Insperity, Inc., a leading national provider of human resources and business performance solutions, announced the release of its new Business Outlook Report 2024. The report provides the HR outlooks and concerns of small and midsize business leaders, based on quarterly surveys conducted by Insperity. The key findings show most respondents, who are the company’s clients, held a positive outlook about their company’s performance for 2024.
Talent retention was the top HR priority most cited by 56% of respondents, followed by building a strong culture (55%) and keeping employee engagement high (51%). Other HR priorities include managing healthcare costs, employee wellness, upskilling workers and keeping pace with the changing nature of work, including the role of AI and the continued evolution of remote and hybrid work schedules.
“In our survey, we found that America’s best small and medium-sized businesses are optimistic about 2024,” said Steve Arizpe, Insperity president and chief operating officer. “As always, leaders should look ahead to prepare for the future by paying close attention and prioritizing their people—the company culture, changing nature of work, employee engagement and committing themselves to training their workforce.”
The survey results include multiple noteworthy findings based on what is on the minds of business and HR leaders today. Key findings include:
- Business and HR leaders have a positive outlook for 2024. Six in 10 respondents expressed an optimistic outlook about their business’s performance in 2024, while only one in 10 expressed a concerned outlook.
- People are a priority. The most common HR concerns cited by respondents were talent retention (56%), culture (55%) and employee engagement (51%). Furthermore, three in four respondents said they were very or somewhat concerned about employees feeling less connected to their team or organization, and a similar number were somewhat or very concerned about reduced employee loyalty.
- Small and medium-sized businesses are taking steps to create an employee-centered culture. Specifically, survey respondents said they approach employee engagement and culture using onboarding processes (41%), team-building initiatives (47%), employee events outside work hours (40%) and employee surveys (30%). In addition, six out of 10 considered an open-door policy to improve employee engagement and culture, another tool to understanding employees and their concerns.
- Employers are concerned about healthcare costs. Forty-three percent of respondents said managing healthcare costs was a top HR concern, reflecting rising healthcare costs overall.
- Many businesses have yet to implement an upskilling program. Under half of respondents said they had a strategy in place to build the skills of their workforce through upskilling and training. However, another 34% said they expected to put a strategy in place but had not done so yet.
- Organizations are continuing to offer hybrid and/or remote work. Six in 10 respondents said they use remote and/or hybrid work as part of their talent strategy, which is a reflection of the major changes seen in the workplace over the past several years.
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