HR Trends & Issues Survey 2024

Published September 25, 2024

Conducted online among 182 HR executives and business leaders nationwide by global outplacement and business and executive coaching firm Challenger Gray & Christmas.

Survey: How Cost-Cutting is Shaping the Workplace in 2024

Companies are indeed in cost-cutting mode as we enter the final quarter of the year, and companies are looking at travel, bonuses, salary, and the lower cost of technology solutions to enact savings. Meanwhile, with cost-cutting and organizational change, companies report concern about their teams’ quiet quitting and over one-quarter of them have evidence suggesting it is occurring, according to new results from the HR Trends & Issues Survey conducted by global outplacement, business and executive coaching firm Challenger, Gray & Christmas, Inc.

Source: Challenger, Gray & Christmas, Inc.

See the Fall 2023 Survey Result Report Here

AI in the Workplace: A Disconnect Between Usage and Policy

Artificial Intelligence is increasingly being used as a tool by employees, but companies have yet to catch up in terms of policy and training. According to the survey, 37% of employees are using AI tools at work, a significant jump from just 12% in Fall 2023. Despite this rise, 27% of companies have yet to acknowledge AI in their corporate strategy, suggesting a growing gap between employee behavior and company oversight.

Source: Challenger, Gray & Christmas, Inc.

While a small fraction of companies (12%) have introduced AI for specific tasks or trained employees on its use, most organizations are lagging behind in creating comprehensive policies.

“The lack of formal AI governance could lead to issues related to data security, intellectual property, and ethical concerns. In the absence of structured guidance, employees are left to explore AI tools on their own, underscoring the need for businesses to proactively create frameworks for responsible AI use,” said Andrew Challenger, workplace expert and Senior Vice President of Challenger, Gray & Christmas, Inc.

Cost-Cutting Through Return-to-Office Policies

The post-pandemic workplace continues to evolve, with companies using return-to-office mandates as a strategic tool for cost reduction. Notably, 9% of organizations are leveraging a return-to-office initiative as part of their cost-cutting measures. This marks a shift from more traditional methods like layoffs or reducing business travel, which are still prevalent.

Source: Challenger, Gray & Christmas, Inc.

While 69% of companies are continuing to reduce travel expenditures (down from 76% last year), there is an increasing focus on bringing employees back to physical office spaces as a means of reducing costs tied to remote work infrastructure, office leasing, and administrative overhead.

Quiet Quitting: A Growing Concern with Limited Evidence

The issue of “quiet quitting”—where employees disengage without formally resigning—continues to be a concern for many organizations. According to the latest survey, 32.95% of companies are worried about quiet quitting, even though they have no concrete evidence that it is occurring. Another 26.14% of organizations report having some evidence of employee disengagement or reduced productivity, highlighting that quiet quitting remains a visible issue in the workplace.

Source: Challenger, Gray & Christmas, Inc.

Interestingly, 18.18% of companies state they are not concerned about this phenomenon, while 7.95% report that their employees are engaged and productive based on collected data. However, 9.09% of companies admit they are not actively tracking quiet quitting, which could indicate that the problem might be underreported in some organizations. These findings suggest that while quiet quitting is on the radar for many employers, the lack of clear evidence or formal tracking mechanisms might obscure its true impact.

Leadership Perception: A Slight Decline in Favorability

The Summer 2024 survey results reveal a slight decline in favorable views of leadership compared to Fall 2023. In Summer 2024, 54.55% of employees reported having a favorable view of their leadership team, down marginally from 56.14% in Fall 2023. Interestingly, there is a notable reduction in the percentage of employees who express outright dissatisfaction, with 10.23% stating unfavorable views, a significant drop from 24.56% in Fall 2023. However, more companies (21.59%) report they are not tracking or have not asked about leadership perceptions, up from 12.28% last year. The share of employees reporting mixed views also increased, from 5.26% in Fall 2023 to 10.10% in Summer 2024, indicating a potential shift in how leadership is perceived, possibly driven by organizational changes or the evolving workplace environment.

Employee Priorities: Flexibility and Meaningful Work Take Center Stage

The survey reveals that employee priorities are becoming increasingly focused on flexibility and the quality of work. Flexibility remains the most important factor for employees for the fourth consecutive survey, with an average rating of 3.94 out of 5. This demonstrates that employees, even as return-to-office measures increase, continue to value remote or hybrid work options.

Source: Challenger, Gray & Christmas, Inc.

The second-highest priority for employees is meaningful or purposeful work, reflecting a shift towards seeking more personal fulfillment in their roles. This is a significant rise compared to past surveys, where meaningful work ranked much lower. In addition, career advancement has become increasingly important, signaling that employees are seeking growth opportunities in addition to flexibility.

Interestingly, while higher salaries and empathetic leadership remain important, they have dropped in priority compared to previous surveys, suggesting that employees may be more focused on long-term career goals and job satisfaction rather than immediate financial compensation.

Employer Offerings: Aligning with Employee Needs

In response to the evolving priorities of employees, companies are adjusting their offerings, though not always in alignment with what workers value most. For example, 50% of employers are focusing on leadership development as a tool to attract and retain employees, a slight decrease from last fall. Diversity, Equity, and Inclusion (DEI) initiatives remain a focus for 40% of employers, yet this figure has declined slightly from past reports, perhaps reflecting shifting corporate priorities.

Meanwhile, signing bonuses are being offered by only 28% of companies, a significant decrease from 2023 levels, indicating that companies may be moving away from financial incentives as a primary recruitment tool. Instead, hybrid work arrangements remain a popular option, with 70% of companies offering some form of remote work, though this too has seen fluctuations in importance across surveys.

AI as a Missed Opportunity?

Despite the rapid adoption of AI by individual workers, the fact that companies are not creating formal policies to manage its use presents a potential missed opportunity. AI is already reshaping workflows, but companies risk falling behind in governance, training, and strategic use of AI. As more employees independently adopt AI tools, the absence of corporate direction may lead to inconsistent practices, missed efficiencies, and potential risks in data management and cybersecurity.

Source: Challenger, Gray & Christmas, Inc.

Moreover, while 40% of companies report using AI to replace employee functions, there is still little attention given to the training and upskilling necessary to integrate AI successfully into daily operations.

Remote Work Trends: Flexibility Continues to Dominate

The trend toward remote and hybrid work arrangements remains a defining feature of the post-pandemic workplace. According to the survey, 54% of companies continue to offer hybrid or fully remote work options, demonstrating that flexibility is here to stay. Interestingly, while remote work remains popular, the number of companies offering fully remote positions has slightly declined, indicating a shift toward hybrid arrangements as the new norm. The three-day in-person workweek appears to be a common model, with 33% of companies requiring employees to be in the office three days per week, up from 26% in Spring 2023.

Source: Challenger, Gray & Christmas, Inc.

Challenges in Filling Roles: Hiring Eases but Gaps Remain

More companies report filling roles is getting easier, further evidence of a loosening labor market. According to the survey, 30% of companies report that while they are still having trouble filling roles, the situation is getting easier compared to earlier this year. However, some companies remain in a hiring freeze, with 17% not currently hiring or having frozen their hiring efforts, a decline from 27% in Spring 2023. Employers offering remote or hybrid roles report fewer difficulties in filling positions compared to those requiring full in-person attendance. Despite these improvements, employers are still struggling to attract the right talent, especially in industries like healthcare and technology, where specialized skills are in high demand.

Source: Challenger, Gray & Christmas, Inc.

“Finding the right talent, especially for highly technical roles, is still an issue for employers. As companies cut budgets, particularly salaries and bonuses, this will continue to plague recruiters,” said Challenger.

Download our full Survey Results here.

Contact Colleen Madden Blumenfeld for more data or to set up an interview with SVP Andy Challenger.