As we enter 2024, it’s the question on every hiring professional’s mind: Will it surge? Will it slow? The answer to that question is we don’t really know. Employers would like to predict accurately, but there are many economic factors at play, not to mention the unsettled nature of things worldwide. So opinions vary – for every article that says hiring will be hot right from the get-go, there’s another one that predicts stasis or even cooling.
Robert Half asked hiring managers about their plans for the first half of 2024. Responses indicated that ’24 will be about the same as ’23. Specifically, more than half (57%) expect to hire for new positions to support growth, while 39% expect to fill vacated positions. Two-thirds will look to contract workers to fill those positions.
Conversely, the Conference Board Employment Trends Index forecasts Q1 cooling with some job losses as the year progresses.
The marketplace remains resilient
While experts may disagree on the big picture, at least some industries and job roles remain unquestionably in demand and difficult to fill. The Conference Board noted that addressing these acute labor shortages is a priority, even for employers still concerned about a possible recession.
The expectation is that by Q2 there will be movement across multiple industries.
Certainly, we know that technology – IT, biotech, and pharma – and medical positions will remain in high demand. Robert Half and other marketplace watchers say tech and healthcare positions will be the most in-demand in 2024.
Strong talent is needed, and it is out there. To attract them, you must have a well-honed plan, and you need to put it into play right now.
Time, as they say, is of the essence
Historically, late January into early February is the heaviest period for resignations. Most employers have also crystallized their hiring plans by January or February, so the search is on in all respects. If your hiring plan doesn’t take this into account, you could easily miss connecting with your next great hire.
Rest assured that, even if you weren’t actively courting candidates as 2023 came to an end, your recruiting firm has been doing just that. Staying up to date with candidates we already know, establishing relationships with new prospects or referrals you may have mentioned, so we can be fully prepared to help you make the right matches.
Best practices to stay ahead of the curve
The marketplace may still seem unpredictable, but it’s likely to keep improving and that means the hiring scene will be as competitive as ever in 2024. You’ll need to address challenges head-on.
Robert Half survey respondents cited several concerns:
- It’s tough to find skilled professionals (90%)
This is why savvy hiring managers are looking to less-experienced up-and-comers or those with transferrable skills to build their ranks with talented, eager learners.
- It’s tough to find candidates who are a good cultural fit (49%)
Know who you want to hire. Not only the skills and experience you need but the person you want to complement your team. Your recruiting partner can be especially helpful here. Our network of candidates is broader and deeper than yours, and we take the time to know them as individuals.
When an opening occurs, planned or not, we can get right to work contacting those in our pool we know would be a good fit. That may be someone who’s actively considering a move, but maybe not. Your new opening could be just the impetus a passive candidate needs to jump to your team. Thanks to your recruiter, you’ll be able to explore that option together.
- Meeting candidate salary expectations (48%)
Keep in mind that while many candidates rank salary, benefits, and job security as key, many more also cite the importance of remote work, life balance, and other flexibility indicators.
- Candidates aren’t applying for open positions (42%)
That’s because the talent you want most probably isn’t actively looking. It is vital to discover and court passive candidates.
- Hiring for open roles is taking longer (58%)
That won’t do because more than half of candidates drop out of interview processes that drag on or are unreasonably complex. Take steps to speed up your hiring process.
- Retention (91%)
It’s cheaper to retain than to recruit. Still, attrition happens. Be prepared to fill those unexpected gaps.
Huddle with your recruiting partner now
Candidates are preparing to compete, and employers must be equally well-prepared to compete for their attention. A true recruiting partner knows your company, culture and goals well, and they’re fully equipped to help you effectively address all of the key concerns noted above.
Companies that are able to remain ahead of the curve do so by sharing their recruiting plans with their recruiter so they can work proactively to put your company in a more competitive hiring position.
Do the math: net new adds
As you plan to fill gaps and add new strengths to your workforce, you’re also thinking about overall headcount. But don’t forget that attrition will skew those numbers – you’ll need to fill those newly-empty positions, too. For example, if you’re planning to hire three new people but two current employees resign, now you need to fill five slots.
This is something that should always be in the back of every hiring manager’s mind. But it’s unlikely you’ll be able to predict just which openings will occur. Having a solid, confident relationship with your recruiting team takes the stress out of handling surprise resignations as well as filling new positions.
Despite conflicting predictions, the consensus seems to be that we will see steady, if slow, improvement in 2024. Whatever happens, competition for the best new hires will always remain strong. Companies that prepare well now will be in the strongest position to attract the right talent.