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Hiring Advice Attracting candidates Unlocking Success: Navigating 2024 Job Market Trends and Compensation Strategies
Unlocking Success: Navigating 2024 Job Market Trends and Compensation Strategies

Unlocking Success: Navigating 2024 Job Market Trends and Compensation Strategies

Global situations may change, affecting your business and workforce. But your goals of resilience and growth should remain constant, boosted by your ability to entice, motivate, and secure top talent.

To do this, learn 2024’s job market trends from Jobstreet by SEEK's latest Hiring and Compensation report. This is based on comprehensive information from over 680 company representatives spanning various industries and job positions. But the report is more than just numbers and charts; it also provides actionable insights to help you develop timely and innovative strategies that prime you for success in 2024.

How can you improve your work culture to retain your most sought-after employees? What can you do to embrace change while promoting business stability? Find the answers that will guide you toward your ultimate goals.

Hiring trends for 2024

Employee preferences are constantly shifting, and so are the best practices for talent acquisition. While the onset of the pandemic saw a slowdown or even a halt in recruitment processes, 2022 saw a revival of recruitment efforts in Asia–a trend that extended into 2023. The rise of remote work and rapid digitalization have impacted employment dynamics, producing new job market insights.

Here are some hiring trends you can leverage for new recruitment methods that let you stay competitive.

Creating a steady & sustainable workforce

Companies are thinking long-term by building teams that will carry them through changes and challenges in the years to come. Employees who stay and grow with the company are vital ingredients of business resilience, so permanent and full-time employees comprise 94% of 2023's new recruitments. Moreover, recruitment is on an upswing, up by 10% from 2022.

Promoting flexibility

While companies are focusing on full-time hires, they are also prioritizing part-time employees who work permanently. This shows the employers' openness to flexibility, which allows them to acquire specialized talent, especially those who value work-life balance. This strategy also lets employers reduce benefits expenses and adjust to fluctuating workloads.

Shaping emerging job markets

Information technology (IT) and sales remain priority areas in human resource, but there's a noticeable shift in the top spot, which used to house IT. Now, it's secured by accounting, administration, and human resources. Marketing and branding are now included in the top 5 functions for full-time positions, showing that talent acquisition and management and branding expertise are highly valued in today's business environment.

Focusing on growth

The first half of 2024 teems with positivity as most surveyed companies revealed their plans to hire within this time frame. While this decision reflects optimism and perceived growth, the remaining half of the year sees a decline in recruitment processes by 41%. This is mainly because of uncertainty over economic conditions and global situations.

Overall, hiring trends highlight a bright outlook for employers and job seekers. With increased recruitment activities, businesses can partake in a diverse talent pool while candidates enjoy more opportunities for career development. These all contribute to a robust and thriving workforce in the years to come.

Compensation strategies unveiled

Salaries play a crucial role in job seekers' decisions and are a significant consideration for employees. However, companies also base their offered wages on the country's economic health, industry standards, and business capabilities. Acknowledging and managing these dynamics is essential for organizations to entice and retain high-caliber employees.

Here are some compensation strategies insights to help you make well-informed salary decisions.

Salary benchmarking

As the top method for businesses to assess and improve salaries, considering hiring and salary benchmarks in 2024 ensures companies remain competitive in the job market. Employers can better attract and retain skilled professionals by ensuring they are at par with industry norms. Proper compensation also boosts employee morale and productivity, boosting overall business performance.

Evaluating internal policies

Compensation practices should be in line with the company's goals and vision. This ensures fair compensation across job roles as well as legal compliance. Regular internal checks allow employers to pinpoint areas for improvement, recognize milestones, and formulate better budgets. With constant evaluation, companies stay flexible and adaptable to organizational shifts.

Considering inflation

Inflation decreases purchasing power, and with salary adjustments, employees may be able to afford daily necessities. Failing to consider inflation can result in employee dissatisfaction, leading to high turnover. Also, this strategy shows your concern for your employee's financial stability, acknowledging the soaring living costs on their well-being.

Consulting employees and conducting surveys

Are your employees satisfied with their pay? One way to find out is to ask them directly. Employee surveys let you know their expectations and concerns regarding salaries. Your workers have various requirements and preferences, and listening to what they say ensures that you're targeting their needs–a surefire method for employee retention.

By implementing different compensation strategies, you help foster a motivated workforce. Even with the evolving business landscape, these methods and others can help you quickly pivot, supporting success while building a company culture that values its workers.

Benefits beyond salary

Employee satisfaction, which drives productivity and profit, is one of the most effective talent retention strategies. The Jobstreet by SEEK report has analyzed employee benefits to see how companies are going beyond the Philippines' basic benefits package, which includes public holidays, paid and sick leave, and maternity leave.

Special leaves

More employers provided birthday leaves in 2023–a strategy 15% of surveyed companies plan to adopt. Along with compassionate leaves, birthday leaves top the list of special leave benefits. Meanwhile, menstrual leaves are gaining momentum, demonstrating support for workplace diversity. Acknowledging the importance of family are the additional maternity and paternity leaves and the family care leave.

Financial benefits

These offerings aim to uphold the employees' well-being through products and services that care for their health and future. Prime examples of new benefits that fall under this category are medical insurance, health assessments, and dental evaluations, which saw an 8% increase in 2023. This development aligns with the global trend of focusing on worker health and wellness. Other financial plans that are becoming popular involve pension, retirement, and mental health.

Work-life balance

Flexibility is still likely to stay on the list of remote work trends in 2024 and beyond. The pandemic has opened doors for flexible working hours, working locations, and working days, all included in the top work-life balance benefits of 2023. If you want to offer these to your employees, delve into hybrid work model reports, which give you insight into work arrangements that mix in-office and remote work elements.

Mental health care

Over the years, mental health has become crucial in determining overall health. This has urged employers to recognize the value of providing mental health resources and support to create a positive work environment. Proof of this is how companies have prioritized mental health this past year. Mental health and wellness counseling, consultations to address stress, mental health days off, and mental health app subscriptions were all included in the list of additional benefits.

Upskilling and reskilling

According to the Future of Recruitment report, Filipino job seekers consider reskilling opportunities as part of their long-term motivation. The current benefits report reflects this, with more employers prioritizing employee development through apprenticeship, training, self-learning, and education allowance. Up to 17% of companies plan to add these benefits in time.

As workplaces transform, offering a holistic benefits package can provide support and stability, which boosts employee satisfaction and retention. This way, companies commit to their workforce's overall welfare, fostering an adaptable work environment.

Regional variances in compensation

To get a clearer picture of regional compensation trends in Asia, we look at what's happening in Malaysia, Indonesia, and Thailand. This can also help you recruit talent from these countries, learn about geographical salary differences and global expansion plans, and adapt to economic changes.

Compensation benefits across Southeast Asia
  • Singapore ⁠Most Singaporean organizations prefer benchmarking to evaluate the competitiveness of their salaries. Revision of benefits sits at a distant second, followed by appraising their pay guidelines. At the bottom of priorities are benefits benchmarking, employee surveys, and revising pay structures. Meanwhile, 23% of companies shared that their salary increase is at par or more than the inflation rate – 2% lower than the Philippine average.

  • Malaysia ⁠The Philippines and Malaysia use the same top three strategies when it comes to assessing their compensation packages. Malaysian companies also place salary benchmarking as their top tactic, with introducing and revising benefits and evaluating pay policies and guidelines placing second and third (third and second for the Philippines). The latter is conducted more by large companies with more resources than small to medium organizations. ⁠ ⁠Still, regardless of size, all businesses can benefit from overlooked strategies, such as conducting employee sentiment surveys and developing internal pay structures. Like the Philippines, 25% of employers reported that their increment is higher or in sync with their country's inflation.

  • Thailand ⁠Salary benchmarking takes the number one spot in Thai companies' pay assessment schemes. This is closely followed by introducing and revising benefits, crucial in supporting employee wellness and work-life balance. On the other hand, barely a fourth of surveyed companies base their pay on inflation, so only 23% revealed that their salaries are enough to counter escalating living expenses. Employee surveys are also at the bottom of the list, which may be a Southeast Asian trend as this strategy also ranks in the bottom-half of Philippine approaches.

  • Indonesia ⁠Instead of salary benchmarking, the top compensation evaluation method among their Asian neighbors, Indonesian companies prioritize the inflation rate. Consequently, 42% of employers claimed their salary increase aligns with or exceeds the inflation. Companies also use pay policy evaluation to ensure their wages are competitive. ⁠ ⁠However, like the Philippines, job perks take a backseat in the country's employment landscape, with fewer percentages conducting benefits revision and benchmarking. Last on the list are employee engagement surveys, which can provide valuable insight on better attracting and retaining talent.

Factors that contribute to compensation variations

Countries and geographical locations offer different salaries because of these key influencers:

  • Living costs ⁠Regions with higher living expenses typically require higher pay to ensure their employees maintain a fair and comfortable lifestyle.

  • Skills demand ⁠If skills are scarce but in high demand, businesses must offer higher salaries to entice workers with those particular skills.

  • Industry focus ⁠Various regions may focus on industries that require specific skills. For instance, engineering hubs may demand certain competencies, making compensation dependent on such skills.

  • Government regulations ⁠Different regions implement varying labor laws and regulations. These can affect compensation systems, including minimum wage criteria.

It may be helpful to compare salaries with those in other regions, but these factors must be considered to formulate competitive and fair wage strategies that complement your particular conditions.

Navigating the post-pandemic work landscape

Remote work trends are no longer a passing movement; these have become workplace necessities that promote employee retention and well-being. For some companies, hybrid work models have become the norm, offering cost savings for the employer and flexibility for the staff.

Here are the other compensation and benefits trends in the modern workplace.

Wider talent pool

In the same way, employees can work anywhere in the world as long as they're connected, and companies can now expand their talent pool in areas outside their location. This opens up a wider pool of expertise and allows companies to adjust salaries to account for the flexibility of various positions.

Better compensation

Some sectors are experiencing talent shortages, especially in today's high-demand industries such as technology, healthcare, and manufacturing. Employers have responded by putting together attractive compensation packages that include bonuses, support services, and other perks.

Emphasis on employee well-being

The pandemic has taken a toll on everybody's health, both physically and mentally. Workers seek support in these areas, which companies provide through mental health initiatives, flexible work setups, and healthcare benefits.

Flexible compensation

Because job seekers are now from different geographical locations with diverse needs, employers are willing to design customizable packages to boost their recruitment process. Stock options, accommodation perks, and other non-traditional benefits have also come into play due to companies' being more creative and adaptable.

Diversity and inclusion

Recent events such as the pandemic and social justice endeavors have highlighted the importance of diversity, equity, and inclusion in the workplace. Employers are assessing and tweaking compensation structures to promote these values better and improve their employer branding and work culture.

How remote work impacts benefits

While 57% of surveyed businesses reported that they're fully back to in-person work, more companies are open to hybrid work models that include some remote component depending on the role. Some businesses practicing workplace flexibility are in "wait and see" mode, uncertain if they'll continue the arrangement. Still, most companies are adopting flexible setups, which shows that work flexibility is here for the long term.

Because of this development, support for remote work has become significant. The most popular assistance forms are virtual meetings and laptops for employees. Meanwhile, companies recognize the need to improve on providing internet connectivity allowance and work-from-home guidelines. Aside from promoting business continuity, remote work support has become a vital tool of today's work culture and organizational strategy.

Gain actionable insights

Times and employment trends are changing, and this year will be no different, bringing surprising shifts and developments. How can you future-proof your business amid evolution? Jobstreet by SEEK's Hiring, Compensation, and Benefits Report 2024 is a compensation trends guide and talent insights report. Gain valuable insights to help you improve your recruitment process and formulate solutions that strengthen business resilience. Download this free report in full today!

Post-pandemic work landscape guide

The business environment is fiercely competitive, so you need to stay ahead in the talent market. A skilled workforce is the bedrock for constant innovation, helping you adapt to industry shifts. With proactive recruiting, your company can better meet customer demands, promote a positive work culture, and position itself for long-term success. Here's a summary of the report's key points:

Grab the chance to acquire the best talent as soon as possible.

Most Philippine companies see the first half of 2024 as an opportune time to add to their workforce. If you want your share of proficient professionals, now is the time to boost your recruitment process. Read the report to learn which full-time and part-time positions are in demand based on industry.

Conduct internal surveys to gather employee input.

Most companies heavily rely on salary benchmarking and reviewing pay policies, but they must adopt other forward-thinking approaches. Employee surveys clue you in on what your workers want, helping you improve your pay structure. Also, never underestimate the power of benefits. Benchmarking these along with salary can help boost your compensation strategy.

Make your benefits more attractive.

The report provides the top benefits preferred by employees. Ensure your benefits package includes these per category, such as special leaves, financial benefits, family-friendly perks, and more. These attract and retain employees, satisfying and motivating them to stay and work their best.

Be mindful of employee morale.

Constantly check on your employees to see if they can handle the stress and workload. Providing support goes a long way in facilitating their mental health. One way to do this is to add work-life benefits like resources, open communication, and flexible work setups to help them pull through. Employee assistance programs and counseling can effectively establish a nurturing work environment.

Staying attuned to changes in employment trends is not just a sound strategy; it's a necessity. As you navigate these shifts, promoting a company culture that highly regards employees and acknowledges the importance of equitable pay and benefits is vital. By investing in your workforce's well-being, you also ensure a successful future.

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