iHire has released its 2024 State of Online Recruiting Report, offering a comprehensive look at the latest trends in talent acquisition, including advancements in AI, persistent talent shortages, and evolving job board usage. Based on a survey of 1,637 job seekers and 586 employers across the U.S. and from 57 industries, this sixth annual report provides critical insights into the current hiring landscape.
- AI Adoption in Recruitment:
- Increased AI Usage:
- AI adoption by employers has surged to 14.7% in 2024, a significant rise from 4.9% in 2023, reflecting a 200% increase.
- Job seekers have also embraced AI, with 17.3% using AI tools for resume or cover letter writing in the past year, a staggering 518% increase from 2.8% in 2023.
- Increased AI Usage:
- Talent Shortages Persist:
- Recruitment Challenges:
- 63.3% of employers struggle with too many unqualified applicants, while 39.1% face a shortage of applicants.
- 63.1% of companies anticipate that talent shortages will impact their hiring ability in the next year.
- Despite this, 59.9% of organizations increased hiring in 2024, with only 15.9% expecting budget cuts and 4.6% anticipating layoffs.
- Recruitment Challenges:
- Impact of External Factors:
- Economic and Political Concerns:
- 45.3% of job seekers worry that economic uncertainty will affect their job search or career growth, compared to 34.0% of employers.
- 17.1% of candidates and 8.7% of employers are concerned about the impact of political discourse due to the U.S. election on the workplace.
- Economic and Political Concerns:
- Job Boards’ Role and Evolution:
- Job Board Usage:
- 68.1% of companies use job boards or recruitment platforms for most or all of their hiring, with 34.3% expecting increased use in the coming year.
- 67.0% of candidates applied for roles through job boards in the past year, and 69.7% always visit a hiring company’s website before applying, highlighting job boards’ critical role in attracting talent and building brand awareness.
- Job Board Usage:
- Communication Challenges:
- Candidate Experience Issues:
- 54.7% of candidates cited lack of response from employers (ghosting) as a top job search challenge.
- 45.0% of job seekers believe ghosting will negatively impact their job search in the coming year.
- Employers also face challenges, with 51.0% citing unresponsive applicants as a significant hiring issue.
- Candidate Experience Issues:
Leadership Quote:
- Steve Flook, President and CEO of iHire:
- “Finding qualified candidates has been one of employers’ chief challenges every year we’ve conducted our State of Online Recruiting Report research, regardless of the economic climate or status of the job market. Our annual report aims to advise hiring professionals on how to best attract the right talent, whether that means testing new recruitment technologies, leveraging AI, growing their employer brand, improving the candidate experience, or all of the above.”
The iHire 2024 State of Online Recruiting Report underscores the growing influence of AI in recruitment, the ongoing challenges of talent shortages, the evolving importance of job boards, and the need for better communication in the hiring process. The insights provided aim to help hiring professionals navigate these trends and improve their talent acquisition strategies.