What big trends will we see in the workplace in 2024?
Where and how we work has changed significantly for many people in recent years.
On the one hand, the coronavirus pandemic has accelerated moves towards remote working, giving people more flexibility and saving some from the time and expense of commuting to the office.
But on the other, many people have found that their salaries have not kept up with the huge surges we’ve seen in living costs.
So what’s in store for 2024?
Meanwhile, giving insights into what else the year may bring, James Reed, chairman and CEO of jobs and recruitment specialists Reed shares his expectations around some key trends:
1. Salary improvements amid slowing inflation
“The economic headwinds of 2023 have left a mark on the labour market,” says Reed.
“Namely, the impact of high inflation rates and the cost-of-living crisis have been felt in peoples’ pay packets, as real wages have been squeezed.”
Salary growth started strongly in 2023, but sharp rises in living costs have numbed the impact of this in terms of how far workers’ cash will stretch.
With inflation showing signs of easing, some people may start to feel the impact of pay rises more in their wallets.
2. Hybrid work
“The impact of the pandemic on the world of work has been one of the biggest structural resets we’ve witnessed in recent times,” says Reed.
“It ushered in the rise of remote work, attracted more talent and reduced staff turnover, but we are now starting to see more employers mandating more in-person days.
“While hybrid working looks to be a permanent feature for many workplaces who are positioned to offer this flexibility, there are signs some companies are increasing salaries for employees who need to show up in-person, in what we are terming the ‘in-person premium’.
3. Tech-driven recruitment
The potential of AI – or artificial intelligence – to transform our lives has been a hot topic.
Reed says: “As the industry anticipates a new wave of technological advancements in the coming years, it’s important that businesses remain vigilant of how they can reap the benefits and spot new opportunities.
“One of our recent employer surveys highlights this, as 34% of businesses are currently creating an AI strategy to acquire technologies and tools to gain a competitive advantage.
4. Up-skilling and re-skilling
2024 could be time for a reset for some workers, as they adapt and take on new skills.
Reed says: “In 2023, we’ve seen employers take back the reins in the labour market, as job postings experienced an 18% year-on-year decrease alongside a 29% (year-on-year) increase in applications.
“As competition for jobs intensifies – and highly skilled candidates become more sought-after – jobseekers who are equipped with a more advanced set of skills and expertise will find themselves in a favourable position.
5. ‘Green’ and purpose-led jobs
Reed predicts: “Purposeful roles will continue to be prosperous – particularly amongst Millennials and Generation Z candidates who tend to gravitate towards purpose-led organisations, whether in relation to the environment, social issues, or charitable causes.
“As the climate emergency intensifies, green jobs are also on the rise, but there remains a skills shortage to fulfil these roles and support the transition to net zero. This year we set up Reed Environment to deliver training in critical areas such as solar and heat pump installations, along with EPC (energy performance certificate) assessments.”