Recruitment Trends 2024
1. Hybrid Work Model: Signs of Decline
Post-COVID-19, flexible working soared in popularity, with adoption rates climbing nearly one-tenth between 2020 and 2021, followed by a 4% increase the next year. However, the 2023 Timewise Flexible Jobs Index shows a mere 1% growth, with only 31% of job ads explicitly mentioning flexibility.
Major companies like Google, Apple, and Meta are calling employees back to the office, citing concerns about productivity, collaboration, and maintaining company culture among remote workers. This shift raises questions about the sustainability of flexible work arrangements.
In 2024, the UK’s Employment Relations (Flexible Working) Act will allow employees to request changes to their work patterns twice a year from day one of employment. Although the response time for these requests has been shortened from three months to two, employers can still deny requests for eight permissible reasons.
This new legislation adds complexity to the evolving narrative of flexible working. Organizations must navigate the implications of this legal framework, considering its impact on recruitment and employee retention. Will the once-favored remote work model become less common as companies weigh its benefits against potential drawbacks? The future of flexible working is at a pivotal moment.
2. Proactive Candidate Engagement
Traditionally, proactive candidate engagement was primarily utilized for filling C-suite executive positions, rarely extending to entry-level roles. However, this trend is shifting. According to a LinkedIn survey, 84% of recruiters now recognize the importance of engaging passive candidates for lower and middle-level positions, effectively widening the talent pool.
3. The Rise of Recruiting Automation
In 2024, the recruitment and staffing industry is increasingly embracing automation to streamline repetitive tasks and minimize administrative workload. A survey of 2,848 recruiting professionals revealed that most believe investing in advanced recruiting tools and technology is essential for enhancing recruiter performance.
Recruitment automation platforms like Recruiter flow enable resume parsing, candidate and client pipeline management, multi-job board posting, and more. These solutions also enhance candidate engagement throughout the hiring process, improving key recruitment metrics such as time to hire and time to submittal.
4. Diversity and Inclusion
Global business leaders recognize that a culturally diverse workforce drives innovation, creativity, and profitability. Despite this, only one in three recruiters currently track candidate diversity. Metrics such as gender and ethnicity of candidates sourced, interviewed, or hired are rarely used today. However, 2024 is expected to see a shift in this trend.
Research by Eagle Hill Consulting reveals that 53% of U.S. workers consider diversity, equity, and inclusion (DEI) a key factor when choosing an employer. DEI efforts are even more crucial for younger workers, with 77% of Gen Z and 63% of Millennials emphasizing its importance.
As candidates increasingly prioritize diversity and inclusion, companies are ramping up their DEI investments. Recruitment agencies will need to adopt innovative candidate evaluation tools to eliminate bias in recruiting and hiring.
5. Employer Branding
Employer branding is paramount and will continue to gain importance. It’s crucial to position your company as one that values the well-being and development of its recruiters and employees. Even for small teams of 3-4 people, prioritizing well-being is essential. Potential recruiters in 2024 will expect a strong focus on their well-being.
6. Data-Centric Recruiting
Leveraging data in recruiting is not a novel idea. Recruiters have long relied on data to inform their decisions. However, what’s evolving is the utilization of advanced technology to enhance hiring precision, shifting the focus from traditional metrics like grades or experience to evaluating the candidate’s overall personality.
While tactical metrics such as time to fill, candidates per hire, and offer acceptance rate remain crucial for monitoring immediate recruiter actions, the future of recruiting will prioritize strategic metrics that assess the business outcomes of the recruiting team’s efforts. Developing a client’s talent strategy will be just as vital as executing it.
7. Gen Z Entering the Workforce
As Gen Z begins to enter the workforce in junior-level roles, they bring a demand for speed and efficiency, expecting everything to be virtual and fast-paced.
Outdated recruitment methods will be a significant deterrent for this generation. Recruitment and staffing agencies must adapt by implementing recruitment automation, mobile-optimized application processes, and consistent candidate engagement throughout every stage of the hiring process.
8. Transformation of Recruiters into Business Leaders
Recruiters are often seen as order-takers, but this is set to change. The role of recruiters is evolving into a more strategic one, where they are expected to bring valuable perspectives, push back when necessary, and lead the way forward. This shift involves aligning with clients’ business goals and advising them on the best strategies to achieve these goals.
As automation takes over the administrative and routine aspects of recruiting, the focus will shift towards more creative and complex talent strategies. Recruiters will need to anticipate hiring managers’ needs, solve their problems, and identify new opportunities, making recruiting less about execution and more about strategic talent management.
9. Growth of the Gig Economy
The gig economy is expected to continue its rise in popularity, with more individuals seeking flexible, project-based work. This trend will significantly impact how companies approach recruitment and talent management, requiring them to adapt to a more fluid and dynamic workforce landscape.
10. Pay Transparency: Bridging the Gender Pay Gap
For over 50 years, the gender pay gap has persisted despite equal pay legislation. To address this, pay transparency has emerged as a crucial element of HR legislation, with new laws introduced across various jurisdictions in 2022. This trend is set to continue through 2024 and beyond.
Countries like Canada, Chile, France, Germany, Iceland, Lithuania, the UK, and the US have already implemented pay transparency legislation or policies. The European Union (EU) and other governments are also in the process of enacting similar measures.
According to a recent report by Staffing Industry Analysts, there are nine key legislative measures related to pay transparency:
- Access to pay information for employees.
- Employers required to disclose individual pay information to employees.
- Salary information must be included in job postings.
- Employers prohibited from requesting salary history.
- Creation of an independent body to provide equal pay certification.
- Enterprises must publish gender and pay information.
- Regular audits on gender and pay.
- Conducting pay assessments.
- Promoting equal pay discussions during collective bargaining.
Pay transparency is becoming increasingly important for recruiters to ensure compliance with legislation and promote gender-neutral pay. Adopting these measures can help bridge the gender pay gap and create a fairer workplace for all.
11. Fear of Recession
The Conference Board Leading Economic Index for the US declined by 0.4% in August, reaching 105.4, following a 0.3% drop in July. These figures prompt us to assess the potential impact on recruitment businesses:
- Reduced Hiring Demand: Economic contraction leads to fewer business expansion plans, resulting in decreased demand for new hires.
- Hiring Freezes: Economic uncertainty may trigger hiring freezes as a short-term risk mitigation measure, limiting job opportunities.
- Increased Talent Competition: A tighter hiring market intensifies competition for top talent. Recruitment firms must differentiate themselves to attract and retain skilled professionals.
However, there’s no need to worry. We have expert recommendations on how recruiters can tackle the recession like a pro.
12. The Great Resignation Continues
A recent PwC survey indicates that the Great Resignation is not slowing down. As the cost of living rises, more workers are seeking better-paying jobs, with 26% planning to change jobs next year, up from 19% last year. This global trend poses significant implications for staffing and recruiting agencies.
As more employees seek new opportunities, staffing and recruiting agencies will see a surge in demand for their services. With a larger pool of job seekers, agencies will be crucial in connecting talented individuals with organizations looking to fill vacancies. The competition for skilled candidates will intensify, requiring agencies to refine their sourcing strategies and improve their ability to match candidates with suitable positions.
The need for higher pay and improved work-life balance, highlighted by the survey, will compel staffing and recruiting agencies to work closely with clients to understand their specific employee value propositions. By aligning job offerings with candidate expectations, agencies can attract top talent and maintain a competitive edge in the evolving job market.
13. Preparing the Workforce for Generative AI and Automation
A recent IBM report, based on a survey of 3,000 global C-suite executives, highlights the transformative impact of generative AI and automation on the workforce. The report reveals that 40% of executives believe a significant portion of the global workforce—approximately 1.4 billion individuals—will require reskilling within the next three years. This underscores the growing importance of reskilling programs as a strategic approach to recruitment and talent development.
The report also indicates that entry-level positions are already feeling the effects of AI and automation, with 77% of executives acknowledging this impact. Consequently, businesses are likely to adapt their recruitment strategies for entry-level roles, seeking candidates with a blend of technical and soft skills to effectively collaborate with AI systems. Furthermore, most executives (87%) view AI as a tool for augmentation rather than replacement, highlighting the need for recruitment strategies that identify candidates who can complement and enhance technology.
To navigate this transformative landscape, IBM recommends a future-focused approach that involves redesigning work processes, investing significantly in talent development alongside technology adoption, implementing a skills-centric workforce strategy, and empowering employees to pursue meaningful, skill-enhancing tasks as automation becomes more prevalent.
14. Shifting from a Candidate-Driven Market to an Employer-Employee Driven Market
The new trend in the US labor market reflects a paradigm shift in the employer-employee relationship. With increasing demand for specific skill sets and high inflation rates, both workers and employers find themselves in influential positions. Wage growth has surged, indicating increased bargaining power for employees. However, economic uncertainty and rising costs provide leverage for employers as well. In this evolving landscape, prioritizing retention has become crucial, with employers recognizing the importance of flexible work options, raises, bonuses, benefits, and training.
Engaging employees on a personal level is now a critical aspect of the employee experience, as only a fraction of workers are fully engaged in their roles. Additionally, fostering a harmonious corporate culture that values collaboration and communication is essential in this new dynamic, where both parties hold significant sway in shaping the work environment. By embracing these shifts, employers and employees can forge a stronger, mutually beneficial relationship that celebrates and rewards their contributions.
Recruitment Chatbots: The Rising Trend
Recruitment chatbots are rapidly gaining traction as part of virtual recruiting initiatives. These chatbots engage with job seekers, answer their questions, and guide them through various stages of the hiring process. Their 24/7 operational capability makes them particularly valuable for global organizations dealing with candidates across different time zones.
But chatbots offer more than just answering basic hiring queries. Companies are leveraging them for screening applicants, scheduling interviews, and conducting background and reference checks, effectively filtering out unsuitable candidates early in the process.
What’s New in Recruitment for 2024?
The recruitment landscape in 2024 will shift towards proactive rather than reactive strategies. Building and managing talent pipelines before job vacancies arise will become a key focus. Both recruiters and employers will engage in skill-based candidate sourcing, anticipating the future needs of the business.
Conclusion
Despite the uncertainties faced by recruiting businesses in 2023, the recruitment trends for 2024 are poised to help them attract the right talent. By emphasizing proactive engagement, advanced screening, flexible workplaces, diversity and inclusion (D&I), and data-driven recruiting, companies are striving to secure a competent workforce amid a general talent shortage. These trends are essential for businesses to capitalize on the opportunities that 2024 presents.
