Current hiring practices reveal a lot about the global economy. They can suggest whether different industries can get the right talent to meet business goals and remain competitive.
Beyond corporate walls, recruiting trends indicate broader shifts in workplace culture and economic health.
Staying updated with these dynamics is essential as they’re relevant to most sectors and locations. That’s why we’ve compiled a list of the most impactful recruiting trends and statistics for 2024.
Recruiting Trends to Watch in 2024
Recruiters have more tools available than ever before as we continue to see advances in AI, analytics, and automation. However, there’s still a tight labor market in most economies with companies struggling to find the skills they need.
In this section, we explore current hiring trends and how they’re helping businesses compete for global talent.
1. The decline of remote job offers
Almost half of workers predict that the number of remote job offers will drop. We’re already seeing the early signs of this trend. A recent study shows that remote work opportunities have decreased by 65% for high-paying roles.
Dell is one of the most recent brands to crack down on remote work. The technology company has taken an unusual approach though — employees can work from home but they won’t be eligible for promotions.
2. Employee value propositions
Many companies have improved their hiring process by focusing on their Employee Value Proposition (EVP). This strategy involves showing candidates your unique strengths and benefits as an employer.
However, organizations must deliver to see results — a study found that top-performing recruiters spend 20% of their time defining their EVP and 80% executing the strategy.
A great EVP goes beyond material gains to look at key aspects of company culture and long-term goals. The idea is that employers can find people who are not only skilled and experienced but also a great fit for their team.
“We know that offering a competitive salary and benefits is only a small part of the package. That’s why developing a strong EVP is a big part of our 2024 recruitment strategy.
By getting feedback from workers through surveys and exit interviews, we learned what would make a difference. We introduced a wider array of wellness programs. We also implemented flexible schedules with telecommuting options and compressed work weeks for eligible positions.
Employees have been very enthusiastic about these changes. In a recent employee survey, we saw a 25% improvement in self-reported workers’ satisfaction with work-life balance.”
US companies are offering higher salaries to tempt workers back into the office. People switching from remote to in-person jobs could see pay increases of up to 29.2%.
A ZipRecruiter study found that employers are willing to pay extra to hire teams for the office.
What about when the reverse is true and office workers switch to remote roles? The same study reported that these employees only tend to get an extra 15.8%.
These results suggest job seekers are willing to accept a lower salary to have a flexible working arrangement.
4. Hiring for new roles
57% of organizations are hiring for new roles. Those numbers are higher among medium to large companies that want to drive growth.
Companies of all sizes are hiring for new positions according to RobertHalf.
However, small businesses are more likely to be hiring for vacated positions. They often can’t compete with larger corporations for talent due to their limited resources. In fact, 40% of small business owners report having unfilled jobs.
Many SMBs develop targeted recruitment strategies that highlight their unique advantages as employers.
“As a small business that operates in a competitive niche, we struggle to compete with bigger companies for talent. Many workers with the requisite skills and experience are simply not interested in joining us.
That’s why we are working on a pre-recorded video to distribute among our candidates. This video showcases all the unique learning opportunities at our organization. Potential applicants will learn about our free online courses, mentorship programs, and one-on-one coaching sessions.”
AI skills count for more than experience. The majority of leaders said they were more likely to hire a relative newcomer to the industry with the right AI expertise than a veteran worker without them.
A Slack survey discovered that only a third of workers have tried AI tools despite the high demand for these skills.
Despite the demand for AI, many workers aren’t getting the required skills and experience. Two-thirds of them still haven’t tried the tools.
Many say they don’t trust the output from AI tools because of concerns over data privacy, accuracy, and overall work quality.
6. Use of AI in recruitment
Around half of companies use AI tools to streamline the recruitment process. Most believe it improves the hiring process for both HR personnel and candidates.
A survey by HR Zone finds that candidate screening is the most popular use of AI in recruitment.
The top three uses of AI recruitment tools are screening candidates, scheduling interviews, and analyzing resumes. However, there are concerns about their reliability.
There have been several stories about workers getting rejected for dubious reasons like their age or physical appearance.
In one high-profile case, an employee lost her job after she was asked to reapply and the platform gave her poor marks for body language.
7. Proactive searches
As businesses get desperate to find the right talent, they’re no longer waiting for people to apply. Almost half of new hires said the recruitment manager reached out to them. That’s up from a third in 2023.
Job seekers should beware though. Many thieves pose as recruitment agencies online to trick people into handing over credentials or money. A recent report found that employment scams rose by 118% between 2023 and 2024.
8. Skills-based hiring
The majority of businesses have adopted skills-based hiring. 95% agree it’s a better reflection of a candidate’s suitability for the role than a resume.
A TestGorilla report shows that more and more companies are using skills-based hiring.
Skills-based hiring is the practice of looking at a person’s expertise over their qualifications and experience. Recruiters typically give candidates an assessment.
However, most organizations still screen resumes before they move to this stage.
9. Employer of record model
An increasing number of businesses are turning to EORs (Employers of Record). These solutions allow a company to hire abroad without establishing a legal presence.
Research shows that more and more businesses are using an EOR to hire employees overseas.
EORs have experienced astronomic growth in recent years. Their current market value is around $5 billion and that’s set to almost double by 2031. Some popular solutions include Deel, Adecco, and Papaya.
By partnering with an EOR, small businesses can recruit more easily overseas without incurring extra costs or opening themselves up to risk.
10. Pay transparency
Many US states now require employers to include pay information in their job ads. Colorado was the first back in 2021. More places are set to follow in 2024 as Vermont and Maryland plan to introduce pay transparency laws.
The practice is catching on — 72% of recruiters now include salary bands whether it’s mandatory or not. They say that pay transparency enables them to attract top candidates and streamline the hiring process.
11. Hiring on social media
Only 4% of recruiters don’t use social media to engage with candidates. Of that small percentage, just 1% aren’t interested in using it as a hiring tool.
The majority of companies now use social media for recruitment and employer branding.
LinkedIn is the most popular platform for recruiters which is unsurprisingly given that it has built-in hiring tools. Employers can post job ads, reach out to candidates, and promote their business.
Facebook is in second place although its popularity is decreasing. The platform recently removed many of its recruitment features, making it more challenging to find candidates.
12. Experienced professionals
A recent FlexJobs report revealed that 64% of the searches on its database were for ‘experienced professionals’. Managers and entry-level positions only made up a quarter of the hits.
According to the research, employers are looking for more financial professionals. This demand is no doubt a reaction to inflation and the unstable economy.
Companies need people who can help them manage the budget and cut expenses as finances become tighter.
Recruiting statistics
Hiring trends can be informative but they don’t give us the full picture. Let’s give them some context by looking at the overall state of recruitment worldwide.
13. Stable hiring rates
The global NEO (Net Employment Outlook) is currently at 22%. Although it hasn’t changed significantly in 2024, it’s 6% lower than the previous year.
This metric indicates how many companies are looking to hire during 2024 and around 20% is considered good.
ManpowerGroup reports that the number of companies planning to grow or reduce their workforce has remained stable over 2024.
Costa Rica has the highest NEO of any country in 2024 at 35%. Meanwhile, Switzerland has had the biggest increase due to more jobs being created.
The country is already a major talent hub as citizens have access to high-quality education and the government invests in vocational training.
14. Company growth
66% of employers say that growth is the leading factor behind their recruitment efforts. That’s followed by replacing employees and sourcing the right talent.
A Robert Half survey discovered that growth is the most popular reason for hiring.
This news comes at the same time as several high-profile layoffs. Microsoft, Google, and Meta are among the businesses that have downsized their workforce in 2024.
You might wonder how organizations could be focused on hiring when they’re also firing so many workers. The answer is that the downsizing is only happening in specific roles and sectors.
Technology is one of the most affected industries with over 100,000 layoffs in the first half of 2024.
15. Competition for talent
Around half of companies say one of the biggest hiring challenges is beating competitors to great candidates. That’s closely followed by finding employees with the right skills or cultural fit.
Survey respondents say that outbidding competitors for top talent is the biggest hiring challenge in 2024.
One problem is that online work makes it easier for job seekers to apply for different roles simultaneously. Instead of visiting potential employers in person for interviews, they can arrange back-to-back video calls.
This increases the likelihood that they’ll receive a better offer from a second company before the first one has locked down the contract.
High numbers of job seekers keep their options open while interviewing for jobs. A recent survey found that 47% of candidates are open to other offers after they’ve already accepted a position.
16. Demographic shifts
Gen Z are making their way into the workforce, bringing new priorities and expectations with them. Research shows they value development, well-being, and alignment above all else.
The vast majority believe that flexible working arrangements should be standard.
Population analysis by Glassdoor reveals that Gen Z will overtake Baby Boomers in the workforce in 2024.
Today’s recruiters must adjust their approach to attract and retain the youngest generation of workers.
“We’re quite aware that today’s workforce is after more than just a hefty paycheck, especially Gen Z. Of course, we offer competitive salaries but our real draw lies in what we provide beyond compensation.
We’re incredibly invested in our team’s well-being, body and mind. We have generous wellness stipends, on-site fitness classes, and mindfulness programming. Want to take professional development courses? Go for it. We’ll foot the bill.”
The three global industries with the highest recruitment rates in 2024 are IT, finance, and healthcare. IT has held the top spot for three years running.
ManPowerGroup reports that the IT industry has the highest global hiring demand.
When we dig deeper, we find the most in-demand IT roles are back-end and full-stack developers. Software development is becoming more critical to business as the world goes increasingly digital.
Most companies now have a website, user portal, and app at least.
Closing thoughts
Current hiring trends reveal that companies are fixated on getting the right skills. As new technology keeps advancing at a rapid pace, experience and qualifications are no longer the best indicator of performance.
The expertise someone had just six months ago might not be enough to carry out their duties now.
However, technology is also on the recruiter’s side. Throughout 2024 and beyond, we expect we’ll see more tools that allow them to effectively market themselves and match with the best candidates.
