The past few years were the most chaotic for recruitment, from a pandemic to a mass employee exodus to a massive skills shortage. It’s no wonder attracting, hiring and keeping top talent can feel like climbing Mount Everest with rollerblades. Keeping up with hiring trends is your company’s best shot to survive and thrive in this brave new business world.
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This article will provide insights into how hiring new employees differs from before. You’ll know what to expect in the future and what to keep an eye on when hiring top talent.
Key Takeaways
- Generative AI adoption is shaping the future of recruiting.
- Strategic focus on diversity and inclusion remains a top priority.
- Recruiting professionals tackle ever-growing hiring stress and burnout caused by new talent acquisition responsibilities.
- The U.S. is at the forefront of the hybrid work arrangements trend.
- Data-based recruitment drives strategic hiring decisions based on crucial hiring and recruiting KPIs.
- Employers focus on internal hires to fill key positions and reduce reactive hiring.
- Despite economic uncertainty, 51% of employers increased their employer branding budget.
Top Hiring Trends
Here’s our in-depth list of the top hiring trends you should watch out for:
1. Generative AI
Key question: Are you resisting or embracing AI?
Generative artificial intelligence is an exciting development in the business world, and it’s here to stay. With numerous in-depth articles discussing the impact of generative AI on the labor market emerging, the question remains: is generative AI a disruptor or a catalyst? What does AI mean for future job prospects and the process of hiring for these roles? Is the recruiter at stake?
Here are some findings:
According to LinkedIn’s US Executive Confidence Index Survey:
- 47% of executives believe generative AI will enhance productivity
- 40% see AI as the key driver for unlocking growth and revenue.
- 44% plan to increase AI utilization in the upcoming year.
According to Martin Shaw, a seasoned talent acquisition specialist:
We might soon be able to say farewell to the tedious elements of recruitment and embrace cutting-edge hiring with Generative AI.”
The Work Trend Index by Microsoft reached a similar conclusion, revealing that approximately 70% of professionals are embracing AI to alleviate their workloads. Additionally, generative AI is accelerating recruitment automation, and, as estimated by McKinsey, 30% of work hours across the U.S. economy will likely be automated by 2030.
With AI in the spotlight, it’s natural to wonder how many jobs it will eliminate. However, there’s another side to the story that’s easy to overlook: the jobs AI will create. Now, recruiters face two significant changes: the integration of generative AI in the hiring process and the evolution of traditional roles.
First, let’s address the burning question on every HR professional’s mind: will AI replace recruiters? According to research conducted by Jobvite, a recruitment and hiring suite, the short answer is no! AI and recruitment automation promise to enhance recruiting activities rather than render the human approach obsolete.
- LinkedIn’s The Future of Recruiting report suggests that 59% of hiring professionals are ready to integrate generative AI into the recruitment process. About 67% expect AI to improve candidate sourcing, and 74% aspire to automate various recruiting activities.
- The World Economic Forum surveyed 803 companies across industries and found that nearly half the respondents believe AI catalyzes job creation.
- The previously mentioned McKinsey report suggests AI will optimize STEM, creative, business and legal professions rather than eliminating jobs outright. This includes recruiting and talent acquisition functions.
Key Takeaway: Generative AI doesn’t necessarily spell the end of all jobs but signals a transformation in roles and the skills needed to excel in them. When it comes to recruiters, generative AI will handle routine, repetitive tasks through logical models.
This means the recruiting focus must be on using AI as an ally and refining job descriptions, seeking candidates proficient in skills beyond AI.
2. Focus on DEI
In the modern world, prioritizing diversity hiring is an essential step towards driving real change and building inclusive teams. According to the LinkedIn report mentioned above, 74% of companies remain steadfast about maintaining diversity, equity and inclusion (DEI) hiring as a top priority despite the negative impact of the macroeconomic environment on hiring in recent years. For 20% of these companies, DEI hiring is a higher priority now.
However, the level of diversity in workplaces isn’t where it should be.
- According to the new Global Gender Gap Report by WEF, the global gender gap has reduced by 68.1% since the last calculation. While this percentage is an improvement, it will still take 132 years to bridge workplace gender disparity, given the current progress rate.
- Recent updates from the Bureau of Labor Statistics observed highest unemployment levels among Black (5.7%) and Hispanic (4.7%) groups.
- More BLS data from 2022 showed that Black men aged 16 and above experienced the highest unemployment rate, at 6.3% for that year.
Even as more and more companies put significant efforts into bolstering their DEI initiatives, a recent study by Lever revealed employers and employees unanimously agree that current efforts fall short.
- As per the report, only 54% of employees and 50% of employers believe the initiatives adequately include neurodivergent employees.
- About 50% of employees and 59% of employers feel their DEI strategy effectively addresses LGBTQIA+ inclusion.
- Approximately 60% of employees and 63% of employers think there are sufficient provisions for disabled employees.
- Nearly half of those surveyed believed their race, gender or ethnicity posed hiring obstacles. While 62% of respondents perceived they were only interviewed for a job to fulfill a diversity requirement.
The same report also found that 81% of job candidates check company websites to see where they stand on diversity, equity and inclusion before hitting that “Apply” button, and 71% of them scrutinize job postings, looking for words that signal inclusion.
These numbers send a clear message to employers: It’s time to step up their game and show it.
According to a recent survey by Culture Amp, here’s what employers are doing to improve:
- Enforceable Policies: 42% of those with a documented DEI policy stated that it’s not just words on paper – they actively enforce it.
- DEI Councils: 56% said they have an official DEI committee, council or forum promoting representation, fairness and equal opportunities for everyone.
- DEI Events: A majority of 63% of respondents organize events that celebrate diversity and spark meaningful conversations within the community.
- Employee Resource Groups: 48% of companies had at least one employee resource group (ERG) to support individuals from underrepresented communities.
- DEI Metrics: 45% rely on DEI data when making decisions that impact employees.
Key Takeaway: Developing balanced recruitment pipelines nurtures equitable hiring practices. Making employment opportunities accessible to people of all backgrounds is more critical than ever. Developing actionable DEI initiatives is the right thing to do, but it also enhances productivity and impacts the bottom line.
3. Recruiter Burnout and Well-Being
Key question: Are your recruiters feeling burned out?
Burnout among HR and recruiting leaders is reaching concerning levels, driven by a turbulent landscape of uncertainty, stress and a competitive labor market. The American Psychological Association’s Work and Well-Being survey, involving 1,501 employees, found that 79% of respondents experienced work-related stress in the month preceding the survey. Recruiting and HR folks are no exception to this alarming trend.
A recent Forbes article insists that recruiters are the “underappreciated professionals” of the business realm. These professionals grapple with various challenges as they navigate a dynamic talent market:
- According to LinkedIn, The job openings to active applicants ratio remains higher than its pre-pandemic average. An insatiable demand for talent has these professionals fighting tooth and nail to secure and retain the right individuals.
- Hiring continues to soar. Recent BSL data reveals that the hiring diffusion index, a measure of jobs added across industries in the U.S., soared to 64.2%.
- Recruiters’ role amidst a dynamic talent market is evolving. They’re shifting from traditional recruiting, which focuses on filling open roles, to talent acquisition agents that source and retain best-fit candidates.
Managing these growing responsibilities left many HR professionals feeling there was no foreseeable end to the chaos. The State of Hiring and Recruiting Report paints a grim picture, revealing that 99% of HR professionals missed at least one recruiting goal. The mounting pressure to perform pushed 61% of HR leaders to consider quitting.
Another Jobvite report delved deeper into what’s stressing out recruiters and identified the following top stressors:
- Limited qualified talent: 59%
- Additional open roles: 51%
- Losing talent to the competition: 44%
- Higher turnover rates: 43%
- Mental health concerns: 33%
So, now the spotlight is on how to remedy this recruitment burnout:
- Improving Internal Processes: The report mentioned above also found that 71% missed a key hire due to inefficient processes. It’s time to reevaluate internal talent acquisition strategies and fix broken recruitment processes.
- Implementing The Right Tech: 95% of the HR pros who resigned due to stress said they would have stayed if provided higher-quality technology.
- Offering Support: Jobvite’s Job Seeker Nation report found that employers offering mental health benefits and resources are at the lowest level in the past three years. Offering mental health support and resources to tackle burnout is a step in the right direction.
Yvette Janse van Rensburg, a talent management professional and Senior Consultant at Let’s Talk Talent, emphasizes that HR professionals are only human, and like anyone else, they are susceptible to exhaustion and anxiety. According to her, the key to addressing recruiter stress and burnout is to elevate the role of HR from being a fix-it-all function to that of a strategic player. This transformation requires adequate support and investments to operate effectively. She explains:
HR professionals expect their employers to help tackle stress by providing adequate resources, including additional staff to reduce workload, offering professional development opportunities, and fostering a culture of open communication and psychological safety within the organization – why should the demand be any different for our own function!”
Key Takeaway: According to Employee Benefits News, the relentless competition for top-tier candidates, coupled with rising performance expectations, has driven the need for HR to establish advanced hiring benchmarks. Striving to meet these sophisticated goals within strict timelines places significant pressure on HR leaders, leading to elevated stress and an increased risk of burnout.
4. Remote Hiring and Hybrid Work
Key question: How do your employees work?
COVID-19 altered how we work, and recognizing this new reality is essential for employers aiming to build adaptable workforces.
These days, there’s an ongoing return-to-office push from employers. Industry giants like Facebook, JPMorgan and Zoom are becoming remote-work skeptics and prefer their workforce to be present on-site.
Mark Mortensen, an expert on virtual work distribution, points out that one doesn’t need to look hard to find the pros and cons of remote work. In a recent Harvard Business Review article, he says:
Leaders must actively collaborate with their employees to find a balanced approach to one of the most significant changes to the way we work since the Industrial Revolution.”
Employers and their workforces have arrived at a crossroads regarding where to work. The solution? Hybrid work models.
The hybrid model allows managers and employees to meet halfway. These arrangements provide flexibility by blending in-office and remote work models.
A Flex Index report found that structured hybrid companies are rising, with a 10% boost since the last quarter. The report estimates that 58% of US companies embrace flexible work arrangements.
As technology advances, more and more jobs are becoming remote-friendly, and employees with that flexibility are choosing to embrace it. According to Gallup, 60% of remote-capable employees spent their week working fully on-site in 2019. That figure is down to 20% in 2023.
Here’s more evidence:
- Post-pandemic startups create more flexible work opportunities- Younger firms are more likely to offer flexible work options. LinkedIn’s Top Startups of 2023 report revealed that the fastest-growing U.S. startups hiring for remote roles exceed $100,000.
- The U.S. is more remote-capable than before – The U.S. is leading the flexible work trend, with 70% of U.S. employers adopting hybrid work models. According to the Wall Street Journal, U.S. office attendance remains stagnant while the rest of the world returns to the office.
- Employees prefer hybrid over on-site – Offering flexible work options can improve retention rates by 35%. According to Owl Labs, 29% of hybrid and remote workers expect a pay increase to compensate for additional costs if hybrid work isn’t on the table.
However, flexible work options are not only about letting employees choose how they work. Economics plays a role, too. The Owl Labs report referenced above found that 79% of managers believe their teams are more productive when offered flexible work options.
Key Takeaway: Job seekers prefer employers who provide flexible work options. With more and more companies opting for the hybrid work model, it’s clear that remote hiring is here to stay.
5. Data-Backed Recruiting
Key question: How do you leverage data for hiring?
Hiring new employees is a game of speed and a delicate balancing act. Many companies can’t afford to miss out on top-notch candidates by rushing the process and neglecting the finer details. These seemingly minor issues can quickly snowball into bigger problems, like hiring the wrong people.
Today, competition is fierce, and time is of the essence, making it vital to be deliberate and strategic with your talent acquisition tactics. Data-driven decision-making is more crucial than ever, as revealed in the State of Hiring and Recruiting Report. Data-based recruiting takes center stage, with 95% of HR leaders using technology to track hiring and recruiting metrics.
To stay competitive, setting realistic goals and benchmarks is essential to help your hiring team measure up against the competition. So, more and more HR decision-makers are using key metrics to understand where gaps and bottlenecks occur.
Patrick Donegan, Chief Strategy Officer at SEI and Forbes Council Member, argues companies that aim to be people-first must be data-driven. According to Donegan:
It is crucial that we consider what our data tells us about how we’re recruiting, who we’re recruiting, and where and why.”
Wondering which data to track for impactful and accurate hires? Jobvite’s Employer Recruiter Nation Report, which surveyed 1,200 HR professionals, revealed the following valuable metrics to keep an eye on:
- Time To Fill
- Cost per Hire
- Quality of Hire
- Source of Hire
- Retention Rate
- Hiring Manager Satisfaction
- Candidate Satisfaction
- Recruiter Satisfaction
- Application Conversion Rate
- Talent Pipeline Diversity
Key Takeaway: Recruitment is an art and science. HR specialists must use a scientific approach to identify and remedy inefficiencies in the hiring process. Consistently tracking relevant metrics on recruiter dashboards is the secret to making informed, data-driven decisions.
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6. Emphasis on Internal Mobility
Key question: Where do you find talent?
Don’t overlook the ones you already have in your search for top talent. While external hires bring fresh perspectives and new skills into organizations, more employers realize the importance of their existing workforce.
Hiring to fill an open position as quickly as possible treats the symptoms, not the cause. Considering all forms of talent mobility allows hiring teams to get to the heart of the matter.
According to Jobvite’s Job Seeker Nation report, 54% of employees overlook their current organizations when searching for jobs in a different line of work. As they say, “Building is better than buying”. Recruiters allow existing workforces to apply for different roles within the same organization.
Another Jobvite report referenced earlier found that 39% of those surveyed are adding internal hiring to their candidate-sourcing strategy, marking a 6% increase since the previous year. But that’s not all – according to the same report, internal hires appeared in the top five candidate sources for 66% of hiring managers.
Now, let’s talk about why internal hires and talent mobility are the talk of the town. LinkedIn’s The Future of Recruiting Report, referenced above, states companies prioritizing high internal mobility tend to retain employees for a duration that’s 60% longer.
More and more recruiters agree that internal recruiting will be an important factor in shaping recruiting over the next five years; 75%, to be precise.
Upskilling employees will play a vital role in enabling internal talent movement, with 81% of recruiting professionals opting to use skill development programs to upskill and reskill existing talent and reshape the future of recruiting.
Key Takeaway: Hiring internally saves your team time and resources it ordinarily takes to hire new employees since they already know the individual, the way they work and their values. The future of hiring will see a rise in internal talent mobility by improving succession plans, allowing employees to apply for different roles within the same company and providing upskilling and reskilling opportunities.
7. Importance of Employer Branding
Key question: What’s your company all about?
People know about your company when you provide value through your services and products. What people think and say about your company is vital to branding. Similarly, employer branding is the perceived value of being a part of your organization.
Testimonies are important. What your potential hires think and say about your organization matters when hiring top talent. Employer branding is the sum of every opinion, perception and idea job seekers have about your company. It’s intangible and exists in the spoken word.
Brand management is now a vital part of the talent acquisition process. Businesses strive to convey their vision and mission at every touch point, which is key to building a strong company image.
In the age of social media blurring the walls between how companies, clients and customers interact, negative news can spread like wildfire. According to a CareerPlug survey, 28% of candidates shared negative experiences online. Bad reviews can severely damage your company’s image and discourage potential hires from applying.
Yet, the same survey shows that 57% of candidates shared a positive review online after having a good experience. Ensuring your company positively impacts at every step allows your business to stand apart from the crowd.
In a Harvard Business Review article, Bryan Adams, employer brand thought leader and CEO of Ph.Creative, had this to say:
Many of the elements on which people base their career decisions are out of your control. Cultivating employer branding isn’t. It’s the only tangible advantage you have in today’s wildly competitive environment and has to be an integral focus.”
Prominent HR thought leader Josh Bersin refers to the value employers offer job seekers as “the Deal.” According to Bersin:
You have to carefully refine, redefine and communicate your employment brand. And I don’t mean your logo or tagline. What does your company do and why? Why should a high-value job seeker or college grad select your company to join? And are you ready to pay a competitive wage in this inflationary economy?”
Enhancing employer branding should be a strategic focus. A recent report found that despite the economic uncertainty heading into 2023, 51% of all respondents indicated their budget increased in 2023. The budget stayed the same for 37% of the respondents.
Providing an excellent candidate experience and optimizing the hiring process helps you earn favorable feedback. Consider the following ways to adapt to this trend:
- Convey your organization’s vision and mission to ensure values align with your candidates’ aspirations.
- Cultivate a vibrant culture, nurturing connections that turn your employees into brand ambassadors.
- Focus on the value proposition to enhance your competitive edge in the talent market.
- Treat everyone fairly, showcasing the equitable opportunities your company offers.
- Promptly respond to candidates’ concerns, queries, and doubts and send timely updates regarding their hiring status, especially rejection emails, with feedback to offer closure.
Key Takeaway: Not all press is good press. Leverage what makes your company unique as a magnet to attract potential hires.
Tips To Adapt To Hiring Trends
You have the insights and the numbers. But what does it boil down to for your hiring process? Let’s see what these trends mean for you and how you can adapt to be on the winning side.
1. Optimize Hiring Cycles
Extensive hiring cycles can impact your team and candidates. Candidates can mistake a lengthy process for a case of breadcrumbing by the employer. At the same time, inefficient processes can cause burnout and stress to recruiting teams.
A streamlined process improves candidate experience as well as internal productivity. Start by reviewing each hiring stage to identify inefficiencies and take measures to eliminate them. Remove unnecessary steps and develop workflows to guide your HR teams through each task.
Consider using recruiting and productivity tools like interview scheduling, video interviewing, applicant tracking systems and recruiting CRM to automate repetitive tasks. To take things up a notch, use AI chatbots to engage with applicants, help with the application process and answer queries.
Recruiter dashboard in Zoho Recruit. Source
2. Leverage Recruiting Metrics and Data
Hiring success depends on various factors, and the key to determining what works and what doesn’t depends on data at your fingertips.
Start by defining your recruitment goals by asking key questions internally:
- Do you want to boost application rates, reduce time to fill or enhance candidate quality?
- What roadblocks are preventing you from achieving your hiring objectives?
- Are there any inefficiencies in your hiring process, communication or recruitment strategy?
- What aspects of the recruitment process do you want to improve?
The answers to these questions lie in the right key performance metrics. The next step involves continuously tracking KPIs to identify emerging patterns. Use data to pinpoint effective sourcing channels, refine job descriptions and conduct guided interviews. Tailor your approach as you gain insight.
Leverage your most accessible resources — your internal databases. Refer to our article “The 10 Most Important Recruiting KPIs” to learn more about key metrics and how to measure them.
Track recruiting metrics in Greenhouse Recruiting’s analytics dashboard.
3. Implement the Right Tech
The right hiring tools bring a bevy of advantages to the table. While adding every state-of-the-art tool to your HR tech stack is tempting, choosing the right software depends on your company’s unique requirements.
The good news is that hiring technologies come in all shapes and sizes, addressing a broad range of niche requirements. Your goal is to find the ideal system that provides suitable services to streamline processes, improve team collaboration and ultimately help onboard top talent.
Here’s how to get started:
- Conduct an internal analysis. Review your hiring strategy and existing system. Look for key areas to improve and identify what your team needs to improve processes.
- Develop a requirements list. Use your findings to develop a list of key features required in an ideal system.
- Compare vendors. Evaluate different vendors based on your requirements list. Instead of starting from scratch, use our free recruitment software comparison report to see how different functions stack against your needs and gain tailored recommendations.
The Way Forward
One thing is apparent: it’s a tech-driven world. Without the right tools to attract and hire top talent, businesses of all shapes and sizes struggled to come out the other side in one piece. Updating your tech stack, talent acquisition strategy and hiring process is the key to maintaining a competitive edge. If you take the time to do it right, you’ll set your company and your workforce up for long-term success.
Which hiring trend do you think is most critical to success? Do you have any predictions for 2024 and beyond? Let us know in the comments!