These trends are propelled by three overarching themes, each contributing to a new era where HR takes center stage in defining the workplace of tomorrow. 1) HR will refocus its priorities; 2) customer experience (CX), whether internal or external, will be in the center of activities and 3) HR will be a game-changer.
The following text explores the key focal points aimed at assisting CEOs and HR decision-makers in handling critical areas more effectively. Understanding these HR trends for 2024 and implementing actionable solutions is not only crucial but imperative for any forward-thinking HR executive.
Redefining priorities: a new HR agenda
As the workforce undergoes unprecedented changes, HR is at the forefront of redefining its priorities to align with the evolving needs of today’s professionals.
#1 Talent access over acquisition
Due to a tight labor market, HR shifts its focus from talent acquisition to talent access within the organization. Another aspect influencing this shift is the increasing tendency of millennials’ preferences for learning, growth, and advancement. This shift entails moving away from traditional career paths and embracing non-traditional talent pools. The emphasis on talent progression and promotion becomes imperative in 2024.
Impact on HR: transforming talent strategies HR Action - creating pathways for internal talent access
#2 Solving productivity paradox
In 2024, HR faces the challenge of revitalizing productivity that has plateaued since the 2008 financial crisis. There will be an urgency to adopt a comprehensive approach to productivity by addressing bottlenecks in hybrid work, devising performance-enhancing strategies, and incentivizing productive behaviors. The integration of data analysis will be the key. Regular one to one communication is recommended to promote feedback and communication.
Impact on HR: innovating ways to enhance productivity through workforce planning, data knowledge and usage of AI
#3 Addressing hidden workforce
Having historically very low unemployment rates, HR shifts its focus to the “forgotten workforce” in 2024 - a diverse group comprising retirees, caregivers, neurodiverse individuals, and others. This marks a year where HR aims to broaden talent horizons and eliminate barriers to the employment. The head of an international logistics company confirms: “It was my mental barrier to cover a top senior managerial role with a person over the age of 60, then I have found a perfect match to my need in a 62-year-old dynamic man just by recommendation and I am happy now I had not ignored that.” Further, companies offer possibilities how to addresses hidden solutions, e.g.: project plus55.
Impact on HR: fostering inclusivity in the workforce - dismantling barriers to employment
#4 Diversity, equity, inclusion and belonging (DEIB) reinvented
DEIB initiatives undergo a significant shift in 2024. Driven by legal changes and a reevaluation of existing practices, HR is set to adopt a more systemic approach to ensure positive impacts without alienating employees. If companies don’t have roles responsible for DEIB, they will establish them. Initiatives such as equal pays, DEIB voices and business driven actions will increase.
Impact on HR: redefining the DEIB narrative - implementing systemic DEIB strategies
#5 HR’s role in climate change adaptation
Recognizing the urgency of sustainability, HR steps into a crucial role in the climate change adaptation. Legislative changes worldwide and proactive measures by leading companies demand a strategic focus from HR to navigate environmental challenges.
Impact on HR: embracing the climate adaptation for resilience
#6 HR facilitating work-life fit as a new era
There is an increasing tendency for non-traditional work lifestyles. As the work expectations of employees and companies are changing, the year 2024 will be more about integration between work and life. HR will balance diverse employee needs, in order to be the best “employer-fit” organization.
Impact on HR: balancing flexibility, expectations, and legal considerations
#7 HR’s strategic role
HR in 2024 takes a fundamental shift towards becoming a strategic partner. This evolution is centered on skills development, digital adoption, data empowerment and confidence-building to enhance HR’s value proposition.
Impact on HR: rediscovering HR’s identity as a strategic contributor - increasing strategic positioning
#8 HR as a public narrator
As employee experience (EX) becomes increasingly public, HR collaborates with marketing to shape a public relations strategy. HR’s role extends beyond internal policies, influencing and controlling the narrative in the public domain.
Impact on HR: delivering on the promise of EX
#9 Generative AI: empowering the workforce
AI continues its growth trajectory, impacting the workforce in profound ways. HR in 2024 integrates AI into operations, emphasizing a holistic approach to sustain business growth.
Impact on HR: redefining performance expectations - fostering technology self-efficacy and leading by example
Summary: EX in the centre of HR architecture focus in 2024
As these nine HR trends unfold, 2024 stands as a transformative year where HR not only addresses immediate organizational needs but also lays the groundwork for a sustainable future. The fusion of innovation and strategic thinking positions HR as a catalyst for growth, inclusivity, and resilience. In this new era of work, HR rises to the occasion, steering organizations to new heights of excellence. The challenges are immense, but the potential rewards for organizations, workers, and society at large are immeasurable.
Katarína Bittalová, Partner, Arthur Hunt
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