A blueprint to navigate the uncertain business landscape in 2024

With 2023 almost behind us, businesses have navigated a landscape riddled with staffing challenges, notably marked by a persistent skills shortage and the uncertainty of economic changes. We have seen employers up against retention issues, high competition for specialised talent, and evolving employee expectations. In 2024, it’s likely employers will continue to be challenged by a tight labour market, and another year of business transformation, driven by tech advancement and evolving workplace dynamics. 

Navigating change is challenging, but it’s something every SME needs to be ahead of. These are the career trends I believe are poised to shape the way businesses operate over the next twelve months and beyond. 

Proactive workforce planning

Workforce planning has never been more important, so businesses can adopt a proactive approach to talent shortages. Some of the key things we are seeing are businesses working on their traineeships and apprenticeships to build up capability. Where skills cannot be hired, there’s also restructuring of the role designs for current staff to alleviate the pressure they are under. 

Hiring additional administrative support can help, and document control has become a significant area of focus, as well as contract administration. In scenarios where we need to run leaner teams due to a skills shortage, it’s crucial to consider how we can retain our teams through thoughtful role design. This might involve alleviating some pressure by hiring additional resources, even part-time, to support work delivery, ensuring that our teams are not overstretched and can maintain their best performance levels.

Rightsizing: Aligning teams for future challenges

Rightsizing is critical in response to the economic changes we are facing. Businesses of all sizes are undergoing restructures, not merely for downsizing but to ensure their teams are better equipped to handle market shifts. This trend reflects an understanding that the ways we were successful in the past, might not be adequate moving forward. It involves a closer examination of team compositions and capabilities, ensuring they align with future business objectives.

Regular skills assessments, and fostering continuous learning can ensure your team’s skills stay relevant and adaptable to new challenges, and flexible working arrangements can help you retain talent while adapting to agile business operations. 

Hiring for agility and adaptability

The emphasis is increasingly on growth, agility, and adaptability as AI continues to transform the working world when hiring. It’s essential that the people we bring into our businesses can not only cope with change but also thrive in these evolving environments. 

Adaptability has become a critical skill set to focus on. Employers are now looking to hire candidates who meet about 80% of a role’s requirements, with the intention of developing the remaining 20%. This approach is grounded in the recognition that such an investment in staff development offers long-term benefits to the business, especially when there’s an opportunity for growth and advancement within themselves and the business.

You can organically promote agility in your employees by looking beyond traditional qualifications for adaptability, problem-solving skills, and prioritising cultural fit. Additionally, aligning training and development to bridge skills gaps and fostering a growth mindset will fortify your business, and your people, for change. 

Elevating EVPs in skill-shortage sectors

We’re observing an increased focus on policies, procedures, and employee engagement. This surge isn’t just about retaining current staff; it’s also a response to the rising operational costs. As a result, companies are exploring more creative retention strategies. These include the implementation of four-day working weeks, performance-based salary bonuses, executive coaching, and leadership support. Additionally, we’re seeing an uptick in offerings like daycare subsidies and other benefits beyond the traditional salary to attract and retain staff, moving away from reliance solely on salaried compensation. 

The rise of structured mentoring and knowledge transfer

With demographic shifts like an ageing population and lower birth rates, structured mentoring and knowledge transfer are hot topics, and are set to become increasingly relevant in 2024. Industries facing restructuring and redundancies can benefit from these programs, facilitating transitions into new roles or sectors. 

The evolving hybrid work environment has highlighted the need for more structured mentoring to ensure that changes in work modalities don’t impede the ability to train and upskill staff. Developing formal mentoring through pairing up employees such as newer and/or younger staff can facilitate knowledge transfer. Leveraging technology for training and development, and encouraging knowledge-sharing across different departments can enhance organisational expertise. 

Your people are the essential element for succession planning and future-proofing your business.

As we navigate through 2024, these career trends are not just predictions, they offer a blueprint for adapting to a rapidly changing business environment. By taking proactive steps to empower your workforce, businesses of any size can position themselves for success in the increasingly dynamic and competitive landscape.

Lauren Karan is the director of Karan & Co.