As the year draws to an end, are you wondering what’s in store for 2024?
For hiring trends in 2024, we’ve got you covered. From the impact of the latest tech to shifts in market priorities, this article dives into what you can expect to see in the recruitment market next year.
But first, some spoiler alerts:
- AI will continue making a splash.
- Employers will focus on skills, not credentials.
- Workers will insist on flexible arrangements.
- There will be a power shift, with employers regaining ground.
- Diversity and inclusion will be ever more critical.
- Employers will look beyond borders to fill skills gaps.
Read on to learn more about the top six trends in HR for 2024 and how your business can get ready to face these changes.
Six Hiring Trends 2024
Trend 1: Generative AI in Recruitment
There is no denying that digitalization, generally, and artificial intelligence specifically, are changing how we work. Over 75% of companies surveyed by the World Economic Forum are looking to adopt cloud, big data, and AI technologies in the next five years if they haven’t already.
This is going to create an uptick in demand for technology proficiency. Technological literacy will become not just important but essential for job-seekers in all industries.
Using AI Algorithms for Candidate Sourcing
Beyond hiring needs, AI is changing how businesses source and select candidates. HR and recruiters increasingly rely on applicant tracking systems (ATS) to manage applications. This saves HR departments incredible amounts of time and money — some companies have found that the screening cycle now takes just two days instead of three weeks.
ATS draws on the power of AI to help HR departments sort through job applications, identify the profiles that match the job requirements, and organize candidate data to facilitate decision-making. Some even help send out a job offer and feature a centralized database that safely stores all the data for future use.
Taking the Bias Out of AI-Based Hiring
While using ATS and AI for recruitment is nothing new, 2024 will see an even greater focus on eliminating the bias from AI-based hiring. There has been some criticism about how the training data used for applicant tracking systems can create unintentional bias in the screening process. That’s why 73% of leaders are closely watching the possible negative impacts of AI on their recruitment processes.
On the flip side, ATS can help businesses eliminate bias during the hiring process. The systems can anonymize candidate profiles so hiring teams can make more data-driven decisions without letting subconscious bias impact their hiring processes.
Overall, responsible AI will be critical in the evolving landscape of AI and data-driven talent acquisition. The recruiting process will continue to change in the coming years as technologies evolve.
In the upcoming year, we can expect both organizations and candidates to look for more transparent and ethical use of AI in this sphere.
Trend 2: Skills-Based Hiring
Despite news of recent layoffs, 77% of companies in 2023 reported persistent skills shortages. There is a growing mismatch between what professionals offer and what businesses need to succeed.
As candidates upskill and reskill, they may do so through independent learning, consulting projects, or on the job. So, businesses must look beyond credentials to tap into the talent they need.
Shifting Focus from Credentials to Skill Sets
Don’t throw your framed degree out quite yet. But, in 2024, you can expect to continue seeing a shift in focus from pedigree to ability. While businesses won’t walk away from minimum education requirements as early as next year, we’ll see a lot more focus on what candidates can do versus their certifications.
Why? For one, many skills on the market are so new that no degrees or programs offer them yet. Educational institutions aren’t producing specialists in generative AI, but businesses need them urgently. A similar trend is on the uptick with other rapidly developing technologies.
Meanwhile, soft skills are becoming more important than ever. With the increase in automation, professionals must bring a human touch to their deliverables while machines take care of the rest.
As such, companies are prioritizing the following skills, according to the World Economic Forum:
- Creative thinking
- Analytical thinking
- Technological literacy
- Curiosity and lifelong learning
- Resilience, flexibility, and agility
- Systems thinking
These skills will place candidates ahead of the competition in the future job market.
Assessing Candidates Based on Practical Abilities and Adaptability
Beyond hiring for skills, businesses will need to find the right tools to assess their candidates’ abilities. In the past, resumes held the key to whether or not someone would get hired. Now, new ways of candidate evaluation are emerging.
The latest on the market are VR and game-based assessments that immerse candidates in virtual work to evaluate their abilities.
Trend 3: Flexible Working Arrangements
While companies seek new skills, workers will continue searching for a healthy work-life balance. They’ve now tasted freedom, and they like it. Despite the many reports of companies mandating staff back to the office, the hybrid model is here to stay, and remote work will continue in popularity.
Embracing Remote Work and Hybrid Models
Forbes found that 12.7% of American workers performed their jobs remotely in 2023, and 28.2% followed a hybrid model. Of all workers surveyed, 98% want to work from home at least some of the time for a healthier work-life balance. There is also an increased number of workers opting to become independent contractors, giving them even more control and flexibility over their work.
The advantages of remote work are undeniable. Studies have shown that working remotely at least some of the time can increase:
- Productivity
- Retention
- Employee health and happiness
- Work-life balance
- Workplace diversity
- Talent pool
In 2024, many businesses will have to decide whether they will be remote-only, remote-first, hybrid, or in-office organizations. Those that allow for the most flexibility will have access to a larger talent pool of high-quality candidates, giving them an edge over the competition.
Adapting Hiring Processes to Accommodate Diverse Work Preferences
Businesses will need to adapt their hiring processes along with their work environments. Many companies have already opted for remote interviews, at least in the early stages of recruitment. Now, they should reflect on their flexible approach to managing the hiring process from application to onboarding.
Both candidate experiences and employee journeys will be crucial in 2024 and beyond. These will be essential factors for recruitment marketing, especially for businesses that face labor shortages and want to create a positive brand image for talent acquisition.
Trend 4: Employer-Led Market
If all these changes make you uneasy, here is a big win for businesses: they’ll be back in the driver’s seat next year. We are already seeing the balance of power shift back into the employer’s court. A tepid market, major layoffs, and economic uncertainty are some of the reasons for this change.
Prioritizing Retention Amid a Dampening Market
While having more power is great for employers, it’s important not to get over-confident. If you want talent with amazing skills who will make top contributions to your business, they’ll still come at a cost.
Robert Half reports that over half of the businesses they surveyed plan to increase starting salaries for highly skilled workers. At the same time, two-thirds of those currently employed plan to negotiate for a pay raise. Meanwhile, skills shortages persist in many industries and niches.
So, retention will be crucial for employers. Not only will it guarantee they keep the talent they need and retain critical knowledge for their organizations, but it will also create a strong brand on the market to stand out among other businesses.
Trend 5: Diversity and Inclusion
Diversity, equity, and inclusion (DEI) is another big trend that continues to dominate HR practices.
There is no denying that strong DEI practices come with many benefits for companies. Not only do they create a better company culture, but organizations also enjoy up to 33% higher profitability thanks to ethnic and gender diversity. Plus, prospective employees prioritize companies with strong DEI initiatives over others.
Even amid the sluggish economy, most companies are not lowering their commitment to DEI. But despite their efforts, progress in this area is slow. In tech, for example, gender and ethnic diversity are hard to come by. Thus, companies looking to compete must invest time in effective DEI policies.
Prioritizing Diverse Hiring Practices
One of the first steps toward a more diverse, equitable, and inclusive workforce is how your business hires new employees.
Some core strategies include:
- Using inclusive language throughout the hiring process and workplace policies
- Encouraging salary transparency
- Using ATS to Remove Hiring Bias
- Implementing flexible work policies and hiring processes
- Encouraging learning and development within your organization
Building Inclusive Workplace Cultures for Long-Term Success
A complex undertaking, DEI will be critical for organizations looking to stand out. Both consumers and potential hires are increasingly scrutinizing how businesses treat, manage, and diversify their staff. Often, this reflects directly on a company’s bottom line.
Businesses can also expect to see government policies that support DEI. For example, the European Union has already passed a directive to ensure salary transparency to eliminate the gender pay gap. While the US hasn’t done so yet, starting these initiatives sooner than later will give organizations a competitive edge.
Trend 6: Hiring Beyond National Borders
With the rise of remote work and ongoing competition for top talent, companies are turning to international job markets to onboard the best talent. No longer constrained by local hiring, organizations that want to stay ahead of the game will embrace global talent and reap its benefits.
Hiring globally has many benefits for employers, including:
- Access to a wider talent pool
- Increased diversity
- Global opportunities
- Adding new skills and perspective
- Best talent at the best market value
Of course, global hiring is not without its challenges. Global employers will need to adapt their hiring practices to the global market. They’ll need to understand the differences in international laws and regulations while managing the cross-cultural realities of their cross-border teams.
Hiring Canadian Workers to Address Specific Skills Shortages
The weaker Canadian dollar and a wealth of highly skilled professionals have US companies turning their attention north of the border. Many are looking toward Canada for their next top hires.
Canada — the most educated country in the world — is an excellent hiring destination for businesses based in the US. Why?
- Canadian employees are highly skilled and well-educated.
- There are no cultural or language barriers.
- Canada’s major cities are in the same time zones as the US.
- Every US dollar gets you 1.38 Canadian.
- It's easy to relocate Canadian workers to the US with options like a TN visa.
Meanwhile, Canada’s high quality of life, robust social security systems, and strong economy attract professionals from all over the world to settle and raise their families and become Canadian citizens. For US businesses, this means finding specialized skill sets close to home, without much hassle, and often, at a lower cost.
An EOR like Borderless can help you hire a remote Canadian employee in minutes. We can also help you navigate how to hire a Canadian to work in the US.
Expanding the Talent Search to a Foreign Country
Imagine if you could hire anyone, anywhere. Now, it’s not a dream but a real prospect. And it’s not only possible but also simple.
With an Employer of Record (EOR), global hiring is a breeze. EORs take care of everything related to convoluted global HR and legal processes while you focus on developing and growing your international team.
So, if you want to hire in a foreign country, let an EOR simplify the entire recruitment process.
For example, Borderless can help you hire in over 170 countries. We take care of:
- Drafting employment contracts
- Legally onboarding and offboarding foreign workers
- Managing global payroll
- Ensuring compliant tax payments and withholdings
- Administering localized benefits
- Processing work visa and work authorization paperwork
- Consulting on how to hire a foreign worker in the US
- Bonuses, extras, and more
Final Thoughts
2024 is bound to be another exciting year. While some fears persist about the state of the global economy, the evolving tech landscape will continue to surprise the world.
In this tug-and-pull market, businesses that succeed will need to be ready to snatch up top talent — after all, the people behind their operations will define whether they succeed as the world rapidly shifts and adapts.
Disclaimer: Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
