2024 recruitment trends that will impact your work next year 

While it may not be possible to accurately predict every change that will occur in 2024, we can provide you with reasonable assumptions based on the evolving hiring requirements and priorities of more than 80,000 companies worldwide.

Therefore, let us explore the projected recruitment trends for 2024.

Hybrid Work Model: Signs of Decline in 2024

Following the COVID-19 pandemic, there has been a notable surge in the popularity of flexible working arrangements. Between 2020 and 2021, there was a significant increase of nearly one-tenth in the adoption of flexible work practices. This was followed by a modest 4% rise in the subsequent year.

However, recent research for 2023 indicates a more modest growth rate of 1%, with only 31% of job advertisements explicitly mentioning flexibility. Companies of great stature, such as Google, Apple, and Meta, are actively calling their employees back to the physical office space. Their concerns centre around productivity, collaboration, and maintaining a cohesive company culture within a remote working environment. This shift raises valid questions regarding the sustainability of flexible work arrangements.

Nevertheless, the UK is preparing to implement the Employment Relations (Flexible Working) Act in 2024, which will grant employees the right to request changes to their work patterns twice a year from the very beginning of their employment. Although the response time has been reduced from three months to two, employers retain the ability to deny requests based on eight specific reasons.

This impending legislation adds a layer of complexity to the ongoing discussion surrounding flexible working. Organisations now face the challenge of navigating the implications of this new legal framework, which prompts further questions about its potential impact on recruitment and employee retention. Will the convenience and flexibility once enjoyed through remote work become less prevalent as companies weigh the benefits against perceived drawbacks?

It appears that the future of flexible working is currently at a crucial crossroads.

Diversity, equity, and inclusion (DEI)

Given the current state of the labour market and workforce, it is highly likely that one of the prominent talent acquisition and employment trends in 2024 will revolve around diversity and inclusion. Business leaders across the globe are increasingly acknowledging the significant impact of a culturally diverse workforce on innovation, creativity, and overall profitability.

Surprisingly, only a third of recruiters currently monitor the diversity of candidates, neglecting crucial diversity metrics such as gender or ethnicity in their sourcing, interviewing, and hiring processes. However, there is a shift on the horizon.

Recent research reveals that 53% of workers consider diversity, equity, and inclusion (DEI) as a crucial factor when evaluating potential employers. This sentiment is particularly pronounced among younger generations, with 77% of Gen Z and 63% of Millennials placing considerable importance on a company’s DEI efforts. To meet the growing demand for diversity and inclusion, companies are increasingly investing in initiatives to foster an inclusive workforce.

Consequently, recruitment agencies will need to prioritise the implementation of innovative candidate evaluation tools that effectively eliminate bias in the recruitment and hiring process. Moreover, while it is important not to generalise individuals solely based on their age, certain characteristics are likely to influence our recruitment and management strategies. For instance, the emergence of new recruitment channels, such as TikTok, may necessitate a shift in our approach.

Additionally, the younger generations are passionate advocates for DEI and advocate for fair and inclusive work environments. As recruiters and employers, it is imperative that we remain cognisant of this evolving landscape and adapt accordingly.

Furthermore, recent indications suggest a gradual softening of the labour market. This year, there is a glimmer of hope as we appear to have surpassed the peak and are now observing a slow downward trend. Assuming this trend continues, it is plausible to anticipate a more abundant talent pool for recruiters in 2024.

Branding

Having a strong employer brand is crucial in today’s competitive job market, and its significance will only continue to grow. It is imperative to establish your company as one that values the well-being and professional growth of its recruiters and employees.

Even if you operate with a small team of 3-4 individuals, it is high time to prioritise this aspect as the recruiters of the future, by 2024, will anticipate companies that prioritise their overall well-being.

Shift from a candidate-driven market to an employer-driven market

Due to widespread labour shortages, recruiters and employers found themselves in a position where candidates held the power in the job market. These job seekers were able to ask for more, taking advantage of the struggle companies faced in filling positions.

However, it is expected that this scenario will change in the upcoming year. Predictions for recruiting trends in 2024 indicate that the market will shift towards an employer-driven environment. This shift will significantly impact the way we work.

Once again, recruiters and hiring managers will regain the upper hand, eliminating the need for compromises. It will be crucial for us to leverage this advantage to the fullest extent in order to build the most effective teams possible. When searching for suitable candidates, it is important to carefully evaluate what qualifications and skills are essential for the role. This should be clearly expressed in job advertisements to attract the most suitable individuals who fit the bill perfectly.

Further automation and AI adoption in recruitment

The landscape of recruitment is evolving rapidly in 2024, as technological advancements in AI and automated systems revolutionise the way we find and hire talent.

The buzz surrounding AI has only grown stronger, and although the recruiting profession has yet to undergo a complete transformation, significant changes have taken place in our approach to work.

Anticipating the future, we can confidently state that the coming year will witness a widespread adoption of automation and AI in various aspects of our roles as recruiters. Not only will this streamline our processes, but it will also usher in an era of data-driven recruitment.

Organisations will harness the power of AI and big data to make more informed hiring decisions, allowing them to measure metrics such as the cost of vacancy and cost per hire with greater precision. This enhanced analytical capability will empower companies to hire more efficiently, find top-tier candidates, and accurately forecast the necessary budgetary allocations.

Gen Z entering the workforce  

The time has come for Generation Z to embark on their professional journey, starting from entry-level positions. Their arrival in the workforce will herald a significant shift in the recruitment landscape, marked by an emphasis on speed and a preference for virtual and fast-paced experiences. Traditional recruitment tactics that no longer align with their expectations will fail to captivate this new generation of talent.

As a result, recruitment and staffing agencies must adapt to this evolving landscape. They will need to embrace recruitment automation, optimise application processes for mobile platforms, and prioritise candidate engagement at every stage of the hiring process. These measures will not only be desirable but also crucial for success in attracting and retaining the Gen Z workforce.

Pay Transparency

The persistent issue of the gender pay gap continues to prevail, despite the existence of equal pay legislation for over half a century. To address this concern, the significance of pay transparency has grown significantly within the framework of HR legislation.

As a result, numerous jurisdictions are now introducing new laws in 2022, and this trend is expected to extend well into 2024 and beyond. Countries such as Canada, Chile, France, Germany, Iceland, Lithuania, the UK, and the US have already taken steps to implement pay transparency legislation or policies. Furthermore, other governments, including the European Union (EU), are actively working towards enacting similar measures.

A comprehensive research report conducted by Staffing Industry Analysts has identified nine distinct legislative measures associated with pay transparency. These measures include granting employees access to pay information, mandating employers to disclose individual pay details, incorporating salary information in job postings, prohibiting the solicitation of salary history by employers, establishing an independent body to certify equal pay, requiring enterprises to publish gender and pay information, conducting regular audits on gender and pay, undertaking pay assessments, and fostering discussions on equal pay during collective bargaining.

Consequently, the significance of pay transparency is steadily growing, necessitating recruiters’ attention to ensure compliance with legislation and foster gender-neutral pay practices.

Fear of Recession

In recent months, the Bank of England has implemented 14 interest rate hikes in an effort to curb inflation. However, the repercussions of these actions on consumer confidence and sales volumes are becoming apparent, as retailers report a downturn in business. Barclays has revealed that card spending only increased by 2.6% in the year leading up to October, which is significantly lower than the current inflation rate of 6.7% measured by the consumer prices index.

Although the BRC/KPMG monitor of retail activity reported a 2.5% rise in sales for October 2022, it cautioned that these figures were not adjusted for inflation. In addition to concerns within the retail sector, the UK construction industry is also experiencing a decline in performance. The latest report from S&P Global and the Chartered Institute of Procurement and Supply (Cips) indicates that housebuilding has contracted for the 11th consecutive month. All three categories of construction – infrastructure, commercial property, and housebuilding – scored below 50, the threshold that separates a growing sector from a declining one.

Notably, housebuilding was found to be the weakest, with a score of 38.5. Furthermore, the Society of Motor Manufacturers and Traders has released car sales figures, which suggest that consumers are hesitant to make significant purchases. While fleet sales saw a remarkable year-on-year increase of nearly 30%, sales to private buyers only saw a minimal rise of 0.3% to a total of 62,915. These figures paint a picture of cautiousness among consumers when it comes to committing to big-ticket items. Overall, the combination of downbeat reports from retailers, a struggling construction sector, and subdued car sales indicates a realistic and concerning state of the UK economy.

Given these figures, it is important to assess the potential implications on recruitment businesses:

1. Reduced Hiring Demand: With the economy contracting, businesses tend to scale back their expansion plans, leading to a decrease in the demand for new hires. This, in turn, may limit job opportunities.
2. Implementation of Hiring Freezes: In times of economic uncertainty, companies often resort to implementing hiring freezes as a short-term measure to mitigate risks. Consequently, this can further restrict the number of available job openings.
3. Increased Competition for Talent: As the hiring market becomes more competitive due to limited opportunities, the competition for top talent intensifies. In order to attract and retain skilled professionals, recruitment firms must find ways to set themselves apart from their competitors. It is essential for recruitment businesses to carefully consider these factors and adapt their strategies accordingly to navigate the challenges presented by the current economic situation.

Getting ready for what is to come

It is highly probable that the recruitment scenario will undergo significant changes in 2024. While the exact transformations remain uncertain, there are six prevailing recruitment trends that are anticipated to greatly influence the upcoming year. Embracing these emerging trends will enable recruiters to establish themselves as strategic catalysts, fostering the development of flourishing businesses.