Workday’s 2024 Global Workforce Report: AI Adoption Soars Amidst Job Market Shift

Workday, Inc. has released its semi-annual Global Workforce Report, revealing a challenging job market where applications are growing rapidly, but job openings lag behind. Despite these conditions, high-performing employees are leaving for better opportunities. Organizations are increasingly turning to AI to enhance their hiring processes and retain top talent.

• Job Market Trends
  • Increased Competition:
    • Surge in Applications: Job applications have grown by 31%, outpacing job openings which increased by only 7%.
    • Tougher Job Search: The rising number of applications makes it harder for candidates to stand out and for employers to select the right candidate.
  • Impact on Hiring:
    • Higher Standards: 72% of leaders are raising the bar for qualifications and experience, with this trend expected to continue.
• Voluntary Turnover of High Performers
  • Top Performers Leaving:
    • Increased Turnover: 75% of industries tracked have seen a rise in the voluntary turnover of high-potential employees.
    • Challenges in Retention: 50% of companies are already struggling to retain their best talent, with internal mobility programs showing positive results for 67% of leaders.
  • Strategies for Retention:
    • Internal Mobility: Many companies are implementing internal mobility programs to help employees grow within the organization.
• AI in Hiring
  • Rising Adoption:
    • Efficiency and Fairness: 77% of organizations plan to increase their use of AI in hiring, with 70% believing it will make hiring more fair and 89% seeing it as a tool for improving efficiency.
  • Current AI Uses:
    • Skill Testing and Screening: AI is commonly used for testing candidates’ skills (26%), screening resumes and applications (26%), and automating repetitive tasks (24%).
• The Role of Meaningful Work
  • Employee Engagement:
    • Sense of Accomplishment: Employees who find their work meaningful feel 37% more accomplished, even with challenging workloads.
    • Boosting Satisfaction: Leaders should focus on providing meaningful work and using AI tools to help employees concentrate on high-impact tasks.

Workday’s report highlights the shifting dynamics of the job market, where high competition and a growing reliance on AI are shaping hiring practices. To retain top talent and improve efficiency, organizations must balance technological advancements with meaningful work and transparent, fair hiring practices.