Companies are likely going to invest less in employee experiences in 2024 According to a new Forrester report, next year many organizations will freeze or slash budgets related to employee perks, training, workplace flexibility, and DEI.

 

It’s projected that in 2024, there will be a reduction or freeze in employee experience (EX) investments, including employee perks, training, workplace flexibility, and diversity, equity, and inclusion initiatives. 

Forrester's report suggests that economic uncertainty may lead to disinvestment in employee experience functions, potentially resulting in lower employee engagement and eroding company culture. The report predicts a decrease in overall work experience satisfaction and workplace culture strength among workers, as well as a decline in companies funding DEI initiatives in 2024.

 The trend of reduced emphasis on EX areas such as empathy and leadership training, DEI initiatives, and workplace flexibility is expected to continue, despite some organizations increasing EX investment, particularly in emerging markets and among frontline workers. Despite the anticipated decrease in employee-experience-related spending, it's possible to enhance the employee experience by focusing on soft skill development, manager training, reskilling, and career development. 

Analyzing employee priorities and effective allocation of resources will be crucial. Additionally, it's emphasized that deprioritizing DEI spending during tough times could hinder progress and credibility, and organizations that continue to invest in DEI initiatives are likely to be seen as leaders in the future.