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Winning the war for talent: rethinking permanent recruitment for 2024

Winning the war for talent rethinking permanant _html_m1647b15d

Our recently published 2024 UK Labour Market Outlook reveals that, despite sustained periods of weak economic growth in 2023, the labour market remained remarkably robust. Many businesses faced difficulties sourcing permanent staff, with vacancy figures reaching record highs.

The challenges that defined last year are likely to continue in the year to come. Understanding the market and adopting a strategic approach to recruitment will help your business navigate today’s complex hiring conditions.

Read the article below to understand the key challenges at play in 2024 and our advice on ensuring your organisation thrives in this competitive climate.

2024 will see fierce competition for permanent staff

While the labour supply had been closing the gap towards the pre-pandemic trendline, recent data suggests that recovery may have stalled. This leaves the labour force 2 million short of the upward trajectory initiated in the 2010s.

Though we predict an uptick in unemployment this year, it is likely to peak below 5%. Together with a high rate of economic inactivity and elevated vacancy numbers, the tight labour market looks set to continue in 2024, particularly as hiring grows in the second half of the year.

Our latest employer survey data shows nearly half of large organisations anticipate expanding their full-time headcount by 2025. However, with over a third of businesses currently struggling to fill vacancies, increased competition in an already crowded employment landscape could pose problems for hiring managers.

Advice for employers

A strong employer brand is essential to secure the best talent in an increasingly competitive job market. Showcase your company culture, opportunities for career growth, and testimonials from satisfied employees to make your organisation stand out to potential applicants.

In a tight labour market, speed is key. Streamline your recruitment process by reducing unnecessary steps, communicating promptly with applicants, and using recruitment technology to improve the candidate experience.

Finally, make sure your offering matches up to market demands. With more businesses looking to recruit, offering competitive pay and benefits is fundamental. Consult the salary guide in our 2024 UK Labour Market Outlook for up-to-date salary information.

Talent shortages remain a core issue

Talent scarcity is a significant concern across numerous sectors. For example, the country needs health and social workers at scale to achieve NHS England’s ambitious growth targets. Similarly, the UK’s journey to Net Zero will trigger new requirements in manufacturing, logistics, energy, and beyond.

Meanwhile, severe talent shortages have taken root in low-paid sectors that are no longer able to recruit from the European Union. Government plans to place additional restrictions on hiring staff from overseas will further limit access to talent.

Exacerbating the issue are other factors, including the UK’s ageing workforce and a widening deficit across crucial interpersonal, digital, and ‘green’ capabilities. In Adecco’s latest industry survey, three in five large companies cited talent scarcity as a serious challenge.

Advice for employers

In talent-short markets, it’s important to look to less traditional recruitment methods and channels. That could mean making greater use of social media and networking platforms for talent acquisition or considering untapped talent pools like career changers and individuals returning to the workforce.

Invest in skills development and reskilling initiatives such as training programmes that address specific gaps and reskilling opportunities for current employees. Foster a culture of continuous learning and encourage staff to consider their suitability for new and evolving job roles.

Develop inclusive and diverse hiring practices. An inclusive culture, unbiased recruitment practices, and accommodations for workers in underserved demographics can all help broaden the appeal of certain roles to a wider and more diverse range of candidates.

Candidates will need to be persuaded to change roles

Recent economic and political turmoil has impacted workers as well as businesses. 2024 looks to be another unstable year, with uncertainty surrounding the general election and the continuing cost-of-living crisis.

Our latest data points to over a third of large companies facing recruitment obstacles due to growing candidate hesitancy to move jobs. This is confirmed on the candidate side, with one in six saying they won’t pursue new opportunities in 2024 against a backdrop of economic instability.

Persistently high inflation, elevated interest rates, and effective tax rises are playing on workers’ minds and restricting an already limited talent pool. In a market where consistency, reliability, and financial security are key attraction tools, intelligently positioning your culture, benefits, and rewards could persuade reluctant candidates to take the leap.

Advice for employers

When candidates are hesitant, you need to sell the opportunity. That means conveying your company culture online, taking the time to write accurate job descriptions so applicants know if they’re a good match, and allowing plenty of time for candidates’ questions during interviews.

Enhance the benefits and support you offer employees. Consider how benefits packages could address current candidate concerns, such as through providing healthcare, mental health support, or financial advisory services. These could be the decisive factor in encouraging candidates to move.

In times of uncertainty, strong communication with candidates can give them more confidence in your organisation. Communicate clearly and promptly throughout the process, and use your communications to reinforce your organisation’s culture, stability, and long-term prospects.

Partner with a permanent recruitment specialist

2024 will provide businesses the opportunity to consider their workforce and hiring strategies in preparation for a strong rebound. It will also see the continuation of many challenges including skills shortages, competition for talent, and candidate hesitation.

At such a pivotal time, an effective Recruitment Process Outsourcing partner can help you:

Access a broader talent pool in a competitive market

Adapt quickly to market shifts in uncertain times

Articulate compelling value propositions that give candidates the confidence to move