Top recruitment trends shaping Ireland’s job market in 2024

The new year is here, and so is our round-up of the top recruitment changes you can expect in 2024! The Savvi Recruitment team sat down to discuss the Irish recruitment landscape and the conversations we’ve been having with both candidates and employers to explore the main trends rippling through the market.

The recruitment industry is highly sensitive to socio-economic changes, reflecting the evolutions happening more widely in business as well as in society. As such, recruiters don’t have the luxury of complacency – how you did something last week might not be how you do it next week. Goals shift, needs fluctuate, and expectations change. Good recruiters know that adaptability is key to success.

In this blog, we look at the top trends that have been taking root or maturing in 2023 that are going to be really important in 2024. Whether you work in-house or in agency, these eight trends will shape the job market and our way of working.

1. AI on the prize

We don’t need to explain to any of you that Artificial Intelligence (AI) is changing the landscape for everyone - automating the most complex tasks and processes, transforming traditional operating models, and driving innovation across industries. In the area of talent acquisition, this will play out in a number of ways. Primarily, we expect the creation of new roles and the reshaping of existing roles because of factors such as legislation, technological integration, ethical oversight, education and training, and strategic decision-making. This is a vast theme that we expect to come back to time and again in the coming year.

2. Sustainability matters

The broader global trend towards sustainable and responsible business practices has resulted in a growing emphasis on Environmental, Social, and Governance (ESG) reporting. As part of its broader strategy to integrate sustainability into its financial policy framework, the European Union has put in place a transparency framework called the Sustainable Finance Disclosure Regulation (SFDR) and a new directive modernising and strengthening rules around reporting called the Non-Financial Reporting Directive (NFRD).

Initially affecting companies with more than 250 employees, reporting is focused on areas that are genuinely impactful and informative to investors, customers, and other stakeholders. It looks at areas as diverse as carbon emissions, energy use, waste management, employee relations, diversity and inclusion, executive pay, and shareholder rights. This comprehensive approach ensures businesses are accountable not just for financial performance but also for their broader impact on society and the environment.

The larger companies with reporting obligations have two main options here – they will either look at upskilling in-house or they will outsource this capability from one of the big consultancies. What we don’t see them planning, for now, is to hire new people for this one function. As for SMEs, this is not being seen as a priority yet even though reporting for smaller businesses is coming down the line.

We do recommend that SMEs develop processes to record this data as soon as possible. While reporting isn’t an obligation for now, it likely applies to some or all of their customers or suppliers. Every company, regardless of its size, is part of another company’s value chain. The ability to report on sustainability can help to win or retain business and should be seen as a very achievable competitive edge.

3. Evolving dynamics in risk and compliance

The Individual Accountability Framework (IAF) will affect recruitment in 2024, especially in risk and compliance roles (the introduction of the Senior Executive Accountability Regime (SEAR) in Ireland is a significant step in that development).This change has provoked a mix of apprehension and optimism among risk and compliance professionals. On the one hand, there’s a sense of apprehension among professionals due to increased responsibilities. On the other, there is an uplift in salaries reflecting the higher demands of these roles. The sentiment in the community is largely positive, viewing these changes as opportunities for growth and recognition.

Looking ahead, we anticipate a notable increase in movement at senior levels within risk and compliance departments – a trend that was conspicuously absent this year. This anticipated shift is likely to open up new pathways for career progression and bring fresh perspectives to these crucial functions. As the landscape evolves, the demand for skilled professionals in these areas is set to rise, marking an exciting time for recruitment in this sector.

4. Cybersecurity in digital resilience

In 2024, organisations will increasingly prioritise cybersecurity within operational resilience. Propelled by developments like the EU’s Digital Operational Resilience Act (DORA), there's a clear shift in understanding cybersecurity's impact not just on technology but also on financial stability and company reputation. A recent RTE report revealed that 1 in 5 firms suffering a cyber breach faced financial losses, highlighting that cybersecurity isn't just a technical issue; it directly impacts the bottom line.

Larger firms are ramping up their recruitment of cybersecurity experts. They recognise that cybersecurity is not really an IT role but a risk management role that sits within the IT department. It’s important to remember that protecting digital operations is as much about understanding and mitigating human risk and behaviour as it is about technical safeguards (consider hazards such as social engineering or weak passwords). The demand for these roles, already commanding strong salaries, is set to rise, reflecting the specialised nature of the field.

5. Balancing automation with personalisation

The rapid evolution of AI sets an interesting stage for changes in recruitment practices, too. A key focus within the HR community right now is integrating automation into recruitment processes, especially with Generation Z candidates in mind. This demographic - digital natives who value flexibility and rapid career progression – has unique expectations around recruitment and requires a process that is efficient and responsive. Companies that adapt swiftly to candidate expectations will come out on top.

The evolution in talent acquisition is prompting organisations to scrutinise their in-house capabilities and assess how their external recruitment partners are also adapting to these changes. The goal is to achieve a seamless integration of automation in recruitment, ensuring efficiency that in no way sacrifices the personal touch that is crucial for attracting and retaining talent. This balance will be essential in meeting the expectations of a new generation of job seekers (and evolving expectations amongst other generations) while also capitalising on the technological advancements in AI.

6.DEI for innovation and brand value

Diversity, Equity, and Inclusion (DEI) has become central to organisational strategies. Companies today embrace the tangible benefits of genuine diversity, such as enhanced creativity and profitability, and are making it a central goal as they move forward. DEI is now a critical factor for employers, not only for fostering a positive internal culture but also for strengthening their employer brand, especially as younger generations of employees prioritise diversity and inclusivity when choosing an employer.

Concurrently, EU legislation focusing on gender pay equality and transparency is making DEI a top priority for HR departments. This legislative push is complementing the broader corporate emphasis on retention and succession planning (our next prediction, see below). Companies are keenly aware of the competitive job market and the near-full employment market. To attract and retain top talent, they are refining their approach to salaries, bonuses, and benefits, recognising they are only part of the jigsaw.

7. Investing in employee retention

Retention strategies are increasingly being aligned with the 'skills-first' concept, prioritising internal talent development and promotion. This approach not only helps to maintain a skilled workforce but also supports career progression plans, making employees feel valued and part of the organisation's future. In essence, companies are not just hiring employees; they're investing in career journeys, ensuring that the workforce evolves alongside the organisation.

Enhancing retention by looking internally will mean engaging in comprehensive career mapping and succession planning. This involves not just identifying skill sets but also aligning hires with the company's mission, vision, and values. It's about finding people who desire longevity in their careers and can envision a long-term future with the company.

Beyond competitive salaries, this encompasses the entire ethos of the organisation and the opportunities it offers for personal and professional growth. In today's job market, these factors significantly influence the decision to accept or reject a job offer. Prospective employees conduct thorough research, looking for red flags such as high turnover rates which might signal underlying issues.

Remember, the most talented individuals aren’t typically job-hunting because they are committed to their current roles. Attracting this kind of passive talent requires a compelling offer, one that goes beyond the basics and resonates with their career aspirations and personal values. By focusing on these elements, companies can not only attract but also retain top talent, creating a workforce that is highly skilled and deeply connected to the organisation’s ethos and future.

8. Your workplace or mine?

No predictions list would be complete without thoughts on the “back to the office” debate. As we move into 2024, there's a discernible push within organisations to more in-office presence, signalling a transition from purely remote work to a more structured hybrid model often characterised by a 3-day office and 2-day remote workweek. This change is partly driven by a softening in the market and some corporate rightsizing, resulting in a trend where office attendance becomes a requirement rather than just an option.

Hybrid work is set to continue, but with a stricter application. The challenge for management will be making the office an appealing place for employees to work and not simply somewhere they are forced to be. This means rethinking the office environment to foster collaboration, creativity, and a sense of community that can't be replicated in a remote setting. In doing so, employers will balance the need for physical presence with the benefits of a hybrid work model, ensuring that time spent in the office is both productive and enjoyable.