It’s been a year of change in the staffing industry, especially for recruiters who manage skilled workers. Between the emergence of new technologies such as AI and the pressures of the ongoing labour shortage, companies are changing the way they hire. On top of it all, many of the industries that employ skilled workers are in the midst of their own evolutions. The construction and manufacturing sectors are transforming with the help of automation, the energy transition is creating opportunities, and the next generation is entering the workforce with new priorities.
So, what can staffing companies expect in 2024? More changes, for starters. As we look ahead at to the coming year, HR departments and staffing agencies should be prepared to embrace the new ideas, perspectives, and practices that are on the horizon.
What skilled labour trends should staffing agencies expect in 2024?
With the new year approaching, staffing industry leaders should be paying attention to these key issues.
Staffing is becoming more strategic
The role of HR—and specifically staffing—is shifting as companies begin to place an increased emphasis on recruiting and retaining talent. In the wake of the Great Resignation, many organizations have become aware of just how vital it is to hire the strongest talent—and keep those workers in the long term.
As a result, we’re seeing more Chief Human Resources Officers (CHROs) in boardrooms and an increase in companies integrating talent goals and metrics into their corporate strategies. We’re also seeing greater emphasis on branding and marketing specifically targeted at job seekers, recognizing that a strong employer brand is one of the most effective methods for engaging top talent.
Organizations are investing in AI
2023 will undoubtedly be remembered as AI’s breakout year into the mainstream. In 2024, organizations are expected to move beyond the experimentation phase and coordinate more organized rollouts of AI programs for internal and external use. Research from McKinsey shows that investment in AI is rising, with 63% of surveyed businesses saying they expect their investment to increase over the next three years.
In the staffing industry, this new tech may take a range of forms. Expect to see AI integrated everywhere from the drafting of job descriptions to candidate screening, data entry, and even some communication with candidates. Read more about how AI is being used in the staffing industry.
Companies are focusing on getting quality candidates
A lesson that many organizations learned during the recent labour shortage was the importance of hiring to their overall success. As part of the growing trend towards strategic hiring and retention, companies are looking to staff quality candidates and keep them long term. This approach is already seeing some success, with the latest Job Openings and Labor Turnover Survey in the US showing a downward trend for both job openings and resignations.
With companies increasingly seeking top talent, the role of HR departments and staffing agencies has never been more important. Staffing professionals who are skilled at finding great candidates will be in high demand in the coming year and beyond.
The skilled labour shortage continues
As businesses continue to expand in 2024 in response to improved economic conditions, the demand for skilled workers will also continue to grow. With the supply of talent in this area still stagnant, there is expected to be intense competition for workers in industries that employ skilled tradespeople.
In fact, the World Economic Forum estimates that there will be a shortage of 95 million skilled workers by 2025. With this issue expected to continue to plague companies, staffing agencies that understand how to effectively seek out and place candidates will play a key role in the global economy.
Equity, diversity, and inclusion continue to be key
Embracing equity, diversity, and inclusion (EDI) has never been more vital for companies. A survey in 2020 from GlassDoor reported that more than 3 in 4 workers employees and job seekers (76%) consider a diverse workforce to be an important factor when evaluating companies and job offers. As Baby Boomers retire and the workforce demographics change, younger workers are expecting their employers to be improving diversity and ensuring that the workplace is inclusive for everyone.
As EDI becomes more vital for hiring, staffing agencies and HR departments can support organizations by finding candidates from a diverse range of backgrounds to help companies meet their hiring goals. For recruiters, acquiring a deep understanding of the issues around EDI will be key.
The bottom line
2024 has the potential to become a year of growth and opportunity for recruiters and workers. By hiring more strategically and understanding emerging issues such as AI and EDI, staffing teams can play a key part in shaping the hiring landscape of the future.
Looking for a software solution that will give your staffing agency an edge in 2024? Developed with the needs of Human Resource departments and staffing agencies in mind, Labourly™ can save your team time and resources this year. Book a demo call with our team to discuss solutions for your company.
