Three HR Trends That Will Define 2024
HR leaders are facing a tough business climate in 2024. Inflation pressures, rising borrowing costs and an uncertain economic outlook are converging to raise the stakes on our core mission of engaging and retaining talent. And in this environment, the last thing a business wants to do is hire new workers to replace the ones who quit. Employers spend an average of 33% of a worker’s salary to replace them. In 2024, the C-suite will ask HR: How can we make employees want to stay? In a Paycor survey of nearly 6,000 professionals, we found that company culture is the top driver of retention. Now, “company culture” can mean a lot of things. It’s the entire employee experience, from hire to retire, and that can seem overwhelming. So let’s make it simpler and take a closer look at one key aspect of culture—how a company supports its people. What does a supportive company culture look like in 2024? To some degree, that answer depends on your organization, industry and employee population. But if we step back and look at the big picture, I think this year it’s going to come down to three key pillars of support. If your company can answer yes to the following questions, I believe you can retain your most valuable employees and lay the groundwork for stronger engagement and performance. 1. Is DE&I in our company’s DNA? Employees don’t want to just work for a company anymore; they want to feel like they belong. In 2024, creating a truly inclusive environment is going to require more than a single program or initiative. A sense of belonging is a company-wide mission. The former CEO of Pepsi, Indra Nooyi, said it best: “Diversity is a program. Inclusion is a state of mind.” No one person or department can singlehandedly create a state of mind. ” According to industrial anthropologist John Shook, cultural change starts with behavior change. As HR leaders, we’re at the center of most if not all company-wide conversations. We have daily opportunities to set the tone for communication, holding space for diverse voices and acknowledging inequities if and when they come up. Don’t underestimate the power of leading by example, especially when it comes to allyship. Over time I believe these small, habitual actions will cause a ripple effect, leading to a more inclusive culture, at work and everywhere else. 2. Does our company support mental health in a meaningful way? Ever since 2020, workers have had a completely different attitude toward mental health. It’s common knowledge that “the pandemic changed everything,” but I think it’s worth pausing to appreciate just how much our understanding of mental health at work has evolved. For one thing, employees now expect employers to actively support their mental health. In fact, 80% say this is a serious consideration when they’re looking for a new job, and insurance that covers mental health treatment is now the baseline. Employers can stand out with flexible scheduling so employees can see a therapist or by letting people take sick days for mental health reasons. I think these practices will be increasingly important in 2024 and beyond, as more and more American workers start seeking out mental health care. 3. Does our company support financial wellness? Financial health doesn’t exist in a vacuum—and it’s a major concern for most workers. We already know that stress about money can cause depression and anxiety, decrease productivity and harm relationships. When your employees are worried about making ends meet, there’s a snowball effect. It takes a toll on everyone at the company, their families and the business itself. Salary increases are one obvious solution, but they’re not always possible. And more importantly, they aren’t everything. A staggering 80% of workers want additional benefits that focus on their financial health. In 2024, I predict employers will start offering more holistic resources to help employees plan for the future. This means something a little different for every organization. For example, if your team is mostly made up of college-educated Millennials, they’re probably concerned about managing student debt. In that case, you could host a class on refinancing loans or offer a 401(k) match for regular loan repayments. Be sure to find options that are relevant to your employees. By choosing the right resources for your particular team, you get to show them you understand and care about their needs. Put it all together. When you add them all up, these trends are greater than the sum of their parts. And they all support each other. By working on any one of these areas, you can potentially improve all three. By offering resources around DE&I, mental health and financial wellness, HR leaders can foster a truly supportive company culture. In that welcoming environment, your people can feel empowered to learn, grow and share their unique strengths at work.
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