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The labor market may not be as temperamental as last year when the “Great Resignation” was in full swing. Still, HR leaders expect to place a premium on retention and the employee workplace experience in 2024.
Around 44% of HR leaders plan to increase hiring over the next six months, up from 38% in quarter three, according to a new survey of 194 CHROs from the Conference Board shared exclusively with Fortune. That’s a positive sign, given some economic experts (including the Conference Board) are still wary of a recession early next year.
Yet HR leaders’ pessimism is growing over employee retention and engagement. Twenty-two percent of CHROs expect retention to decrease over the next six months (from 18% last quarter), and 31% expect engagement levels to decrease in that same period, from 25% in quarter three.
“I think it’s good news that companies are basically saying, ‘Yeah, we’re confident enough to increase our hiring,’” says Diana Scott, U.S. human capital center leader at the Conference Board. “The downside is…they’re still not very confident about being able to retain as many employees, and they’re really focused on their employees’ engagement.”
As a result, improving employee experience and organizational culture is CHROs’ top focus for 2024, with 75% listing it as a priority.
Scott identifies flexibility as a key driver of improving the employee experience. Previous research from the Conference Board finds that workers value workplace flexibility more than any other total rewards component, including competitive bonuses, paid time off, and retirement plans. However, only 11% of CHROs surveyed say addressing worker flexibility is a priority for 2024.
Flexibility comes in many forms. For office-based employees, one option is hybrid work. Only 10% of CHROs plan to bring workers back to the office full-time next year, and 52% say they plan to improve productivity outcomes through hybrid work arrangements. Deskless workers can benefit from flexibility options like shift swapping or fixed schedules.
“Flexibility becomes something that can increase engagement and solve some of the problems of retention across the board,” says Scott. “We know that it’s something that workers want, and it’s something the best organizations are prepared to figure out.”
Paige McGlauflin
paige.mcglauflin@fortune.com
@paidion
Reporter's Notebook
The most compelling data, quotes, and insights from the field.
Hasbro, the maker of toys and games including Transformers, Monopoly, and Mr. Potato Head, announced Monday it will cut 1,100 jobs, nearly 20% of its workforce, over the next 18 to 24 months.
CEO Chris Cocks attributed the reduction to weak sales during the first nine months of the year, though challenges have lingered during the holiday season and are expected to continue into 2024. The cullings follow a layoff round of 800 workers earlier this year.
Around the Table
A round-up of the most important HR headlines.
- Much of November’s job growth (83%) was in health care, leisure and hospitality, and government employment. Axios
- A lawsuit claiming Disney pays female employees in California less than men will proceed as a class action following approval from a Los Angeles County judge last week. Wall Street Journal
- Almost three-fourths of Paris-based employees surveyed by Bloomberg Intelligence say they would remain at their job even if they had to work in the office five days a week. Bloomberg
- Microsoft will not intervene in union efforts to recruit new members as part of a new partnership with the AFL-CIO, a federation of 60 unions. The pair will also work together to balance AI innovation with workforce impact. Reuters
Watercooler
Everything you need to know from Fortune.
Side hustle stigma. The legal basis for firing employees who post adult content on platforms like OnlyFans—a growing sector of the gig economy— could soon be challenged. —Heather Hollingsworth, AP
Flip-flop. Employees at Nationwide are furious over the insurance provider's mandate for an in-office return two days a week. —Orianna Rosa Royle
Bonuses soar. The U.S. Air Force is trying to stop pilots from entering the private sector by offering bonuses of up to $600,000 and more work flexibility if they choose to remain in service. —Chris Morris
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