Despite this, high-performing employees are leaving their roles in search of better opportunities. At the same time, organisations are increasingly relying on AI to revolutionise their talent acquisition and retention strategies.

Key insights from Workday’s Global Workforce Report for the first half of 2024 include:

• Securing new jobs is becoming harder: Job applications surged by 31%, significantly outpacing the 7% growth in job openings compared to the same period in 2023.
• Top talent is on the move: In 75% of the industries analysed, voluntary turnover among high-performing employees has increased.
• AI in HR is on the rise: 77% of businesses plan to ramp up their use of AI in recruitment over the next year.
• Meaningful work fosters loyalty: Employees who view their work as meaningful report feeling 37% more accomplished than those who do not, even when managing demanding workloads.

Workday Recruiting data shows that 19 million job requisitions were processed globally in the first half of 2024, marking a 7% rise from 2023. Meanwhile, job applications reached 173 million, up by 31%. In the UK, job requisitions grew by 8% to 872,000, and applications rose 22% to 5.1 million.

Though the job market continues to grow, competition for roles has intensified. As job growth slows and unemployment edges higher worldwide, this trend may become more pronounced. The UK, while not as competitive as previous years, still faces challenges. With an economic slowdown and forecasts of rising unemployment, job seekers are facing increased competition. The data also shows that only 458,000 job offers were made in the UK, a 1% decrease from the first half of 2023.

Job Market Intensifies for Workers Amid Rising Competition

Despite an uptick in hiring, the surge in job applications has made the market more competitive, creating a tough landscape for both employers and job seekers. Employers, overwhelmed with applicants, have raised their expectations, with 72% of business leaders tightening qualification and experience requirements. This shift shows no sign of easing, as 59% of employers expect heightened selectivity to continue over the next year. As a result, employees face significant challenges standing out, while employers are grappling with the task of efficiently identifying the best talent.

Top Talent on the Move as Companies Face Retention Challenges

As companies expand their hiring efforts, retaining high-performing employees has become an increasing concern. Though overall turnover remains relatively stable, the departure of top performers is rising, with 75% of industries seeing an uptick in voluntary exits among their best employees. This is a major issue for the 50% of organisations already struggling to retain key talent. To address this, businesses in the UK and worldwide are placing a stronger emphasis on internal mobility programmes, designed to promote career growth within the organisation. These efforts are paying off, with 67% of leaders reporting a positive impact on employee retention and development.

AI Reshapes Hiring by Boosting Fairness and Efficiency

Companies are increasingly turning to AI to streamline their hiring processes, with significant results. 70% of leaders believe AI has the potential to make hiring fairer, while 89% report increased efficiency in their recruitment strategies thanks to automation. The adoption of AI is only expected to grow, with 77% of organisations planning to expand its use in the coming year. Popular AI-driven methods include skills testing (26%), screening CVs and applications (26%), and automating routine tasks (24%). This is particularly relevant in the UK, where finding candidates with the right technical skills remains a persistent challenge.

Meaningful Work: A Key Driver of Employee Loyalty and Productivity

As businesses push for higher productivity, the importance of providing meaningful work has emerged as a critical factor in maintaining employee engagement and loyalty. According to the report, workers who see their contributions as meaningful feel 37% more accomplished, even when faced with demanding workloads. While factors like career growth, clear direction, and fair pay remain essential, a sense of purpose is equally important. To enhance job satisfaction, leaders are encouraged to prioritise meaningful work and leverage AI tools to help employees focus on tasks that deliver the most impact.