Despite an initial gloomy outlook, the labour market in 2023 maintained a slow, but steady pace of growth.
Looking forward to 2024, there is cause for optimism with the European Commission predicting that unemployment will remain low at a rate of 4.2% over the next year. On the whole, employees will be happy to note that salary increases are expected in key areas over the coming months, however these increases will be more measured than in recent years.
Employers will be more selective in their recruitment process going forward, carefully evaluating the need for each new hire and ensuring that the chosen candidates is the right fit. Additionally, hiring managers will prioritise retaining existing talent with flexible work arrangements, career growth opportunities, payment packages and company culture becoming an increasingly significant carrot to dangle in front of their workforce. We took a deep dive into what recruiting may look like in 2024.
1. Pay Transparency
Pay transparency is rapidly gaining traction in the recruitment realm, partially thanks to legislative pushes like the Pay Transparency Directive by the European Parliament. Under this directive (adopted on 24 April 2023), EU companies are required to share information on salaries and take action if the gender pay gap at their company is larger than 5%.
They will have to inform jobseekers either about the starting salary for the position or provide a pay range. This information needs to be shared in the job ad or ahead of the job interview.
Although companies will have up to three years to implement the required changes, we expect the topic to be high on the agenda of recruiters and HR professionals in 2024.
2. Employer branding
Opposed to the survival mode a lot of companies have been in for the past years, we are optimistic that 2024 will be brighter. And that means HR teams will have some more time and resources again to focus on building a powerful employer brand.
Want to learn more? Then check out our in-depth guide to employer branding.
3. Further automation and AI adoption in recruitment
Recruitment in 2024 is growing smarter and more efficient, thanks to recruiting automation and the advancements in AI. On top of speeding up processes, automation will likely also make recruitment a much more data-centric process.
Organisations will leverage AI and big data to make smarter hiring decisions. Metrics such as cost of vacancy and cost per hire will all be measured more meticulously, helping companies hire faster and find better candidates while being better at accurately forecasting the required budget.
4. Transformation of recruiters into business leaders
In the upcoming year, a significant trend likely to reshape the recruitment industry is the transformation of recruiters into business leaders.
Recruiters are no longer just sourcing and placing talent. Instead, recruiters will function as strategic partners with a deep understanding of the broader business landscape. The recruiters of tomorrow are expected to be on top of market dynamics, competitive positioning, and industry-specific challenges.
They will play a pivotal role in shaping the workforce, not just by filling positions but by proactively identifying the skills and roles that will drive business success in an ever-changing economy. Recruiters will need to be great at data analytics to predict talent trends, advise on workforce planning, and contribute directly to the business’s growth strategy.
Getting ready for what’s to come
The recruitment landscape will likely evolve in 2024. Although nobody knows exactly what will happen, the 4 recruiting trends mentioned above are likely to shape the year to come.
Hiring in 2024? Check out our free 2024 Salary & Market Research Guide.
