How to Tackle HR Challenges in Q4 2024

The final quarter of 2024 is here, bringing a new wave of challenges for HR professionals in Ireland. These include hiring in a competitive market, improving employee engagement, and navigating economic uncertainty. Overcoming these obstacles is crucial for maintaining a strong and resilient workforce in 2024 and getting off on the right foot in 2025.

This blog explores the key HR challenges in Q4 2024 and draws insights from recent Irish studies. It also aims to offer practical solutions to ensure your business finishes the year strong.

Treat Employee Engagement as a Top Priority

Employee engagement is no longer a "nice-to-have" but a critical driver of success. Yet, cultivating an engaged workforce is proving challenging. Recent CIPD research found that maintaining an engaged workplace is a struggle for 56% of businesses in Ireland. This highlights the urgent need for HR leaders to prioritise employee initiatives that exceed surface-level perks.

Here are some ways to tackle this challenge and harness a connected, collaborative, and engaged workforce: 

Build a Sense of Belonging

With the rise of flexible working arrangements, loneliness and isolation can be a big obstacle to employee engagement. HR leaders can combat this by going beyond simply organising an annual Christmas party. Instead, fill Q4 with other social events and team-building activities to develop employee relationships and create a sense of belonging.

For example:

• Informal gatherings like team lunches and after-work drinks allow colleagues to connect in a relaxed setting.
• Team-building activities such as escape rooms and bowling nights develop collaboration and camaraderie.
• Marking birthdays, work anniversaries, or project successes with small celebrations creates a sense of achievement and fosters peer relationships.

Innovative platforms like CleverCards can facilitate this by enabling the easy distribution of digital gift cards so that employees can enjoy social activities or experiences together, without having to front funds and deal with awkward expense reimbursements.

Empower Managers to Drive Employee Growth

Traditional performance reviews need to be adapted for the modern workforce, which requires frequent feedback and support. To address this, HR teams can encourage a shift in management practices by:

• Encouraging managers to move away from annual reviews and have more regular check-ins with their team members. This allows for more timely feedback, identifies potential issues early on, and ensures employees feel supported in their roles.
• Equipping managers with the tools and knowledge to conduct effective performance conversations. Offer workshops or online resources on providing constructive feedback, setting clear expectations, and having meaningful development discussions.
• Encouraging a culture of open and continuous feedback, where employees feel comfortable seeking guidance and managers are proactive in providing support. This can lead to improved performance and increased employee satisfaction.

By taking these steps in Q4, HR teams can lay the foundation for a more effective and engaging management system that supports employee growth and contributes to a stronger workforce in the year ahead.

Put a Spotlight on Employee Retention

With an average staff turnover rate of 9.7% reported by Ibec in 2023, retaining Irish employees is an ongoing battle for HR teams. To win the war for talent, consider addressing key areas like pay, benefits, and work-life balance.

Here are some key HR retention tactics to try in Q4:

Review Employee Rewards and Compensation

With Ibec research showing that 82% of businesses plan to increase pay in 2024 and an average wage inflation of 2.8% in Ireland for 2023, simply offering competitive salaries isn't enough. In today's market, your rewards and benefits package needs to stand out.

This is especially crucial in Q4, when employees are likely evaluating their overall compensation and looking ahead to the new year.

Here are some ways to stay ahead of the curve:

• Go beyond standard benefits and offer perks that match your employee’s needs and priorities. This might include implementing flexible work options, health and wellness initiatives, or an early Friday clock-off.
• Show employees that their contributions are valued by implementing a recognition program. This could include quarterly achievement shout-outs, employee-of-the-month awards, or personalised thank-you notes.
• Make it easy for managers to recognise and reward employees with user-friendly, digital platforms like CleverCards. Use it to distribute performance-based rewards, gift cards, and other benefits, directly to your workforce.

Focus on Employee Development

With 66% of businesses saying Learning and Development is a top HR priority (Ibec), investing in employee growth is crucial. This is further emphasised by the World Economic Forum's prediction that over 50% of employees will need to reskill or upskill by 2025 to remain competitive.

But simply offering training programmes isn't enough. HR teams need to take a proactive and strategic approach to employee development in Q4, focusing on:

• Identifying the key skills their business needs to succeed in the coming year and assessing any gaps within the current workforce. This analysis will help prioritise training programmes and development initiatives for Q4 and beyond.
• Providing employees with access to relevant training programmes and workshops that address the identified skills gaps.
• Encouraging experienced employees to mentor and guide their colleagues.
• Organising internal workshops or presentations where employees can share their expertise and learn from each other.
• Reminding employees of any available training budgets or allowances and encourage them to use these resources before the end of the year.

Prioritise Employee Well-being

Maintaining employee wellbeing remains a challenge for over a third of Irish businesses, with an increased emphasis on mental health supports (67%) and online wellbeing and health initiatives (62%), according to CIPD research.

To address this, HR teams can improve employee well-being by promoting work-life balance, offering wellness programs and improving leave policies.

Modernise Allowances and Expenses Processes

Imagine an employee returning from a business trip with a suitcase full of receipts and the daunting task of deciphering a complicated expense report. Or perhaps you're an HR professional wrestling with an outdated system to process a relocation allowance for a new employee already stressed about starting a new job.

These scenarios are all too common when businesses rely on outdated policies and systems for managing allowances and expenses. This leads to frustration, administrative burdens, and can even impact employee satisfaction and retention.

To nail Q4 and ensure your hiring and retention strategy succeeds, ensure your allowances and expense policies are up-to-date, flexible, and aligned with your employee’s needs.

Adapt to Cost Management Pressures

With economic uncertainty and inflationary pressures continuing into 2025, cost management remains a top priority for businesses. Here's how HR leaders can optimise budgets in Q4 of 2024:

Utilise the Recently Updated Small Benefit Scheme

Economic uncertainty often puts pressure on businesses to tighten their belts, and employee benefits can sometimes be seen as an area for potential cuts. However, reducing benefits can negatively impact employee morale and engagement, ultimately affecting productivity and retention. So how can HR leaders maintain high morale while managing costs effectively?

Rather than resorting to cuts, explore cost-effective options that provide value to your employees. For example, the Small Benefit Scheme in Ireland offers a fantastic solution that allows you to provide tax-free rewards to your employees.

Currently, you can give each employee up to €1,000 per year, tax-free, as a reward under this scheme. But here's some exciting news! From 1st January 2025, the Irish government is enhancing this scheme significantly. The tax-free allowance will increase to €1,500 per employee per year, and you'll be able to give this in up to five separate instalments, offering even more flexibility.

This means you'll have more opportunities to recognise and reward your employees throughout the year. You can use the scheme to mark special occasions like birthdays and work anniversaries, reward outstanding performance, or simply show appreciation for their hard work. And because the rewards are tax-free, your employees receive the full value of your gesture.

Key Takeaways

Navigating the final quarter of 2024 requires Irish HR professionals to be proactive and adaptable in addressing the evolving needs of both employees and the business.

Here are some key takeaways to ensure your business finishes the year strong:

1. Prioritise employee engagement: Foster a connected and collaborative workplace by encouraging communication, combating isolation, and encouraging regular feedback and support from management to employees.
2. Focus on retention: Review and enhance your compensation and benefits packages, prioritise employee development, and actively promote employee well-being initiatives.
3. Modernise processes: Streamline outdated allowances and expense processes to improve employee satisfaction.
4. Embrace cost-effective solutions: Utilise tax-efficient benefits like the Small Benefit Scheme to reward and recognise employees without overspending. Remember to take advantage of the increased allowance and flexibility coming into effect in 2025!
5. Utilise innovative technology: Adopt innovative platforms like CleverCards to simplify reward distribution, manage employee benefits, and support employee well-being initiatives.

By implementing these strategies, HR leaders can successfully navigate the challenges of Q4 2024, build a thriving workforce, and set the stage for a successful year ahead.

For more information, contact the CleverCards team by filling out the enquiry form below. We look forward to hearing from you soon!