Hiring managers are implementing proactive strategies to attract top talent and differentiate themselves from competitors, according to a new report.
Job seekers engage with recruiters during an April 11, 2023, job fair in Chicago, Illinois. To reach talent, hiring managers are offering hybrid positions, flexible work hours, and higher starting salaries.
Hiring is expected to remain steady throughout the rest of 2024, with 52% of U.S. companies planning to create new permanent roles and 43% intending to fill existing vacancies, according to a July 30 report from Robert Half, a talent solutions and business consulting firm. Hiring managers reported that they are proactively offering hybrid work arrangements (41%), flexible work schedules (41%), and increased starting salaries (38%) to attract talent.
“Today’s workers are more selective when considering a career change,” said Dawn Fay, operational president of Robert Half, in a statement. She added, “While hiring remains a priority, employers should also focus on retaining their current workforce. Skilled talent is still in high demand, so it’s crucial to implement retention strategies to keep top employees engaged.”
In a survey of 2,500 hiring managers, 4% stated they would not fill vacant positions, but none reported plans to eliminate roles. The key factors influencing hiring decisions included company growth, employee turnover, and the need for skilled talent for project-based work.
However, 86% of respondents reported challenges in hiring, including a shortage of candidates with the necessary skills, delays in hiring processes, and difficulties in meeting salary expectations. To address these issues, 62% of hiring managers expressed a willingness to reconsider their experience requirements if candidates possess the required skills.
Budget constraints may also impact hiring in the latter half of 2024, according to a report from Express Employment Professionals. Despite a generally positive hiring outlook, hiring managers voiced concerns about financial limitations, automation, and new technologies.
Despite these labor market challenges, HR leaders report that recruitment and retention difficulties have eased somewhat in 2024, according to a survey from The Conference Board. Flexible work arrangements have played a significant role, while on-site work mandates have caused some employees to leave, according to HR professionals.
Employee retention improved during the second quarter of 2024, building on gains from the first quarter, and indicating lower attrition for the remainder of the year, according to a report from Eagle Hill Consulting. Retention rates reached their highest level in 18 months, surpassing the previous peak from the first quarter of 2023.