22 of Our Favorite Stats on HR Strategy for 2024
As we step into the new year, what’s on your 2024 HR bingo card? At this point, I think anything is fair game – yes, even mandatory company-wide virtual reality team-building exercises led by holographic AI facilitators! The only certainty it seems is that the business world continues to evolve; as we undergo a profound transformation in employee relations, new technology, and skills developments – we turn to industry leaders for their 2024 predictions.
“In 2024, the HR function will be impacted by several key trends: an unsettled employee-employer relationship, persistent skills shortage, transformative technology innovations, and pressure to achieve operational efficiencies”
Mark Whittle, Vice President of Advisory, Gartner
This year stands as a tipping point, years post-pandemic which ushered in a continuous restructuring of work combined with emerging new technologies, leaving many questioning when will consistency/normalcy return. And what can they expect next?
Based on a recent Gartner survey reporting HR leader’s top priorities for 2024, we’ve pulled together 22 new statistics and data points to help guide you for the year ahead. To help you prioritize your 2024 HR initiatives, this blog focuses on three focal points for this year: Employee Experience, Change Management, and Skills Strategy.
Priority One: Employee Experience Stays Top of Mind
The employee experience is set to take center stage this year. Enormous demand for career reinvention, development, growth programs, coaching, mentorship, allyship, and support is expected in 2024.
According to Gartner research, HR leaders’ top organizational priorities include leader and manager development along with career management.
If you aren’t yet convinced why employee experience should be your #1 HR initiative for the year ahead, here are some sobering stats:
- 86% of HR leaders believe career paths at their organizations are unclear for many employees.
- 47% of HR leaders prioritize employee experience, emphasizing the need for clear career paths, benefits communication, and new opportunities.
- 44% of companies lack compelling career paths, leading 75% of employees to explore new roles elsewhere.
- Around 90% of 178 HR leaders in a recent Gartner survey reported that for many employees, career paths at their organization are unclear; two-thirds said that career paths at their organization are not compelling for many employees.
- Companies ensuring pay equity are 1.6 times more likely to meet financial targets and 2.1 times more likely to attract needed talent.
- Employees who feel a belonging to their team are 2.7 times as likely as others to be fully engaged, and three times as likely to be resilient
- Team leaders who check in every week drive their team members’ engagement scores up by 77%
By now we know that employee well-being is crucial, with engagement linked to team connection. Even more so in 2024, fostering a supportive work environment will be pivotal for organizational success.
Make sure that you’re prioritizing projects that will improve your employees’ experience; it will pay dividends in better retention rates and increased employee engagement.
Priority Two: Change Management, Your Solution to Change Fatigue
Over the past four years, employees have grappled with a frustrating phenomenon – change fatigue – resulting from management teams introducing (and often subsequently retraction) too many initiatives.
Post-COVID shifts further exacerbate this issue, with nearly half of employees experiencing burnout in 2023. As a result, more than half of HR leaders reported that mitigating change fatigue is a top priority for 2024.
So, just how serious and widespread is change fatigue? The stats speak for themselves…
- 45% of employees are burned out by organizational changes in 2023
- In 2016, 74% of employees were willing to support organizational changes, but that number dropped to 38% in 2022.
- 53% of HR leaders say mitigating change fatigue is a top priority
- 82% of HR leaders agree that managers are ill-equipped to lead change and 77% report employee fatigue from excessive changes.
- Change fatigue can decrease employee intent to stay by up to 42% and reduce performance by 27%.
- 54% of change-fatigued employees consider looking for a new job
- 32% of change-fatigued employees said they’re less productive and close to half (48%) said they’re more tired or stressed at work.
- According to Capterra, when employees were asked if the changes made were backtracked (since COVID-19), 93% said yes and 43% said multiple times
While the data is frightening for teams without a plan, there is a silver lining. This serves as a major opportunity for teams to solidify their HR strategy and put their teams at ease. Addressing change fatigue is well within reach for the majority of teams. Companies that prioritize strategies to minimize fatigue will be able to re-engage a motivated and productive workforce.
Priority Three – Skills Strategy Eats Your Skills Shortage for Breakfast
Skills strategy is paramount in 2024. This is clear in Workday’s new Skills technology, which, in the words of HR expert Josh Bersin, “help(s) your organization take full advantage of the insights, capabilities, and opportunities that skills technology provides.”
As more executives acknowledge a current or expected skills gap, according to a Deloitte survey a whopping 90% of executives are actively experimenting with such practices.
In case that isn’t convincing enough, here are five more skills-related HR stats:
- 39% of companies stated that they need a way to assess skills within their organization
- Change management is a significant challenge in implementing skills-based strategies, with 42% of companies facing confusion around technology’s role.
- 45% of companies say they’ll eliminate bachelor’s degree requirements in 2024
- Approximately one-third of the skills required in 2025 are not reflected in current job descriptions.
- The skills gap could result in an $8.5 trillion deficit in revenue over the next decade.
- Only 34% of workers feel supported by their company’s skill development opportunities.
- 73% of workers say that a skills-based approach would enhance their work experience.
Some people may see skills strategy as daunting, but the payoff is clear. By modernizing your Skills strategy, you will diversify your applicant pool and make your hiring process more accessible to highly qualified applicants.
In Conclusion: Skills Will Rock Your 2024!
HR leaders face a rocky landscape filled with challenges in employee experience, change management, and skills strategy. While these hurdles (and the above stats) may seem daunting, they underscore the critical importance of organizational resilience. HR’s success hinges on adaptability, prioritizing employee well-being, and adopting a strategic approach to skills management.
Recognizing these challenges and meeting them head-on is not just a necessity; it’s an opportunity to foster a resilient, thriving workplace for all. The choices you make in 2024 will not only shape your team this year but also influence the overall trajectory of your business for years to come.
Instead of waiting for the cards to fall, let’s use 2024 as a time to build our dream bingo card. One where maximizing employee-employer relationships, easing change fatigue, and establishing a robust skills strategy are at the top of the list.