“Adaptability is about the powerful difference between adapting to cope and adapting to win.” – Max Mckeown.
As we stand on the cusp of 2024, this sentiment rings louder in the recruitment landscape, given how the last few years have constantly kept the labor market on its toes.
HR leaders continuously strived to balance the increased business acumen, changing employee expectations, the impact of AI, and the rising need to build a sustainable and inclusive workplace.
So where to from here? How can you pivot from merely coping to decisively winning in this dynamic environment?
The key is in proactive adaptation.
2024 is going to be the year of companies that can actively anticipate and respond to emerging recruitment trends, including these twelve:
1. Companies will focus more on the changing labor market and economic conditions.
Since 2020, the job market and economy have been painstakingly unpredictable and at the forefront of many business considerations.
Whether due to the looming pandemic, geopolitical tensions, or back-to-back technological advancements, companies are forced to rethink the traditional work paradigms.
To top it off, economists claim that the US recession risk is likely to hit 72% by early 2024.
Even the World Economic Forum, in its Future of Job report, shared about the expected uncertainty in the market over the 2023-27 period.
This has made the agility and adaptability quotient all the more important for HR.
Many recruiters already use predictive analytics tools to keep up with these changes and build flexible hiring strategies that can scale up or down as needed.
But if you’re not already doing so, start now.
2. Company culture and employer branding will be the top priority.
It has always been so—year after year. And 2024 promises to be no different.
In fact, we anticipate that next year, more than ever, companies, whether boutique or Fortune 500, will place an unwavering emphasis on enhancing their employer branding strategies.
Why, you may ask? Because they understand that the impact of company culture and employer brand on the recruiting process and ROI can not be understated anymore. (Thanks to the dynamic job market!)
With more companies vying for the same talent pool, only those who have successfully nurtured a positive and sustainable work culture will attract a high caliber of candidates.
For businesses, this translates to aligning HR efforts with their overall workflow, primarily focusing on communicating value proposition, engaging the current workforce, leveraging digital platforms, and continuous feedback and improvement.
3. Employee experience and retention – Well, it’s obvious!
Ask your team (or you might already know) how much effort and money goes into sourcing and hiring even a single candidate.
And how costly it is if you can’t retain them after all those investments.
McKinsey calls dibs on somewhere around $450 – $550 billion each year!
This loss is exactly the reason why we believe “employee experience” will always be at the top of an HR executive’s mind, be it 2023 or the year(s) ahead.
After all, retaining the current workforce is much cheaper than recruiting and training new employees, and it can be done by building an environment that centers around worker’s needs and expectations.
Isn’t that the HR’s goal for 2024? (As discussed in the above two trends!)
4. AI will remain THE hot topic.
Everyone was talking about generative AI tools like ChatGPT and Dall-e this year. Some appreciated it. Some were worried about its potential negative impact on businesses.
Leading software providers saw it as an opportunity and sped past to augment their solutions with AI-centric capabilities, giving us some of the hottest recruiting platforms we know.
From resume parsing to automated hiring approvals, there are increasingly more and more AI use cases for hiring teams today.
The point is – this conversation is not going to cease anytime soon.
In fact, the AI recruitment industry is expected to grow from $590.5 million to $890.51 million, with a CAGR of 6.5% by 2028.
So, the best you can do is to stay up-to-date on all the latest AI-related trends and their impact on the recruitment industry.
5. More SMBs/talent leaders will reassess their #RecTech stack.
Speaking of technology, since new and “better” recruiting solutions are rolling in endlessly, more and more SMBs and talent leaders will seek alternatives to swap their poor-performing #RecTech stack in 2024.
The objective will obviously be to further streamline the recruitment process, improve efficiency, stay ahead of the competition, and ultimately secure top-tier talents.
And it’s possible only if your recruiting software is at par with the latest AI features.
Here is a tip for you –
Collaborate with up-and-coming startups in the HR tech space to co-create custom recruitment tools, ensuring your technology stack remains cutting-edge and unique to your needs.
Of course, this will work only if you have the right budget and resources.
Otherwise, you can always check out these top-rated recruiting platforms.
6. There will be more active candidates in the market.
According to a report, one in four candidates regret quitting their job amid the great resignation. And they are highly likely to return to the market in 2024.
Even “unretirement” will be on the rise. This year, at least 27% of two million premature retirees re-entered the workforce, out of which 53% said they were happy going back to work.
This would give you more access to an “active” talent pool and alleviate pipeline issues like reduced application volume, if any.
Of course, just because more job seekers will be available, it doesn’t mean it will be easier for you to find your “ideal” candidates.
But it’s still far better than dealing with the talent shortage, isn’t it?
All you need to do is make your recruitment process more humane, and you’re good to go.
7. HR will champion sustainability.
Green or sustainable recruiting isn’t a new term, but it has recently started to spread like fire as Millenials and Gen Zs enter the workforce.
This “young” talent pool wears environmental sustainability up its sleeves, and the only way to appeal to them is to incorporate green practices at your workplace. (including in recruitment!)
Many companies, like Google, Unilever, Bayer, etc., are already reaping results off their green recruiting practices, and it’s time you include it in your HR agenda for 2024 as well.
How? Here are some tips for you:
- Include your sustainability commitments in the job descriptions.
- Opt for digital onboarding processes, virtual interviews, and online assessments to reduce carbon footprints linked with traditional recruitment.
- Offer regular workshops and training sessions on sustainability, ensuring every stakeholder understands their role in the company’s green efforts.
- Introduce benefits like carbon offsetting for travel or incentives for using public transportation.
- Collaborate with green vendors, eco-friendly event organizers, and sustainable suppliers to ensure the company’s overall operations are environmentally conscious.
In short, this trend will require businesses to change their mindset on how they perceive their role in societal issues, reframe their adaptation strategies, and incorporate this mindset into decision-making.
Want us to help you go green?
Try Recruit CRM. It can make your entire recruitment process paperless.
8. Employee well-being and mental health will take center stage.
An annual report from the Business Group of Health recently brought these statistics to light:
In 2022, 44% of employers witnessed increased mental health concerns like depression, anxiety, and substance use disorder among their employees, which rose to 77% in 2023. And it is predicted to go further by at least 16% in 2024.
These numbers only make it imperative for you to build strategies that center around employees’ physical and mental health, job satisfaction, stress management, etc.
As the new year approaches, you must take a proactive stance – implement wellness programs, flexible work schedules, paid heath day leaves, etc.
If possible, you should consider collaborating with mental health professionals to provide in-house counseling sessions and workshops.
Moreover, you should also pay equal, if not more, attention to your remote workers.
For this, technology can come in handy. For example, you can create VR stress relief rooms for remote employees where they can either take a break or chat with their colleagues.
These “little” efforts will not only improve your workforce productivity but also contribute to your long-term business success.
Remember, destigmatizing discussions around mental health and regularly checking in on employees can go a long way.
9. There will be a shift from talent acquisition to talent access.
According to a study by Gallup – Millennials and Gen Zs, when job hunting, prioritize-
- Opportunities to learn and grow
- Interest in the type of work, and
- Career advancements
Recognizing this, at least 48% of companies will shift from hiring new talents to promoting internal talents in 2024.
This transition will witness HR professionals lean more towards internal talent pools, spotlighting transferable skills and promoting skill development.
There will also be an evident change in career paths from traditional vertical ladders to more flexible ones.
In short, trends like internal mobility, skill acquisition, and career progression will be the talk of the town next year.
And we would recommend you on board with it ASAP! (If not, already)
10. Recruiters will focus away from core hiring skills.
As discussed in the previous pointer, 2024 will be all about internal mobility and upskilling rather than hiring external talents.
And that applies to the HR department as well. (Though we almost believe nobody has told them that yet!)
According to Udemy’s 2023 Workplace Learning Trends Report, recruitment and hiring are the top surging skills in the workplace.
That means whatever you spent learning and doing for the past don’t-know-how-many years seems to be at odds.
And you can’t do anything about it other than reskilling your hiring team.
Sucks? But that’s the truth!
11. HR pros will revamp their performance management and review system.
Betterworks’ 2023 Global HR Report shows that only 1 in 3 employees believe the current performance management system at their company helps them perform better.
And at least 37% of workers said the performance management and review process is an outright failure in their company.
In simple words, employees are not happy, and that can be a major setback in your company’s growth if proper measures aren’t taken immediately.
And what’s the solution? Giving more feedback? Absolutely no!
It’s useless unless you set your foundations right.
In 2024, you need to learn how to provide clear and constructive feedback, as well as how to receive and process it effectively.
Also, ask your hiring team and managers what they need help with. Most of them might struggle with one (or more) of these:
In short, upskilling should be at the top of your 2024 checklist. (No caps!)
12. There will be a huge shift towards the use of blockchain for candidate evaluation.
If you have always been worried about the authenticity of a candidate’s resume, don’t anymore.
Blockchain technology is poised to revolutionize the recruitment industry in 2024.
For those who may not know – Blockchain is a distributed ledger technology that creates a tamper-proof record of all transactions.
And we believe it is one of the best solutions to ensure no exaggerated claims or fabricated achievements in candidates’ portfolios.
This means you can now be confident that whatever information you review is accurate and authentic.
That said, don’t forget to check out our “Face of recruitment in 2023” as well.
All the recruitment trends mentioned in that article will likely continue to impact the job market in 2024 (or, perhaps, will even become more prominent!).
Happy recruiting~
