Numerous elements will shape the recruitment and HR industry in 2024. Economic conditions, like continued layoffs and hiring freezes, and demographic shifts, like Gen-Z becoming a bigger part of the workforce, are just a couple of the key influencers.
Both "traditional" and new focus areas will be top of mind for HR and TA teams this year. Concerns persist regarding the employee experience and unbiased recruitment, while there is a growing interest in AI and skill-based hiring within HR and TA circles as they look to increase hiring efficiency and retain talent.
Following the release of our “2024 Recruitment Trends” report, we talked to HR and TA experts to see how they are working with the trends predicted to impact the industry most in 2024. Our latest report, “Turning Insights Into Action: Navigating 2024’s Recruitment Trends” highlights concrete ways that these trends are impacting HR teams and how leading experts are working with them.
Here is a brief overview of the trends set to shape the industry:
Trend #1: Company culture
In a candidate-driven market, your company culture is more crucial than ever in attracting candidates and retaining employees. Across the US, UK, France, and Germany, 77% of applicants think about a company's culture before applying for a job, with over half ranking culture above salary among factors contributing to work satisfaction. If your company culture doesn’t appeal to the values of your applicants, you will miss out on top talent.
In 2024, the question for company culture is: How can companies work with their culture to better attract and retain talent while also being authentic and reducing bias?
"In 2024, culture is the heartbeat of a company. This means delving deep into what makes you unique - your DNA - and understanding its critical role in your success."
- Kajsa Kurtsson, Head of People & Culture at QuickbutikTrend #2: Employee experience
All the trends of 2024, to some extent, revolve around the employee experience. This year, the emphasis will be on viewing the employee experience as the sum of all its parts, treating it with the same care as the customer experience—mapping journeys, measuring results, and iterating approaches.
In 2024, the question for employee experience is: With the number of people quietly quitting on the rise and 6 out of 10 workers “disengaged” with their work, how can companies keep workers engaged?
“Show leaders the positive impact the employee experience can have on the business, profits, and their own leadership. Make the intangible measurable by finding innovative ways to quantify the employee experience."
Trend #3: Employee wellbeing
If employees are the heart of the organisation, then focusing on their health is a logical priority. Recognising that companies are more than just places to clock in and out, companies are increasingly understanding the need to provide a psychologically safe environment for employees. In 2024, companies are expected to take greater responsibility for their employees' health and acknowledge the impact of company culture on overall wellbeing.
In 2024, the question for employee wellbeing is: How can companies assume responsibility for fostering work-life balance and address generational differences in workplace flexibility?
“We see that loneliness is becoming a greater challenge for many employees. But what do we do about it when workers still want flexibility?”
- Eilin Gillesen, Chief People & Culture Officer at SimployerTrend #4: Unbiased recruitment
In 2024, there's a heightened focus on unbiased recruitment as companies recognise the need for diverse talents with varied competencies. Moving away from traditional hiring based on experience and education, the emphasis will now be on skills and behaviour. A logical decision considering research from McKinsey shows that hiring for skills is five times more predictive of job performance than hiring for education and more than two times more predictive than hiring for work experience. Adopting a skills-first mindset not only aligns with this data, but also has the potential to increase workforce diversity by evaluating candidates based on capabilities and potential rather than past experiences.
In 2024, the question for unbiased recruitment is: How can organisations reduce bias in all stages of recruitment and fully embrace a skills-first approach?
“It's really important that we do not hire for culture fit. Culture is a very diffused concept. What we're looking for is culture contribution and values alignment. From day one, we are leaning on our values rather than the culture."
Trend #5: AI & Automation
Amid tighter budgets and smaller teams, HR and TA teams will likely face pressure from leadership to do more with less, and unsurprisingly, AI will likely be part of that plan. With lots of hope for what AI can do, and some doomsday theories of what it better not do, HR teams find themselves navigating the uncharted territory of AI, balancing efficiency gains with job security. It is a balancing act of using AI to improve workflow while keeping an eye on it to not inadvertently work oneself out of a job.
In 2024, the question for AI and Automation is: How can HR and TA teams incorporate AI in their recruitment processes responsibly and future-proof their roles?
“We are encountering a world where our jobs will be changed by the tools that are being innovated right now. My message to recruiters is this: We have to aggressively apply AI to our own workflow today because it's going to happen regardless of our desires or not."
Trend #6: Purpose-driven employer branding
Even in times of economic instability, employees seek more than just a job—they crave a purpose-driven career. Perhaps now more than ever, candidates prioritise the values of a company and want to know that their work has meaning. 76% of respondents in a survey of 2,000 workers in the US say that they want to work for a company that has a positive impact on the world. The same research also found that more than half of the employees surveyed would consider leaving their jobs if the values shown by their employer did not align with their own.
In 2024, the question for purpose-driven employer branding is: How can companies design EVPs that connect with the values of a new generation and fulfil the universal need for meaningful work?
“Successful employer branding requires a dual perspective. On one hand, it’s about being obsessed with aligning goals with TA—from time to hire to attracting relevant applicants. And on the other hand, it’s about understanding the granularity of the candidate journey before they apply.”
Trend #7: Recruitment marketing
Considering that over 70% of potential candidates are passive job seekers who would consider leaving their job if the right opportunity came alone, your applicant pool might be bigger than you think. But reaching these passive applicants requires meeting them where they are and using marketing tactics and strategies to reach and nurture them. Increasingly, companies are turning to social media. Gen Z favours platforms like TikTok and Instagram, while you can reach Millenials on Instagram, and Facebook is a safe bet if you want to get the attention of Gen X.
In 2024, the question for recruitment marketing is: How can companies leverage all candidate touchpoints to promote their employer brand while protecting their reputation in an era where everyone has a platform?
“During a recession, companies typically cut down on marketing costs. But the smartest companies take a different approach and increase their advertising to gain a competitive edge. In the same way you never want to stop selling, you should never want to stop marketing your brand.”
Summary
As HR and TA prepare for the challenges and opportunities of 2024, we share insights from experts on how they are navigating this evolving landscape. Download our report, "Turning Insights Into Action: Navigating 2024’s Recruitment Trends," for a deeper understanding of the industry-shaping trends and practical guidance to inform your work in 2024 and beyond.
Additionally, you can watch our discussion with industry experts Simon Fjellner, Malin Moezzi, and Gergely Hasko as they deep-dive into three of the trends discussed in both reports.
