Skills Shortage Continues

Companies will need to continue efforts to bring young people into the sector through robust training and development programmes, and will need to facilitate engaging and long-lasting knowledge sharing programmes in their organisations to combat the loss of talent the sector is experiencing through older workers leaving for retirement.

Technology

Young people will benefit from the skills required in the sector as they are increasingly technical and analytical, with FMs at all levels expected to adeptly handle and analyse data. Technical managers will more routinely utilise sensor tech and IoT to enhance building energy efficiency and comfort for users.

Over the last few years, FMs have had more data to work with and analyse to optimise processes and improve scheduling. Developments in AI and machine learning will work alongside current methods to improve efficiencies across the FM provision. FM companies can streamline their data processing by integrating dashboards and other analytics software. This tech-driven approach is essential for FM, not only for demonstrating tangible benefits to the business but also creating comfortable environments where people want to work.

Return to Office

Given the widespread adoption of home working and familiarity with virtual meetings, ensuring a frictionless in-office experience is crucial to prevent any potential reluctance to return. Simple things that can be automated should be – like making meeting rooms and desks easy to book, climate control to make people as comfortable as possible, ensuring equipment is available and the Wi-Fi works, etc. Carrying over from the last few years, the challenge remains to create offices that deliver a positive experience and a collaborative environment.

Maintenance, Retrofit and Circular Economy

2024 will likely see an emphasis on maintenance, refurbishment and retrofitting for many FM businesses. Budgetary constraints arising from increased wages, energy, and materials costs, coupled with market uncertainty during an election year, will likely prompt companies to redirect investments towards existing projects rather than new initiatives.

To meet more competitive targets, companies will be looking at cheaper (and likely more sustainable) energy sources, reducing consumption and waste to cut costs, and exploring circular procurement solutions that will allow them to save on recycling whilst investing in long-lasting products.

Sustainability

This will lead to renewed commitment to sustainability and Environmental, Social, and Governance (ESG) goals as companies take on more environmentally friendly solutions to directly improve their bottom line. Through investing in their existing estate to make it more energy efficient, they will both improve their sustainability and their bottom line.

For those considering inward investment in 2024, prioritising retrofitting and maintenance, despite the short-term costs, would be a beneficial strategic move. Such initiatives not only contribute to immediate business improvements, but also align with the broader objectives of sustainability and net zero.

PFI

The PFI sector will continue to be busy, ramping up to the handbacks coming in the next few years. The 7 year window for beginning the handback process has opened in many cases, and projects in 2024 will be busy managing the ongoing workload alongside moving through contract winddown. There are positives for the sector though as more handbacks are completed, success stories are being shared, and the documentation on PFI is improving post the White-Fraiser Report released last year.

Retention and Staffing

Another area with increased costs is staffing, as wages rise across the sector. Though the recruitment market has balanced over the last 12 months, candidates are still hard to find in the market, and the number of vacancies in the sector is still larger than the number of candidates available. The hiring process can be expensive too, putting pressure on companies to hire the right talent first time.
Companies can increase the probability of this by engaging meaningfully with recruitment partners on a more exclusive basis, as they can tap into passive talent pools for people who would not actively apply for a role. They can also help to condense and optimise the recruitment process, improving the experience for the potential hire and the hiring managers.

Alongside this companies should be working on retention strategy, and this will be a real focus in 2024. Keeping talented staff avoids losing employees to competitors. Employee wellbeing is key to this.

Employees are happier to work in businesses with good company culture where they feel they are contributing to the business. They want to be able to feel comfortable at work with the ability to speak up and have their voice heard. This kind of culture will result in a business that people naturally want to advocate for because it is a positive thing in their lives.

Rethink the Hiring Process

2023 saw the individualisation of the hiring process, and this trend is likely to continue this year. Companies are being expected by potential hires to provide specific and tailored job packages and recruitment processes, unique to each candidate. This reflects a growing recognition that personalisation enhances the overall recruitment experience.

Additionally, candidates aim to find companies that fit their specific needs, values, and career aspirations. They want roles that they have passion for, that give them chance to make a difference. This has changed the way people think about work, and needs to translate to the way employers are advertising roles and positioning people within their business.

Overall, it looks to be an exciting year for FM, with the market remaining buoyant in the sector. As companies navigate 2024, key focuses should be on embracing technological advancements and moving closer to net zero through cost-effective sustainability initiatives. FM recruitment will be benefitted by companies creating robust, enticing employer brands that focus on individuals and create dynamic and fulfilling places to work. Companies will also need these to bring in the next generation of FM talent.