Hiring Market: Q1 Recap & Insights

As we approach the end of the first quarter, our team continues to monitor the hiring market and shifts. To start this year, we have seen a small downturn nationally in job gains, but the market remains strong overall. Megan Graham, Vice President of Business Development at FGP, recently shared several insights on the current market.

Candidates market remains tight
The candidate market is still very competitive, as there are not enough skilled individuals to meet demand of open roles in several sectors such as accounting & finance, healthcare & life sciences, construction, logistics, and technology. A tight candidate market further drives the growing trend of skills-based hiring. Think about identifying retooling & training opportunities for your team. We believe thinking outside the box will be the way to win the war on talent.

To develop a strong skills-based process, start with assessments to evaluate the hard & soft skills needed within your organization. Then, begin mapping those skills to internal roles. This will allow you to set benchmarks, implement training, and evaluate success.

Additionally, as candidates make decisions, we are seeing hybrid and flexible work with a focus on employee well-being remain a top priority. This means organizations who offer flexibility and invest in employees remaining happy and healthy are often more competitive in securing top talent.

Role of AI
Continuing into this year and growing in Q1 are the use of AI and automation in the human resources function, including AI powered recruitment tools and real time analytics providing actional data for your talent pool. Today, nearly 2 of every 3 companies use AI to develop job descriptions, 42% use it to customize target audiences, and two-thirds use AI to review and screen applicants according to SHRM. If you haven’t begun evaluating how AI can support your organization, now is the time to start.

Post election regulatory shifts
While regulatory changes happen every year, the changes in early 2025 have potential to impact HR professionals and the policies they develop and enforce. It is best practice to find an internal subject matter expert, or an external consultant, who can help navigate these ever-changing waters.

Workplace culture
Last year, the Society of Human Resource Management launched a civility campaign, amid rising concerns of workplace conflict as it relates to political viewpoints, social issue differences, generational and cultural differences. Post election, it is safe to assume half of your team will be disappointed, as a leadership team or HR professional, it is more important than ever per James Atkinson, SHRM VP, Thought Leadership to “be clear about what workplace culture you want, and make sure that your leaders model it.”

Identifying opportunities in your workplace to bridge gaps and offer conflict resolution skills building will help create a more cohesive team with respect for differences while working toward a common business goal.

If you have questions about these insights or how our team can help you navigate the hiring market, please contact us today.