What’s in store for the 2024 hiring market?

Written by: Anthony Whyte General Manager, Talent and APSCo Director

The early signs are that it is likely to remain a candidate-short market, with a greater sense of caution due to rising interest rates and inflation. Employers are cutting costs and streamlining their workforces, resulting in slower market movement.

Candidates are increasingly seeking security and stability in their roles, and upskilling is essential to remain competitive. Companies are becoming more discerning about the positions they are hiring for and are placing more weight on retaining top performers rather than hiring externally.

Despite tech layoffs resulting in an influx of talent in the market, competition remains fierce for top talent. To attract candidates, employers need to go beyond offering competitive salaries and consider factors such as a rewarding work environment, flexibility, benefits & perks, and opportunities for progression.

What businesses are going to face with the hiring market

Businesses are likely to face a cautious hiring market in 2024. The market is expected to be affected by rising global inflation, resulting interest rate rises, and the ongoing impact of the Ukraine war on supply chains. This has led to a knock-on effect on organizations' hiring confidence, with some employers taking a cautious approach and implementing hiring freezes. As a result, it is critical that businesses have a clearly defined Employee Value Proposition (EVP) to help attract and retain top talent Think about how you would articulate the following to prospective candidates: Remuneration; Benefits; Career Development; Health & Wellbeing and Purpose.

Industries most affected by cybersecurity

The industries most affected by cybersecurity and are at higher risk of data breaches and cyber hacks are those that handle sensitive data. These industries include technology, finance, education, healthcare, and government sectors. The priority of cybersecurity is now either the first or second agenda item in company board meetings, indicating its critical importance across various industries. The demand for cybersecurity professionals is expected to grow as companies look to secure their data and protect their technology systems and demand for Chief Information Security Officer; Security Analysts and Cyber Security Engineers remains high.

The flex debate

The "flex debate" encompasses a wide range of flexible work arrangements beyond the binary debate of work-from-home versus office. It includes remote work, flexible hours, compressed workweeks, job sharing, part-time work, flexible scheduling, annualised hours, zero-hour contracts, hot desking, job redesign, phased retirement, and more. The debate is constantly evolving and is far more nuanced than a simple yes or no question. It involves understanding what drives people's need for flexibility and how to marry that with business needs to optimize performance. The advice for 2024 is to embrace the diversity of flexible work arrangements and to recognize that flexibility extends beyond binary options, fostering a culture that values adaptability.

The hiring market is shifting from being employee led to being employer led

The current tech hiring market is seeing a shift from a candidate-driven market to a more employer-led market. This shift is due to an influx of candidates in the market as a result of recent layoffs. However, despite this shift, the demand for top tech skills remains high, and competition for top talent is still fierce. Employers are advised to act fast in their recruitment processes and offer compelling employee value propositions to attract and retain top talent The market is evolving, and it's important for companies to go beyond offering competitive salaries and consider factors such as a rewarding work environment, flexibility, benefits, and opportunities for progression.

For more detailed insights, please see Talent’s More than Money salary guide here.