Leadership and Management

What Business Leaders Should Not Overlook This Year?

Adopting AI

According to McKinsey’s The State of AI in 2023, it is now common for organizations to use generative AI, one type of artificial intelligence technology—60 percent of organizations reported AI adoption using gen AI. Marketing and sales, product and service development, and service operations such as customer care and back-office support are the most commonly reported business processes applying these tools. This shows that companies are exploring tools in areas where they can add the most value.

Failing to integrate AI in the workplace this year could probably make your business less valuable. Companies may not be able to chase adoption in AI when the waiting is too long. However, ensure not to be hasty. What leaders need in order to adopt AI is to find out the opportunities and challenges. Assessing future risks will help companies to expect what is coming ahead. After that, develop the right strategy by aligning AI with company goals, values and existing processes.

Involving Digital Engagement

It is very widespread nowadays for customers to use their devices to engage with businesses on online platforms. It is one of the most effective ways to develop brand awareness, increasing visibility online. According to the latest data from Demand Sage, a massive 4.95 billion users are using social media worldwide as of 2024. Thus, it is such a waste to let go of such potential. Some of the examples that are commonly used by businesses are social media, newsletters, customer feedback, webinars, influencers, live chats and messaging.

Tools like the customer relationship management (CRM) platform are a huge help for businesses to analyse customer behaviour and patterns that could improve their products and services. Making efforts to involve digital engagement will not only increase engagement between customers and your brand online but also improve customer loyalty and improve ratings of your products and services.

Diversity

Losing talents and a higher rate of turnover could cost and hurt businesses more than retaining them. According to Assembly, companies with the worst employee retention rates are either workers who are students earning extra cash during their break or individuals looking for temporary pay while searching for higher pay and longer-term career opportunities. Hence, diversity and inclusion are the solutions to the problems. Research showed firms with a diverse workplace culture make more profits, according to Little Art Club. those without. Despite that, the company’s reputation and image will appear more attractive since they say a lot about the company.

Employee Well-Being and Growth

The rising use of technology nowadays has contributed to burnout. Not only due to technology use, but it is a trend in 2024 that well-being and growth have become a focus. Companies that are looking for productivity, reduced employee absence and employee engagement to reach their goals prioritize this. For them, it is a long-term investment that benefits both sides. A big player like Google puts so much importance on this that they thoughtfully designed wellness programs to improve employee health and wellbeing and make employees take care of themselves easily.

Last but not least, Forbes mentioned that salary increases will remain higher in 2024 even though inflation slows at the end of 2023. It will likely happen even more in 2024. The general trend of salary increases and inflation is happening in many countries, if not all, according to the WTW survey. Also, they said that effective business leaders are making improvements in:

  • Adjusting compensation programs strategically (e.g., base salary, short-term incentives, long-term incentives).
  • Introducing new job designs and career programs to support transparency objectives.
  • Using pay for talent attraction and retention.
  • Working towards greater pay transparency for fairness and trust.
  • Balancing spending and program design amidst ongoing inflation and talent shortages.
  • Prioritizing culture and employee experiences over driving up fixed pay costs.

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