New Year, New HR Trends for Brokers to Know

Quick look: The new year is here, and as a broker, your clients turn to you to provide professional guidance on emerging human resources topics. With insights from our internal experts, the ExtensisHR 2024 HR Trends Report reviews the top 10 developments expected to impact employers, from the rising use of artificial intelligence to the need to upskill current staff.

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The human resources (HR) industry is changing rapidly, and to keep up with their competition, brokers must remain aware of developing trends and tweak their portfolios to solve clients’ evolving pain points.  

As a broker-friendly professional employer organization (PEO), ExtensisHR prioritizes informing its broker partners about the latest market developments. With analysis and commentary from our internal thought leaders, the ExtensisHR 2024 Trends Report reviews the top 10 HR focuses expected in 2024 and how brokers can help clients can adapt accordingly. Below, we give a bird’s eye view of each trend. Further details and potential action items for your clients can be accessed in the complete report.

1. Coaching future leaders

Cultivating the next generation of leadership will be paramount to employers this year. A wave of seasoned leaders are retiring, and with just 10% of the population being natural leaders, many successors will require training to help them reach their potential in their new roles.

This guidance can greatly benefit clients, as effective leadership can inspire teams, enhance company culture, and drive innovation.

2. Strengthening organizational culture

Now more than ever, business leaders seek to improve and reinforce their company cultures. An environment that makes every employee feel welcome, valued, and heard can benefit businesses in several ways.

First, today’s top talent seeks workplaces that share their values, making a strong culture a key driver of talent acquisition success. Additionally, a culture with diverse employees brings together a robust set of skills and experiences, strengthening an organization’s institutional knowledge, decision-making, and products and services.

3. Embracing HR technology

The latest technological tools aren’t just fun and novel—they’re increasingly necessary for businesses to stay afloat. As to-do lists lengthen, applications backed by artificial intelligence (AI) allow clients to access actionable data to help them more effectively and equitably manage their workforces.

For example, when used in tandem with human recruiting professionals, AI can analyze large data sets to identify top job candidates and reduce hiring bias. This data may also help clients determine their organization’s skill gaps and any biased patterns in promotion and compensation, which further contributes to their diversity, equity, and inclusion (DEI) initiatives.

4. Preparing for organizational change

If one thing is certain, it’s that your clients will deal with some change in 2024, whether it’s new technology rollouts, mergers or acquisitions, or anything in between.

To remain a steadfast force during these transitions and capitalize on emerging opportunities, clients must embrace agility and learning by upskilling employees, creating a change management framework, and more.

5. Investing in career development

In 2024, clients must have a genuine interest in their staff’s career development to maintain their talented workforces. Almost all employees state it’s important or very important for them to continuously develop their skills, making professional development a cornerstone of sound talent acquisition and retention strategies. Additionally, it’s estimated that by 2027, 50% of skill sets for jobs will have changed, highlighting the need to prioritize continuous learning.

Looking for concrete suggestions to share with your clients? Download the full 2024 HR Trends Report now.

6. Leveraging new skills

Similarly, clients must harness the power of the new skills they’re investing in to pivot and adapt successfully to changing times.

To determine what skills already exist in their workforce and which they need to cultivate based on market demand, clients can establish a skills inventory and use that data to create targeted training programs.

7. Catering to changing demographics

Today’s workers are more diverse than ever, and to make the most impact, clients must personalize the employee experience to accommodate their organizations’ specific demographics.

From employee benefits packages to how leadership communicates with staff, it’s key for business leaders to cater to each generation’s preferences and priorities—otherwise, they risk disengagement and potential turnover.

8. Revisiting total compensation

Compensation, including pay and perks, is being put under the microscope due to a competitive labor market, a dispersed workforce, and the growing gig economy. This year, it’s imperative that clients are transparent about how they calculate their employees’ pay, how they communicate it, and how it’s benchmarked against industry standards.

Clients should also identify potential opportunities to offer additional perks, like mental health support, educational stipends, enhanced parental leave, and more.

9. Honing employer branding

In 2024, a strong employer brand will continue to help clients stand out in a crowded labor market. Proper branding can help organizations attract and hire top talent, and decrease turnover and reduce hiring costs thanks to its ability to ensure the organization’s and employee’s values align.

Effective employer branding also resonates with stakeholders and the community, contributing to clients’ overall success, reputation, and market share.

10. Embracing flexible work arrangements

Remote work is highly coveted—and will remain so this year. According to Robert Half, 18% of workers are willing to take a pay cut to remain fully remote, and approximately 75% are happier and more productive when they’re working from home despite sometimes having to work longer hours.

In addition to providing flexible accommodations, clients should hone their company cultures to ensure all workers, regardless of location, feel engaged and connected.

A trusted partner to support you as a trusted advisor

As a broker, your clients turn to you for tried-and-true solutions to their issues and expect guidance on many employer-related topics. The right PEO partner, like ExtensisHR, can streamline that process.

ExtensisHR strikes the balance of a robust product offering and friendly, expert advice, enabling brokers to align their clients with proven solutions to help them adapt to the future of work. For example, ExtensisHR offers:

• Personalized employee benefits plans at competitive rates, and benefits administration and management services.
• Dedicated HR managers to help clients craft policies and procedures to accommodate the modern workforce.
• Risk and compliance expertise to keep clients compliant with local, state, and federal laws.
• A data-backed DEI Dashboard that provides valuable, real-time DEI data on pay equity, salary trends across both gender and race demographics, employee turnover, promotions, and more.
• Access to 15Five, an industry-leading employee engagement and performance management application.

With a PEO like ExtensisHR, you’re never alone. Our broker-friendly philosophy means we’re dedicated to helping you grow your book and strengthen your portfolio as your clients’ needs fluctuate.

To access tips to share with your clients, download the 2024 HR Trends Report using the form below, or contact ExtensisHR to learn more about becoming an ExtensisHR broker partner.

Download your copy of the 2024 HR Trends Report

Get the full breakdown of key industry developments impacting today’s workforce to help guide your clients’ HR strategy in 2024 and beyond.