Hiring and Recruitment Trends for 2024

Building on the trends that emerged in 2023, the upcoming year will be characterised by even more dynamic shifts in the recruitment landscape. With an emphasis on diversity and inclusion, the increased usage of data and AI in recruitment decisions, and the growing importance of employer branding, 2024 promises to redefine traditional hiring paradigms. We delve deeper into these fascinating new trends, and examine how they will shape the future of talent management.

Before we dive into these trends, here are some considerations you need to think about…

• Inflation is starting to flatline, but many people will still see challenges in the next year. Mortgage terms will be coming to an end, resulting in higher monthly payments for homeowners.
• Our view is that businesses have seen the hardest cost inflation and supply chain challenges and should now seek to push their growth and take more risks.
• With inflation still higher than the government's 2% target and the higher mortgage repayments for many, there will still be the trend this year where people look to move jobs to increase their salary to cover these higher costs.
• The skills shortage will ultimately remain across 2024 as there are no signs of impending redundancies across the wider market in the short term. As the economy sees an increase in job vacancies through 2024, this will only become more challenging unless market access from overseas is made more accessible. This will continue to influence wage inflation and will add more pressure on employers.
• Historically, general elections have resulted in stagnant economies before the big day, but the UK is already in a stagnant market, so what is going to change? Business has had challenging economic conditions for much of 2023 and this isn’t going to change significantly at the beginning of 2024. As a result, we believe that the general election isn’t going to change things much. UK Business wants to move forward, but with conditions making that difficult, many will plough on with improvements hopefully as soon as 2024 progresses.

So here are our HR, hiring and recruitment predictions for the coming year:

Contents:

• The Rise of Remote and Hybrid Work Models
• Increased Focus on Diversity, Equity, and Inclusion (DE&I)
• A focus on Employer Branding and Employer Value Proposition (EVP)
• Shifting Focus to Skill-based Hiring
• Utilising AI and ML in the Recruitment Process

The Rise of Remote and Hybrid Work Models

In 2024, remote and hybrid work models will solidify their position in the hiring and recruitment landscape, continuing a trend that was visibly evident in 2023. Companies are recognising that flexible work arrangements not only expand the talent pool beyond geographical limitations, but also encourage a work-life balance that attracts high-calibre candidates. Hybrid work models, blending the traditional office setting with remote work, offer an appealing compromise that balances personal freedom with team collaboration.

As the digital infrastructure needed to support remote work becomes increasingly commonplace, it's clear that these flexible work models are not just a temporary response to extraordinary circumstances, but a lasting shift in the world of work.

Increased Focus on Diversity, Equity, and Inclusion (DE&I)

An amplified focus on Diversity, Equity, and Inclusion (DE&I)is anticipated to continue as a dominant trend in hiring and recruitment, similar to its prominence in 2023. Organisations are increasingly recognising the imperative need for a varied workforce that reflects the multicultural world we live in. This leads to a richer blend of perspectives, promoting creativity, innovation, and improved problem-solving capacities.

In 2023, this trend saw companies investing heavily in DE&I initiatives, and this momentum is expected to carry forward into 2024, with organisations further bolstering their efforts to create a more diverse and inclusive workplace.

A focus on Employer Branding and Employer Value Proposition (EVP) 

Employer Branding and Employer Value Proposition are prominent trends largely influenced by developments in 2023. In 2023, there was heightened competition for talent, which underscored the importance of differentiating oneself as an employer of choice. Companies began to realise that a compelling employer brand and clear value proposition could be instrumental in attracting, engaging, and retaining top-tier talent.

Employer branding, essentially the company's reputation as an employer, and the value proposition, the unique offering a company presents to its employees, became integral components of talent acquisition strategies. Businesses that mastered this art enjoyed lower hiring costs, improved retention rates, and a more motivated, productive workforce. We envision these trends to continue dominating the hiring and recruitment sector in 2024.

Shifting Focus to Skill-based Hiring 

Following the precedent set in 2023, skill-based hiring will become a predominant trend in the coming year. It signifies a substantial shift from the conventional emphasis on formal qualifications, to a focus on the demonstrable abilities of prospective employees.

The year 2023 marked a turning point, where companies identified a distinct correlation between the skills of an individual and their job performance, irrespective of their academic credentials. This transition towards skills over degrees has increased the inclusivity of hiring processes, breaking down barriers for talented individuals who may lack traditional qualifications.

Utilising AI and ML in the Recruitment Process

The use of Artificial Intelligence (AI) and Machine Learning (ML) in recruitment processes has emerged as a leading trend. This development was foreshadowed by the events of 2023, when businesses began to explore the potential of AI and ML to streamline recruitment, improve candidate selection, and ultimately enhance the calibre of their workforce.

These technologies have shown remarkable aptitude in automating laborious tasks, such as CV screening and initial assessments, thereby freeing up valuable time for HR professionals. As such, the integration of AI and ML in the recruitment process is not simply a trend; it's proving to be the future of efficient and effective talent acquisition.