushered in a new world of work, and even
important to help win talent in a competitive as the immediate pandemic shocks recede,
and changing labor market. business leaders will continue to grapple with
the aftermath. Real-time data, insights, and
forward-looking thinking will help company
leaders at all levels make informed decisions
for the long term.
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Pawel Adrjan, PhD (Indeed, Europe, the Middle East, Africa) Alexandre Judes (Indeed, France)
Svenja Gudell, PhD (Indeed, Global) Cory Stahle (Indeed, United States)
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