After a challenging year for talent and recruitment in 2023 due to a range of factors, including an
uncertain economic climate, talent priorities have shifted for many businesses. But how will this
impact the emerging industry trends for 2024??
To understand the recruitment priorities and challenges the UK will likely face in 2024, 900 UK-based
professionals involved in their organisation’s recruitment decision-making in 2023 we researched
and interviewed.
The findings of this research have revealed nine trends and considerations, both positive and
negative, that the industry is anticipating for 2024. By identifying these trends early, organisations
can prepare for the challenges 2024 is expected to bring and create a proactive strategy for success.
1. TALENT DROUGHT
“93% of hiring managers are concerned about a talent drought rolling into 2024.”
Demographic shifts, including an ageing population and lack of EU workers, are reducing the pool of
available, experienced, and qualified workers. In 2024, the UK’s job market will further experience a
shortage of skilled candidates as rapid technological advancements contribute to a significant and
growing skills gap due to the specific skills required to work alongside new tech.
Not only are organisations struggling with the low supply of qualified candidates, but 79% of hiring
managers anticipate reduced talent attraction budgets for 2024, with only 4% expecting an
increase. This will potentially exacerbate the challenge of sourcing in-demand candidates from a
limited talent pool.
To address this challenge, many organisations are outsourcing their talent functions, with 50%
already outsourcing and 27% considering outsourcing in 2024.
2. (DE&I) – IT MATTERS
2024 is not a clean slate, and a range of factors from 2023 will continue to impact the landscape of
Diversity, Equity, and Inclusion (DE&I) into the new year. In particular, the cost-of-living crisis, low
retention rates, and increasing skill gaps are increasing external pressure that could see
organisations falling short of DE&I efforts. While it is still a high priority for many organisations,
there is evidence that the DE&I focus is slipping due to external factors.
42% of C-Suite leaders said they currently consider DE&I a minimal or limited priority.
3. KNOWLEDGE GAPS
19% of UK organisations say they lack accessibility initiatives. While the Equality Act 2010 protects
individuals regarding accessibility and recruitment, including support with application forms and
interview arrangements, there is a strong knowledge gap among hiring managers.
This confusion is clearest when recruiting temporary and contingent workers, with almost 31% of
hiring managers saying they do not feel adequately equipped to handle situations which may
require knowledge of UK employment law if dealing with temporary and contingent workers.
This topic brings us onto our next consideration for 2024.
4. STAFF MISCLASSIFICATION
"94% of hiring managers agree there should be increased clarity regarding the legal distinctions
between permanent employees and temporary/contingent workers."
Worker misclassification is a pressing concern for UK hiring managers, as the resulting compliance
issues are expected to be a major challenge in 2024.
Three categories of people provide work for an employer: employees, workers and self-employed
(contractor/freelance). As each status has different rights and benefits, problems can arise when
people are misclassified, particularly employees being misclassified as workers or self-employed, and
therefore missing out on certain rights.
While mistakes are often honest errors, the reason behind misclassifications does not soften the
consequences - employers could be held liable for breach of statutory rights, resulting in back
payments, fines, and reputational damage.
An increased focus on training and support around recruitment and employment law will be
essential in 2024 to prevent the trend of worker misclassification from becoming a greater concern.
5. AI
AI was certainly one of last year's biggest trends; in 2024, we are likely to see its continued
popularity. However, the primary AI trend for 2024 will be learning that automation is not always a
perfect solution, and its implementation should be carefully considered.
Automation can be used to automate the search for top talent and speed up recruitment processes,
but it has been noticed that automated software does not select candidates in a neutral way.
Because AI is reliant on the data it is fed by humans, a lack of diverse teams and extensive testing
can mean that AI’s learning models perpetuate unconscious biases.
“81% of hiring managers have encountered challenges with bias and discrimination issues when
using AI in the recruiting process.”
As women and ethnic minority talent are typically underrepresented in certain roles and sectors, AI
poses a challenge to diversity and inclusion and will require an increasing amount of vigilance as its
use continues to become standard practice in 2024.
6. SPEAK TO DEPARTING COLLEAGUES
The current social media and review culture has made the management of employer branding more
crucial than ever before. Dissatisfied candidates and employees may take to platforms like Instagram
and TikTok to share negative experiences, which could potentially impact the image and reputation
of the company.
According to Glassdoor, “84% of job seekers find ratings and reviews crucial in deciding where to
apply, highlighting the significant impact of poor reviews on talent attraction.”
Proactively engaging with departed employees and understanding friction points could potentially
result in valuable insights that could improve retention and existing employees’ satisfaction while
also minimising the negative feedback left by departing employees.
55% of the employees surveyed said they were not asked to attend an exit interview. Additionally,
38% were not asked for feedback after resigning from their last job.
Reasons departing employees gave for leaving their roles
Ineffective or toxic line management 34.5%
Lack of recognition 32.25%
Negative company culture 28.2%
Toxic working environment 27.7%
7. RETURN TO WORK
81% of organisations are shifting away from remote work, with 30% of employees required to
return to the physical workplace, and 51% encouraged to do so. Whilst some may say this is
understandable, this shift is a potential pitfall for HR departments.
For organisations with a blended workforce of remote, hybrid, and in-office employees, those who
continue to work remotely may feel disconnected and receive less attention than their office-based
counterparts. Unclear expectations can lead to reduced productivity, disengagement, and increased
turnover. Consideration for this blended workforce is essential for a diverse and optimised
workforce, and managers should focus on driving integration between remote workers and their
onsite peers. HR departments and managers must find ways of blending workforces and pay
consideration to individual circumstances in return-to-work situations, particularly during
policymaking.
7. QUICK TURNAROUND
A prolonged hiring process can slow down business and frustrate leaders and candidates, as
experienced by 92% of businesses, who reported losing candidates due to lengthy processes in
2023.
If the onboarding process has multiple rounds and there is procrastination between the stages,
there is a significant risk that candidates will lose interest, resulting in the possibility of losing top
talent to competitors. If the candidate decides to move elsewhere before completing the interview
process, the procrastination would have resulted in significant amounts of time, effort, and budget
being wasted.
“To avoid slow approvals and secure your top candidates in 2024, hiring managers and candidates
must maintain regular communication to ensure that everything possible is being done to secure top
talent and prevent candidates from being left in recruitment limbo.” said Áine Fanning. “This could
include making approvals in advance to ensure the process is smooth for candidates and
deliberation is minimised within the organisation.”
"48% of UK businesses admitted to losing out on talent due to procrastination on numerous
occasions."