Rob Hosking, Executive Director for Administrative and Customer Support, Robert HalfThere’s plenty of good news when it comes to the hiring environment for human resources (HR) staff. According to Robert Half research, the biggest factor driving organizations to hire these professionals is company growth (cited by 72% of respondents). While the national unemployment rate is 4.1%, several roles in HR are trending lower: HR managers have a 1.6% unemployment rate, payroll and timekeeping clerks are at 1.6%, and training and development specialists are at 2.0%. Highly skilled candidates continue to be in solid demand.There’s no question this is a positive environment, and one in which the strongest candidates have multiple options. However, constant flux in the employment market is making hiring a more complex and difficult process. Even firms that hired as recently as one or two months ago are finding the landscape has changed.
Keep these trends in mind as you consider your HR staffing requirements, now and in the months ahead:#1 The Big StayNot as many workers are looking for a new job today compared to a year ago. In a 2024 Robert Half survey, 35% of workers expressed interest in finding a new role in the second half of the year, compared to 49% who had the same intention during this period last year. We have smaller pools of candidates for each position and recruiters need to do more to entice employed workers to consider a move.#2 Timelines have drastically changedNot long ago, hiring managers could post a role, wait a couple of weeks for resumes to roll in, interview candidates and make the offer — a process that would take roughly a month or so. Now that timeline has tripled. It’s taking a lot longer to find candidates given The Big Stay coupled with low unemployment rates. For staffing positions, it often takes three months or more from start to finish for all types of roles, from HR coordinator to benefits and compensation specialist. For small and midsized companies, however, these timelines can be even longer, further complicating the hiring process. They’re competing against large employers with greater brand recognition and larger staff budgets. It’s no surprise that 86% of hiring managers we surveyed report hiring challenges.#3 Fear of missing outIt’s possible for the hiring process to take even longer when FOMO takes hold. Managers may interview great candidates but postpone a decision because they worry about missing out on a “perfect” candidate or one with a background that aligns exactly with the job description. Your idea of the “perfect” candidate likely does not exist in this market. Great leaders know they need to bend on hiring requirements, prioritize candidates’ potential and offer training to bring their skills to the level the job requires. My colleague Steve Saah explains this issue in more detail here, along with the consequences organizations face when they can’t make a timely decision.#4 Expanded focus on change management and business transformationThis new focus is a welcome change from the past few years, which put many HR professionals in the mode of “putting out fires” constantly. The pandemic’s impact on the workplace created multiple high-priority issues to resolve. HR took the lead on most of these projects, such as setting up remote work options, creating new employee policies, and handling layoffs and the subsequent spike in recruiting and hiring. Now, HR is finally able to focus more heavily on strategy, planning and the work that drives the organization forward. For many HR team members, these are the elements that first drew them to the profession and provide the most career satisfaction. They’re now focused more heavily on:Career pathing and succession planningCreating and refining performance management programsPartnering with department mangers on hiring, onboarding and retentionServing as a strategic partner to the C-suite and senior leaders
Smart leaders aren’t just taking note of these trends; they’re shifting their HR staffing approach as a result. They are:Leveling up their recruiting process — Leaders are tightening up the hiring process to eliminate delays and lessen the risk of losing candidates to other offers. They’re also focusing more on reaching passive job seekers (those who are not actively looking for new roles but are open to hearing about those that match their interests). Leaders are clarifying their value proposition for potential hires, illustrating how and why the organization is a great place to build a career. For small businesses that may not have widespread name recognition or the ability to compete on salary with bigger firms, articulating a unique value proposition is especially important. Smaller firms often enable people to wear multiple hats, which means they can expand their skills more quickly and impact many areas of the business. Fewer layers in the organization also mean they have frequent contact with senior leadership. These are attractive features to highlight to prospective employeesFocusing more on contract hires — Longer timeframes to fill vacancies create plenty of risk. Existing staff taking on extra work can burn out easily and lose motivation, which can result in lower productivity and resignations. Service levels to internal departments can drop. Projects can easily fall behind, costing the organization in resources and reputation. For these reasons, leaders are hiring more contract staff to bridge the gap. Important work gets done while giving the team “breathing room” to find and onboard the right full-time candidate. Sometimes that contract professional is the right person to take on the role full-time, creating a seamless transition for the entire team.Looking ahead and planning now — Leaders aren’t waiting for a resignation or unexpected business change to make staffing changes; they’re planning now to prevent surprises and sudden gaps. They keep a close eye on projects, workload levels and team morale to supplement their departments. Many organizations now adopt an “always on” recruiting approach so they can interview and hire prospects when they find them versus waiting for an open requisition. This is especially important for staffing in several HR specialties — particularly benefits and compensation — given the extremely high demand and low supply of talent in this category.It's an exciting time to work in HR, and professionals are more passionate than ever before to take on strategic projects that move their organizations forward. Multiple factors continue to complicate the hiring environment for these essential team members. But by tracking market trends, making adjustments and partnering with recruiters, organizations can manage this complex landscape, and staff their HR department with exceptional talent.Follow Rob Hosking on LinkedIn.
