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What to Expect from the 2024 Labor Market

February 01, 2024

Resignation rates remain high in 2024, but hiring rates have continued to outpace them. What’s in store for February and beyond? How are organizations coping with the talent crisis? We explore here.

A major concern among business leaders in 2024 continues to be the tight labor market. The U.S. Chamber of Commerce describes the state of the labor force as “The Great Reshuffle,” in contrast to the “Great Resignation” label that seized headlines beginning in 2021.

Resignation rates have remained high, but hiring rates have continued to outpace them. The Chamber attributes this to workers transitioning to different jobs for a better work-life balance, increased compensation or a more favorable company culture.

How are businesses coping?

Although few industries are immune to the labor shortage, the professional and business services sector consistently rank among those with the most job openings. The lack of experienced candidates is leading to intense competition among employers.

Some businesses are responding by:

  • Increasing salaries,
  • Creating a more positive workplace culture
  • Enhancing benefits offerings,
  • Outsourcing and
  • Seeking the aid of executive search specialists.

Is increasing salaries the answer to the problem?

The answer to the talent crisis isn’t necessarily increasing salaries.

Many organizations are discovering that creating a positive workplace culture is the key to retention and recruitment. Proactive employers recognize the importance of prioritizing the well-being of workers and listening to their concerns. It’s important for employees’ personal goals to align with the company’s mission.

How do employee development initiatives help?

Supervisors also need to strengthen bonds with workers by recognizing their achievements and coaching them to grow and develop new skills. A nurturing approach helps employees feel engaged, appreciated and challenged in the workplace. They stay with employers that adopt an employee-centric mindset, combined with competitive financial benefits and flexible work arrangements. Employees want to feel that they are treated fairly and their employer truly cares about them.

Questions? Need advice on your hiring process? We can help. Contact us.

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