It's been a roller-coaster of a year in 2023 for talent and recruitment, thanks to a myriad of factors, with the fluctuating economic scene taking center stage. Naturally, many businesses have had to shuffle the deck and rethink their talent strategies.

So, what does this mean for the big trends we can expect to see in hiring and recruitment in 2024? How are organizations planning to steer clear of the choppy waters of the talent market? And, importantly, what are the slip-ups we should be cautious to sidestep? We'll learn more about it in this blog.

Before we move forward, it's crucial to acknowledge the shortcomings that 2023 presented in the labor market. At the year's onset, there were predictions of a potential recession, escalating layoffs, and rising unemployment due to high interest rates. While the anticipated recession didn't occur, there was a slight rise in layoffs and unemployment, with the latter peaking at 3.7%.

A notable change occurred as the labor market began its transition back to a so-called 'normal' with job openings dropping from their 21-year high in 2022. Furthermore, hiring slowed, and the quit rate showed a steady decline. With these lessons from 2023 in our rearview mirror, let's now turn our focus to the trends that could shape the recruitment landscape in 2024.

Unfortunately, Negative Candidate Behavior

Understanding candidate behavior has become increasingly important, and satisfying job candidates remains a pertinent issue. According to research from the Talent Board, a nonprofit organization based in Santa Cruz, California, candidate resentment has seen a global rise for the second consecutive year. This resentment is a measure of negative experiences with the hiring process. The only exception to this trend was North America, where resentment dipped slightly but still remained at a historically high level.

Job seekers were more understanding towards employers navigating the unique challenges posed by the COVID-19 pandemic, but this sympathy did not eliminate candidate resentment. Talent Board President, Kevin Grossman, noted that resentment "never really went away."

This resentment was primarily driven by three key factors: a prolonged recruiting process, a perceived disrespect of candidates' time, and salary offers that did not meet expectations.

Evidence from a Reddit thread titled "Red Flags in an Interview that Reveal a Job is Toxic" highlighted that job seekers find the term "family" - often used by companies to describe their organizational culture - as a significant turnoff during interviews. Anna Cowell, a talent acquisition consultant at Washington, D.C.-based HR consulting firm Helios HR, clarified that while companies may use "family" to portray a trusting, respectful, and team-oriented atmosphere, it could also imply expectations of unwavering loyalty or commitments beyond typical job duties and working hours. Such conditions, instead of creating a sense of belonging, could potentially remind candidates about family dysfunction and toxicity. This insight underlines the need for organizations to reevaluate their communication strategies during recruitment to enhance candidate experience.

More Job Boards Attempting a Pay Per Application Model

Could Pay-Per-Application be the norm? Essentially, this would mean that employers only pay for applications they receive through the job board, rather than paying for every click on their job posting. The shift to this model has been driven by the increasing competition in the job market and the need for more cost-effective recruiting solutions.

Indeed's attempt to shift from the traditional pay-per-click to a pay-per-application model was a bold experiment that has sparked serious debate in the recruitment industry. Conceptually, charging employers only when a candidate applies to their job posting might seem like a more efficient, value-based approach. It promises to align costs with tangible outcomes, potentially reducing wastage associated with paying for views that don't convert into applications.

However, the backlash from smaller employers underscores the practical challenges inherent in such a model. The unforeseen increase in expenses and the confusion associated with the new pricing structure suggest that a one-size-fits-all model may not be ideal in the diverse recruitment ecosystem. Indeed's decision to discontinue the pay-per-application model serves as a testament to the complex dynamics of online recruitment and the critical need for pricing models that are transparent, flexible, and adaptable to the unique needs of different employers.

Artificial Intelligence For Recruitment

Yes, artificial intelligence for HR continues to be a hot topic, given the meteoric rise of the technology in the past couple of years. AI has the potential to automate and streamline many aspects of recruitment, from candidate sourcing and screening to scheduling interviews and even onboarding. This is especially beneficial for companies with high volume hiring needs, as it can significantly reduce the time and resources spent on these processes.

While AI is capable of revolutionizing recruitment processes, it is not without its concerns. Experts in the field, are certain that AI will disrupt job markets across various industries, which is an inevitable part of technological progress. However, the silver lining is that recruitment professionals who adapt and become fluent in AI, leveraging its capabilities to enable more time for human interaction in recruitment, will continue to lead talent acquisition efforts throughout the decade.

Rise of Referral Tech

Referral hiring isn't necessarily a new concept. However it is still one of the most effective ways to find top talent. The traditional methods of employee referrals have limitations in terms of reach and scalability. This is where technology comes into play, with platforms that enable and encourage referral systems and gamified incentives to encourage employees to refer candidates

In a recent interview with Nevena Sofranic of Recrooit, we talked about  the rise in referral recruitment tech. Referral hiring has been around for a long time, and it is still one of the most effective ways to find top talent. However, traditional methods of employee referrals have limitations in terms of reach and scalability.  To view the full interview, check out the HR Minute on Youtube.

Skills Based Hiring

In today's competitive job market, skills-based hiring is gaining traction as a more effective way of evaluating candidates. This approach focuses on a candidates' specific skills and abilities, rather than their formal education or previous job titles.

While educational background and work experience are still important factors to consider, using skills-based hiring allows for a more inclusive recruitment process, giving opportunities to individuals with non-traditional career paths. It also helps to eliminate biases that may be present in traditional hiring methods, such as gender, race, or age.

Implementing skills-based hiring can also lead to a more diverse and dynamic workforce, as it allows for the recruitment of candidates with unique skill sets and backgrounds. This can bring fresh perspectives and innovative ideas to a company, leading to growth and success.

Candidates Judging Companies Based on Branding

Job seekers have access to a wealth of information about companies through social media and online platforms. This has led to an increase in candidates making decisions on where to apply based on a company's branding.

Companies are now investing more time and resources into their employer branding strategies, as it can greatly impact their ability to attract top talent. The image a company portrays online, through its website and social media presence, can give candidates a glimpse into the company culture and values. This transparency allows candidates to determine if they would be a good fit for the company before even applying.

In addition, strong employer branding can also positively affect employee retention rates. When employees feel proud of their company's brand and mission, they are more likely to stay with the company long-term. Employer branding is also closely tied to a company's reputation and can greatly influence consumer perception. A positive employer brand can attract not only top talent, but also potential customers who align with the company's values.

Diversity & Inclusion Is Still Very Much Alive

Though some state governments have gone out of the way to remove DEI initiatives, this does not mean that companies and job seekers have stopped prioritizing diversity and inclusion.

As companies strive for inclusive work environments, they are also recognizing the importance of diverse perspectives and backgrounds in driving innovation and success. Job seekers are also actively seeking out companies that prioritize diversity and inclusion, as it shows a commitment to creating a fair and equal workplace for all employees.

Companies with strong diversity and inclusion initiatives often have higher employee engagement and satisfaction rates. When employees feel valued and included, they are more likely to be motivated and productive in their work. This ultimately leads to a positive impact on the company's bottom line.

It is crucial for companies to continue prioritizing diversity and inclusion efforts in order to attract top talent, retain employees, and maintain a positive brand image in the eyes of both consumers and job seekers. By creating an inclusive work environment, companies can foster a sense of belonging for all employees and drive success through diverse perspectives and ideas.

Contract/Freelance To Hire

The burgeoning gig economy has undeniably altered the traditional employment landscape. According to a study by Upwork, 59% of hiring managers plan on utilizing freelance workers in the future. This trend is expected to continue as more professionals opt for contract or freelance work for its flexibility and potential for higher pay.

This shift isn't merely surface-level; it's permeating deeper into recruitment strategies, with companies harnessing the freelance domain to discover the next generation of permanent employees.

This contract to hire model presents a win-win scenario, allowing both parties to gauge compatibility before making a long-term commitment. Subsequently, firms can ensure a candidate's skills and cultural fit align with their needs, leading to higher retention rates than traditional hiring processes. From the employee's standpoint, the arrangement offers expansive industry experience and skill development opportunities, enhancing their market value and earning prospects.

Remote Roles Are Still The Most Coveted

The interest in remote positions continues to intensify, marking these roles as highly sought-after within the employment market. The interest of remote work lies in its adaptability and the improved work-life balance it allows. Employees treasure the prospect of not having long commutes, achieving a healthier work-life balance, and reducing travelling expenses.

In 2024, FlexJobs, a service targeting job seekers, listed the top 100 companies seeking remote workers. This information was gleaned from nearly 60,000 companies that posted job vacancies on their platform throughout 2023. FlexJobs recorded a modest 11% increase in remote job postings in 2023 relative to the previous year, showing a minor deceleration from the 20% boost seen between 2021 and 2022.

Nonetheless, industries such as sales, tech, healthcare, accounting, and finance persistently showed growth. Notably, about 64% of remote job postings targeted intermediate or seasoned professionals.

The appeal of remote work extends to employers as well, presenting them with the chance to access a worldwide pool of talent, free from geographical borders. This global reach empowers companies to find the best match for their needs.

Additionally, remote work can lead to considerable cost savings, as businesses can reduce overheads such as office space and utilities. As a result, the demand for remote roles is expected to grow, with both employees and employers acknowledging the benefits they offer.

Ensuring Employee Experience Is Top-Tier

Make sure to improve the employee experience with AllVoices, the industry-leading employee relations platform. AllVoices helps  organizations foster a culture of trust, transparency, and accountability. We provide a safe space for employees to speak up about workplace issues without fear of retaliation. Our platform empowers companies to take action in real-time, making it easy to address concerns and create a more inclusive work environment.