7 Recruitment and HR Trends in 2024 That Are Shaping the Industry

Categories: Infographics

recruitment and HR trends bannerRecruitment and HR strategies are ever-evolving to adjust to the needs and expectations of job seekers and employees. The intersection of technology, societal changes, and organizational priorities continues to mold the way businesses attract, select, and retain top talent.

Staying ahead requires not only adapting to current trends but also anticipating trajectories. This comprehensive infographic reveals the most significant movements the HR and recruiting industry can expect in 2024 and beyond.

Recruitment and HR Trends Infographic7 Recruitment and HR Trends in 2024 That Are Shaping the Industry

These seven compelling trends are orchestrating a paradigm shift in HR practices. This section uses data and figures to unveil each trend’s significance and impact on the industry’s current trajectory.

1. The declining power of college degrees 

More than 57% of talent professionals anticipate recruitment challenges in the next 12 months, according to a Lever survey. Concerns include the scarcity of high-quality candidates (58%) and heightened competition from other employers (46%). As such, talent professionals resort to non-traditional ways to find the right people for the job, and many have eschewed college degrees in favor of skills-based hiring. 

From 2014 to 2023, there has been a fourfold increase in the annual number of roles from which employers dropped college degrees from the requirement. Instead, many recruiters are prioritizing candidate competencies over conventional credentials.

Most (70%) of the respondents in a TestGorilla survey indicate that skill-based hiring has better results than traditional resume-based approaches. This trend reflects increasing adoption rates, with 73% of companies implementing skill-based hiring in 2023, a substantial rise from 56% in the previous year.

These concerns collectively shape the imperative for a more nuanced and skill-centric approach to hiring. Recruiters must also be proactive to avoid the issue of staffing shortages due to the anticipated challenges to recruitment in 2024.

2. The prominence of tech in HR

Lever’s findings indicate that 58% of recruiters and HR decision-makers have already incorporated AI into their processes, underscoring how it rapidly reshapes recruitment strategies.

Moreover, 82% of these professionals report frequent or very frequent usage of AI-powered tools. The same Lever report reveals a notable uptick in tech investments within HR budgets, with 59% allocated to AI-powered recruiting tools.

Companies are dedicating resources to fostering diversity, equity, and inclusion initiatives (50%), enhancing candidate relationship management (48%), and optimizing applicant tracking systems (46%). 

Compounding this digital shift, 39% allocate their HR budgets to career websites while sourcing technologies (36%), job board postings (34%), and onboarding process improvements (30%).

Human resources and technology are becoming increasingly inseparable, and businesses must apply tech-driven solutions to remain competitive.

3. The growing need to outsource to third-party recruiters

Outsourcing HR functions to third-party organizations is not a new trend.Going back to 2004, an Accenture survey found that 80% of companies that outsource HR functions would do so again, with 91% of respondents having achieved or partially achieved their HR outsourcing objectives.

However, in the rather difficult hiring environment In 2024, the recruitment landscape is experiencing a notable shift towards leveraging headhunting or executive search services for strategic talent acquisition. The Global Newswire projects the international executive search market to reach $26.35 billion by 2031. Organizations are recognizing the value of specialized expertise in finding and securing talent.

Employment data reflect this growing inclination towards external support in talent acquisition, indicating that 55% of HR professionals are considering outsourcing recruitment processes. This strategic pivot towards headhunting signifies the capability of specialist partners to access niche talent pools that are otherwise difficult to reach.

4. The increasing demand for better leaders

There was a telling 16% decline in 2023 of HR professionals who view their CEO as empathetic, according to a report by BusinessSolver, the lowest ever reported. This shift amplifies the expectation for leaders to embody compassion and understanding in navigating current workplace challenges.

The previously cited Gartner study may add more context to this. It states that 73% of HR leaders confirmed that their organization’s leaders and managers aren’t equipped to lead change—and more training may not help. 

Resetting expectations for managerial roles may be in order. An average manager has 51% more responsibilities than they can effectively do, and 75% of HR leaders acknowledge that their managerial staff grapple with an overwhelming burden of escalating job responsibilities.

The demand for better leaders signals a significant shift in organizational priorities, emphasizing the need for leadership development and support structures to fortify managers in steering their teams through the complexities of the modern workplace.

5. The need to address change fatigue

Change fatigue is the overwhelming sense of weariness and disengagement experienced by employees in response to a continuous and prolonged series of organizational changes. Since the pandemic, leadership transitions, changing work arrangements, and other significant shifts have become commonplace, taking a heavy toll on many workers.

A substantial 77% of HR leaders, as reported by Gartner, highlight that their employees are grappling with fatigue from the relentless pace of change. There’s a critical imperative for businesses to tackle the psychological toll of continuous transformation proactively. 

Compounding the challenge, 82% of the respondents claim their managers lack adequate training to effectively lead through periods of change, exposing a crucial gap in organizational preparedness.

Notably, only 8% of employees express confidence in managing change fatigue, showing the significant misalignment between employee needs and managerial support. The repercussions of change fatigue on the workforce are profound, including:

  • 42% decrease in intent to stay with the company
  • 30% lower trust levels in management
  • 27% less sustainable performance
  • 27% less responsiveness
  • 22% less discretionary efforts
  • 17% decline in enterprise contribution

6. The call for better career management and internal mobility

In 2024, a resounding call for enhanced career management and internal mobility reverberates throughout the workforce. Less than 33% of employees express confidence in their career progression plans for the next five years, while 89% of HR leaders believe their organization’s career paths remain unclear for employees.

The glaring misalignment between employee expectations and organizational clarity fuels uncertainty and hampers employee engagement and retention. The contemporary workforce increasingly emphasizes career development and growth, so companies must respond with strategic initiatives to illuminate viable career paths and promote internal mobility.

Organizations prioritizing transparent communication about career trajectories and robust development programs are poised to address this pivotal concern and cultivate a more motivated and loyal workforce.

7. The pressure to rethink return-to-office schemes

As organizations grapple with the intricate dynamics of the post-pandemic work environment, the pressure to reconsider returning to the office becomes a focal point in 2024. 

There’s a stark misalignment between employee preferences and managerial directives. A 2023 Gartner survey of over 3,000 employees revealed that nearly half (48%) say their company’s mandates prioritize leader preferences versus what employees truly need.

And it’s not just the rank-and-file. High-performing employees are twice as affected by mandatory return-to-office schemes, with 16% lower intent to stay than average workers.

This incongruency is underscored by the previously cited study from Lever, where 22% of HR employees identify the lack of remote or hybrid arrangements as the top challenge in recruiting. The number highlights the imperative for organizations to recalibrate their approaches to work structures to align with the evolving expectations and priorities of the modern workforce.

Shaping the Future of Work

Shaping the future of work demands a dynamic approach. The overarching narrative of recruitment and HR in 2024 is clear: The interplay of technology, leadership dynamics, employee well-being, and the evolving work structure requires an adaptive and strategic HR response.

If you’re seeking a partner well-versed in the dynamics of the HR industry, consider exploring the benefits of remote and offshore staffing with Manila Recruitment, a premier recruiting agency in the Philippines. Our team is equipped to navigate the evolving challenges of talent acquisition, embracing innovative trends to meet your organizational goals.

Connect with us today to discover how our expertise can be tailored to suit your unique HR needs.