People Risk will be at the top of the agenda in 2024

Brent Herman, Director - Talent Solutions gives his prediction for 2024 on how people risk will be at the top of businesses agendas.

As we move into 2024, the concept of ‘people risk’ is increasingly taking centre stage in business strategy discussions. Amidst a backdrop of economic volatility and global conflicts, many organisations find themselves in a position where downsizing and optimising resources have become unavoidable. This trend doesn’t just affect those who leave the organisation, it also significantly impacts the mental health and wellbeing of remaining employees, who may face heightened job insecurity.

The challenge for businesses is two-fold: managing the fallout of downsizing while also nurturing a healthy and motivated workforce. Providing outplacement services and mental health support will be key in supporting both outgoing and remaining employees during these challenging times.

Another dimension to the people risk agenda is digitalisation and AI. While technological advancements offer immense potential, they also pose risks to job security. Understanding how these advancements interact with current capabilities and future business needs will be crucial.

I believe that the role of environment, social and governance (ESG) initiatives in talent management will also become increasingly significant. With Gen Z coming into the workforce, there will be a growing emphasis on environmental and societal contributions as key motivators. This shift necessitates a move away from a one-size-fits-all approach to employee benefits and towards strategies that cater to diverse generational needs and values.

The ‘S’ in ESG, along with DE&I, will remain critical moving into 2024. Despite a recent downturn in DE&I efforts, it’s vital that this momentum is not lost. The DE&I agenda should be seamlessly integrated into business processes, recognising the intersectionality of various dimensions of diversity and its impact on the workforce.

Finally, the trend towards hybrid working will continue to influence the people risk agenda. The shift back to office-based work for part of the week is becoming more prevalent. However, flexible working arrangements are a significant differentiator in attracting and retaining talent. Such arrangements not only appeal to new generations entering the workforce, but also promote equity and inclusion across diverse employee demographics, including working parents, individuals with disabilities and those from different social backgrounds.