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5 Attraction and Retention Trends to Monitor in 2024
The UK’s labour market has been persistently tight for some time. Following the Covid 19 pandemic, the “Great Resignation” saw countless people leave work after refocusing their priorities, which resulted in numerous job vacancies. Although 2023 saw job postings fall, indicating a softening of the market, skills gaps and high inflation remain challenging for employers. As such organisations will likely still struggle to attract and retain talented employees this year.
This article explores five attraction and retention trends to watch in 2024 so employers can proactively prepare their recruitment and engagement strategies.
- Skills based hiring Finding workers with the desired qualifications is expected to challenge organisations in 2024. According to a 2024 talent shortage survey 80% of UK employers struggle to find talent with the needed skills. Some of the most challenging skills to find include administration, engineering, IT and data.
Thus, many employers are refocusing their hiring efforts on finding employees with the right capabilities rather than a specific education or experience. This concept is known as skills based hiring, and it can help employers find skilled candidates for open roles. By recognising workers abilities to learn and develop, providing robust learning and growth initiatives, and focusing on finding candidates who are an excellent cultural fit, employers can use this hiring method to their advantage.
- Generation Z A most recent workplace trend report predicted that Gen Z workers would overtake baby boomers in the full time workpace in 2024. This generation defined as people born between 1997 and 2012, often have different workforce needs and expectations from previous generations. As a result, employers may need to adapt their strategies to attract and retain this talented demographic. Typically Gen Z individuals are socially conscious. They also care about company culture, seek social connection and desire development opportunities and workplace flexibility. As Gen Z employees comprise a growing percentage of the UK workforce, employers may prioritise a company culture that will appeal to these workers. This may include a renewed focus on diversity, equity, inclusion and belonging as well as honest and transparent communication and ways to make employees feel heard.
- Pay Transparency There was an increases interest in pay transparency in 2023. In 2024 this practice will continue expanding as savvy employers leverage transparency to attract workers. According to a recruitment company 78% of job seekers would be put off from applying for a vacancy if the salary wasn’t displayed. Pay transparency is particularly popular among younger generations and can improve an employers reputation by showing they are committed to compensating employees fairly. As demands for pay transparency increase, regulations are evolving. For instance the pay transparency directive is paving the way for change across Europe as member states prepare to comply with the directive by June 2026, and the UK could follow suit with similar legislation in the future. Savvy employers will consider the merits of pay transparency and closely monitor evolving legislation.
- Keeping up with pay Inflation has risen quickly in recent years, causing the cost of living to outpace many employees current salaries. Therefore, its unsurprising that many employers plan to increase wages in 2024 an average salary increase of 5% according to a recent chartered institute of personnel and development labour market outlook. Additionally employers are more often offering attractive benefits to improve the employee experience. LinkedIn found that 46% of employers will enhance their compensation packages by adding benefits in 2024. Among these desirable benefits were remote work options and flexible work arrangements. Taking one step further some organisations may customise their benefits packages this year, a “one size fits all” approach could be insufficient to cater to increasingly diverse workforces.
- Well being strategies Mental health and well being continue to be critical topics for employers to take note of. In fact a recent report by a well being platform revealed that 77% of employees would consider leaving a company that doesn’t focus on their well being. Workers increasingly expect their employers to embed well being into workplace culture and are happy to look elsewhere if they don’t. As such having a well defined well being strategy will likely be essential from a retention standpoint in 2024.
Summary Employers can remain competitive in an evolving labour market by monitoring employees current and prospective needs and wants in 2024. As the labour market shifts in employers favour organisations that elevate their talent strategies can keep ahead of the competition to find and keep talented workers.
