2024 human resources trends: Return to office, fluid workforces, and people development
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As a bold optimist, I would not make a great economist, but I do believe we can create a self-fulfilling prophecy that 2024 will be bright and positive and that great things will happen in the coming year. From a human resources perspective, I think there are six major areas you should think about as it relates to your people in 2024 (three are included below and three more will follow in another article). These are not just recommendations about your people or your human resources policies. These are business recommendations that impact your people, and therefore, your entire business.
Return to Office
My team has been remote or hybrid since 2014. I started Purple Ink in my home, then we used a co-working space, and we now have our own office, but our team works from home most of the time. As our lease ends soon, we, along with many of you, are contemplating our options.
However, we don’t relate to some of the major reasons organizations are considering returning to the office:
- According to a Society for Human Resource Management (SHRM) survey, 75% of HR professionals think returning to the office is necessary to improve collaboration
- Returning to the office is the “trendy” thing to do these days
- In SHRM’s survey, 65% of HR professionals cited leadership preference as the reason for their return to the office
I admit I’m confused by the overall push to bring people back to the office. In the past few weeks, I have spoken to about 45 people in Indiana, Georgia, California, and Texas about remote work. About half the group told me they were required to go to the office and had one or both of these experiences:
- Spending the majority of their day on phone or video calls with people outside the office
- Going to the office only to find that very few of their coworkers were there that day
Neither of these situations, of course, increased their collaboration, which was the overarching goal of their company’s policy to return to work.
About a quarter of the people I spoke with used the term “old-school leadership” when talking about their organization’s return to the office. They did not hear a compelling reason to return to in-person work, just a sense of “that’s the way it used to be.” Others said their leaders assumed they were collaborating if they were present and not collaborating if they were not present.
These employees are spending more money on transportation, childcare, and clothes and are frustrated with traffic and parking. Is it really necessary to mandate five days in the office?
There’s no one size fits all answer for every business, but do what makes sense – really makes sense – for your organization and your people. I often recommend a hybrid schedule of two or three days in the office with specific required in-office days. On those days, encourage face to face meetings and consider providing lunch (or asking people to bring their lunch) on those days to generate more togetherness in the cafeteria or break rooms.
2024 projection: Organizations offering some remote work options will find it easier to hire and retain top performers.
Fluid Workforces
In consulting, it’s a constant concern to balance workload and people, and having a more fluid workforce will make that easier. In 2024, we will continue to see employees requesting part-time work as well as more requests from freelancers and third-party contractors. It’s important to understand the differences in laws and policies between employees (full- and part-time) and contractors, but it’s a benefit to organizations to offer more flexibility and options for people who choose to work differently than the way it’s always been. Think about the impact it will have not only on salaries and wages, but on benefits, space, equipment and supply purchases, and more.
In 2022, freelance work accounted for $1.35 trillion in annual earnings. I estimate we will end 2023 significantly higher and that the trend will continue in 2024. Make it work for your organization!
2024 projection: Organizations offering a variety of employment types will find it easier to hire and retain top performers.
People Development
In a Workhuman and Gallup study, 30% of frontline employees said they do not receive formal training, and 81% of them believed that improved training would help them feel more engaged. In a recent LinkedIn survey, 94% of employees said they would stay with their employer if it invested in their development. What will you do to train or upskill ALL of your employees in 2024?
There are so many development options at all price points, so I urge you to think twice if you don’t know the answer to that question. Remote learning, LMS self-study modules, book clubs, employee resource groups, outside speakers, trainers on technical and non-technical skills, and one-on-one coaching are just some of the ways you can help your employees grow.
If this is new to your organization, start with mid-level managers. Generally, they have the biggest impact on the bulk of your employees. Secondly, support your HR professionals as they play critical roles in solving issues, assisting with career development, educating all employees, supporting company policies, and empowering employees.
One-on-one coaching can work for all kinds of employees, as well. Some people think a coach is for those who are failing, but consider that top athletes have coaches. Why shouldn’t our top performers have coaches too? The best companies hire coaches for their valued, high potential staff members and leaders. A good coach seeks to leverage their strengths and enhance their abilities in areas of opportunity and provides guidance on a wide range of topics.
2024 projection: Organizations that invest in their people will find it easier to hire and retain top performers.