With 2023 coming to a close, it is important for talent acquisition teams to know what to expect and plan for in the new year. Many changes have occurred over the past year, including technological advancements, economic shifts, a new generation entering the workforce, and more. In this article, our employment experts at Dahl Consulting will cover the top hiring trends to help you attract top talent to your organization.
1. Digital Transformation: Data-Driven Decisions & Artificial Intelligence (AI)
Data-Driven Decisions
Generally, there is an overwhelming trend toward data-driven recruitment, and companies that refuse to embrace new technologies will continue to have difficulty sourcing, nurturing, and hiring talent in a quick and effective way. Plus, companies that don’t embrace data-driven recruitment run the risk of losing business to competitors. Creating a strategic plan based on analytics and insights is the best way to improve your talent acquisition in the new year and beyond.
Artificial Intelligence
Over the past year, AI has taken the world by storm, and the staffing industry is no exception. AI has been impactful for recruiters and candidates, helping to simplify and streamline repetitive tasks, and it won’t be going away any time soon.
AI for Recruiters
AI has been used increasingly by recruiters for tasks such as job descriptions, scheduling, assessments, and automation of messaging. Job postings created with AI have increased by a whopping 119% over the past three years, according to Glassdoor, and it is likely that this percentage will continue to grow in 2024.
With the time that is saved by allowing AI to field repetitive tasks, recruiters can connect with candidates more frequently, helping to grow relationships and, ultimately, find them a job that is a good fit faster. However, even with the growth of AI usage for recruiters, 73% of leaders will be closely monitoring how these tools are used and keeping a pulse on any potential negative effects that it may have on their companies. AI tools should be kept under close watch, as generative AI has the potential to be incorrect or even present bias when reviewing candidates.
AI for Job Seekers
For job seekers, AI has also made a huge difference in the hunt for employment, with projections to continue growth in the coming years. Job seekers can choose from a wide array of different AI tools to help them with the job search process, from crafting cover letters and resumes to AI-powered job search tools. Gartner found that by 2025, half of all job seekers will be using AI-powered search assistants, and 72% of job seekers believe that AI could help them find a job that better aligns with their skills. AI for job seekers will also improve communication, as many of the tools used for finding jobs provide updates on the status of applications at each step of the process.
2. The Growing Importance of Skills vs. Education in the Workplace
An emphasis on skills over education is an up-and-coming trend that will impact talent acquisition in a number of ways over the course of the next year. One of these ways is the growth of skills-based hiring. Based on the current talent market, many companies are basing their hiring on specific skills instead of long-term business goals. Job postings are increasingly focusing more on skills and experience instead of whether or not a candidate has a degree. This tactic opens up a much broader talent pool, which is beneficial to both businesses and job seekers.
While the demand for technical skills is on the rise, soft skills are also gaining value in the workplace. Skills such as emotional intelligence and critical thinking are talents that are not easy to teach, which is why it is important for hiring teams to evaluate candidates on more than the “cut and dry” competencies they bring to the table.
From the talent perspective, many candidates are focusing on growing their skills and, consequently, are seeking employers that provide them with upskilling opportunities. According to Randstad RiseSmart’s 2021 Career Mobility Outlook survey, approximately 90% of human resources leaders said 10% of their businesses’ open roles can be filled internally. Additionally, the majority of these HR leaders responded that employees are actively encouraged to apply for other positions within the company. This provides a need to create growth opportunities and clearly communicate career paths in order to retain top talent.
3. Emphasis on Employee Engagement
You may have heard the term “Great Gloom,” which is defined as the downward trend occurring in employee satisfaction and engagement rates since the end of the pandemic. This trend highlights the ever-growing importance of creating a strategic focus on employee engagement in order to retain and attract top talent.
In a survey of 3,000 HR professionals at the start of 2023, a third said empathy was a top concern. Much of the talent pool holds the belief that top organizational leaders lack empathy, and this is in part due to the growth of return-to-the-office initiatives. This underscores the importance of prioritizing work-life balance for employees as part of an employee re-engagement strategy. Companies that do not take this factor into account run the risk of losing top performers to other organizations that offer more freedom and flexibility. It is also essential to consider that offering remote work arrangements not only helps retain and re-engage existing employees but also dramatically broadens the talent pool, as eligible candidates are not bound to a singular geographic area.
4. The Importance of Strong Employer Brand & Company Values
Creating or maintaining a strong employer brand is one of the ways that your organization can stand out from competitors in 2024. More than ever, candidates are seeking a work culture that embraces the importance of ethics, meaning that they are drawn to brands that showcase their values. Values may include DEI, sustainability, volunteerism, philanthropy, and/or “whole person” wellness initiatives; what’s important is showcasing and living these values as an integral part of your company’s brand. In a study encompassing more than 750 business leaders, HR leaders, and knowledge workers, it was revealed that 80% of participating employees emphasized the high importance of working for a company whose values align with their own. Furthermore, a noteworthy finding indicated that slightly over half of the knowledge worker respondents expressed a willingness to resign from their current job if the company’s values did not resonate with their personal principles. These findings epitomize just how important values are to not only recruit talent but also to prevent employee turnover and associated costs.
With 2024 quickly approaching, we hope that this article has provided helpful insights to help your organization prepare for the year ahead. Dahl Consulting offers employment expertise and customizable employment solutions to help you navigate talent acquisition challenges successfully. If you’re looking for a strategic staffing partner to boost your recruiting efforts in the new year, get connected with one of our experts today!