8 Hiring Trends You Need to Know for 2024

Welcome to the new year and the Big Stay, an era that began as more employees chose to remain at their current jobs. As workers continue moving toward more stability, that could mean changes for your hiring team in 2024.

Adapting your hiring practices to keep pace with the ever-evolving labor landscape can help your company stay competitive in the market, and researching recruitment trends is a smart way to guide your strategy at the beginning of the year.

We've put together a list of hiring predictions you can use to get ahead in Q1 and avoid having to make up for lost time later.

BambooHR helps companies expertly find and hire the right talent, improve the candidate experience, and boost their employer brand. In this article, we'll review some of the biggest hurdles facing HR today and the top hiring trends predicted for 2024.

The State of HR in 2024

BambooHR surveyed professionals to get a sneak peek of what might be in store for them this year. According to our report, talent acquisition takes the lead as the single most common and challenging task. Specifically, finding and attracting the right talent to fill open roles has become harder as labor shortages continue. Other key talent-management issues include:

• Employee onboarding and training
• Bridging skills gaps within existing workforces
• Improving the employee experience to reduce turnover rates
• Analyzing and leveraging HR data effectively

Recruiting and Hiring in This Year's Labor Market

Your recruiting and hiring strategy is influenced by internal variables (e.g., your company's budget, talent needs, and goals) and external variables. One impactful area to examine is the current labor market.

Today, there just aren't enough workers to fill open positions in the US. Although the labor force encompasses millions of people, the participation rate still hasn't quite reached pre-pandemic levels yet. According to the US Chamber of Commerce, this could be due to any number of factors, including:

• People being unwilling to take jobs without remote work opportunities
• Young people investing more time into education and skill development before re-entering the job market post-pandemic
• Older people entering early retirement in increasing numbers
• Entrepreneurs leaving their jobs to start their own businesses
• Parents without access to affordable childcare

Another key factor to consider is what your ideal job candidates want. While the Great Resignation became the phenomenon on the tip of everyone's tongue, the Great Reshuffle proved to be a more accurate name for what's been happening in recent years. Many people quit their jobs for more fulfilling roles that align with their preferred career path, lifestyle, and values.

8 Hiring Trends to Know in 2024

To help you overcome common challenges this year, we've gathered our own data, as well as projections from industry leaders via Forbes and SHRM. Here's a roundup of the top hiring trends in 2024 with tips for adapting your recruitment process:

1. Hiring to Retain

Finding skilled workers is just the tip of the iceberg. As the dust from the Great Reshuffle settled mid-2023 and we've entered the Big Stay, the challenge is to make your organization someplace where people truly want to build their careers. Companies will be finding new ways to bridge the gap between hiring the right people and influencing them to stay for the long haul.

Action item: Evaluate the employee experience at your organization for new and seasoned team members alike. HR managers could start by surveying your current workforce and using their feedback to improve your hiring and employee retention strategies.

2. Amplifying Data-Driven HR Decisions

People analytics data helps you make informed decisions about your workforce. Amid labor market challenges, more organizations will likely invest in HR software to help boost employee satisfaction and talent management efforts.

Action item: If you're already using several HR tools and they feel disjointed or cumbersome, consider switching to an all-in-one HR system that drives impact more efficiently.

3. Appealing to a New Generation of Talent

By the end of 2024, Gen Z will outnumber Baby Boomers in the workforce. So it’s worth considering what job candidates in this demographic think about your employer brand and benefits. Businesses trying to appeal to younger job seekers will likely spend time researching what Gen Z wants and finding new ways to attract and retain younger talent.

Action item: Review the latest workforce trends in your industry. Revamping your approach from Baby Boomers to Gen Z can improve your chances of attracting the ideal candidates for your company.

4. Embracing Artificial Intelligence

Artificial intelligence (AI) is here to stay. From ChatGPT to AI-powered CRM tools, experts are finding new ways to leverage this technology every day. In fact, LinkedIn is already using it. AI-assisted recruiting, onboarding, and job advertising solutions and others will likely continue to develop and help HR leaders usher their company's hiring practices into the future.

Action item: Find innovative ways to use AI to your advantage. For instance, many people save valuable time and energy by using ChatGPT as an HR assistant, helping them craft job descriptions, email templates, and more.

5. Planning for Skill Gaps

Our State of HR report highlighted the challenges of finding qualified employees. In 2024, more recruiters may strategically align with hiring managers to narrow down their talent pools and identify candidates with the experience their company needs the most.

Action item: Develop a culture of curiosity and learning to support recruiting efforts. Internal training resources and mentorship programs can help new hires get up to speed quickly, while professional development programs can help upskill your current employees.

6. Ramping Up Internal Recruitment

Amid a tighter labor market, internal recruiting is likely in the cards for many companies. In-house shifts and growth opportunities can help people see the value in staying with their current employer and help employers fill key roles with skilled workers they trust.

Action item: Plan an internal recruiting strategy that goes beyond promotions and transfers. This could involve succession planning, building an employee referral program, or hiring temporary employees permanently.

7. Clearly Communicating Compensation Value

Emphasizing the total value of your compensation package, rather than narrowly focusing on salary, creates a more complete picture of how you invest in your workforce. In the spirit of greater transparency, HR may find new ways to communicate compensation and benefits.

Action item: Use a total rewards program to convey how much your employees mean to you. Tools like this make it easy to fill in crucial knowledge gaps and illustrate how your company stands out above competitors.

8. Refreshing the Employer Brand

To draw in and keep the right employees, HR leaders may re-examine their employer branding strategy. A company's brand encompasses its culture, mission, values, and anything else that defines its identity or reputation as an employer. Redefining your values and aligning those with your recruitment marketing techniques can help attract high-quality job candidates.

Action item: This is another instance where feedback and research come in handy. Think about what your core values say about you as an employer and how they resonate with today's job candidates.

Take Advantage of the New HR Predictions Today

It's never too late to review your HR systems and redefine the modern employee experience at your company. Creating a place that invites job seekers to apply and encourages employees to stay, whether it's for personal satisfaction or job satisfaction, is an ever-changing process that doesn't happen overnight. However, the steps you take today better prepare your business for any upcoming changes in 2024 and beyond.