Forecasters are warning that it’s going to be a chilly 2024, at least when it comes to employee experience investments, sometimes abbreviated to “EX.”
According to a new report from Forrester, organizations are likely to freeze or reduce their EX budgets next year—which can include employee perks; training; workplace flexibility; and diversity, equity, and inclusion initiatives.
“All the signs point toward economic turbulence for next year, which could loosen the labor market,” says J. P. Gownder, vice president and principal analyst on Forrester’s Future of Work team. “The things we’re seeing from employers have been rather less EX-centric and more finance-centric.”
Gownder adds that an “EX Winter” will see disinvestment in employee experience functions, which will cause further declines in employee engagement and company culture. Forrester predicts that the proportion of workers who indicate they are satisfied with their overall work experience in employee surveys will drop from 41% in 2022 to 34% next year, and the proportion of staff reporting strong workplace culture will decline from 63% in 2022 to 55% in 2024. The proportion of companies that fund DEI investments, meanwhile, is expected to fall from 33% in 2022 to 20% next year.
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