Zarah ChoudharyEmployee wellbeing became the top priority for HR leaders in 2024, overtaking all other concerns according The State of Employee Engagement report.
The report showed that businesses focused on physical, mental, and emotional health to retain talent and maintain productivity.
Hybrid working models, balancing flexibility with social interaction, were identified as the most effective for mental health.
However, 51% of HR professionals reported difficulty in reaching ‘deskless’ workers, who make up a significant portion of the workforce.
Engagement levels improved for 58% of organisations, but 42% reported stagnation or decline.
Companies increased the frequency of employee surveys, with 29% conducting them monthly or weekly, compared to just 5% the previous year.
Artificial intelligence (AI) played a larger role in engagement strategies, with 35% of HR professionals actively exploring its benefits.
However, 19% were worried about the loss of the human element in HR and 10% concerned about job security.
While 37% of HR professionals reported improvements in hiring, skill shortages are a persistent issue, particularly in sectors reliant on deskless workers.
There was a shift from hiring for cultural fit to hiring for cultural add, with organisations prioritising diversity of thought and experience.
Retention fell in priority, dropping eight places from last year’s top spot.
Economic pressures eased, and only 31% of respondents cited competitive salaries and benefits as a major challenge, down from 45% last year.
The biggest drivers of turnover included a lack of career development and recognition, particularly among younger employees aged 16 to 24.
Leadership capability increased in priority, with trust in senior leaders emerging as a key driver of engagement.
Culture also moved up one place in importance, with HR leaders focusing on creating inclusive, values-driven workplaces.
Performance and productivity dropped to seventh place on the priority list, with 45% of HR professionals reporting improvements, up from just 18% the previous year.
The most cited challenges affecting productivity were fostering collaboration across teams (24%), recruiting people with the right skills (20%), and low workforce morale (16%).
Equity, diversity, inclusion, and belonging rose four places as an HR priority, with 51% of organisations reporting that their workplaces were more diverse and inclusive than the previous year.
However, 13% reported a decline in diversity and inclusion.
The top barriers were attracting diverse talent (26%), ensuring leadership representation (22%), and creating environments where employees feel heard (24%).
With the workforce now spanning six generations, HR professionals cited communication across generations (13%), aligning generational values to company values (13%), and managing different expectations around career development (13%) as the biggest challenges.
When it came to the use of AI, HR leaders cited the ability to listen to employees (12%), better understanding employee behaviours (10%), and improving work-life balance (7%) as the most desired capabilities for improving engagement.
