Workplace trends are shaping the future of business, and staying ahead of these changes is crucial for small business owners. In 2024, technological advancements, evolving employee expectations, and economic factors are transforming how we work. This article discusses the key workforce trends for 2024, providing essential statistics and insights to help you navigate and leverage these changes. By understanding these trends, you can make informed decisions that will attract, retain, and develop the best talent for your business.
AI & Automation
1. 75% of knowledge workers now use AI at work, with 79% of leaders agreeing that AI adoption is critical to remain competitive
Currently, 75% of knowledge workers incorporate AI into their daily tasks, with 79% of business leaders recognizing its critical role in maintaining competitiveness. Given that, 41% of leaders expect to redesign their operations using AI between 2024 to 2029. For small business owners, this underscores the importance of adopting AI technologies to stay ahead.
Integrating AI can streamline operations, improve decision-making, and enhance productivity. To maximize these benefits, invest in training programs to help your team effectively use AI tools, ensuring your business remains competitive in a rapidly evolving market.
2. 78% of workers fear job loss due to AI
A growing concern is that 78% of workers fear losing their jobs to AI advancements. Small business owners should address these fears by investing in employee training and upskilling programs. Emphasizing the role of AI in augmenting rather than replacing jobs can help alleviate anxiety. By integrating AI thoughtfully, businesses can enhance productivity while maintaining a skilled and confident workforce.
Workforce Preferences & Trends
3. 60% of employees prefer hybrid or remote work
Hybrid and remote-only work models are becoming increasingly popular, with 60% of workers preferring hybrid schedules and around 30% wanting fully remote jobs. For small business owners, this shift means considering flexible work arrangements to attract and retain talent. By offering hybrid or remote options, businesses can enhance employee satisfaction, reduce overhead costs, and tap into a global talent pool.
4. 63% of candidates prefer a four-day workweek
The four-day workweek is becoming increasingly popular, with 63% of job seekers rating it as a highly attractive benefit. Small business owners can consider implementing this schedule to improve employee engagement and well-being. By reducing the workweek, businesses can potentially increase productivity, reduce burnout, and become more competitive in attracting and retaining talent.
For small businesses that can’t implement a four-day workweek due to staffing constraints, there are several alternatives to offer flexibility and support employee wellbeing. Options like flexible start and end times, compressed workweeks, and remote work opportunities can help balance staffing needs while giving employees more control over their schedules.
5. 77% of employees report high stress levels
Employee engagement is on the rise globally, but stress levels remain alarmingly high, especially in the US, where 77% of employees report high stress. For small business owners, this highlights the importance of prioritizing employee well-being. High stress can negatively impact productivity, job satisfaction, and retention.
Keep a pulse on your workforce’s well-being through employee surveys. These can help pinpoint causes of stress and burnout, allowing you to implement countermeasures to keep an engaged and healthy workforce. Some simple strategies to alleviate stress and enhance overall engagement are providing flexible work schedules, mental health support, and employee wellness programs.
(American Psychological Association, 2023)
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6. 69% believe that employees may quit over salary issues
In a survey, 69% of respondents agree that employees might leave their jobs if they feel their salaries are inadequate. As such, small business owners should conduct regular market comparisons to get the compensation ratio and ensure their compensation packages are competitive. There are also tools available to help with this effort—check our guide to the best salary comparison tools for some options.
Offering fair and equitable pay can improve job satisfaction and reduce turnover. Also, clear communication about employee compensation structures and opportunities for raises can enhance employee retention and loyalty.
7. 67% of workers foresee gig economy expansion
A notable 67% of employees believe the gig economy will expand in 2024. Small business owners can leverage this trend by hiring freelance and contract workers for their teams. This approach provides flexibility and access to a diverse talent pool without long-term commitments. Embracing the gig economy can help meet project-specific needs and reduce labor costs.
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8. 78% of workers expect a recession in 2024
A significant 78% of respondents anticipate a recession in the US in 2024. Small business owners should prepare for economic uncertainty by managing expenses carefully and building financial reserves. This proactive approach can help your business navigate potential downturns and remain resilient.
9. Demand for creative thinking skills will grow by 73% by 2028
With rapid changes in job roles, the demand for creative thinking skills will continue to rise. Small businesses should prioritize skills-based hiring and invest in continuous learning programs. By focusing on both technical and soft skills, employers can ensure their workforce remains competitive and capable of adapting to industry changes.
10. Only 23% of employees trust leadership
Trust in leadership remains low, with only 23% of employees expressing strong trust in their leaders. Small business owners need to work on building trust through transparent communication, supportive leadership, and consistent actions. By doing so, they can improve employee morale and loyalty, which are crucial for long-term success.
Diversity, Inclusion & Sustainability
11. 93% of companies report strong senior leadership support for DEI efforts
The US workforce is becoming more diverse, with a growing emphasis on Diversity, Equity, and Inclusion (DEI). This shift means small business owners need to prioritize DEI initiatives to attract and retain top talent. Embracing diversity can lead to a more innovative and productive workplace.
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12. 80% of workers want their employers to prioritize sustainability
Sustainability is important to 80% of workers, influencing their choice of employers. Small business owners should integrate sustainable practices into their operations to attract eco-conscious employees and customers. By focusing on sustainability, businesses can improve their environmental impact, reduce costs through energy efficiency, and enhance their brand reputation, making them more competitive in the market.
13. Closing economic gender gaps could lift global GDP over 20%
Increasing female workforce participation can drive significant economic growth. Small businesses should implement supportive measures, like flexible work schedules and childcare benefits, to attract and retain female talent.
Workforce analytics and data analysis are essential tools for monitoring gender inequalities in hiring, promotions, and terminations, allowing businesses to identify and address any gaps in equity. By fostering an inclusive work environment, businesses can enhance productivity and innovation, ultimately contributing to broader economic gains. Prioritizing gender diversity can also improve company reputation and employee satisfaction.
Economic Outlook & Job Market
14. Pay raises may fall to an average of 3.5% in 2025
Despite prior reporting suggesting pay raises would remain at about 4%, a new report suggests pay raises in 2025 may fall much further, to an average of 3.5% nationwide. Respondents often cited a cooling labor market as leverage to reduce potential raises.
In reality, this practice may encourage employees to keep looking for new jobs, given that changing jobs can increase pay by nearly 10%. If employers want to keep their employees, they should seriously consider increasing their retention budget.
15. 38% of workers are freelancers
Freelancers now make up 38% of the workforce. For small business owners, leveraging freelancers can provide flexibility and access to specialized skills without the overhead of full-time employees. This approach can help manage costs and adapt quickly to changing business needs, ultimately driving growth and innovation.
16. Global digital jobs are expected to rise to around 92 million by 2030
The growth of digital jobs represents a significant opportunity for businesses to tap into a global talent pool. These roles, often higher-paid, can help address skill shortages in various industries.
Small business owners should focus on digital transformation and consider hiring remote digital professionals to stay competitive. This trend also highlights the importance of digital literacy and upskilling current employees to meet the demands of an evolving job market.
Bottom Line
Adapting to the evolving workforce trends of 2024 is crucial for small business success. Embracing AI and automation can significantly enhance productivity, while flexible work models cater to employee preferences, improving satisfaction and retention. Prioritizing DEI and sustainability not only attracts top talent but also enhances your brand’s reputation and market competitiveness. By staying ahead of these trends, small business owners can build resilient, innovative, and thriving organizations.
