The recruitment industry is one which is positioned to change drastically, these are the most impactful trends of 2024.
Now that we are well and truly past the Covid-19 pandemic and are riding the coattails of the work-from-home (or better yet - work-from-anywhere) benefit that has become the new norm for many companies, witnessing the end of the great resignation that created a massive influx of millions of people around the world change jobs within various industries, and suffering from a cost-of-living crisis that has impacted everyone, we wonder what new trends are going to affect the landscape of recruitment next.
In this blog post, we’ll delve into eight talent acquisition trends to look out for that will profoundly affect the world of recruitment in 2024.
When ChatGPT came out in November 2022, there was excitement and uncertainty. On one hand many had marveled at the power of AI and how it performed tasks like writing code, editing resumes and cover letters, writing blogs to even passing the bar exam with a score in the top 10%, and on the other hand, many were concerned about the overall power of AI and how it would replace their job.
It appears to be the latter that is becoming a common theme as studies show that 73 million jobs in the United States are at risk of being lost to AI over the next 5 years with tech jobs being at the forefront.
Since the turn of the pandemic, and more importantly the rise of remote working, many companies are now operating under a fully remote-working ecosystem which has in turn, spurred companies to hire employees overseas as they can get access to highly skilled talent for a cheaper price. IT outsourcing spending in 2023 is hitting $519 billion, a big increase - 22% - from 2022.
Not to mention all of the many new tech companies that were founded to facilitate Global hiring.
With the emergence and growth of bounty platforms, the global recruitment market has been introduced to a new way of recruiting where companies can post a job and anyone can refer a candidate to the open position and earn a hefty reward if the candidate gets hired - cutting out the recruitment agency structure which in turn, saves the company money and increases the chances of finding the right talent.
Expect to see this model fully fledged over the next couple of years.
As the world evolves from the traditional 9-5 work system and embraces remote work and work-from-anywhere, there is another system that sits at the top of that hierarchy - Asynchronous working.
Asynchronous work (also shortened to “async”) means that employees work on their own time, without a strict set of hours that they have to abide by. Employees working an Async method don’t have to be online at a specific time and can choose their own hours. Whether that be 9-5, 8-4, or even 5pm -1am, it is entirely up to them.
Many tech companies have been at the forefront of implementing Asynchronous work, as they were spurred by remote workers working in different timezones, and are now seeing the enormous benefits that come with Async work such as an increase in productivity and boost in mental health.
DEI has shifted from a buzzword to a serious aspect of talent acquisition. Companies are actively focusing on creating diverse and inclusive workplaces that reflect a range of backgrounds, experiences, and perspectives.
So much so that the NASDAQ has enforced a rule that states any company that wishes to be listed on its exchange, must reflect a diverse and equal working environment or at least give an explanation as to why certain DEI quotas cannot be met.
Data-driven recruitment transcends gut feelings and assumptions, replacing them with evidence-backed strategies that lead to better hires.
With the growth of the HR Analytics market, internal teams are getting exposed to utilizing various analytics that would shape their overall hiring strategy such as:
With the cost of a bad hire being as high as $240,000, HR teams will be looking to invest in analytical solutions that will prevent such catastrophes.
Degrees are no longer the sole determining factor in whether or not a candidate will become a successful hire. With the rise of EdTech unicorns, the access to an abundance of information online, and various government-funded skill boot camps emerging, many people are ditching expensive college degrees and absorbing the same learning online for less than half the time it takes to finish a degree at a much lower cost.
And with the current labor shortage in the world of tech, many companies are now ditching the degree requirement on job applications and giving opportunities to candidates who have upskilled or reskilled through other methods, allowing individuals with non-traditional backgrounds to showcase their skills and potential.
Another by-product of the work-from-home revolution is the increase in the number of workers turning into freelancers. Many people got accustomed to working from home and decided to go a step further and make a freelance business out of it whilst others discovered it after they were forced to find alternative forms of income after the flood of layoffs in 2022 and uncertainty in the job market.
It is expected that in just a few years’ time, freelancers will make up the majority of the workforce in the United States.
As we witnessed the landscape of talent acquisition undergo a shift in the wake of a series of transformative events such as the Covid-19 pandemic, the cost of living crisis, and the great resignation, we can be sure to see a more technological future where the standard 9-5 office/hybrid model becomes replaced and a more diverse workforce comes into play.
Recruiters will have to adapt to the changes that affect candidates and be sure to implement a data-driven approach to stand out from the rest.
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