In a post-pandemic and inflationary context followed by several successive crises, 2024 is starting in a climate defined by a lot of uncertainty and its share of challenges.
But fortunately, this also brings an evolution and a period of positive changes in improving the working conditions and environment for human capital, the most important “asset” for a company!
1. Diversity, equality and inclusion (DEI) programs
Although no regulations are currently in place in Canada and the United States, the 2023 Canadian DEI survey from the CPHR and the CRHA Order confirms significant advantages of such a program:
1. Better company culture
2. More innovation
3. Authenticity at work
4. Increased loyalty
5. Better company reputation
2. HR technologies and AI
The development of technological tools and AI will take on more importance in 2024, particularly to increase the speed and quality of recruitment, create performance indicators to measure, among other things, DEI programs, turnover rate, absenteeism and pay equity.
3. Employee loyalty
The challenging labor market and labor shortages are now motivating Canadian companies to prioritize employee retention.
The strategies are numerous: investing in employee experience, professional development, career management, retention interviews “stay interviews” with employees to gauge satisfaction and issues to name a few.
According to a surprising study from G&A Partners, a high turnover rate is extremely costly for companies:
« The average cost associated with the turnover rate is between
30% and 150% of the candidate’s annual salary.»
G&A Partners
4. Salary transparency
A booming trend in Canada, the United States and the European Parliament who approved a new EU Pay Transparency Directive in April 2023.
In Canada, the Pay Transparency Act was passed in British Columbia (November 1, 2023), Prince Edward Island (2022) and Ontario (2018).
Legal requirements in Canada:
1. Job postings: publish salary information;
2. Disclosure of information: in annual reports;
3. Salary history: prohibition on requesting information
to the candidates.
In the United States, the trend continues with nine (9) states which have also adopted this law: California, Connecticut, Hawaii, Illinois, Maryland, New York, Nevada, Rhode Island and Washington.
5. Social benefits and personalized working conditions
Companies are personalizing working conditions and social benefits to retain employees, manage labor shortages and increase performance and commitment through well-being at work.
Popular initiatives include unpaid leave that is in demand particularly with generations Y and Z who value work-life balance, professional development, sabbaticals and travel.
The 4-day work week is also growing in popularity with Ontario passing Bill 55 in 2022. In the US, the 4-day work week is also gaining momentum.
The post-pandemic period and successive crises are now encouraging employers to pay attention and raise awareness of the psychological health of their employees and are developing new programs.
6. Upskilling
Continuing education and skills development for employees to manage career planning and professional objectives that will also enable companies to face the challenges of labor shortages.
The human resources functions will continue to be in demand in 2024 and will be busy as ever ! Its growing importance has never been so crucial in business in order to face the many challenges and a very tense job market.
Faced with the uncertain times that we are currently evolved in, employers will have the challenge of implementing personalized conditions and creating a fulfilling work environment for their “ human capital ” in order to meet the societal, environmental and economic challenges of the future.
| Stefanie Rochford, CHRP, CRHA, President, Rochford Executive Search