As we leap into 2024, it's time to address the HR and payroll trends redefining how businesses operate. Combining new cutting-edge technologies, evolving workforce preferences, and global economic changes present fresh opportunities for how businesses handle their HR and payroll. So, without saying any more, we present our top nine trends projected to impact companies significantly this year.
Let's face it: we are currently facing economic uncertainty with inflation and rising costs. Economic uncertainty poses a challenge for employers trying to meet compensation expectations. Ask yourself, "Are my pay increases exceeding the expected inflation in 2024, and can my business survive financially by handing out these pay increases?" If you replied "no," it may be time to explore alternative ways to reduce expenses to avoid pay cuts or layoffs.
No matter what economic outcomes we may encounter in the new year, it is crucial for employers to closely monitor their business finances and develop a strategic plan to overcome any obstacles in meeting payroll obligations while keeping employee retention in mind.
The pandemic sped up numerous trends here, and remote work is one of them. HR policies will need to persistently adjust to meet the expectations of remote work, emphasizing nurturing virtual collaboration, employee well-being, and monitoring productivity. Moreover, HR departments should consider adapting their recruitment approach to attract top talent eager to work remotely.
Earned Wage Access (EWA), or on-demand pay, will increase in popularity. In fact, according to a recent report, the EWA solution market size is expected to grow 14.9% from 2023 to 2033.
EWA is a popular, new solution that allows employers to pay their employees before their next payday. With the ability to access earned wages on the same day, employees can avoid the stress of being unable to pay bills or handle unexpected expenses such as health or auto expenses.
Additionally, offering EWA has proven to help solve common business problems, including boosting employee productivity and engagement at work. Offering on-demand payroll is a fantastic way to showcase your dedication to supporting your employees in securing their financial well-being.
The rise of artificial intelligence (AI) is storming through the nation, and HR & payroll are no exception. According to a recent study, 92% of HR leaders plan to increase their use of AI in 2024.
AI has found applications across various HR functions to assist HR professionals with daily tasks, including recruitment and hiring, onboarding, training and development, and employee management. Although there might be concern about AI taking over human resources jobs, the near future will probably witness AI working alongside existing roles, enabling HR professionals to become more strategic and influential.
“It’s no surprise that the interest level and adoption rate of Large Language Models (i.e. ChatGPT) are on the rise at every level of organizations. While these tools can be utilized to save time by automating mundane tasks, they are not perfect by any means. Companies should be developing their own AI governance structure for how their employees can use these tools on the job. Since every organization safeguards some level of confidential information, factors such as data security and privacy, response reliability and misinformation, and compliance with regulatory standards should be heavily weighed when devising the corporate strategy.”
- Adam Clayton, Proliant CFO
Pay transparency is when companies provide employees with access to information about their colleagues' salaries and wages, aiming to promote a sense of fairness and equality in how compensation is determined.
Pay transparency can be classified as meeting the demands of applicants, as a recent study found that 79% of employees expressed a desire for increased pay transparency. Pay transparency laws are increasing in 2023, so organizations should consider the benefits and drawbacks. This will help businesses remain competitive in recruiting and address pay gaps outside work performance.
Integrating HR and payroll software systems has become a valuable business strategy because it helps streamline processes, minimize errors, and enhance data management capabilities.
According to a recent survey, 52% said a key factor driving the evolution of payroll in the next two years is increased integration of payroll, HR, and attendance systems. This should come as no surprise as these integrations offer businesses a multitude of benefits, such as heightened precision, minimized errors, improved reporting, and reinforced compliance.
“As we step into 2024, HR and payroll integration isn’t merely a trend; it’s a necessity for forward-looking businesses. Our focus on seamless integrations is driven by the belief that efficiency, precision, and compliance are crucial for success. Our integrations (or partnerships) aim to lift businesses to new heights, where data management isn’t just efficient, but truly transformative.”
- Natasha Goehring, Proliant Channel Development Manager
Skills training is near the top of the charts for 2024, as a majority of U.S. employees agree that they need to acquire new skills to be successful in their jobs.
To bridge the global skills gap in 2024, employers offering training programs to their workforce help develop new skills and improve employee retention. Research shows that 93% of Millennial and Gen Z workers expect learning opportunities from their employers, so having a plan to meet these demands is essential heading into the new year.
Mental health and well-being have taken center stage, and we see these two continue to share the spotlight in 2024. Not only is it beneficial for employees, but it can effectively lower healthcare expenses for both companies and their staff members.
HR teams across the globe are already integrating platforms and programs focusing on mental health resources, stress management, and work-life balance to support employees' holistic well-being. If you haven't already, it's crucial to join the pack and implement strategies to meet the mental health needs of your employees.
As we step out of 2023, a trend we expect to carry over is the increasing number of organizations choosing to rebrand themselves as "People & Culture." This idea is that companies focus more on their people, creating a positive workplace culture aligned with its values and mission. When both aspects are flourishing, the business will thrive equally. Conversely, if either one is struggling, it will noticeably impact the business outcomes.
As we talk about people, this also includes those outside your organization. Treating your clients and business partners with utmost care is equally crucial. Therefore, we must provide white glove customer service as we enter the new year.
These nine ever-changing HR and Payroll trends highlight the significance of adaptability and innovation. By embracing these trends, companies can streamline their operations and create a workforce ready to tackle your company's challenges.
At Proliant, we also understand how important it is to keep up with these transformative trends. That's why we developed a suite of HR and Payroll solutions to help businesses seamlessly navigate these changes. We aim to provide businesses with innovative tools and expert guidance to enhance their HR processes and optimize payroll management, ensuring they can remain agile and competitive in the ever-evolving business landscape of 2024.
Remember, the future of HR and Payroll is now. Are you ready to embrace the change?
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