With the new year on the horizon, what does 2024 hold for HR leaders and people teams? We’ve gathered the top HR trends for 2024 to help you strategize and stay ahead of the pack in the coming year. The sooner you have a robust plan, the better!
In this article, you’ll find insights into ongoing and emerging trends in Human Resources to help you adapt and thrive in 2024. The future of HR is here, fueled by fundamental technological shifts and employee expectations. We’ll explain how to elevate work with a modern and elevated Lifestyle Spending Account (LSA) so your employees and organization can level up in the new year.
Here’s what we’ll cover:
Top 5 HR trends for 2024
Some of the same factors driving transformation in the workplace in 2023 are still going strong as we head into 2024. Each year, as the modern workforce realizes its priorities and continues to evolve, defining trends and HR priorities emerge. Total well-being and the desire for flexible working arrangements continue to be a top priority. Advancing technology to data that drives decision making can enhance the employee experience and organizational success.
1. Supporting employee mental health
Current trends in HR and the shift to post-pandemic life have kept a sharp focus on employee mental health and total well-being. A holistic approach to support for mental health recognizes that a healthy workforce is a productive one. In 2024, this looks like strong, empathetic leadership paired with time and space to prioritize an individual’s total well-being.
Ask on any day of the week, and 44% of employees say they experienced a lot of stress at work. Mental health days are expected as organizations move towards more compassionate and future-focused benefits. Having paid time off to address mental fatigue allows employees to manage stress, recharge, and prevent burnout proactively.
Empathetic leaders provide necessary emotional support during challenging times by promoting work-life balance and boundaries, reducing after-hours emails, and encouraging utilization of mental health support benefits. Proactive measures prioritizing employee emotional wellness in the upcoming year present an opportunity to make workplaces more sustainable and supportive.
LSAs, including wellness challenges and incentives, can help employees improve their emotional well-being. By encouraging, for example, using apps to meditate and receive on-demand therapy and fitness classes, companies can incentivize proactive action toward improved mental and physical health. Then, employees can use total well-being reimbursements and wellness wallets for hobbies like travel, cooking, photography, music, ceramics, languages, gardening, and sports to nurture their passions.
2. Encouraging healthier habits for employees
Medical costs are predicted to further increase in 2024. As HR leaders look to consolidate vendors and point solutions to be as efficient as possible, finding smart, effective ways to support employee health is critical.
Looking out for employee well-being is also good for business. Programs that can help employees build and maintain healthy habits (from regular movement to mindfulness exercises to maintaining a healthy body weight have strong value on investment (VOI). Reduced healthcare costs, decreased absenteeism, and increased productivity make the case for investing in employee health.
Encouraging healthy habits for employees with an LSA allows individuals to personalize their long- and short-term goals based on their unique health needs. They can spend LSA funds on items not covered by traditional health plans, like acupuncture and massage, yoga, spiritual or meditative retreats, sleep support, and health trackers. These accounts support individual total well-being with highly personalized and flexible options.
HR teams have been optimizing recruitment and hiring, anticipating workforce needs, and measuring employee engagement for years. However, today’s HR tech is next level.
3. Enhancing the employee experience
From presenteeism to quiet quitting, 2023 witnessed meaningful conversations around employee disengagement. Without a meaningful connection to work and supportive relationships with colleagues, employees may be physically present or logged in, but they aren’t fully engaged. Low engagement costs the global economy $8.8 trillion dollars per year. And it doesn’t make for happy employees. A thriving, inclusive company culture creates positive employee engagement and incredible workplace experience.
Transformational workplaces and benefits
A transformative employee experience hinges on support for well-being, career development, and growth opportunities. Top-rated organizations recognize hard work, encourage continuous learning, and provide clear, measurable goals. And as a result, they promote, attract, and retain incredible leaders.
Flexible work arrangements are core to job satisfaction in 2024. Balancing the desire for in-office collaboration with a newfound appreciation for flexibility will be a critical challenge for employers in the coming year. Companies have realized the benefits of remote work and value opportunities for employees to choose their work setting based on the tasks they have for the day. Rather than a mandatory daily destination, office workplaces are a hub for specific types of work and collaboration.
Fostering equity through inclusive HR practices
Diversity, equity, and inclusion (DEI) initiatives remain important as we head into 2024. Organizations are creating inclusive workplaces that celebrate diversity and provide equal opportunities for all employees. Creating equitable environments can address pay equity, promote diversity in leadership roles, and implement anti-bias training programs. Design an inclusive benefits strategy and keep diversity, equity, and inclusion at the center of your efforts in 2024.
The emphasis on multigenerational equity in today’s workplace is paramount. Organizations are breaking down barriers by adopting inclusive HR practices centered around flexibility, global collaboration, and geographic diversity. The shift toward remote and hybrid work options promotes inclusivity and embraces workforce dynamics spanning five generations.
Equity has become the guiding principle of HR. Strategies recognize that each generation brings unique perspectives and preferences, and top companies are tailoring benefits that resonate across generations.
Modern and unified platforms provide a user-friendly experience for employees and make HR departments heroes.
4. Expanding data-driven decision-making
Utilizing data to identify patterns and trends is nothing new. HR teams have been optimizing recruitment and hiring, anticipating workforce needs, and measuring employee engagement for years. However, today’s HR tech is next level. The latest developments continue to adapt to the evolving needs of the workforce and the business landscape. Predictive data analytics allow for more proactive data-driven decision-making as HR professionals forecast trends.
The increased focus on enhancing the employee experience means incredible, inclusive platforms can consolidate various HR functions for more efficient processes. These modern and unified platforms provide a user-friendly experience for employees and make HR departments heroes. For a cohesive, human-centric culture, data-driven solutions meet employee engagement and organizational goals.
5. Embracing flexible working arrangements and remote-work
Flexible and hybrid work were the prevailing trends of 2023, marking a departure from traditional office setups. Remote work has evolved into a lasting hybrid model, even amidst tech layoffs and in-office mandates. Forward-thinking leaders recognize that adapting to the evolving work landscape requires a dynamic shift in the traditional office approach.
Embracing a remote or hybrid model allows people leaders to redefine talent acquisition, allows for productivity gains, and increases geographical diversity. A hybrid approach allows for the seamless integration of in-person and remote collaboration.
As conflicting perspectives between leadership and employee preferences arise, organizations have the opportunity to leverage HR tech to navigate the complexities of a modern workplace, ensuring adaptability and inclusivity to shape the future of job roles.
Providing flexible benefits for times of unexpected challenges
Savvy leaders show they have their employees’ best interests in mind by offering a flexible employee benefits strategy designed for what employees want and need. Offering flexible reimbursement plans that allow your people to access well-being platforms such as BetterHelp or Talkspace for assistance at unexpected times showcases a commitment to delivering strategic benefits that align with real-world well-being needs.
Job satisfaction and talent acquisition is all about building a sense of community at work, staying connected, and ensuring equity, no matter what curveballs life throws at your people. As you consider HR trends for 2024, look to elevate your approach to the future of work with Lifestyle Spending Accounts. Foster a culture that champions flexibility and adapts to the evolving needs of the workforce by increasing data-driven decisions, boosting employee engagement, and encouraging healthier habits.
Employers can positively impact real-life challenges by offering benefits beyond the expected. By weaving LSAs into the mix of strategic benefits, employers are looking out for more than physical well-being. They’re supporting communities in need.
Empower your people wherever they are. With the Espresa platform, HR delivers what your employees want and need. Ready to learn more about Espresa? Reach out to our team for a free demo!