5 Recruitment Trends to Look Out for in 2024

For recruiting firms, 2024 is ready to be a year of transformations. Pay transparency, artificial intelligence, hybrid working, and an elevated discussion on DEI are just some of the things taking centerstage. Jason Hanold of Hanold Associates Executive Search brings you overview of the recruitment trends expected to define this year!

January 12, 2024 – Just as with nearly every facet of the business world, the realm of recruitment is in a perpetual state of flux, responding to evolving demographics, market influences, employee expectations, and technological progress, according to a new article from Jason Hanold, founder and CEO of Hanold Associates Executive Search.

“Within the field of human resources, 2024 will bring about significant transformation,” Mr. Hanold said. “Gathering insights from our collective conversations with leaders from well-regarded organizations, here are some of the most frequently cited topics that we expect to partially define the coming years.”

1. AI and Automation.

Despite its increasing recognition among HR and business leaders, the adoption of AI in the recruiting process is still in the relatively early stages. The year 2024 will be crucial as adoption begins to ramp up significantly across a variety of use cases, industries and talent philosophies.

Leveraging AI in recruitment presents notable advantages like task automation and enhanced candidate matching. The real opportunity for executive search firms and internal talent acquisition teams, however, is in creatively using AI to improve candidate and client experience and helping run more efficient processes.

As the new year commences, Mr. Hanold shares that it’s crucial to acknowledge that AI is an additive component rather than a replacement, reinforcing the enduring importance of human connection and comprehensive candidate engagement throughout the recruitment process. “Striking a balance between technological advancement and maintaining personalized candidate interactions will be a key focal point for HR professionals navigating the evolving landscape of recruitment,” he said.

2. Pay Transparency and Internal Equity.

Mr. Hanold says that the Pay Transparency Directive is placing the onus on employers to disclose salary ranges. “This shift enables job seekers to access information about potential earnings, empowering them to make well-informed decisions when evaluating job offers,” he says. “The concept of pay transparency in recruitment is quickly gaining momentum as employers worldwide face growing demands to embrace fair compensation practices. This movement aims to create a more equitable, inclusive, and equal job market. While only a handful of states have enacted pay transparency laws, they are becoming increasingly popular.”

Jason Hanold, CEO and managing partner, founded the search firm in 2010. Previously, he served as a managing director with Russell Reynolds Associates, where he led the firm’s global human resources officer practice and was a member of the board of directors and CEO practices. Before that he held talent and recruiting positions with Whirlpool, McKinsey & Company, Deloitte, and State Farm.

As those transparency laws spread, companies will be obligated to justify their compensation practices. “We saw some large compensation packages offered the last few years when companies were competing heavily for strong talent, and now many total rewards leaders are being tasked with picking up the pieces,” Mr. Hanold said. “We expect to see more rigorous efforts to improve internal equity in the coming year, resulting in less flexibility when it comes to making offers to candidates. Both sides will need to understand this principle if companies want to continue hiring strong talent without alienating their existing employees.”

3. Hybrid Working.

According to data from MatcHR, a substantial 88 percent of remote workers express higher job satisfaction compared to working in an office. Additionally, 79 percent of survey participants concurred that they would exhibit greater loyalty to employers providing more flexible working arrangements. “These findings signify a noteworthy shift in the recruitment landscape as candidates are now placing a growing emphasis on flexibility and hybrid work options when assessing prospective employers,” says Mr. Hanold.

That said, many CEOs and organizations are placing an increasing emphasis on the significant cultural benefits of a more in-person culture, leading to a big uptick in hybrid work structures, travel and creative solutions.

Related: Strategic Talent Acquisition Planning in 2024

To help facilitate culture across different work modalities, Mr. Hanold pointed out the growing importance of “commute-worthy” experiences such as offsites and team events. “These not only contribute to shaping a positive work environment but also play a crucial role in enhancing overall employee satisfaction,” he said. “As candidates seek a more holistic approach to their work life,  a more purposeful presence in the office becomes a key consideration in their evaluation of potential employers.”

4. Diversity, Equity and Inclusion.

Across the world, forward-looking businesses are coming to realize the significant benefits of building a diverse and inclusive workforce, according to Mr. Hanold. “Research demonstrates that cultivating a culture of diversity and inclusion offers numerous advantages for businesses,” he says. “It sparks creativity and innovation, ultimately leading to improved profitability. Employees are increasingly coming to value diversity and inclusion as well. Interestingly, since the last half of 2023, we have witnessed more business leaders questioning the benefit and value of these efforts, and we expect that evaluation to continue well into 2024.”

What Talent Acquisition Trends Will Dominate 2024?
It’s been another busy year for talent acquisition leaders but what does 2024 have in store? Will AI continue to dominate? Will we see more organizations adopting skills-based hiring strategies and will there be more uncertainty? The answer is a resounding yes, according to a new report from Wilson Human Capital Group (WilsonHCG). The firm outlined the top seven talent acquisition trends for 2024 (in no particular order).

Mr. Hanold adds that many businesses have tightened their belts in 2023 and now leaders are having to adjust resources to find ways to continue the inclusive momentum of recent years. “This sustained effort is essential to foster a workplace culture that resonates with both current and prospective talent, and the best business leaders are finding creative ways to continue this important work.”

5. Non-Traditional Employee Benefits.

In response to evolving workplace dynamics, companies are redefining employee benefits beyond traditional offerings. This shift is evident in innovative programs such as mindfulness initiatives, stigma-free mental health days, and easy access to gym and fitness studios.

“There is a notable shift in prioritizing well-being and mental health within employee benefits,” Mr. Hanold said. “By tailoring employee benefits to diverse needs, organizations cultivate a supportive work environment that recognizes the individual experiences and challenges of employees and assists them in navigating the ever-changing landscape influenced by the pandemic.”

Hanold Associates Executive Search is a boutique  focused on HR, corporate officers and board directors. Its clients include the National Football League, The New York Times Company, Zoom, Fanatics, Domino’s Pizza, Under Armour, Gucci, Tom Brady’s TB12, Tiffany & Co, Cartier, Nordstrom, Kohler, REI, Live Nation Entertainment, Dick’s Sporting Goods, McDonald’s, Major League Baseball, Kellogg, Apollo, Big Ten Conference, Blackstone, Silver Lake, TPG, L Catterton, Northwestern University, Federal Reserve Bank , Electronic Arts, r, SC Johnson, eBay, Moderna, Great Places To Work, Fossil, Vail Resorts, AbbVie, Carnival Corp., Biogen, Allstate, Bridgestone, Wikimedia, Nike, Abercrombie & Fitch, Robert F. Kennedy Human Rights, Walgreen and Ford Motor Co., among others.

Related: Predicting 2024’s Talent Acquisition Trends

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Executive Editor; Lily Fauver, Senior Editor – Hunt Scanlon Media

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