State of Hiring
The job market is steadying and taking a positive tone, returning to its pre-pandemic state. Employer confidence is building with a growing number of economists saying a recession in the next few months looks less likely35, and companies are investing in growing their workforce.
Looking ahead to 2024, over 65% of economists see employers adding more jobs than they cut over the next year. The most optimistic forecast is an average monthly job creation of 180,000, suggesting the U.S. economy will add an additional 2.2 million jobs by September 2024.
Over the last year, employer base salary levels increased 5.6% on average despite 2023 merit increase budgets of 3.8%. According to the report, this is due to off-cycle pay increases, which 59% of employers reported providing in 2023. The top reasons for off-cycle increases included retention concerns, counteroffers, market adjustments, and internal equity34.
Companies incorporating strategic workforce planning during economic uncertainty will be better positioned to come out ahead. Organizations adopting a mindset of growth, quality hires, and strategic investments in talent and technology will ensure more efficient teams that strengthen revenue and your bottom line.
“While preliminary compensation budgets for 2024 are showing a slight decline, they remain well above pre-pandemic levels, reflecting the ongoing tightness of the labor market and low levels of unemployment.”
- Lauren Mason, Senior Principal of Career at Mercer
Challenges Are Opportunities to Outperform Your Competitors
We are in a challenging time to hire and retain staff. However, this can be good news for companies that can rise to the challenge. When most companies are struggling, opportunities arise for the organizations that can be flexible and creative in their efforts to attract talent.
What Is Your Top Workforce Priority?
Better Customer Service
Customers report 3 times faster hiring and better results when working with AppleOne.8
Attracting Quality Candidates
48% of employers say that failure to find the right workers is the biggest risk to hitting their growth targets7, and 52% of employed workers are NOT actively seeking new opportunities.1
Filling Openings Faster
Job seekers say that a slow hiring process is the top reason they lose interest in a potential employer leading to increased ghosting and the loss of an employer’s preferred candidate.2
Optimizing Costs
Labor is often one of the biggest costs of doing business and labor expense is up 4.5% year over year.3
Improving Engagement and Retention
Voluntary turnover remains 20% higher than pre-pandemic3 levels with more than 4 million people quitting each month.