7 of the Biggest Recruitment Challenges in 2024

In recent years, the recruitment landscape has changed significantly, largely thanks to rapid technological advancements. Nevertheless, despite having a wealth of new digital tools at their disposal, recruitment managers are still struggling to engage with and enlist the right candidates. In this article, we explore some of the biggest challenges for recruiters and hiring managers in 2024.

1. Diversity, Equity, and Inclusion (DEI)

Companies are coming under increasing pressure to invest in building diverse workforces. However, for many organizations, translating DEI goals into actionable recruitment strategies can be challenging. Assembling a workforce from a variety of different backgrounds not only improves the employee experience, but also enhances decision making processes and productivity, according to a report by McKinsey. To achieve this, businesses need to embed DEI in their corporate vision and culture, developing a comprehensive DEI training program and promoting equality, respect, and empathy. For companies that can achieve this, the rewards are potentially vast, with a study by Deloitte indicating that inclusive companies are twice as likely to meet their financial targets than non-diverse organizations, and eight times more likely to achieve improved business outcomes.

2. Talent Shortage

Hiring markets have become increasingly competitive and candidate-driven, with 87% of HR professionals reporting “few or no qualified applicants” for positions they are trying to fill. According to a McKinsey Global Institute study, this problem is likely to worsen, with companies across North America and Europe suffering a shortfall of up to 18 million educated employees. To survive and thrive, businesses need to connect with the best talent faster and more effectively. With a survey from CR Magazine suggesting that 92% of workers would be prepared to change jobs to work for an exceptional employer brand, market-savvy employers are going all out in terms of offering attractive perks.

3. Reducing Candidate Drop-Off

Also known as “ghosting,” candidate drop-off occurs when an applicant does not complete the hiring process. Drop-off is a common problem that can be very costly for recruitment firms. Not only does it hurt the recruitment specialist’s relationship with their clients, but the recruiter also loses the investment they made in finding the candidate. Although the problem cannot be avoided entirely, it is important for employers to engage candidates with relevant content and activities. It is also good practice for recruiters to solicit and act on feedback from candidates over the course of the hiring process.

4. Employee Retention

For any business experiencing a period of rapid growth, with many new roles to fill, keeping pace with evolving hiring demands can be incredibly challenging. However, if the business cannot retain the employees it has already hired, the problem increases tenfold. It is crucial for employers to recognize the need to invest in employees, helping them to achieve an equitable work-life balance, as well as providing opportunities for growth. Forward-looking employers listen to their people, acting on their feedback. A well-crafted employee onboarding process is also integral to long-term staff retention.

5. Flexible Working Arrangements

During the pandemic, remote working practices were embraced by businesses all over the world to keep them up and running, marking the start of a trend many employees remain keen to continue. Today’s candidates have much stronger expectations of flexible working opportunities, with many far more selective of the vacancies they consider, prioritizing flexible working arrangements in their employment decisions. With 38% of candidates stating that they would decline a role if the business did not offer at least hybrid working practices, hiring managers are coming under increasing pressure to show flexibility. In addition to remote working practices, employer flexibility can be manifested in a variety of other enticing opportunities, from offering flexible working hours to job-sharing.

6. Technological Disruption

The integration of AI, big data, and automation into recruitment processes has transformed the industry. While these innovations promise increased precision and efficiency, they have nonetheless placed new responsibilities on recruiters tasked with mastering the intricacies of these complex tools. From deciphering AI-driven screening algorithms to navigating applicant tracking systems, the recruitment manager’s role has evolved almost beyond recognition in recent years. Nevertheless, there remains an imperative to ensure that the human touch is not lost in an increasingly digitized landscape.

7. The Candidate Experience

In a recent report from Finances Online, 75% of employees agreed that a positive candidate experience influenced their acceptance of a job offer. Creating a positive candidate experience is therefore vital. Fortunately, recruiters have a plethora of technological tools at their disposal to help achieve this, from applicant tracking systems to quickly connect qualified candidates with open roles, to digital hiring management systems to automate interview scheduling. The integration of AI in recruitment processes has not only streamlined operations, but also presents a huge opportunity to boost the candidate experience.