The job market is swinging back and forth rapidly, which puts TA professionals in a tough spot to reassess their hiring strategies. Here are some of the trends and strategies that HR and research companies predict are going to lead in the year 2024. As per these estimated trends, organisations can revisit their practices, map their business expectations, and redesign their hiring and retention practices to win talent in 2024.
2024 is going to be a year full of peaks and troughs, both for the talent that is yet to be hired and for the existing pool of employees that are treading through a volatile recession-led world of work. Adding to the challenge, organisations globally are grappling with the skills crisis more than ever. A 2023 Wiley Report, ‘Closing the Skills Gap’, found that 69 percent of the surveyed HR professionals believed their respective organisations suffer from a skill gap, which is a 14 percent rise from 2021.
Talent attraction and retention are no longer just nice to have but a business obligation to thrive in the long-run. As per a 2023 study conducted by McKinsey, 39 percent of employees in seven countries said that they are planning to leave their current jobs in the next three-six months. It is no secret that there exists a mismatch between the employees’ wants and employers’ needs. Especially after the pandemic, employees have hit a refresh button on their attitudes when it comes to work and what matters to them. To combat this situation, it is critical that employers need to revisit their hiring and retention strategies. While it has largely been an issue only for HR teams over the years, leaders and company culture play an equally impactful role in setting up new hires for success. The job market is swinging back and forth rapidly, which puts TA professionals in a tough spot to reassess their hiring strategies.
Here are some of the trends and strategies that HR and research companies predict are going to lead in the year 2024. As per these estimated trends, organisations can revisit their practices, map their business expectations, and redesign their hiring and retention practices to win talent in 2024.
Early career hiring-entry level positions will gain an edge
With a massive chunk of the workforce being laid off on the grounds of roles becoming redundant and company-wide restructuring, recruiters will now begin to cast their net wider in 2024, aiming to hire young working professionals. Entry-level hires command lower salaries as compared to their mid-level counterparts which makes them an attractive choice when budgets are tight. Budget cuts will automatically make employers hunt for young talent or freshers. But the young hires today expect more from their employers in terms of flexibility, inclusion, balance and a focus on well-being than ever before. This means that employers will now have to step up and support their people.
A stronger human-AI alliance will redefine the hiring landscape
Certainly, AI saves a lot of time and money when it comes to making hiring decisions, not to mention how it has incredibly contributed to improving the DE&I mandates for companies. While it is fair to say that the benefits of AI outweigh the risks, it is still crucial for TA professionals to maintain a human touch. According to a Stanford study, generative Al tools such as ChatGPT are becoming less accurate and 73% of the leaders said that they will keep a close eye on their tech for signs of security issues and algorithmic bias. AI certainly has a bigger role to play in streamlining candidates, but talent management leaders will need to sustain a balance to make the right hiring choices.
Hiring for skills will be a priority
The year 2024 will be all about the skills that you have and the skills that you are ready to develop. Employers will put a great deal of emphasis on assessing the candidates’ abilities, potential for growth and most importantly, a willingness to engage in continuous learning programmes. Unlearning to relearn has become an integral part of the talent development process which recruiters seem to value and prioritise now. Job postings and internal opportunities will emphasise both technical expertise and leadership skills. You can also expect to see more unexpected moves as businesses continue to reassign roles to unleash the untapped potential in their ranks.
Pay transparency and pay equity are becoming table-stakes
As per Indeed, there is a 30 percent increase in applicants for roles that have pay listed. Employees are advocating for pay equity and pay transparency is becoming an important factor for employees to maintain trust in their employers. With equity and inclusion becoming central to the organisation’s culture, employers and HR can no longer shy away to address the inequities in pay. Hiring teams will need to make their job descriptions irresistible with perks, benefits, and culture. In a world of transparent pay ranges, job descriptions need to go beyond responsibilities. Highlight unique perks, benefits, and a compelling company c top talent.
Retention is becoming more critical than ever
Recently in one of our roundtables, conducted by The ETHRWorld International, CHROS and talent leaders shared that excessive focus on external recruitment neglects the potential within the existing workforce. Utilising internal talent mobility and upskilling programs can be more efficient and cost-effective. In a 2022 report, Gartner predicted employee turnover skyrocketing by 50-75 percent, further crippled by 18 percent longer hiring times. Unless efforts are refocused on retention, recruiters and hiring managers will be unable to drive performance and affect change.
Source: GWFM Research & Study