Welcome to Inspirus’ Q2 2024 Inspirus Trends & Forecasts Report. We are deeply grateful to our regular readers and, if you’re new to the report, we thank you for joining us. In this report, we’ll share what we see as trending now and our predictions for how these trends will shape the future.
While 2024 started off with an economy “on strong footing,” according to The Conference Board, the road ahead is not necessarily a smooth one, thanks to rising consumer debt and high interest rates. Inflation and interest rates are expected to continue growing until at least Q4. These factors mean employees and their families are feeling the strain. Many people will evaluate their current employment in relation to the growing cost of living and the heightened need for flexibility. If they think they can find a better job elsewhere, they will actively look.
Not surprisingly, the most notable trend impacting HR and business leaders in Q2 is the challenge of improving the employee experience with people-centric policies and culture. Employees are struggling due to inflation, and organizations can do more to support their workforce during this challenging time. Despite the economic pressures, turnover remains high. And as we continue to operate amid historic low unemployment rates, organizations cannot easily replace employees who quit.
Employees’ shifting expectations — especially around total rewards and compensation — steepen this challenge. Organizations that create a modern total rewards strategy to address employees’ human needs are likely to find success in enhancing job satisfaction, leading to better retention, higher productivity and a stronger work culture.
Other outside factors — such as AI and the economy — continue to shape the HR landscape. In January, Gartner outlined a bold prediction: 60% of enterprise organizations will adopt a responsible AI framework for their HR technology by 2025. This initiative will require leaders to spend a great deal of time and energy this year creating plans and strategies. Meanwhile, as SHRM notes, inflation and economic uncertainty continue to place additional constraints on HR budgets. This pressure often impinges on benefit offerings and compensation structures, which could translate to even more employee retention challenges.
This is just a preview of the ongoing trends we see shaping the role and responsibilities of HR leaders right now. In the pages that follow, you’ll find a deeper dive into each of our predictions for how HR leaders will continue investing and preparing for organizational success in 2024. My hope is that you’ll find this report valuable for you and your organization, and that it assists you in making informed decisions that help you achieve your employee engagement goals.
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