What to Expect from the Job Market in 2024
Despite the challenges presented by recent global events, hiring trends for 2024 indicate a renewed sense of optimism. Research from MIT’s Sloan School of Management shows that 39% of hiring leaders said they plan to increase their financial commitment toward hiring in 2024, and 70% of surveyed U.S. job seekers were somewhat or very confident about their prospects of finding new jobs. Here is what to expect from the job market as we enter 2024:
Turnover will continue to slow. The Great Resignation is over, and the dust is starting to settle. Fewer employees will be leaving their jobs and looking for new ones.
Employers will focus on skills. Traditionally, most organizations work off a position-based model wherein managers work with HR professionals to build a job description along with qualifications. Skills-based models allow companies to create a database of skills specific to that organization. Hiring managers can better predict who can come into that role and succeed. There will be less emphasis on degrees and formal education as job requirements.
The battle over return to work will continue. These mandates didn’t work well for everyone in 2023, and those troubles are expected to continue in the new year. Some issues behind the problems have included strict rules that lack data to back them up, employees feeling like they aren’t being heard or respected, and in-office attendance being directly tied to performance reviews.
Some companies will embrace remote work again. In the ongoing competition to recruit top talent, savvy companies will embrace remote work again as their leases expire and new tools emerge to improve async collaboration. Employers will reimagine workspaces with smaller spaces for intentional collaboration and connection.
AI-driven innovations will impact hiring. Employers and job seekers have similar expectations from hiring platforms. The quality of job seekers’ experiences on these platforms plays a significant role in their job searches. AI is helping to improve these experiences. AI will not replace the human element in the recruiting process, but it will allow HR reps to do their jobs more quickly and efficiently. For qualified job candidates, this means they can expect to hear back sooner. For hiring companies, it means filling vacancies more quickly.
The 5-day workweek may come to an end. Henry Ford’s vision may have been innovative in the Manufacturing Age, but what relevance is a 5-day, 40-hour workweek in the Information Age? In many instances, employees and teams are distributed globally, often working in different time zones. Among knowledge workers, shorter workweeks have been proven to yield higher productivity, allowing employees to rest and recharge and better focus on their work.
The DEI conversation will continue. 2023 brought a significant shift in the diversity, equity and inclusion, or DEI, conversation that will continue into 2024. Factors such as the Supreme Court’s ruling on affirmative action will have many organizations redefining their DEI programs.
Empathy remains the most essential factor in leadership. Listen up or step down. All businesses want to hire and retain top performers. CEOs will have to make changes as those high performers move on—taking roles in organizations that give them greater work-life integration, or more freedom to share their opinions without fear. To succeed in 2024, leaders will need to listen more to colleagues at every level in their business without judgment and make decisions rooted in empathy.
Best wishes for continued success in 2024. I look forward to navigating the new year with you! May your job search be easy and your career prospects plenty!