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The Scoop: Recruitment Trends & Industry Insights | January 2024

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2023 was a year marked by unprecedented inflation, a robust labor market and rapid advancements in artificial intelligence. As we enter 2024, inflation continues to fall, the labor market remains tight and recruiting quality talent remains as challenging as ever for talent acquisition teams often tasked with doing more with less. To kick this year off, we’ve compiled an overview of the top tech trends that will affect talent acquisition and recruitment. This list summarizes expert commentary and provides organizations with valuable insights into the ever-evolving landscape of HR technology, so your teams can hit the ground running.

See how one employer realized a 459% ROI and a software payback period of less than 6 months by adopting the Radancy Talent Acquisition Cloud.

Recruiters Embrace AI

  • Rapid advancements in artificial intelligence and automation have had big impacts on sectors, like education, pharmaceutical research, software development and finance.
  • Automation is already playing a big role in recruitment tasks today, like automating interview scheduling, candidate job matching and job seeker outreach.
  • Last year, the Pew Research Center reported that 18% of US adults used ChatGPT. Of those people, 16% used it for work-related tasks. That proportion will likely rise in 2024 as awareness of these tools increases and workplaces roll out policies around AI tool use.
  • Experts expect that generative AI tools will assist with more recruiter tasks, like writing job descriptions and drafting interview questions.

Sources: Korn Ferry, Indeed Hiring Lab, Pew Research Center, Gartner

What could this mean for employers?

  • Increased efficiency: Automation has the potential to save recruiters a lot of time by handling the more repetitive tasks. Organizations should reassess their current workflows and technologies to ensure they’re taking advantage of all automation capabilities they have available to them.
  • Use with caution: There are still challenges with accuracy with many generative AI tools. It’s important that TA teams are trained on the tools and understand their strengths and weaknesses.
  • Emphasis on upskilling: The role of the recruiter will continue to transform. Those with proficiency in using HR technology and AI tools will be assets to any TA team.

Job Seekers Embrace AI

  • AI has the potential to help recruiters find qualified candidates, but it may also make the process of finding great jobs easier for job seekers.
  • Tools like ChatGPT can help candidates determine which jobs they’re most qualified for based on their previous work experience and skills. They can also speed up the process of tailoring resumes and cover letters to jobs.
  • Generative AI can help applicants prepare for interviews by offering sample interview questions that are tailored to specific job descriptions.

Sources: FlexJobs, Korn Ferry

What could this mean for employers?

  • Best case scenario: Candidates use these tools to help them put their best foot forward during their job search. The best candidates craft resumes that get the attention of recruiters, and they come well-prepared to interviews.
  • Worst case scenario: Candidates use these tools to exaggerate their skills and experiences. All candidates now look identical on paper.
  • Facetime reigns supreme: Phone screenings, interviews and opportunities to speak to candidates one-on-one (like at a hiring event) will take on even greater importance. Interviewers should ask specific and non-generic questions about candidates’ skills and previous work experience.
  • According to Indeed, the human resources sector saw a 35% decline in job postings in 2023 compared to the previous year. HR and talent acquisition will need to do more with less.
  • According to a Gartner survey, 89% of HR leaders planned to increase or maintain HR technology budgets in 2024, making it the #1 area of investment for the third year in a row.
  • The HR Technology market is forecasted to grow over the next five years from $25 billion in 2023 to $42 billion by 2027.

Sources: Indeed Hiring Lab, Gartner

What could this mean for employers?

  • Data-backed decisions: HR tech that offers strong analytics will be critical in making hiring decisions and informing recruitment strategies.
  • More efficient hiring: With better data, TA teams get better insights into which recruitment strategies drive the best results. This can help bring down media costs, shorten time-to-hire and improve overall efficiency in the process.

A Hybrid World

  • The prevalence of hybrid and remote work impacted the way many people do their jobs. By the fall of 2023, 32% of workers in the United States were in a hybrid arrangement or were remote full time.
  • The onset of the pandemic meant employers needed to rapidly incorporate virtual hiring practices into their workflows. Fast forward to 2023, and organizations continue to embrace a variety of tools in the hiring process.
  • A survey by Criteria found that 72% of employers reported interviewing candidates over the phone, 69% used live video tools and 7% used pre-recorded video.

Sources: U.S. SWAA data, Criteria

What could this mean for employers?

  • Virtual hiring and hybrid work is here to stay: Organizations should use the tools they have to their fullest to make the hiring process more efficient.
  • Streamline the hiring process: Look for TA teams to use interview tools and CRMs to make the applicant screening process faster and automate activities like assessments and interview scheduling.
  • Hybrid as the new normal: While several companies made headlines in 2023 around bringing their employees back to the office, many others have embraced hybrid schedules as a cost-saving measure. Expect continued use of technology to facilitate virtual onboarding, asynchronous work and virtual collaboration.

About Anna Copper

Anna is a Digital Strategist who brings a data analytics lens to clients' recruitment strategies. She also assists with Radancy Labs projects. Outside of work, she enjoys traveling, hiking and buying books she never gets around to reading.

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