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Staying attuned to the evolving needs and expectations of employees is paramount for business leaders. As we approach 2024, a year that brings continued economic uncertainty but also holds promise for growth and adaptation, employee retention can provide stability for businesses. To hire the best talent and retain your strongest assets, it’s important to understand what employees are looking for. From transparency in communications and processes to sustainable integration of new technologies, entrepreneurs and small business owners can focus on improving five key areas to foster a thriving workforce.
Transparency
Workers in 2024 are pushing for a change in the dynamics of the workplace, emphasizing transparency and clarity in deadlines and communications. Slingshot's 2023 Digital Work Trends Report found that 42% of employees consider clearly defined priorities essential to improving productivity, and 30% cite clear deadlines as another important step. This shift emphasizes the importance of setting clear rules and principles in any organization.
According to Slingshot founder Dean Guida, “Employees often feel overloaded, unsure of priorities and deadlines, and afraid to say no to additional work–even when they have too much on their plates already. And leaders are left scrambling when employees haven’t been focusing on the highest-value task.” Better communication and clarity from managers can help improve productivity in the year to come.
Another area where workers are demanding increased transparency is in salaries and benefits, according to a survey by Empower 2023. At the same time, new state and federal laws are forcing companies to disclose wage ranges in job descriptions, reflecting employees’ concerns as well as society’s desire to close wage gaps and improve equality.
Salary
Many Americans may seek new employment in 2024 due to unmet salary expectations, especially if their current company has been slow to provide raises. Despite a slowdown in inflation, many employees are unhappy with their current salaries, according to LinkedIn's Workforce Confidence survey.
“With the workforce still stabilizing post-pandemic and inflation presenting financial challenges, employees continue assessing their options,” explained executive recruiter Michael Siegel in a post on LinkedIn. “Many companies err by not adjusting key personnel’s pay to sufficiently track rising living costs.”
The data reveals that among employed individuals actively looking for new opportunities, only 45% received a salary increase in the past year. Compare that to employed people who are not actively seeking alternative employment, 64% of whom got a raise in the past year. This shows that those who have seen wage increases in line with the rising cost of living are less likely to be looking for a new job.
Employees are essentially evaluating their employment as a strategic investment, where the return (salary) should ideally outweigh the risk (time and effort invested in the job). When salaries do not adequately compensate for the rising cost of living, employees perceive the risk-reward balance as unfavorable and will look for a better investment.
Flexibility
Flexibility in working arrangements, including hours and the option to work from home, has become a primary consideration for employees since 2020. Of course, salary and workload are also important, but according to the Society for Human Resource Management, flexibility currently stands out as one of the most sought-after workplace perks.
Employees are increasingly rejecting the high-pressure working culture and prefer to have some say over their work arrangements. Fair pay, a workload that is demanding yet manageable, and flexibility regarding when, where, and how they work all directly influence employees’ likelihood of remaining with a company over the long term.
A rigid, one-size-fits-all work culture is a thing of the past. Employees are seeking a balance that accommodates personal preferences and life circumstances, indicating a departure from the traditional binary choice of office-based work versus unemployment. Employers should adopt a more informed and balanced approach by considering various employee preferences and circumstances. It’s about recognizing that the needs and desires of the workforce are diverse and that accommodating these varied preferences can lead to more satisfied, loyal, and productive employees.
Wellbeing
According to job search giant Glassdoor, "anxiety" was the most-used term in their employee discussion forums over the last year. 2023 proved to be a difficult year for workers, with layoffs and fears of an impending recession weighing heavily on people’s minds.
Add to that the stress around the development of AI and what it will mean for future employment, and it’s not surprising employees are feeling threatened. The high levels of stress in the workplace have led to more discussions about mental health and wellness.
Considering all of this, companies that prioritize employee well-being will likely see the best satisfaction and retention in the coming year. Increasing evidence demonstrates a link between well-being and productivity, so it’s a good investment for companies in the long run.
Technology
According to a survey by Qualtrics XM Institute, employees are excited about the potential of new technology like AI to improve their productivity — as long as it is used for the right purposes.
Employees want AI tools that will help them speed up their work tasks, with 61% saying they would happily use AI to help them with writing tasks. They also hope to use technology to learn new skills and advance their careers. Of course, there is a demand for new technology that is user-friendly and easy to learn so that it actually saves time rather than being another energy drain for workers.
However, the Qualtrics survey indicates that workers oppose the use of AI in hiring or performance management, with 49% stating that they would feel very uncomfortable being interviewed by a bot. This suggests that in situations where people feel more vulnerable (being evaluated and assessed, for example), they prefer a human touch. Human relationships will continue to be important in 2024 as technology continues to take over areas that were previously human domains.
Conclusion
Businesses can benefit in various ways by adjusting their practices to meet the changing expectations of employees. Open and clear workplaces not only improve productivity but also boost employee satisfaction, leading to higher retention rates. Offering competitive and equitable compensation can prevent valuable talent from seeking opportunities elsewhere. Embracing flexibility and prioritizing employee well-being not only addresses immediate needs but also fosters lasting job satisfaction and commitment. Lastly, making informed decisions about technology and recognizing its role in enhancing productivity without sacrificing human connections can position companies positively in the long term. By meeting these needs, businesses invest in their own future success by establishing a positive environment that attracts and retains a high-performing workforce.
Sources
Society for Human Resource Management
This article was originally published in Certainty News.
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