6 hiring trends that could shape business in 2024

With a new year comes new trends, challenges, and opportunities. As we enter 2024, understanding the trends that are driving business can help leaders put their best foot forward.

Hiring is an important aspect of business that will require attention early. Those who are looking to hit the ground running in 2024 should pay attention to their recruitment process.

To assist in this, Robert Half listed six key themes that are influencing hiring in the new year:

1. Shift to an employer-driven market as demand cools

The post-COVID-19 era of work has seen candidates claim most of the power in the job market. According to Robert Half, this year will see this trend shift, and employers will once again gain the upper hand.

2. Hiring for skills, not just qualifications

Employers are increasingly seeing the benefit in skills rather than qualifications, said Robert Half. In fact, according to its research, 74 per cent of employers are not too concerned if a candidate doesn’t have the required certifications when assessing them for a role. This will reportedly become even more prevalent in 2024.

3. Stabilising salaries

Cost-of-living pressures are hitting everybody hard. Despite this, Robert Half believes that salaries will level out, and only candidates with niche and highly sought-after skills will be in a position to leverage pay. As skills shortages ease, employers may no longer be forced to offer competitive wages.

“As the economic landscape transitions into a state of moderation in 2024, the dynamic surge in salaries will stabilise. Employers will need to demonstrate the compelling factors that differentiate their job offerings, while employees should carefully articulate their unique contributions and align their expectations with what’s happening in the job market,” said Nicole Gorton, director of Robert Half.

4. Demand for workplace flexibility will continue despite office day mandates

Back-to-office mandates are ramping up. However, many employees are not on the same page as their employers, and this could generate tension.

Robert Half revealed that 87 per cent of employers implemented mandatory office days in 2023. This has had an effect on businesses, with 31 per cent of employers claiming they’ve lost at least one employee due to mandates, while 40 per cent anticipate resignations.

“While the benefits of bringing people back are evident, careful consideration needs to be taken when making changes to a policy that is of utmost importance to many professionals, especially if a business’s work-life harmony benefits are what got candidates through the door in the first place,” commented Ms Gorton.

5. Looking for talent beyond traditional groups

Branching out into different talent pools is an expected business strategy for 2024, said Robert Half.

For example, hiring retirees was a popular strategy in 2023. Robert Half found that 47 per cent of organisations would use this approach again. Another 37 per cent have not used this strategy but would consider it in the future.

Ms Gorton continued: “A great candidate – regardless of their work history – should have the technical expertise to perform core job functions efficiently and effectively, and the ability to situate their skills within the wider organisational context, using power skills such as problem-solving or stakeholder management. Employers are looking beyond traditional groups of people for their roles and are relying on word of mouth or networking to final specialised talent.”

6. Learning and development opportunities are driving candidate decisions

As technology advances, the need for effective learning and development policy is crucial. Employees are seeing the benefits this approach can bring, as Robert Half revealed that 2023 saw 49 per cent of Aussie workers ask for professional development opportunities. This is expected to continue in 2024.