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Employee engagementLatest NewsHR strategyRecruitment & retentionRetention of staff

Retention will be biggest HR challenge in 2024

by Ashleigh Webber 20 Dec 2023
by Ashleigh Webber 20 Dec 2023 Employee retention was identified as the biggest HR challenge for 2024 by 36% of HR professionals
Shutterstock
Employee retention was identified as the biggest HR challenge for 2024 by 36% of HR professionals
Shutterstock

HR professionals expect retaining staff to be their biggest challenge in 2024, a survey has found.

More than a third (36%) of HR professionals surveyed by employment law service esphr by WorkNest identified employee retention as a priority for the new year, with recruitment (30%) a close second.

These findings align with recent Culture Amp research that found a fifth of workers are at high risk of leaving their jobs in 2024.

The cost-of-living crisis appears to have fallen down HR’s list of priorities according to esphr, with only 27% identifying it as a concern for 2024, compared with 70% who said it would be a challenge in last year’s survey.

Employee engagement is a 2024 priority for 26%, while legislation changes (7%) and government changes (9%) were of lesser concern for HR.

Charlotte Ashton, associate solicitor and head of immigration at esphr, said: “We have seen a shift in what most concerns HR managers with not one, but two, key areas overtaking the rising cost of living which shows how much can change in just one year.

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“As we start to see economic signs of recovery continuing following some very turbulent pandemic years, the job market continues to grow which gives people more opportunity to explore job options more freely. Therefore, if your organisation isn’t providing a good environment, salary, benefits and culture, retention could be a significant issue.”

Asked what would be the most important areas of support for employees in 2024, mental health and wellbeing came out on top (46%). This was followed by flexible and hybrid working (42%) and diversity, equity and inclusion (37%).

esphr also asked HR about the impact a general election could have on the workplace. Sixty per cent said they were concerned about the effect it might have on employment laws and pending bills including equality and discrimination legislation, flexible working rights, industrial relations laws and family-friendly rights.

Several new employment laws are to be enacted next year, including The Flexible Working (Amendment) Regulations 2023, which will give employees the right to request flexible working from day one of employment, and The Carer’s Leave Act 2023 (Commencement) Regulations 2023, which will give workers with long-term caring responsibilities the right to a week of unpaid carer’s leave.

Fourteen per cent were concerned that a change of government would affect employment tribunal access and processes.

esphr surveyed 137 HR professionals.

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Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

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