Hiring in 2024 - Year in Review and Looking Ahead
Hiring in 2024 has not been easy, for all involved. Candidates, hiring managers, and external search professionals have all traversed tough conditions - inflation, economic uncertainty, talent shortages, and expectations not always meeting reality (on all sides).
It would be gratifying but too self-serving to be a broken record and harp on the number of factors that arguably made hiring harder, the typical (and sometimes unsolicited) insight that you've likely heard on here from recruiters regularly this year. Instead, and with a more positive approach in mind, I think it's important to focus on the path ahead. For all intents and purposes, conditions will likely improve in 2025 - so, are there good times ahead? Well, there could be.
While I don’t unfortunately possess a crystal ball, here are my professional opinions on what to expect.
Hiring Managers
Now is the time to think of a contingency plan. If you have somehow escaped multiple waves of heightened resignations between 2022-24, and I'm always genuinely amazed when I hear this, you likely feel a false sense of security. Recent studies indicate that roughly two thirds of individuals surveyed plan to pursue new opportunities in the New Year. Around a third stated they are already in a job search.
In 2024, a significant percentage of job applicants reported feeling as though their applications were ignored, highlighting a critical breakdown in communication during the hiring process. A survey by the American Staffing Association revealed that 72% of applicants felt their resumes were sent "into the void." Even candidates who secured interviews often experienced extended periods without communication, sometimes being contacted months later regarding next steps with no updates in between. This lack of transparency can significantly damage a company's reputation and negatively impact candidate perception. To mitigate these issues and protect your brand, consider leveraging the expertise of external recruiters, particularly when internal resources are limited or lack the necessary skills to support specific hires.
If you've tried hiring Accounting & Finance talent in the past few years, you'll know based on first-hand experience how tough it can be to either replace valued departees or to upgrade in necessary areas. All of this to say, that identifying, securing and retaining strong talent won't necessarily be any easier but the good news is that candidates are expressing enthusiasm about looking elsewhere; so, the talent pool looks healthier. The caveat will come in the form of what’s on offer, as many candidates seek better salaries after citing minimal cost of living increases and low bonus yields in the last 12 months. Meaning top talent will still cost a premium and candidates will be considering more than one option.
For key hires and pressing needs, I recommend biting the bullet and extending the most compelling offer possible right off the bat. Gen Z and Millenials have become bolder when negotiating salaries and keep in mind that there will be competition for candidates with advanced degrees, certifications or licenses, specialized experience, and the best interpersonal skills. It’s better to show serious intent than death by a thousand negotiation cuts. Playing your cards too close to the vest will most likely result in losing the candidate you really wanted. On this note, it’s important to embrace change e.g., the attitude of “this candidate is lucky to receive an offer from us” is an increasingly outdated one.
Candidates
For the job seeker, it’s been a rollercoaster couple of years. However, 2023-24 proved more substantially than anything else, that the market has plateaued and there were far less peaks on the job report graph. While there were some surprising gains along the way, there wasn’t much to write home about. This doesn’t mean we should brace for more of the same, in fact with an encouraging display from the stock market and anticipated economic growth cited in several industries for 2025 – Accounting & Finance talent will continue to be highly sought after.
With that said, if you’ve found yourself surfing the market in recent years and registered a few career moves as a result, be prepared to have credible explanations for your decision making. Equally, more and more companies are looking to extract bespoke reasons as to why you want to join their workforce. So, my advice would be to explore your options wisely – but to certainly explore your options.
The rise in consciousness and conversation surrounding work-life balance has led to a whopping 99% of candidates considering it as a highly important factor in their next role. For this reason, and if you haven’t explored the market recently, you might be surprised to find a decrease in the number of hybrid and 100% remote opportunities. Companies across America have pushed their employees back into under-utilized office spaces for much of 2024, so be open minded. The big pro to this is that many interview processes now include the need to be seen onsite and in-person. Use this vital moment to perform a ‘vibe check’ and vet the culture. If you’re using a third-party recruiter, be sure to gain their perspective on the company and what previously placed candidates have to say.
Lastly, remind yourself that the gold-rush of post-covid hiring is very much now in the rearview mirror. If you are fortunate to receive a job offer, don’t expect to see 25-30% base increases or potential bidding wars like what we experienced in 2021-22. Belts have tightened, budgets are being scrutinized more closely, and the majority of hiring will likely still be due to replacing crucial roles, rather than supporting strategic needs. More opportunities attract more applicants, take into consideration that competition for openings will increase.
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Looking Ahead
The long-term outlook for Accounting & Finance hiring remains somewhat unchanged but certainly feels more positive. However, challenges persist, continued talent shortages in key areas such as Tax Accounting, FP&A, and at the Staff-Senior Accountant level will necessitate employer investment in upskilling initiatives, competitive compensation packages, and a focus on essential credentials. Simultaneously, candidates seeking improved work-life balance and supportive work environments will continue to drive demand for collaborative and well-structured teams. While 2025 may not bring revolutionary change, there’s a strong chance we will see steady, optimistic gains benefiting both employers and job seekers.
So, what can you do now?
· This is an ideal time to review and refine hiring processes, whether you’re an employer seeking talent or a candidate pursuing new opportunities.
· Consider what improvements could enhance your effectiveness as a candidate and how your approach measures against best practices as a hiring manager. 92% of Americans surveyed who applied to a job in 2024 never heard back from potential employers – an alarming statistic!
· Be realistic about the talent pool (as an employer) and the opportunities at hand (as a candidate).
To reference a point from the beginning of this article, while there were many external factors impacting hiring in 2024 – there’s a big opportunity to reflect internally too. Addressing any inefficiencies now will make a big difference down the line.
I’m available to provide consultative support to individuals and organizations on all aspects of the hiring process. Please contact me to discuss your specific needs.
References:
San Antonio Business Journal
Forbes