Hirematic Hiring & Recruitment Trends 2024
In 2024, the hiring and recruitment landscape is gearing up for yet another turbulent year. As we encounter continuing economic headwinds, intense talent competition in specific sectors, and significant advancements in recruitment technology, tech leaders are facing a brand new set of challenges and opportunities.
Amidst these changes, Hirematic is here to support you with the latest trends and insights. Our focus is to provide practical, actionable information to help talent leaders like you effectively navigate the complexities of the recruitment environment in the coming year.
7 Hiring & Recruitment Trends to Watch in 2024
Drawing from a wealth of expert insights and data, here are Hirematic’s top trends to watch in the world of hiring and recruitment in 2024 and beyond.
1. Economic Uncertainties and Strategic Hiring
In the face of economic uncertainties, companies are reevaluating recruitment strategies to ensure agility and resilience. The Indeed Job Postings Index showed a 22.5% decrease from its December 2021 peak, indicating a shift towards more strategic and cautious hiring. This approach involves balancing the demand for new hires with the need to retain current employees, as reflected in the low layoff rates despite a moderation in job postings.
However, the impact of economic factors on different sectors varies. Industries that involve direct, in-person services, such as the restaurant, hotel, and healthcare sectors, continue to exhibit strong and sustained demand for hiring.
2. AI in Recruitment
AI is revolutionizing the job-seeking experience — both for recruiters and for candidates. For recruiters, AI is stepping in to handle time-consuming tasks like writing job descriptions and managing candidate profiles, allowing recruiters to focus on more strategic aspects of their role. For candidates, AI helps with tasks like resume tailoring, cover letter drafting, and interview preparation. An MIT Sloan study indicated that applicants using AI for resume enhancement saw an 8% higher hiring rate, 7.8% more job offers, and 8.4% higher wages.
However, the rise of AI tools has not been without its challenges. A Stanford study found that generative AI tools like ChatGPT are becoming less accurate — and prone to bias — emphasizing the importance of human oversight in the recruitment process. Candidates are also facing the risk of AI-driven scams. Reports of fake AI-generated job openings highlight the need for vigilance in online security.
With AI’s growing role in the recruitment process, candidates and recruiters must be aware of these risks and work towards a secure and ethical use of AI.
3. The Rise of Early Career Hiring
This trend is driven partly by economic considerations — entry-level hires often command lower salaries, making them attractive choices in tight budgets. Companies are also diversifying their early career recruitment strategies, moving beyond top-tier universities to state colleges, vocational schools, and non-traditional higher education institutions.
This approach is reshaping the workforce. For instance, non-traditional learners, who now make up 74% of the college population, offer a range of backgrounds and experiences that enrich the talent pool.
Prioritizing DE&I in early career hiring, companies are laying the foundation for a more diverse, inclusive workforce over time. This is not only a socially responsible move but also a financially sound one, as inclusive organizations often outpace their peers in financial performance.
4. Skills Over Degrees
In response to the global talent crunch, there’s a significant shift toward skills-based hiring and away from traditional qualifications-based hiring.
LinkedIn data shows that recruiters on the platform are now 5 times more likely to search for candidates by their skills than by their degrees. Additionally, the share of LinkedIn job postings that didn’t require a professional degree grew by 36% in 2022. Companies are redefining the responsibilities and capabilities needed for success rather than the prestige of a candidate’s alma mater or past job experiences.
This trend is reshaping how companies view potential candidates. It allows businesses to tap into a broader talent pool, uncovering skilled professionals who often get overlooked by traditional recruiting methods. This approach particularly benefits DE&I efforts, bringing in diverse talents and perspectives and fostering a more dynamic, forward-looking workplace.
5. Relocation, Remote Work, and Office Returns
In stark contrast to previous decades, less than 2% of American professionals moved for work in 2023, a significant decrease from 45% who relocated for work in 1986. This shift is influenced by factors such as the rise in remote work during the pandemic, cost considerations, and changing employee preferences.
However, as companies reevaluate their work arrangements — with some firms already demanding remote hires to relocate for office work — the landscape of job relocation is poised for change. This trend poses challenges for both employees and employers. For instance, high inflation rates make relocation both difficult and costly.
A Korn Ferry survey found that over 90% of professionals said their boss wants their teams back in the office, yet many are reluctant to give up the flexibility of remote work. With remote-only job ads gradually decreasing, companies might need to consider more comprehensive relocation packages or flexible work arrangements to attract and retain top talent in this evolving scenario.
6. Adapting to an Aging Workforce
The global workforce is undergoing a significant transformation, with more people staying in the workforce after the traditional retirement age of 65.
Some of this is due to policy. For example, European populations have experienced a significant increase in the share of older people for decades now, putting the sustainability of welfare systems at risk as pensions for a growing older generation have to be financed by a shrinking younger generation. As a response, policymakers have implemented measures to prolong the individual working life.
More recently, economic factors have also come into play as inflation squeezes finances, forcing people to postpone retirement. One-quarter of Americans will have to delay their retirement, according to the BMO Real Financial Progress Index, as 36% have reduced their savings, and 21% are putting away less for retirement in order to keep up with growing costs. This trend is growing in the UK, too — there are now 1.43 million workers aged 65 and over in the UK, up from 457,000 at the beginning of the century.
Employers must consider the changing demographics of their workforce. This might involve adapting workplace policies and practices to accommodate older workers, such as flexible working hours, job sharing, and ergonomic workplace designs.
7. Talent Acquisition Tech Investments
According to Gartner, buying cycles for talent acquisition tech will lengthen in 2024 due to general economic uncertainty in the market. Gartner recommends HR leaders consider their priorities, how they’ll measure success, and hard vs. soft requirements when deciding on technology investments.
There is an area within tech-driven recruitment where the benefits are clear, and the risks are comparatively lower: programmatic job advertising.
This approach uses machine learning to automate and optimize the placement of job ads. Unlike other AI applications in recruitment, programmatic advertising is a field where companies can be more confident in rapid adoption.
Programmatic job advertising stands out for its efficiency and cost-effectiveness, especially crucial during leaner economic times. It ensures that job advertisements are strategically placed where they will reach the most relevant and qualified candidates. This not only increases the effectiveness of recruitment campaigns but also reduces the cost per hire by eliminating wasteful spending on poorly performing ads.
Navigating 2024 as a Talent Leader
The year 2024 promises to be a dynamic one for hiring and recruitment. By staying informed of these trends, talent leaders can better prepare for the challenges ahead, ensuring they attract, hire, and retain the best talent in an increasingly complex and competitive landscape.
As we look towards 2024, the landscape of hiring and recruitment is poised for transformative changes. In this dynamic environment, understanding and adapting to these trends is not just beneficial — it’s imperative for success.
Hirematic is committed to guiding you through these shifts, offering insights, strategies, and technologies to help you efficiently react to hiring spurts and respond to the changing needs of your business.
By staying informed and agile, you can not only overcome the challenges of the coming year but also seize opportunities to innovate and excel in your talent acquisition and retention efforts.
To learn more about Hirematic’s programmatic job ad platform, contact our team.