With today’s economy in a state of flux, employers need to understand what’s driving the hiring market in this environment, especially what matters most to workers and job candidates. Robert Half’s 2024 Salary Guide offers comprehensive insights into emerging trends and forecasts salaries for hundreds of roles across seven industries.

The race for talent in a candidate-centric market

Entering 2024, the job market remains competitive, with leaders in many industries anticipating recruitment challenges.

Firms need to hire, but the employment market remains candidate-friendly. The top reasons employers say they need to add to their teams are company growth (67% of managers cited this) and employee turnover (44%). But with more job openings than job seekers, most managers (93%) say they struggle to find skilled professionals.

Flexible work is a key deciding factor. More than six in 10 workers (62%) say they would prefer to stay in a job with flexible work options than accept a position with higher pay but rigid in-office requirements. This trend is most common among Gen Z and working parents. More than four in 10 (43%) managers say they offer remote and hybrid work arrangements to attract top performers. Half of managers say they’ve lost out on a preferred candidate because remote work wasn’t an option, while 42% have seen existing employees leave for the same reason.

Candidates feel more confident about switching jobs. A quarter of workers say they are currently looking for a new role, and an additional 24% plan to start searching soon. The combined total (49%) is up eight percentage points from December 2022.

Variable talent models are on the rise. Almost two-thirds of employers say they intend to ramp up their use of contract professionals, while 40% of job seekers express openness to taking on contract positions.

Top compensation themes

Salary increases in 2024 are expected to be more moderate than in recent years. This slowdown creates a strategic opportunity for companies capable of offering competitive pay to attract top-tier talent and keep valuable employees.

Workers are eyeing higher compensation

Nearly two-thirds (63%) of workers intend to request a raise in the next few months, and 31% are prepared to search for new opportunities if their request is not met. On the employer side, over half (51%) aim to elevate starting salaries in 2024 to attract skilled professionals, and 46% plan to introduce new perks and benefits.

Companies can gain an advantage with salary transparency

Workers increasingly value salary transparency; 57% would remove themselves from job consideration if salary ranges weren’t disclosed. Among hiring managers, 63% agree that disclosing salary details in job postings attracts higher-caliber candidates, and 60% believe it gives their firm a competitive edge.

Benefits and perks are meeting worker expectations

Health insurance, the top benefit desired by 82% of workers, is provided by 88% of companies. Flexibility in work schedules, preferred by 78% of employees, is available from 77% of companies.