Workforce Management Outlook for 2024

Despite the fact that the tension on the labor market has decreased somewhat in recent months, there is a growing realization that the current scarcity, partly as a result of the aging population, will be permanent for the coming years. As we enter 2024, the labor market is once again facing a number of challenges and changes, partly as a result of this scarcity. At TalentIn we look ahead to a number of key trends that we expect to see in the coming year.

Uncertainty in legislation
In 2024, uncertainty regarding the political course (EU and individual countries), especially concerning specific legislation for independent contractors and increasing labor market reforms, is likely to persist. This uncertainty means organisations must remain flexible and alert to changes that could significantly impact the deployment of temporary workers and cross-border hiring.

AI in operational hiring and recruitment processes
2023 was the breakthrough year for ChatGPT, and we have seen many applications where ChatGPT aids in the recruitment of both permanent and temporary staff. The use of artificial intelligence (AI) in operational hiring and recruitment processes is expected to increase further. Despite the recent adoption of the European AI Act on December 8, these applications will help make these processes more efficient and effective, from identifying suitable candidates to automating routine tasks.

The importance of data
Data will continue to be essential in supporting decision-making processes, especially in areas such as recruitment and hiring of employees. Companies that effectively utilize data analysis can better respond to trends, optimize the recruitment of both permanent and temporary staff, and remain competitive in a continually changing and persistently scarce labor market.

Continuing use of direct sourcing
Another trend we anticipate is the further breakthrough of direct sourcing in the recruitment of temporary personnel. This approach allows organizations to independently attract temporary talent directly, positioning themselves as attractive employers for their desired target group. This ultimately leads to better access to the labor market and the potential for significant cost savings.

Integration proposition (EVP) for permanent and contingent workers
In line with the ongoing scarcity and the breakthrough in Direct Sourcing, organizations will need to pay more attention to their positioning in the labor market for both permanent employees and contingent workers.

Comprehensive use of (new) technology
Finally, the use of technology, partly due to new AI applications, will continue to increase. Seamless integration of various technological solutions working together becomes increasingly important. Existing technology providers, as well as new entrants, are expected to focus more on this.

Summary:
The trends for 2024 promise a dynamic year for everyone within workforce management and specifically in the recruitment of both permanent and temporary personnel. Organizations that continually adapt to these trends will be better positioned to meet the challenges of an ever-changing labor market.