Hiring News & Trends
The top 10 HR trends that matter most in 2024
- Generative AI will be the new ‘work buddy’
- Generative AI will impact how managers lead
- The fear of obsolescence will force companies to increase spending in career development and mobility
- Hybrid work environments are good for business
- The workforce is a blend of full-time employees, part-timers, contingent workers and digital workers
- The four day work week is desired by both front-line and knowledge workers
- Cognitive skills will increase in importance as generative AI gains traction
- Holistic financial well-being is the must have benefit for 2024
- The sexy C-suite job for 2024 is Chief Artificial Intelligence Officer
- An organization’s sustainability record will attract and retain talent
Source: Forbes
Nirad Chaudhari Managing Partner Vaco
“In Canada's evolving work landscape, the trends for 2024 underscore a pivotal shift towards a more agile, inclusive and technologically advanced workforce. Generative AI is poised to redefine how we work, becoming an indispensable 'work buddy' that not only enhances productivity but also transforms managerial approaches. With the fear of obsolescence looming, companies are ramping up investments in career development, upskilling and mobility, recognizing them as crucial retention and growth strategies. Some roles and responsibilities will forever be changed, and those changes are happening soon. As leaders, we need to ensure that our teams are well trained for the new world.”
Hiring News & Trends
What's in and what's out for workers in 2024
What's In:
In: contract work
Traditional industries like IT are increasingly working with contractors and consultants to lower their labor costs. What’s more, in the face of rising inflation, more workers are taking on side gigs to make ends meet.
What's Out:
Out: constant headcount growth
The cycle of hiring and firing employees is getting faster, and the era of companies slowly and steadily growing their headcount is coming to an end.
In: AI-powered hiring
Proponents believe that AI could make the hiring process better by providing AI-powered career coaching for young workers and by catalyzing a skills-based hiring revolution. Others fear that AI will cause chaos and “hallucinations” in the labor market. AI hallucinations happen when a large language model creates nonsensical, inaccurate or fabricated outputs. This could lead a company using AI to hire a nonexistent candidate or to hire a real candidate for a nonexistent job.
Out: Noncompete agreements
Ontario was the first Canadian province to bar employers from entering into noncompete agreements with employees. The practice of banning workers from finding new jobs is phasing out.
Source: Fast Company, SHRM
Tim Cozier Managing Director Vaco
“In 2024, we're witnessing a profound transformation in the Canadian workforce, marked by significant shifts in hiring practices and worker expectations. This trend is accompanied by a growing number of workers taking on side gigs and part-time work to cope with the ongoing effects of inflation. Rather than companies aggressively growing headcounts, they are focusing on strategic hires, whether contract or permanent, who can add immediate and long-term value.”
Hiring News & Trends
What's ahead in the temporary employment market in 2024
Status check on project work
According to a Source Global Research survey, more than three-quarters of professional services buyers had cancelled at least some existing projects or scrapped new ones, while two-thirds had paused most existing project work.
Source: Financial Times
Gig workers in December 2022
In a report put out in March, Statistics Canada reported that Canada had 871,000 gig workers in the fourth quarter of 2022 in their main job.
Gig work in this context is defined as a form of employment characterized by short-term jobs or tasks; it does not guarantee steady work, and the worker must take specific actions to stay employed. Gig workers can use online digital platforms to obtain work, but gig work can also be obtained without using such a platform.
Of the 871,000 gig workers, 624,000 were self-employed. Another 247,000 were paid employees in a job with gig characteristics
Projected size of Canadian staffing industry 2024
- Staffing Industry Analysts estimates the Canadian temporary staffing industry will have contracted by 6% in 2023 to CAD $10.4 billion.
- Their 2024 outlook projects 3% expansion in commercial temporary staffing and 3% growth in professional temporary staffing. Primary growth drivers include ongoing though low GDP growth, bill rates keeping pace with (falling) wage growth and inflation, and a moderate volume rebound.
Source: Staffing Industry Analysts
Tom Turpin Senior Vice President & Executive Partner Vaco
“As the economy improves, the temporary market is expected to grow, particularly in IT and manufacturing. Organizations have been downsizing over the past 18 months due to economic uncertainty. We know that when uncertainty like this lingers, there is a fear of long-term commitment in the form of permanent headcount on the balance sheet. With the economy stabilizing, we anticipate there to be an increase in contract positions, potentially leading to permanent conversions. This trend has been observed in past economic recoveries, where the temporary staffing market saw significant growth as organizations looked to get to business-critical initiatives without the weight of permanent headcount. Hiring is expected to increase as the year goes on, but we do not expect it to be a banner year by any stretch—but there will be growth.”