2024 HR Trends And How To Manage Them

As healthcare business owners prepare for the year ahead, we expect most will take a cautious approach, in part because of economic uncertainty tied to world events and upcoming elections. But caution will also be required in determining how generative artificial intelligence (AI) fits within organizations and in managing a workforce that is more informed of their workplace rights.

Here are three trends our HR experts anticipate in 2024 and tips for how to navigate them.

Managing your workforce during economic uncertainty

Factors such as political instability and the impending presidential election are contributing to uncertainty in the year ahead. And though the economy outperformed expectations in 2023, economic forecasts vary widely on what 2024 will bring.

This uncertainty is prompting small and mid-sized business owners to evaluate business decisions in anticipation of an economic downturn. Open positions may be left unfilled, budgets may be cut as operational costs continue to be unpredictable and growth initiatives may be put aside in favor of a risk-averse approach.

Emphasizing financial stability and developing a flexible business model will be key to navigating 2024. Perhaps one of the most important HR strategies to consider this year is managing a workforce through economic uncertainty with an enhanced focus on employee retention.

According to Gallup, U.S. businesses lose almost a trillion dollars every year due to employee turnover. High turnover rates contribute to a decrease in productivity, leading to a decrease in revenue. Turnover can also negatively impact your reputation, making it difficult to attract top-tier talent. And constant turnover can lead to unreliable customer service, causing healthcare companies to lose patients as well.

A strong retention strategy can decrease turnover, and it begins with a workplace culture that prioritizes employee engagement through steps such as:

Fostering open communication. Be open with your staff. Promote an open-door policy so employees feel empowered to share concerns and ideas.
Offering real work-life balance. Today’s healthcare employees seek a better work-life balance. Provide sufficient paid time off and consider flexible scheduling. For example, a dental office may start the day earlier so staff can get home to their children earlier or offer extended midday breaks, providing employees the opportunity to run errands.
Evaluating your compensation and benefits package. Make sure your pay and benefits packages are competitive and adjust, if necessary. If offering competitive benefits is a challenge due to costs, consider collaborating with a professional employer organization (PEO), which provides access to affordable Fortune 500-level benefits that rival major corporations.
Acknowledging your employees. Rewards and recognition matter. Ask your employees how they prefer to be recognized so you can provide tailored rewards.
Supporting employee well-being. Provide resources such as an employee assistance program or telehealth services that provide easy access to mental-health resources.
Provide professional development and career growth opportunities. Provide training and development so your employees can envision a long-term career path and develop new skills within the organization.

Ultimately, a workplace culture focused on employee satisfaction leads to stronger retention, which leads to happier employees, equating to a better bottom line.

Getting the workplace ready for generative AI

Generative AI quickly garnered attention when ChatGPT launched a year ago, but reactions have been mixed within the workplace. Business leaders are eager to improve productivity and innovation with the tool, yet workers fear they may be replaced by AI.

As more companies have implemented generative AI, it’s become increasingly clear that AI is best used when humans are involved and a system of checks and balances are in place. HR leaders can prepare your workforce for generative AI by providing proper guidance through company policies and training on how to properly use the tool. The result? Opportunities to streamline processes and innovate that can benefit your business and your employees.

An essential step in preparing the workforce for generative AI is understanding the potential risks healthcare organizations face when implementing the technology, such as:

Employee concerns: Employees have real concerns about losing their jobs to AI, so it’s important to communicate openly with workers about how their roles may change and help them understand how AI can benefit them.
Bias and inaccuracies within AI tools: Language learning models are built with publicly available content, and that content may include biases or inaccuracies. It’s possible that an AI output may also include the same biases or inaccuracies. Train staff to be aware of potential biases, how to recognize them, and how to fact check content.
Legal risks: New York City introduced legislation regarding HR technology systems that aid in hiring, and it’s likely more legislation will come at the federal and state level. HR teams that use AI to help identify and hire job candidates must be mindful that the technology isn’t violating workplace laws during the process.
Privacy and security risks: HR leaders should work with IT and compliance teams to ensure privacy and security concerns are addressed as they introduce AI into the workplace.

Engaging a more informed workforce

Today’s workforce is more informed about their rights than ever, in large part because workplace trends are being shared by career coaches, employment lawyers, and workers on social media platforms such as TikTok. Whether their viral posts are airing grievances, sharing workplace experiences, or sharing inaccurate information, this is how many employees are gathering information. They’re also accessing employment-related information from Glassdoor and Indeed, where employees openly discuss their companies, and employment-related blogs and websites.

In addition, regulations such as the National Labor Relations Act give workers protected rights, including the ability to discuss wages, workplace conditions, or benefits with their co-workers. Healthcare business owners and HR leaders should understand the latest employment regulations and ensure company policies aren’t infringing on these rights.

It’s also important to recognize that many of these workplace-related viral posts and other online grievances are shared by employees who feel undervalued, disengaged, or who have lost trust in their leadership. Creating a culture where employees feel cared for and assessing employment engagement efforts will help restore trust with your employees and build a workforce that feels appreciated and valued.

Our experts recommend these strategies for strengthening company culture and improving employee engagement:

Give your employees opportunities to submit feedback regularly, listening to their responses, then acting on their feedback.
Facilitate better communication between managers and their teams. Consider implementing training for your managers to help them improve communication.
Provide managers with leadership training since many managers move into leadership roles without any prior leadership experience.
Conduct salary audits to ensure pay equity. The Equal Pay Act and numerous state regulations and laws require employees in similar positions be compensated with equal pay. It also boosts morale and reduces employee turnover, both critical to a strong culture.
Be transparent about reasons behind your business and policy decisions, and when possible, offer alternatives that show you understand your employees’ concerns and are working on solutions.

Human resources will play a pivotal role in managing these trends this year. By improving your practice’s employee retention, preparing the staff for generative AI, and strengthening employee engagement, your healthcare business will be prepared to navigate successfully through economic uncertainty, a more informed workforce, and the promise of AI.

Susan Crowder is the HR manager of client success at G&A Partners.