Company leaders are feeling more positive about the state of workforce well-being, according to the Q1 reading of The Conference Board CHRO Confidence Index. It ticked up to 54 in Q1, from 53 last quarter.
Even with the positive outlook, 42% of companies plan to offer new well-being benefits this year to address continuing mental health concerns.
Part of the reason for the increased program is that 36% of companies feel responsible for employees' well-being. And 62% say they are somewhat responsible.
“Taking a holistic view of worker well-being can not only improve employee engagement and productivity but also retain your talent—a top focus of both CEOs and CHROs this year,” said Diana Scott, Leader of The Conference Board US Human Capital Center, in a statement.
Here are some highlights from the survey.
A quarter of CHROs increased spending on employee well-being in 2024.
- 26% said their well-being budget increased for FY2024.
- 69% said it remained the same.
- Only 5% decreased spending on well-being.
Nearly half of CHROs plan to offer new well-being benefits, despite most keeping spending the same.
- 42% plan to offer new benefits this year.
- 39% do not plan to offer new benefits.
- 19% are discussing offering new benefits.
Mental and physical health are the top priorities for new well-being initiatives.
- Of those offering new benefits:
- 20% are offering mental health initiatives.
- 15% are offering physical health and fitness initiatives.
- 12% are offering financial well-being initiatives.
- 10% are offering work-life balance initiatives.
- 35% expect engagement levels to increase—down slightly from 37% in Q4.
- 20% expect engagement levels to decrease—down significantly from 31% in Q4.
Hiring
The CHRO Confidence Index: Hiring component remained the same as both last quarter and YoY, at 55.
CHROs’ workforce expansion plans remained stable in Q1, with fewer CHROs expecting to increase or decrease hiring in the next six months:
- 36% of CHROs expect to increase their hiring over the next six months—down from 44% in Q4.
- 13% expect to decrease their hiring over the next six months—down from 19% in Q4.
Retention
The CHRO Confidence Index: Retention component rose to 53 in Q1 2024 from 51 in Q4 2023. But retention expectations are down YoY from 57 in Q1 2023.
CHRO expectations regarding employee retention ticked up slightly in Q1:
- 29% of CHROs expect their employee retention levels to improve over the next six months—up slightly from 28% in Q4.
- 19% of CHROs expect employee retention to decrease over the next six months, down from 22% in Q4.
Engagement
The CHRO Confidence Index: Engagement component rose to 54 in Q1 2024 from 52 in Q4 2023. But engagement expectations are down YoY from 58 in Q1 2023.
Fewer CHROs expect declines in employee engagement in Q1:
- 35% expect engagement levels to increase—down slightly from 37% in Q4.
- 20% expect engagement levels to decrease—down significantly from 31% in Q4.