How shrinking turnover, healthcare hikes, and OSHA changes are shaping the workplace
by Exhibit City News Staff
As we approach the end of 2024, shifts in the labor market are impacting businesses and their workforce strategies. Recent reports from Employco USA highlight several key trends, including employee retention rates, projected healthcare cost increases, and new workplace safety regulations. Here’s what employers need to know as they navigate these changes.
Fewer Employees Are Leaving Jobs
In 2024, employee retention has significantly improved, marking a shift from the high turnover seen in recent years. According to LinkedIn, employee attrition rates have decreased by 26 percent compared to 2023, and by 37 percent from the peak of the “Great Reshuffle” in 2022, when record numbers of employees left their jobs. A survey by Ringover also indicates that 4 in 5 employees are unlikely to change jobs until 2025, signaling greater workforce stability.
These findings suggest that with fewer job changes occurring, employers have an opportunity to focus more on retention strategies like fostering a positive workplace culture and enhancing employee engagement.
Supporting Working Parents During the School Year
With the 2024-25 school year underway, employees with school-age children are balancing increased caregiving responsibilities alongside their professional duties. According to Employco, this transition can challenge parents as they juggle school schedules, sick days, and other family needs, which can affect their work-life balance.
Employers can help by offering flexible work arrangements, such as remote work options or flexible hours. Recognizing these challenges can improve employee satisfaction and retention, particularly during high-demand times like the back-to-school season.
Healthcare Costs Expected to Rise in 2025
Looking ahead to 2025, healthcare costs are expected to rise. According to a survey conducted by the International Foundation of Employee Benefit Plans (IFEBP), U.S. employers estimate an 8percent increase in healthcare costs, driven by factors such as rising prescription drug prices. A separate report from Aon estimates a similar increase, projecting a 9percent rise for employer-sponsored healthcare coverage.
Compared to the 6.4 percent increase from 2023 to 2024, the expected rise in 2025 reflects ongoing cost pressures. Many employers are preparing by implementing cost-saving measures like increased employee cost-sharing (through higher deductibles or premiums) and offering wellness programs.
This increase may influence how employees view their overall compensation packages, making it important for businesses to manage costs while offering attractive benefits, according to Employco USA.
OSHA Proposes New Heat Injury Prevention Standard
In August 2024, the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) proposed new regulations aimed at preventing heat-related injuries and illnesses. According to the Bureau of Labor Statistics, nearly 500 workers in the U.S. died from heat exposure between 2011 and 2022, and more than 34,000 workers suffered from heat-related injuries during that period. If finalized, this new standard would apply across multiple industries, including construction, agriculture, and maritime sectors.
The proposed rule would require employers to take actions such as identifying heat hazards, developing emergency response plans, and providing rest breaks, access to water, and training for employees. Although the rule will not take effect until 2025, employers can start preparing now by assessing heat risks in their workplaces and updating safety protocols, EmployCo USA reports.
Conclusion
As 2024 progresses, employers are navigating a changing employment landscape, from improving employee retention rates to managing healthcare costs and complying with emerging safety regulations. Staying informed and proactive will help businesses maintain a satisfied workforce while ensuring compliance with new laws. Employco USA’s expertise offers essential guidance for companies looking to adapt and thrive in these evolving conditions.
About Employco USA
Employco USA, headquartered in Westmont, Illinois, has been a trusted provider of customized HR solutions for small and medium-sized businesses for over 28 years. Their expertise spans employee benefits, payroll processing, and workers’ compensation management. With a national reach, Employco serves clients across industries, including construction, manufacturing, retail, and technology, helping them reduce costs and improve employee performance.
As the payroll service provider for the Exhibitor Appointed Contractors Association (EACA) and the Exhibition Services and Contractors Association (ESCA), Employco offers HR insights and solutions based on their experience with clients across various industries.
