Top HR Trends in 2024

It's that time of the year again where I take stock of the various new reports and articles on trend predictions to come in the world of People Management.

It feels as if we have been on a rollercoaster since 2020 when HR professionals had to step up to the plate and adapt to unprecedented change.

I know that change is as good as the rest, but after nearly four years of ups and downs, I think we all need a bit of a break. Now that we are well into a new year (at the time of writing this article), I am firmly looking to the future. Here is a summary of some of the upcoming HR trends to look forward to in 2024.

1. Generative AI in HR

Artificial Intelligence has been around for some time in HR, but 2023 saw an expansion of more advanced tools. Applicant Tracking Systems that can match CVs and job descriptions more accurately using keywords, tracking performance review data throughout the annual cycle and HR Chatbots are just a few examples of these.

"In 2024, employees in virtually every role will experience both the productive benefits and the painful reality of generative AI. From recruitment to performance management, from shift allocation to assessing training needs, every employee will experience AI in some capacity. Human nature makes it hard for us to process the possible changes coming because we tend to think of dystopian perils ahead rather than a utopian middle ground. AI algorithms will indeed impact how an employee experiences brands, develops connections, and grapples with old and new skill sets. Moreover, if AI is only ever used to make life easier, it can potentially displace an employee’s need to learn and, worst case, even the need to think.

However, AI algorithms also bring the promise of doing more with less, amplifying the work we already do, and reducing time spent on unproductive tasks. 2024 will be the year that employees will experience generative AI in a way that will accelerate us all into a future that is forever changed." Prediction by Dr Kirstin Ferguson. Culture Amp blog

2. Return to the Office for a Commute worthy Experience

The pendulum has begun to swing the other way, as more and more businesses are mandating a return to the office. A number of prominent CEOs and business leaders have been adamant that we are better working together in person - at least most of the time. The fully remote working gold-rush of 2020 and 2021 seems to be cooling down as the global pandemic is now firmly behind us.

Some commentators are saying that, if we are asking that employees must attend a physical office, businesses must provide "commute worthy" reasons to come in.

As such, there is a growing demand for an enhanced office experience while colleagues are there. This change can manifest in the form of better cultural connectivity between teams and improved office spaces.

"As businesses attempt to attract workers back to the office, HR professionals have the job of ensuring workers see the value of getting into cars or onto trains and heading into the workplace. This isn't about providing beanbags and table football – it's about ensuring workplaces provide opportunities for collaborative productivity, professional development and networking that can't always be replicated remotely." Forbes.com newsletter

As tempting as it is to jump on a new bandwagon, it's important to assess what is right for each company and each role to be effective. One size fits all won't work here. With all things, balance is key and common sense should prevail.

3. Manager effectiveness as Gen-Z become our new generation of business leaders

As of 2024, the oldest of Gen-Z will turn 27; we will have already seen these colleagues becoming supervisors and line managers in recent years. This new group of people managers will need support to become effective leaders as they learn new skills. This new generation of leaders will have a different approach to leadership than the previous. Gen-Z have come of age in the eras of cancel culture, the great resignation, quiet quitting and have more awareness of mental health issues. It will be interesting to see how Gen-Z people leaders may change the world of work as we know it.

"2024 will see growing numbers of Generation Z entering the workplace while millennials increasingly move into positions of seniority and management. For HR professionals, the challenge will be managing the different expectations of culture and working life held by younger members of the workforce, which often include a desire for improved work/life balance, continuous education and upskilling, and a greater emphasis on diversity, inclusion and sustainability." Quote source - Forbes.com newsletter

"As digital natives, Gen Z has different expectations about communication, leadership, and culture at work. They’ve grown up on social media and have a different social code. They’re used to sharing vulnerabilities online, both personally and professionally, and our survey found that they are 33% more likely to do this than older generations.

They question hierarchical top-down power dynamics and want to be actively involved in the decisions that affect their work. They encourage open, two-way communication, and they have different expectations and approaches for receiving feedback, delegating responsibilities, and creating workplace connections."

Blog quote source " Culture Amp

4. Upskilling and Re-skilling the workforce

The advent of exciting new technologies being used in the workforce has it's apparent downsides. It's important to keep a finger on the pulse of which jobs will soon disappear and which new roles/skills will be required for the future.

For example, the role of Chief People Officer is ranked 13th of the most popular new jobs roles according to a new UK LinkedIn study named "Jobs on the rise". Other newer job roles include Sustainability Manager (ranked number 1), Chief Revenue Officer (ranked 4th), Data Engineer (ranked 25th) and Artificial Intelligence Engineer (ranked 7th). Many of these new job titles require new and updated skills which means that learning and development becomes to the fore. Re-skilling and upskilling is also a leadership/management responsibility and cannot be left solely on the shoulders of the HR teams:

"Traditionally, reskilling has been considered part of the overall corporate-learning function siloed within HR. Investments in reskilling need a profound commitment from HR leaders, of course, but unless the rest of the organization understands the strategic relevance of those investments, it’s very hard to generate the effort that reskilling initiatives require to succeed.

At most of our interviewees’ organizations, reskilling initiatives are visibly championed by senior leaders, often CEOs and chief operating officers. They work hard to articulate for the rest of the company the connection between reskilling and strategy and to ensure that leadership and management teams understand their shared responsibility in implementing these programs.

Ericsson, for example has developed a multiyear strategy devoted to upskilling and reskilling telecommunications experts to become AI and data science experts. Senior leaders review key results of the program quarterly. In just three years, Ericsson has upskilled more than 15,000 employees in AI and automation."

Quote source - Boston Consulting Group

5. DEI becomes "DEIB" Diversity Equity Inclusion and Belonging

Workplace diversity training programs have evolved rapidly over the decades since the 1960s when they first emerged. Diversity then became, "Diversity and Inclusion" and now in recent years "Diversity, Equity and Inclusion". In 2024, our workforce now needs to also feel a sense of belonging. This means the need to feel accepted, valued and heard at work according to this article from AIHR:

"Diversity, Equity, Inclusion and Belonging (also known as DEIB) is becoming increasingly important and integral to the long-term success and growth of a company. A McKinsey study showed that companies in the top quartile for diversity are 36% more likely to outperform their industry medians’ financial returns. In addition, a report found that almost 80% of employees expect their leadership team to implement and improve DEIB initiatives to create meaningful change at work." Quote source AIHR

6. More Pay Transparency

This has been coming up a lot more recently, especially as we see a younger more vocal generation in the workforce. These generations want to know about pay equity and openly discuss what they are earning compared to their peers. There is a lot more information available online about salary in our digital world, as well as new legislation in some countries which compel employers to declare salary ranges on job adverts.

Some say this is in response to gender and ethnicity pay gap discrepancies, and more recently, the cost of living crisis. Either way, employees want to know what they are paid vs external benchmarks and how that compares to others doing similar roles. The war for talent also plays a part here, as employees can and will benchmark prospective employers against each other using total compensation and other factors as a measurement. According to this article from Culture Amp:

"A really significant component of employee experience is equitable compensation. The EU Pay Transparency Directive, adopted in January 2023, will shift employers into implementation mode in 2024. The obligation to collect and report on gender pay inequity data, as well as provisioning for employees to see this addressed in cases of injustice, will strongly incentivize employers to formalize career pathing, introducing levelling and pay transparency.

The downstream impact of this on employee experience cannot be understated – for many organizations, this will be a cultural revolution – and while the transformational journey will not be easy – the ultimate outcome will be greater transparency and, therefore, greater trust." Culture Amp

7. Embrace "Human" leadership styles as intelligent tech evolves

Putting the "Human" back into Human Resources has become much more in demand as the working world evolves. Intelligent technology tools and AI means that human traits such as nuance, judgement (our lovely grey areas), psychological safety and empathy will have greater importance. AI on it's own has been met with suspicion from some commentators, as a usurper of job categories that people had taken an entire career to master.

Humanity is also important to Culture and over-reliance on automation can erode that if we are not careful. Understanding key stakeholder management at all levels and having emotional intelligence could become an expensive commodity.

"Given the “superhuman” capabilities AI tools can provide, we anticipate that some organizations will look to adjust performance objectives to capture the benefits of these new technologies. We caution organizations against going too far in this direction, as it will limit the learning mindset necessary for employees to learn about and adopt these tools effectively. Further, it will contribute to a sense of “dehumanizing” workers, which will feed further suspicion around the integration of AI into work. Instead, leaders should set objectives that are about both the activity of learning these tools and the outcomes these tools can help workers achieve." Quote source - Culture Amp

TL;DR

In conclusion, the landscape of People Management in 2024 is poised for significant shifts. The integration of Generative AI promises both productivity gains and challenges to traditional workflows, demanding a balanced approach to its implementation. The return to the office signifies a renewed focus on collaborative productivity and professional development, necessitating tailored solutions rather than one-size-fits-all approaches. As Gen-Z assumes leadership roles, organizations must adapt to their distinct values and expectations, emphasizing inclusivity and continuous learning. Upskilling and reskilling initiatives are imperative to meet the demands of evolving job roles, while the evolution of diversity training underscores the importance of fostering a sense of belonging in the workplace. Pay transparency emerges as a crucial component of employee experience, driven by regulatory mandates and employee expectations for fairness. Finally, amidst the rise of intelligent technology, the value of human-centric leadership styles becomes paramount, ensuring the preservation of empathy and emotional intelligence in an increasingly automated world. As we navigate these trends, strategic foresight and adaptability will be essential for HR professionals to thrive in the dynamic landscape of People Management.

#TopHRTrends #HRTrends2024 #HRTrendWatch #PeopleManagement #HumanResources #HumanCapitalManagement

P.S. All the images are linked to the songs on YouTube!

Disclaimer: all thoughts and opinions expressed are my own unless where quoted and credited. These points of view are mine and not written on behalf of any employer or company I may be affiliated with. The ideas put forward in this article are based on people management best practice and my professional experience. I aim to link or credit any source data or images that are included in this post. I am not affiliated with any company or product named in the text. Thank you for reading.