What are the Top HR Trends of 2024?
In 2024, the focus will shift towards embracing generative Artificial Intelligence (GenAI). For professionals in employee and people management, their primary focus will be on navigating the human implications of digital transformation. HR professionals are set to invest in technologies that enhance the employee experience and adopt powerful predictive analytics and skills technologies. While the full impact of AI on the human workforce remains uncertain, HR professionals in 2024 will dedicate their efforts to understanding and addressing these challenges.
Now let’s understand what these trends are that are impacting HR Profession -
Top Eight HR Trends of 2024
Being in HR, it becomes imperative to keep up with the annual industry shifts & tackle the choppy waves of technological advancement in the workforce. Know this year’s biggest trends that will strongly impact HR over the coming 12 months and beyond.
- DEI&B Momentum Is Stalling
What good diversity and inclusion is if employees continue to feel discontent with these initiatives and changing legal landscapes. Organizations lacking executive-level advocacy and dedicated DEI&B (Diversity, Equity, Inclusion and Belonging) resources are likely to deprioritize or even defund their DEI&B efforts this year.
A report by the Achievers Workforce Institute found that 40% of respondents with a strong sense of belonging rarely think about looking for a job elsewhere, versus 5% of respondents with a low sense of belonging. Additionally, the workforce now spans more generations than ever before, increasing generational diversity and requiring effective DEI&B management to ensure employee and business success.
2. Upskilling and Reskilling for Digital Age
HR will undergo its own skills transformation in several key areas. AI is at the top of the list, but public relations skills will also become a necessity in 2024. As return-to-office (RTO) mandates and layoffs make major news headlines, and live reactions to being fired go viral on social media, HR must anticipate this level of exposure and be prepared to address it both internally and externally. Technologies have long been part of HR’s toolbox, but with the explosion of generative AI capabilities in 2023, there are numerous opportunities for HR professionals at all levels to improve the quality and efficiency of their work in 2024.
3. Prioritizing Employee Data Privacy
A recent data breach exposed the details of 25,000 current and former BBC employees, highlighting the critical importance of employee data privacy. 2024’s top HR trend must be heightened prioritization of this issue.
With the shift toward remote work and digital operations, securing employee data has become increasingly important. Global privacy laws place significant pressure on organizations to protect their employees’ personal data, making HR departments responsible custodians of this information. To protect employee data and comply with privacy laws, organizations need to implement streamlined and automated processes for data management. This includes conducting effective data mapping, creating privacy notices, conducting risk-based assessments, managing data breaches efficiently, assessing third-party vendors, and automating the handling of data subject requests. This rising priority on data privacy not only safeguards against data breaches but also signals to employees that their personal information is respected and protected, further reinforcing their commitment to the company.
4. The Rise of the “Hidden Workforce”
According to Springboard Business’ State of the Workforce Skills Gap report, 70% of corporate leaders surveyed reported a critical skills gap negatively impacting business performance. As HR professionals struggle to find qualified candidates, some are turning their attention to the “hidden workforce.” This term refers to individuals who are willing and able to work but who are not currently employed or are underemployed due to various barriers such as caregiving responsibilities, disabilities, or a lack of traditional qualifications. This group is an undervalued source of talent with the potential to reshape the hiring landscape in the foreseeable future.
With a holistic approach to talent acquisition and better understanding the hidden workforce’s unique motivations for working, HR professionals can effectively target and attract these individuals.
5. Taking Special Care of Employee Burnout and Mental Health
A burnout epidemic is hitting offices worldwide. The 2024 Global Talent Trends report, published by HR consulting firm Mercer, reveals that more than eight out of ten employees are at risk of burnout this year. Among those at risk, 43% cited financial strain as a contributing factor, 40% cited exhaustion, and 37% mentioned struggling with an excessive workload. In addition to mental health, financial well-being will be a crucial focus of employers’ well-being efforts. HR has to take care of the link between financial wellness and mental health is clear; finances are consistently reported by employees as a top contributor to stress. By addressing both mental and financial health, organizations can foster a more supportive and productive work environment.
6. Productivity And Resourcing Strategies Need to Be Rethought
According to research by Microsoft, 87% of employees think they are productive, while only 12% of executives agree. This highlights a major disconnect between employees’ perception of their productivity and business leaders’ views. HR professionals are expected to reevaluate their resourcing strategies to ensure they are leveraging their workforce effectively. This involves ensuring that the entire workforce understands organizational priorities and utilizing tools like talent marketplaces to help employees identify work opportunities that align with their personal aspirations and the organization’s needs.
7. Investing In GenAI to Enhance Employee Productivity
AI is the dominant element of the 2024 trends discourse, focusing on how it will transform the labor market, drive productivity, and need to be managed to prevent negative outcomes. According to Forrester’s Budget Planning Survey, 2023, 81% of US enterprise technology decision-makers anticipate their organization’s technology investment increasing over the next 12 months. Notably, nearly half of these decision-makers expect budgets for AI capabilities to grow by more than 5%. Generative AI — such as ChatGPT and the growing number of tools built around this technology — is set to revolutionize talent management and workplace dynamics. HR will also need to navigate the human implications of this radical change, balancing the efficiency of AI with the essential human qualities in business. Employees will need to see AI as a tool to assist them in their work, not as a competitor, although this may be a challenging perspective for some to adopt.
8. Welcoming the Generation Z
In 2024, the workplace will see an influx of Generation Z while millennials increasingly move into senior and management positions. Born between 1995 and 2009, Generation Z, or Gen Z, currently makes up about 30% of the world population today and is expected to represent 27% of the workforce by 2025. This demographic shift could significantly alter the nature of work as employers strive to attract and retain new talent.
For HR professionals, the challenge will be managing the differing expectations of culture and working life held by younger members of the workforce. Gen Z often desires an improved work/life balance, continuous education and upskilling, and a greater emphasis on diversity, inclusion, and sustainability. Addressing these expectations will be crucial for creating a supportive and appealing work environment for the next generation of employees.
Final Thoughts
Understanding these HR trends and the role that technology — including AI tools — can play in addressing them is essential for HR professionals and industry experts to make strategic decisions. These are the biggest trends identified as most important for 2024– a period witnessing seismic shifts in many aspects of how we work and do business.
