As the year draws to a close, it's time to look beyond the usual trend forecasts and focus on something more fundamental for the future of HR. Here are the Nua "2024 HR Anti-Trends" — key principles in Compensation and Benefits, that often miss the spotlight but are crucial for your company's enduring success. These essential elements are designed to build a resilient and adaptable HR strategy, ready for sustainable growth, not just in 2024, but for years to follow.
Yes, you may already have a strategy figured out for 2024. Now, make it work for you!
1. Review your Job Architecture to ensure it is fit for purpose
This is the foundation we go back to all the time with our clients. A well-designed job architecture is truly the “people's spine” of an organization, enabling career development, appropriate pay, and workforce planning decisions.
2. Have a defensible compensation and equity structure
Develop a compensation and equity strategy that is transparent, equitable, and easy to justify. It should be simple to explain, make logical sense, and avoid any form of discrimination against specific groups within your employee population.
3. Address the complexities of managing compensation and benefits for a global workforce
Does your global rewards strategy reflect your “real” strategic intent? Past “hyper-growth” may have led to temporary solutions being implemented that now need review to reflect your strategy and also local regulations, market standards, and cultural differences.
4. Focus on Benefits Operations
Pay close attention to the operational aspects of your benefits programs, particularly leave management. This includes examining data flow, defining vendors’ roles, and creating clear process maps. Efficient operations are key to a smooth and effective benefits delivery.
5. Master Clear Communication
Often overlooked, the power of clear communication is vital in ensuring your employees not only understand but also truly value their compensation and benefits. It's the bridge that connects your intentions with their perceptions, turning what seems obvious into something deeply appreciated and impactful.
6. Target True Cost Control in Healthcare
To effectively manage healthcare expenses, it's crucial to move past the standard approaches of simply switching vendors or shifting costs to employees. Explore new models of delivery to ensure your plan encourages employees to select the most cost-efficient care.
7. Evaluate Paid Leave Support Beyond Parental Leave
Consider a broad set of support services that cater to various employee needs, reflecting a more inclusive and supportive workplace culture.
8. Address the Challenges of Pharmacy Benefits Management
Consider transparent Pharmacy Benefit Manager options (PBM), alternatives to traditional rebate models, and enabling alternative buying channels for employees who need high-cost drugs.
While it's tempting to get caught up in the hottest trends, remember the importance of these HR fundamentals. In 2024, embracing these core principles will be the key to making your strategy work effectively for your organization. Stay grounded in these essentials, and watch your HR strategy thrive in the year ahead!