2024 recruitment insights: Navigating holiday season
As we move into the last quarter of the year, we are already gearing up for the holiday season. With public holidays and the end of the year in sight, the next few months can fly by in a flash.
Many clients believe the market starts to slow down towards the end of the year, putting their hiring needs on the back burner until January. The truth is, we tend to see increased needs in the last quarter, making this time of year an excellent opportunity for clients to get ahead of the competition.
Let’s take a look at some of the trends we have seen so far this year and how they will affect the market throughout the holiday season.
From a recruitment perspective, the landscape has remained similar with the biggest takeaways being:
The job market has remained fluid and whilst organic growth has been limited, hiring needs remain steady.
Contracting has been a desirable option for businesses looking to cover their hiring needs without adding to headcount.
Many businesses are looking at ways to entice workers back to the office for improved collaboration and culture.
There are many candidates on the market, however, the fight for the top tier talent remains competitive with the best talent having multiple offers.
Contracting recruitment in 2024
This year we have seen a steady increase in clients seeking out contractors as a hiring solution. With the market remaining cautious but optimistic, contracting hires are the perfect option to cover business needs without committing fully to a permanent hire or headcount costs.
We are also seeing companies look to this solution as a “try before you buy” option, with contractors being made permanent employees after an initial contract period. It is wise to note that this “try before you buy” works both ways and can be a lucrative opportunity for a contractor to get the lay of the land before they commit to a permanent role.
As we look towards closing out 2024, and in fact any year in recruitment, there is a trend of contracting needs increasing to cover the notoriously named “silly season”. With public holidays, Christmas parties and projects needing to be tied up before the end of the year, utilising contractors is an ideal choice to get through this busy period.
We also note a trend that many employees will take extended leave around the New Year, whilst children are off school or to have an extended break. This leaves a period of less capacity for many companies starting from Melbourne Cup through to Australia Day.
Permanent recruitment in 2024
Permanent recruitment has become much more of a two-way street of selling the role and company to the candidate, as well as the candidate selling their skills to the employer.
Whilst the market remains flooded with candidates, the best talent still has many options on the table. Culture, aligned values and career progression opportunities are extremely important when communicating the benefits of a role. As is an efficient and personal process.
As we move into the last few months of the year, it is wise to consider most permanent hires will have a 4 week notice period. This paired with a 2-3 stage interview process and initial ad response sift, can mean a best-case scenario of a 6-8 weeks process.
To get ahead of the competition, rather than slow processes down it can be fruitful to lock the best talent in sooner rather than later. Once the start date is locked in for the new year, you can then work on integrating them into the business and culture by inviting them along to some of the end-of-year celebrations. Committing to them early, which in turn allows them to feel secure going into the holidays, can be the thing that sets you apart.
Other factors impacting the job market
Tech and AI
Technology and in particular AI are playing prominent roles in the hiring process. Use cases are mainly to improve efficiency, however we must exercise caution when implementing any new tech or AI as candidates are seeking more personalised interactions.
Salaries
Salaries are starting to level out again after a few years of inflated salaries due to the lack of top talent available. Whilst some salaries remain high in difficult to recruit areas, candidates are looking at benefits, career progression and culture as a whole package.
Flexibility
The discussion around flexibility continues with the right to disconnect law coming into play. Companies are looking at ways to improve work-life balance but also positively impact culture and collaboration within their teams.
Wellbeing & retention
With the right to disconnect law coming into play wellbeing is high on the agenda. As we move into the holidays, many employees are looking at taking extended leave. Companies will need to cover any gaps from a business perspective but also from a well-being perspective. For some employees, particularly in areas like payroll, taking leave can be just as stressful. Knowing someone is covering while they are away can give them the break they need and come back rejuvenated.
Summary
In the last few years, we have seen several economic factors change. With interest rates at an all-time high, the knock-on effect has been that companies are reviewing all processes and spend to ensure maximum ROI before committing.
The positives are, the need for hiring top talent hasn’t stopped and companies are being more creative around their hiring solutions. Exercising caution by opting for a temporary solution, has seen the contracting market develop into an option that has less risk whilst meeting the needs of the business.
As with everything, these things are cyclical and will change. It is more about being adaptable and agile to the changing market. Utilising innovative and creative solutions to meet business needs.
If you would like more information on how a contractor can help your business through the holiday period, get in touch with our team of consultants.
Author Kylie Blackwell, Director of Ambition Melbourne, has recruited in the Australian job market for 22 years, predominantly recruiting senior finance executives into the commercial industry and leading large teams across multiple disciplines.
Edited by Gemma Crolla, Digital Marketing Manager, Ambition Group Australia.
