The recruiting landscape in 2024 was one of adaptation and transformation. As companies navigated economic uncertainties, shifts in workforce expectations, and technological advancements, several trends played out. Here, with analysis provided by Debbie Pearl, Recruiting Consultant Lead at KMA, we review key developments from 2024, and offer insights into what we are anticipating for 2025.
2024 was a Year of Adaptation and Automation
In 2024, organizations grappled with a dynamic job market influenced by changing demands and evolving candidate expectations. The year emphasized retention, automation, and a focus on wellness and mental health support. Here’s a look at the main trends we observed:
Retention at Center Stage
Due to an uncertain economy and hiring landscape, companies prioritized ways to maintain their workforce and talent.
- Labor hoarding and internal hiring: Many companies opted to retain existing talent and develop/upskill, rather than risk hiring unqualified candidates.
- Career mobility: By offering internal career development opportunities, companies helped employees grow within their roles, increasing engagement and reducing turnover.
The Great Resignation’s After-Effects
The wave of pandemic and post-pandemic resignations continued to impact the workforce in 2024.
- Increased Applicant Volume: Many employees who left their roles during the pandemic began returning to the workforce, leading to an uptick in applications.
- Emphasis on Skills Assessment: To manage the influx, companies employed robust vetting processes to identify genuinely qualified candidates.
Mental Health and Wellness as a Must-Have
Employee well-being transitioned from an optional perk to a necessity.
- Wellness Programs: Mental health and wellness initiatives became essential in attracting candidates while also supporting current employees.
- Leader Training: Companies invested in equipping leaders with the skills to identify and assist employees struggling with mental health challenges.
Automation and Candidate Relationship Management
Automation continued to shape recruiting processes, making candidate engagement more seamless.
- Candidate Relationship Management (CRM): Automation helped nurture candidate relationships, ensuring timely responses, updates and feedback.
- AI-Powered Talent Pools: AI-enabled tools helped build databases of candidates with skills that matched organizational needs, streamlining future hiring.
- Data-Driven Recruiting: Increased communication around data analytics involving high volume of applicants with lower percentage of qualifications.
DEI Initiatives Still Relevant
Diversity, equity, and inclusion (DEI) remained important to organizational strategies, with a shift toward inclusivity.
- Evolving DEI Programs: Programs like employee resource groups fostered community, while initiatives encouraged inclusive practices.
- Inclusive Language: Job descriptions were written through the lens of inclusive language, ensuring they appealed to the broadest range of talent.
Strategic Passive Candidate Sourcing
While economic factors slowed the urgency of passive recruitment, it remained crucial for specialized roles.
- Targeted Approach: Recruiters focused on passive candidate engagement for roles requiring niche skills.
- Multi-Channel Sourcing: Platforms like LinkedIn, Indeed, professional organizations, social media, networking and employee referrals were utilized to find specific talent.
Branding and Culture as Key Differentiators
In a competitive job market, a strong company brand and defined culture became key to attracting talent.
- Employer Branding: Companies focused on showcasing their work culture to prospective employees.
- Values Communication: Organizations highlighted their values through mission statements and culture guides to appeal to candidates prioritizing a positive organizational culture.
Predictions for Recruiting in 2025
As 2025 approaches, the KMA recruiters anticipate shifts in strategy that will take advantage of new tools and align with evolving workforce expectations. Here are our top predictions.
Emphasis on Creative Recruiting
With automation handling administrative tasks, recruiters will play a more strategic role.
- Focus on Engagement: We will concentrate on engaging passive candidates and understanding the unique talent needs of each role.
- Action Based Data Analysis: We will analyze different hiring data like quality of applicants to provide insights for our clients.
Prominence of Company Brand
Candidates will increasingly seek companies that reflect their own values and beliefs.
- Brand as a Differentiator: Strong branding will help companies stand out to top candidates who prioritize alignment with organizational culture and values.
- Positive Work Environment: A company’s reputation for work-life balance, flexibility, and inclusivity will influence candidate decisions.
Expanding Talent Pools
Traditional notions of the talent pool will broaden in 2025.
- Inclusion of Freelance Talent: Companies will incorporate freelancers, offering project-based and flexible roles that cater to a growing gig economy.
- Diverse Skill Sets: More candidates with transferable skills from various backgrounds will be considered, as companies shift toward skills-based hiring.
Predictive Analysis and Capacity Planning
Data-driven decision-making will define workforce planning.
- Predictive Analysis: Recruiting teams will use dashboards and forecasting tools to assess hiring needs based on trends, attrition rates, and skill gaps.
- Proactive Planning: By focusing on succession and capacity planning in advance, organizations will reduce hiring bottlenecks and improve internal mobility.
Impacts of a New Administration on Recruiting
The effect of new political policy is unknown. However, employers should be prepared to pivot focus to identify and develop skills that are likely to provide value, regardless of political shifts. We recommend investing in developing the skills needed for success, and continue to promote a culture of inclusion, transparent communication and respect.
We also expect to see a shift in how DEI programs are defined and prioritized.
Some industries will thrive from policy changes and others will find a more challenging landscape to navigate. Now is the time to strengthen company policies, over-communicate to your workforce, and maintain focus on compliant on-boarding processes for new hires.
While hiring typically slows during election periods, the overall impact on benefits, paid leave, childcare and wages will determine job seekers’ decisions to change jobs or even re-enter the workforce.
In Summary: Key Takeaways
In the ever-evolving recruiting landscape, companies will need to adopt automation, prioritize relationship-building with candidates, and strengthen their employer brand. The future of recruiting will be strategic, data-focused, and dedicated to creating workplaces where employees feel valued and supported. Embracing these trends, and with KMA as your partner, organizations will be successful in the 2025 job market, and beyond.
Reach out to the KMA for help recruiting your next hire.