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11 HR TRENDS FOR 2024: ELEVATING WORK
Written by Erik van Vulpen, Dieter Veldsman
10 minutes read
In 2024, HR will elevate work. We see three fundamental shifts driving this
transformation, fueling 11 defining HR trends.
First, HR will realign its priorities, reflecting the changing needs of the
modern workforce. Second, the way HR operates will be reinvented with a focus on
driving value for its internal customers. Finally, HR is stepping up to champion
meaningful change in the world of work. These shifts will send HR on a thrilling
journey with opportunities, challenges, and the promise of a future in which
Human Resources takes center stage in elevating work for all.
Let’s dive into the 11 HR trends we’ve identified, drawing from these
anticipated shifts.
THEME 1: HR REALIGNING PRIORITIES
The role of HR is undergoing a significant transformation in today’s business
landscape, requiring reconsideration of some of HR’s traditional frameworks.
Different forces drive these developments, from global environmental shifts to
legislative changes and from societal movements to the unexpected stagnation of
an entire HR function.
Moreover, as technology integrates further into workplaces, it calls for
reevaluating how we leverage this technology to boost worker productivity,
include workers who have long been hidden, and increase HR’s potential impact.
All of this makes it clear that in 2024, HR needs to realign its priorities.
2024 is the year in which HR isn’t just adapting but spearheading the charge
toward a more sustainable, inclusive, and business-focused future.
This leads us to our first four HR trends.
1. RESOLVING THE PRODUCTIVITY PARADOX
With significant economic changes, disruptions, and technology advancements over
the past 20 years, productivity has always been high on the HR agenda. Although
employee engagement, employee experience, and wellbeing interventions have led
to the highest job satisfaction in the US in the past 36 years, it has mostly
failed to impact worker productivity.
Worker productivity index with predictions (2015 = 1.00). Productivity growth in
the UK and Euro area have been minimal in the past 17 years while the US is
performing better. Productivity gains can be mostly explained by more efficient
manufacturing processes. Source: OECD data
The little productivity that we gained is mostly due to manufacturing becoming
more efficient. White-collar productivity has flatlined since the 2008 financial
crisis, presenting an opportunity for HR to find solutions.
Impact: 2024 as the year of productivity
In 2024, we are at a crossroads. We face historically low levels of
unemployment, an aging workforce, and a systemic lack of technical skills. At
the same time, the remote work debate continues, with companies like Zoom asking
employees to return amidst productivity concerns.
This isn’t just a corporate challenge; countries also face this dilemma.
Australia’s productivity only grew by 1.1% between 2010 and 2020. Early data
shows that the pandemic has further impeded growth, with productivity decreasing
by a whopping 2.3% in the last quarter of 2022, sparking a national ‘Advancing
Productivity’ initiative. Similar trends have been observed in other parts of
the world as well, including the Gulf Cooperation Council (GCC) economies and
Britain.
Workers in the US are about 18% more productive than EU-15 workers. This is
mostly caused by differences in investments in Information and Communication
Technology (ICT) that drive productivity, emphasizing the role that HR can play
in driving productivity through technology.
To maintain prosperity – and the benefits that come with it, HR should put a
renewed emphasis on productivity. After all, robust organizational performance,
fueled by productivity, paves the way for stable employment and competitive
wages, which positively impact employee wellbeing.
Echoing this sentiment, Rishi Sunak, the Prime Minister of the United Kingdom,
stated that pay rises should be focused on rewarding productivity, and that “as
we improve our productivity, pay can rise greater”.
We believe that by focusing on enhancing productivity, HR can lay foundations
for lasting employee wellbeing.
HR action: Finding ways to increase productivity
HR should take a more holistic view of productivity, focusing on removing
bottlenecks, formulating strategies to improve performance, and rewarding
behaviors that drive productivity.
Data analysis will play a key role here. Take the triple peak day, where
Microsoft identified that productivity went up during 6 and 8 p.m., leading to
more support for work after hours for employees who chose to do so. Another
example is Shopify’s Meeting Cost Calculator which aims to reduce the number of
meetings by showing the financial cost of a meeting.
HR should also become better at measuring actual productivity, through smarter
goal-setting, monitoring output, and promotion of proven tools that increase
productivity.
Generative Artificial Intelligence (GAI) can also play a critical role. The use
of ChatGPT in business writing tasks increased productivity by 37% and quality
by 20%. Another study found that the use of GAI amongst 5,179 customer support
agents at a Fortune 500 software company saw GAI reduce onboarding time from 10
months to only 2 months (a 500% decrease!) while increasing their work quality
by about 30%. These productivity gains are unheard of and can revolutionize the
way we work.
Finally, there is a role for more intentional workforce planning. Some of the
biggest bottlenecks in productivity are due to a lack of available and ready
talent, which could result in significant financial losses. Skills shortages
could cost employers $8.5 trillion by 2030. Proactive workforce planning and
accessing new talent pools can help to create pipelines that can be utilized
immediately. We will cover this in detail in our next trend.
2. TAPPING INTO THE HIDDEN WORKFORCE
At a time of historically low unemployment, where companies become increasingly
desperate to find talent, we expect HR to invest in a workforce that has often
been ignored: the hidden workforce.
The hidden workforce, also known as the “forgotten workforce”, represents 14-17%
of U.S. workers and includes retirees who want to work, caregivers, neurodiverse
individuals, people with long-term health problems (including those with long
Covid), ex-inmates, and people without degrees.
These either already participate in the workforce but want to work more (and are
often paid as “hourly workers”) or don’t participate yet but are willing to work
under the right conditions.
We believe that 2024 is the year in which this workforce will no longer be
forgotten.
Impact: Broadening talent horizons for all the right reasons
In today’s labor market, tapping into the forgotten workforce is the right thing
to do for two reasons.
First, it makes business sense, given the chronic shortage of labor in the
West. 77% of employers report difficulty in filling roles – a 17-year high –
while by 2030, one in six people in the world will be 60 years old or over.
Second, it is the right thing to do and a great example of how business utility
and inclusion policies can be merged. There is a first-mover advantage here, as
only 33% of organizations are looking at new talent pools.
HR action: Removing barriers to work
Some of the biggest barriers the forgotten workforce faces are in talent
acquisition. 38% of candidates in this group don’t hear back from an employer
for a vacancy they applied for, and over 70% of companies don’t provide feedback
to hourly workers. Improving these practices will help both the workforce and
the company’s employer brand.
HR can remove some of these barriers to work. Example interventions include:
* Inclusive job ads
* Skill-based hiring
* Equal access to training and reskilling programs
* Recognizing transferable skills over prior experience and qualifications
There’s also a key role for technology. From targeting the hidden workforce
through different recruitment channels to personalized onboarding, learning,
real-time feedback, and on-demand pay platforms, HR tech has the potential to
cater to these employees’ unique needs and empower them to be productive.
Employment practices can further accommodate this part of the workforce. This
would include a less stringent retirement age, more inclusive benefits, offering
flexible working arrangements, increasing office accessibility, and promoting a
culture that values diversity.
The shift towards recognizing and integrating the forgotten workforce is not
just a trend but a necessary evolution in the world of work.
Organizations that harness the potential of this vast talent pool will be better
able to address critical staffing needs that are holding them back. They will
also pave the way for a more inclusive, diverse, and equitable corporate
landscape for the future. This is a great example of systemic DEIB, which we’ll
discuss in our next HR trend.
3. THE POINT OF NO RETURN FOR DEIB
2024 is the year of reinvention of diversity, equity, inclusion, and belonging
(DEIB).
Three big shifts have led us to this point. The first is the Supreme Court’s
ruling that struck down race-conscious decisions in college admissions (also
known as affirmative action). Republican attorney generals cautioned Fortune 100
CEOs that this ruling will also apply to private companies.
At the same time, we see discontent with DEIB departments. Companies like
Amazon, Twitter, and Lyft have laid off DEI professionals, while DEI job
listings dropped by 19% during 2022 compared to the previous year. Revelio Labs
examined the lay-off notices of more than 600 companies and found that the
attrition rate for DEIB-related roles was 33% at the end of 2022, compared to
21% for non-DEIB-related positions.
DEIB initiatives in their current form also risk negatively impacting employee
attitudes. Gartner reports that 44% of employees agree a growing number of their
colleagues feel alienated by their organization’s DEI efforts. 42% say their
peers view their organization’s DEI efforts as divisive and resent DEI efforts.
And finally, we see that diversity officers either don’t fit in themselves or
fail to see the impact of their work. Following an exodus of diversity leaders
in Hollywood, the former VP of impact and diversity at the Academy hinted at
some of the struggles that Black executives face by saying that “leaders in
these positions need the support, love, and advocacy while they are in the
roles, not when their departures make headlines.”
Impact: A new approach to diversity
As we see above, the business case of diversity is complex. Organizations that
pay diversity lip service have been criticized in the public domain for being
inauthentic.
Take Nike that was called out after publicly showcasing support for Black Lives
Matter while less than 10% of their Senior VP layer were Black. Heathrow Airport
celebrated stories from “Women at Heathrow,” yet women’s median hourly pay is
14% lower than men’s. Target suffered a 5% drop in sales due to a controversial
Pride collection.
The alternative would be to ignore the topic entirely, which may work for some
companies but increases the risk of other companies being “canceled” by
consumers and condemned in the public domain.
Beyond the social impact, employees want to work for companies that take a
stance on DEIB issues. 80% of workers expect their CEO to take a public stand on
discrimination. Not addressing the proverbial elephant in the room will lead to
difficulties in attracting, engaging, and retaining talent.
We expect that in 2024, organizations will make changes to how they approach
DEIB.
HR action: Systemic DEIB
We propose systemic DEIB as a viable way forward in 2024.
Systemic DEIB moves away from high-visibility, ad-hoc DEIB initiatives, which
can lead to controversy and perceived inauthenticity, to building DEIB into an
effective and authentic foundation of the organization. Systemic DEIB has three
core elements:
* 1. Equitable practices: Forming the groundwork for DEIB. Organizations
leverage the principles of equality to build systemic practices that
promote true inclusion. Examples include equal access to education,
reskilling, and pay equity but also the use of data to determine which
prerequisites are valid to screen for during talent acquisition. The
intent here is to democratize opportunities and access to learning for the
entire workforce.
2. HR voice: Organizations develop a clear stance on specific issues and
create proof points that hold up to scrutiny from employees, customers,
and the public domain. These proof points need to become a part of the
company’s identity. This will also mean working closer with marketing to
create an authentic way to speak about DEIB inside and outside the
organization.
3. Targeted action: Once these proof points are clear, systemic DEIB will
take targeted action on these issues. Although highly dependent on the
proof points set by the organization, it could include moving beyond using
job-irrelevant criteria such as degrees and demographics to acquire talent
and instead use skill-based approaches that give more people access to
opportunities, but also exploring alternative talent pools to drive
authentic diversity, forming cross-organizational bodies to foster
inclusion and create opportunities for all, and breaking down traditional
barriers.
Here again, data can help to analyze where talent is sourced from and evaluate
whether these talent pools are unbiased towards certain socioeconomic
backgrounds, industry experiences, or schools. Businesses should also leverage
data to validate that the targeted action they’ve taken impacts the goals the
organization set out to achieve.
We believe that DEIB will remain an essential driver for business growth.
However, businesses need to consolidate their efforts and ensure DEIB aligns
with the company’s
4. HR DRIVING CLIMATE CHANGE ADAPTATION
While HR’s role in sustainability is relatively new, it’s quickly becoming
crucial as companies strive to adapt to the challenges of climate change,
ensuring their workforce is resilient, informed, and prepared for environmental
disruptions.
HR professionals need to shift their focus to step up to this responsibility as
sustainable practices are increasingly urgent for organizations.
First, sustainability-related legislation is changing around the world. The EU
introduced the Corporate Sustainability Reporting Directive to improve
sustainability reporting for EU companies as well as any company that does
business in the EU. The UK introduced Sustainability Disclosure Standards on
reporting climate-related risks, while the US Security and Exchange Commission
(SEC) is drafting climate change disclosure rules.
Second, leading companies are starting to invest in climate adaptation, which is
the practice of adjusting to the reality of climate change instead of working to
mitigate it.
* Unilever has launched water stewardship programs to preserve water quality
and manage supply risks around factories, such as Prabhat in India.
* Nestlé promotes intercropping to support soil fertility and build climate
change-resilient supply lines.
* Bayer invests in developing seed varieties that are more resilient to heat,
drought, wind, and flooding.
HR is responsible for a large part of this agenda, and it should work to help
the organization adapt to the new climate reality.
Impact: Navigating climate challenges to ensure business continuity
For HR to make a tangible difference in the organization, it will need to shift
its focus from more traditional climate mitigation strategies to climate
adaptation. This means that HR will play a key role in managing talent,
utilities, and offices. It’ll work to prepare the company for future (climate)
disruptions and extreme weather events.
We see the Chief Sustainability position increasingly integrated into the CHRO
role (sometimes called Chief People and Sustainability Officer, or CPSO).
Moreover, organizations are starting to incorporate ESG metrics into the HR
scorecard. These metrics include carbon footprint reduction, percentage of
employees using green commuting, gender pay equity, whistleblower protection
requests, and so on
Strategically, this trend requires a shift in mindset on how businesses see
their role in societal issues, understand how they can adapt their own
practices, and incorporate this mindset into business decision-making and
culture.
HR action: Embracing climate adaptation for future resilience
As a first step, HR should conduct a climate risk audit and, based on that,
define a roadmap on how the company can better adapt to climate change. Actions
may include:
* Creating a council on business continuity
* Putting disaster recovery plans in place, which could cover relocating
employees if a natural disaster hits and setting up work locations to
accommodate these workers
* Developing and implementing a clear communication strategy that informs
stakeholders, including employees and customers, about the company’s climate
adaptation measures and progress.
Another example is the implementation of labor practices that accommodate
extreme weather. Reports of heat deaths in Europe and the US in the summer of
2023 show that a lack of adaptation is hurting workers and costing lives – a
trend that hits migrant workers harder based on reports from the US.
Ensuring the tracking and reporting of corporate sustainability data to comply
with the regulation that will take effect in 2024 should also be on HR’s to-do
list.
Failure to do so opens the company up to business continuity risk due to a lack
of adaptation to a changing external environment, disruptions due to extreme
weather, and potential reputational damage due to a failure to positively impact
the climate.
THEME 2: HR OPERATING MODEL CHANGES
The way HR has operated has remained mostly the same despite the changing world
and shifting business landscape of the past two decades. Often, HR is organized
to deliver efficient services through specific roles, divided into specialized
centers of excellence, client-facing business partners, and centralized
administrative teams.
However, truly adding value in today’s complex world requires integrated
solutions rather than separate specializations.
This leads to consolidating centers of excellence into solution areas that drive
business impact. Doing so effectively requires a different set of skills as well
as a different value proposition. It will compel us to communicate better – both
internally and externally.
HR will also embrace what it takes to operate in the uncharted landscape of
transparency and social connectivity.
And finally, HR will reclaim its identity. HR has evolved into a profession that
is backed by evidence-based practices, data, and technology that helps achieve
organizational goals. However, we often still see ourselves as supporting the
business rather than driving impact. HR has an outdated self-image, and 2024 is
the year this will change with the next three HR trends.
5. FROM SILOS TO SOLUTIONS
Business models have evolved to become more digital and adaptable to the
changing needs of consumers. That’s why the siloed and functional nature of the
popular Ulrich operating model has come under question in terms of its ability
to deliver cross-functional and integrated business solutions.
We believe that in the long run, the Ulrich model will evolve into a new HR
operating model that better fits the organization’s business strategy. This
evolution will start in 2024 as siloed HR services begin to integrate into fully
developed solutions.
Impact: Deconstructed CoEs become people solution areas
Design-thinking and customer-first principles have been a key influence in
people practices for a number of years. As HR adopts these principles, separated
functional CoEs are broken down into solution areas focused on delivering a
specific outcome for HR’s customers.
There are numerous possibilities for new configurations, but we predict four
areas as a starting point for 2024:
Functional Areas Today New Solution Area Focus Business Partnering
HR Strategy
Organizational Development
Change Management
Organizational Design
Workforce Planning Strategy, Advisory, and Transformation Focus on business
transformation and strategic initiatives to realize the people strategy.
Employer Brand
Talent Acquisition
Onboarding
Employee Experience
Talent Insights
Employee Communication and Marketing Awareness and Attraction Focus on an
integrated awareness and attraction experience based on levers of employer
brand, candidate experience, and onboarding experiences. Business Partnering
Performance
Total Rewards
Wellbeing and Health
DEIB
Employee Experience
Analytics People Experience and Culture Focus on designing and implementing
positive work experiences that appeal to all employees and create a productive
and inclusive work environment where people feel like they belong. Talent
Management
Leadership Development
Learning and Development
Career Management People Growth and Enablement Focus on motivating, developing,
and empowering employees to achieve their potential and capitalize on internal
opportunities.
These solution-focused teams will collaborate closely with HR units within
specific business areas. Their role will be to actively participate in and drive
the implementation of these solutions alongside the business HR teams.
HR action: Merging of critical skills that create an impact
With HR becoming increasingly value-driven and business-centric, every HR
professional must understand how and where they can add value to the business.
Business partnering will become relevant to everyone in HR rather than be
reserved for a select few who bear the title.
The same will be true for data literacy. The ability to develop hypotheses, set
KPIs, read and interpret data, and communicate data stories will become critical
well beyond the people analytics functions. HR practitioners will need to
harness data literacy as a fundamental skill to drive impactful decisions and
strategic contributions.
By adopting these capabilities across all HR roles, organizations take a first
step toward a new, multi-skilled HR professional as they break the traditional
barriers between generalists and specialists.
These two shifts are the first steps toward new HR operating models built on
contemporary organizational design principles that encourage agility, fluidity,
and adaptability.
We also expect to see more experimentation within these changes in 2024. HR
teams will start to drive more project-based ways of delivery that intentionally
put different skills together to find answers to today’s business challenges.
6. HR LEANS IN
In the history of HR, the function has been through various changes – from human
resources to human capital, to strategic partner, to the people and culture
function, and most recently, the employee experience function. However, a
fundamental shift beyond a change in naming convention is needed to truly
rebrand and reposition HR to enable and drive business transformations.
HR has not equipped itself to contribute optimally in the past, often neglecting
skills development, digital adoption, and confidence in its own ability to
create value, resulting in a transactionally and operationally burdened
function.
This is reflected in perceptions about HR. 73% of HR leaders and 76% of C-suite
leaders believe that their HR team focuses primarily on processes, and 63% of
C-suite leaders see HR’s role as administrative. It’s also one of the reasons
why we see recent layoffs disproportionally hit HR teams and why many HR
professionals lack pride in the contribution that the profession makes to the
business.
In 2024, HR will turn this around, rediscover its identity, and lean into the
strategic conversation.
Impact: Creating a strategic vision for HR
Before HR can lean in, it needs to be clear on three things: First, its purpose,
or why it exists as a function. Second, its identity, or who HR is and what it
wants to be known for. And third, its contribution, or how it will contribute to
collective success.
With a clear strategic vision, HR can set priorities and clear boundaries on
responsibilities and identify the skills and behaviors needed to deliver on
these priorities. At the same time, HR professionals are empowered to build
purposeful HR careers.
It’s time for HR to stop being a support function and claim its identity as a
respectful profession with standards backed by data and robust science, and
recognized impact.
HR action: Accepting the challenge
By having a well-defined strategy that provides value to the business, HR will
be able to lean in and put itself forward. This implies making its voice heard
in business discussions, as most strategic issues are people issues.
Leaning in also means that HR shouldn’t be apologetic about taking time to focus
on its own priorities and develop the profession with the same rigor and
investment as we devote to other departments.
We often see HR attending to career paths, learning interventions, and wellbeing
of its business stakeholders but failing to stand up for itself. That results in
an epidemic of HR burnout, a lack of skills to contribute to the business, and
limited HR talent succession pipelines.
This is a mistake that the HR department will rectify in 2024. HR professionals
will recognize that they need the same level of enablement and empowerment to
continuously develop HR skills, build talent pipelines, invest in knowledge and
tools, and reposition HR as a desirable profession to work in.
This transition starts with HR practitioners not viewing themselves as
second-class organizational citizens but as equal citizens, core business, and
integral to organizational success.
Anecdotally, in his time as CHRO at a large multinational, one of the authors
has never been on an HR off-site team event where someone didn’t have to join a
call or be on their laptop to squeeze in some work. Most HR professionals
prioritize being there for the business over investing in HR and themselves.
This is noble but short-sighted.
And lastly, leaning in requires us to change the language we speak in HR and
about HR. Language is a strong indicator of how seriously the business is taking
a department – and HR should have a clear reason to operate in an organization
beyond helping others. In 2024, we’ll stop saying, “I’m in HR because I want to
help people”. HR is there to drive business results – and by driving these
results, it has the opportunity to help employees.
7. HR MEETS PR
Employee experience has increasingly become public. From people being laid
off to live firings on TikTok with over 10M views, and from the way companies
like Zoom, JP Morgan, and Goldman Sachs ordered employees back to the office to
employees sharing their onboarding package with the world, HR is operating in a
glass box.
Discontent with internal policies also gets shared more. At Google, workers
protested about layoffs in New York, California, London, and Zurich, but also
about union busting and even nearly canceled drag shows in the span of about
five months. These stories often make headlines with little consideration for
the internal context and how it was communicated to employees. Yet, they shape
public opinion.
As more moral and social issues require an organizational response, HR needs to
collaborate with marketing to have a PR strategy in place to influence and
control the narrative in the public domain.
Employees themselves are starting to act increasingly as activists and are more
comfortable sharing sensitive information publicly as opposed to using internal
organizational channels to raise their voices.
Impact: HR’s emerging role in public relations
Understanding how the outside world perceives internal policies, practices, and
decisions will become ever more important for HR professionals. Where it used to
be the PR and marketing departments that battled in the court of public opinion,
it is increasingly becoming the purview of HR.
Being prepared is about actively monitoring employer brand perceptions online
and having preemptive responses for potential PR issues. This shift also creates
an opportunity to strengthen the employer brand through authentic employee
testimonials, glimpses of company culture, and highlighting innovative HR
initiatives.
Crafting a PR approach in HR means aligning messaging with core company values,
ensuring it resonates with employees, and fosters a sense of belonging across
internal and external communication channels.
Internal policies also have a role. 86% of Canadian employers would fire an
employee based on an inappropriate post, but only 21% have a professional social
media etiquette policy. Including the social media policy in employee onboarding
helps align expectations upfront.
HR action: Delivering on the employee promise
Transparent and fair HR policies will become a strategic asset in this new
landscape. Companies will have to go beyond aligning with regulatory
requirements and actively manage (public) expectations, communicate clearly, and
deliver on their employee promise. Building a culture where disagreements can be
expressed and swiftly resolved inside the organization rather than outside is
also an essential part of this.
Besides raising the bar for transparency and expectations, HR professionals will
need to draft internal communications, including sensitive ones like layoff
notices, with the understanding that these could be made public. In addition,
investing in training HR teams in PR tactics is more important than ever. Such
structured guidance will equip them not only to handle potential PR crises but
also to manage the company’s image more proactively.
HR professionals who are unable to bridge the gap between internal culture and
public perception will become the news for all the wrong reasons.
THEME 3: HR AS A FORCE FOR GOOD
With the US labor market being the tightest since World War II, HR is stepping
up to lead transformative changes that benefit both their organizations and
their employees. In 2024, HR will be at the forefront of positive change.
One of these changes is generative artificial intelligence. It improves worker
productivity and company output but also promises to impact the meaning we
derive from our jobs. Not every job may provide the same degree of meaning for
the job holder, but we should work to prevent jobs from being entirely
meaningless.
This shift gives HR a unique opportunity to drive business results through
better employee practices.
Here, we see a move away from competing in a crowded external talent marketplace
towards internal marketplaces emphasizing career progression and promotion.
Organizations will continue to further accommodate talent by providing the
different flavors of work-life fit that employees are looking for.
All of this promises a hopeful vision for 2024, where HR drives business results
through smarter people policies as it becomes a catalyst for critical changes in
work. This is what our final four HR trends are about.
8. AI-EMPOWERED WORKFORCE EVOLUTION
The tremendous growth of Generative Artificial Intelligence (GAI), like ChatGPT,
has profoundly impacted the workforce in 2023. As organizations continue to
recognize its transformative potential, most of them will integrate AI into the
workforce and operations in 2024.
With the lines between human tasks and machine functions blurring, a holistic
approach to AI in the workforce will become crucial for sustained business
growth.
Impact: The end of low performance?
We already highlighted that GAI increases efficiency and quality of work tasks
and can significantly reduce onboarding time. The same study also showed a
different effect: the difference between high-performing and low-performing
workers decreased, which was caused by low-performing workers converging towards
high-performing workers (rather than the opposite).
This speaks to a trend we will see in 2024 and beyond. As GAIs become more
advanced, it equates to every employee having a highly intelligent AI peer
helping them with their work. This will not benefit the high-performing workers
as much as it will low-performing employees. They can now rely on artificial
intelligence to make many of their work decisions – and be at least as good as
the AI they work with.
There will be little difference between high and low performers in the future –
the difference will be between those who use Generative AI and those who don’t.
HR action: The rise of technology self-efficacy and leading by example
Organizations are increasingly adopting custom versions of ChatGPT-like tools to
guarantee data protection. They’re communicating policies on how employees can
safely and ethically use the tool.
HR departments need to go beyond generative AI policy creation and assume a
critical role in building technology self-efficacy among employees. This means
changing the perception and mindset around GAI, encouraging experimentation with
these technologies, removing barriers to using these tools in the organization
and day-to-day work, and putting safeguards in place that are needed for
emerging technologies.
One such safeguard is to limit the application of artificial intelligence in the
selection of candidates or worker management, which is deemed a high-risk AI
system under the EU AI Act (and is also regulated under title vii of the Equal
Employment Opportunity Commission). Misuse of these AIs on any EU citizens can
lead to fines of up to 40 million Euros or 7% of turnover, whichever is more,
regardless of where the organization is headquartered.
Enabling the organization and ensuring adequate safeguards requires technical
expertise that HR desperately needs. This is why we expect a continued push for
digital agility for HR professionals as part of the broader technological
transformation companies have engaged in over the last years.
In this era of rapid digital evolution, HR departments are at the forefront of
ensuring not just compliance but also shaping an AI-empowered workforce. HR’s
mandate in 2024 will be two-fold: embrace technological advancements to enable
an AI-empowered workforce while upholding ethical standards and regulations. It
is up to the HR department to guide the organization through this new territory
and to strike a balance between innovation and integrity.
When done well, AI will add impact and meaning to work by increasing work
efficiency and quality, automating mundane and repetitive tasks, and, as a
result, empowering employees to focus on the creative, strategic, and
interpersonal aspects of their roles.
9. SHIFTING WORK-LIFE BALANCE TO WORK-LIFE FIT
The pandemic ripped the bandage off our strained relationship with work,
revealing the stress and imbalances in our professional lives.
Beyond the Great Resignation (where 47 million workers voluntarily quit their
jobs in 2022), there were quiet quitting, lying flat, and bai lan. This
literally translates to ‘let it rot’ and has its origin in NBA games, referring
to the voluntary retreat from pursuing a goal as one realizes it is too
difficult to achieve. These terms paint a grim picture of how we relate to work
and, as an extension, the organizations we work for.
How organizations approach and manage work has contributed to the problem.
There’s a growing desire for alternative work lifestyles. Most employees who
participated in a four-day workweek pilot said they didn’t want to go back,
and 15% of employees said “no amount of money” would convince them to return to
working five days a week.
Workers are dissatisfied with work, and organizations have been failing to
address this trending HR topic.
Impact: Different people, different needs
One of the biggest challenges that organizations are facing is that different
people want different things from work. These expectations are also imposed on
organizations.
In 2024, we will see the shift from work-life balance to work-life fit as both
employees and organizations re-evaluate their changing preferences and
relationships with work. This means we will move beyond the constant balancing
act between work and life to an integration of work and life that leads to
mutual benefit and success in both.
Success looks different for different people, and so will the trade-offs people
will be willing to make.
For example, if upward career progression and pay increases are important to
you, you are likely to prioritize work in the context of your broader life
decisions and would be willing to accept this trade-off.
Similarly, if you want to pursue interests outside of work, you might be willing
to give up pay progression and a 40-hour work week for flexibility that allows
you to dedicate time to these interests. Each approach is fine as long as we’re
transparent about the inevitable trade-offs that come with it.
HR action: Balancing flexibility, expectations, and legalities
HR can facilitate a better relationship with work by redefining the employee
value proposition and accommodating what different people want from work.
Whether it is a four-day workweek, working remotely, or in a hybrid setting,
work-life fit allows employees to choose what works for them – within the
boundaries of what the organization is willing to accept.
Organizations need to be much more transparent about what it really takes to
succeed, and employees need to become clear on what they want from work. HR
should align with leaders on what the company’s true people expectations are and
equip managers to lead employees in these new work arrangements.
There are also legal ramifications in terms of contracts, policies, and
processes that HR needs to consider. For example, how does a “right to
disconnect over the weekend” policy impact colleagues who choose to work over
weekends on extra projects to gain faster progression early in their careers?
If managed well, work-life fit can create a renewed relationship with work. One
that sees work as a valuable contributor towards human flourishing, as opposed
to something that has to be done to survive.
If we don’t manage this well, we risk a workforce that becomes even more
discontented with employers. Workers will continue seeking a “perfect-fit”
employer, and organizations will struggle to manage their day-to-day people
practices.
10. THE END OF BS JOBS
A decade ago, David Graeber introduced socially useless, and thus – in his words
– bullshit jobs.
Prior research shows that 37% of British working adults believe their job is not
making a meaningful contribution to the world. A more extensive study covering
47 countries finds that 17% of workers are doubtful about the usefulness of
their job. Similarly, another study in the US reports that 19% consider their
jobs socially useless.
What’s more, technology developments are impacting job content and skills needed
to successfully carry out the required tasks. With 83 million jobs projected to
be lost and 69 million new jobs created, designing meaningful jobs that match
employees’ strengths becomes crucial to maintaining a competitive edge in an
evolving market.
Impact: Better jobs equal better performance
Feeling that one does meaningless work has a dire impact on employee wellbeing,
with bad leadership, unnecessary hierarchy, absence of teamwork, and a lack of
meaning in work being key drivers.
Adding meaning not only reduces the turnover, as we’ve seen in the post-pandemic
Great Resignation but also adds to job satisfaction, productivity, and
engagement. Research indicates that when employees find their work meaningful,
they perform 33% better. They’re also 75% more committed to their organization
and 49% less likely to leave.
With changing employee expectations, flatter organizational structures, and
fewer middle managers with larger spans of control, BS jobs are back on the
agenda. HR is uniquely positioned and has access to all the tools needed to get
rid of BS jobs while still ensuring gainful and meaningful employment.
HR action: How HR can fight BS jobs
First, HR needs to acknowledge that we’re guilty of designing jobs that are not
always meaningful. Traditional job design primarily considers the clustering of
tasks, activities, and skills required to deliver specific outputs into a job
but gives limited attention to whether the clustering of activities will be
meaningful for the individual performing the role. This should change.
Second, the circumstances under which work happens also impact how employees
perceive their jobs. For example, a company in the broadcasting industry
renegotiated the summer sports schedule to allow truck drivers to have more time
to drive between venues. This reduced their overnight hauls. Similarly, a
retailer implemented flexible rostering for their cashiers in their stores,
allowing them more flexibility to decide when they can be scheduled for work
within the confines of their contracts.
And third, we need to customize the job to the person. The reality is that for
some employees, a job is just a way to make money while they achieve their
personal ambitions outside of work.
Not everyone wants to have extra training or be exposed to new opportunities and
advancement. Some employees may even see that as something that detracts from
their ability to engage with matters in their personal life. That is fine, too,
and stresses the importance of high-quality (middle) management practices and
work-life fit.
11. FROM TALENT ACQUISITION TO TALENT ACCESS
In today’s historically tight labor market, we see a shift away from talent
acquisition towards progression and promotion within the organization.
Attempting to bridge the talent gap by competing for external talent leaves
organizations at the mercy of the labor market.
Taking a more proactive and sustainable approach that creates ways to access
talent will be imperative in 2024.
That is not to say that acquisition is not important – in fact, we believe that
enabling access will improve acquisition, too, as talent today needs (much) more
than just a great offer.
According to Gallup, the top things Millenials look for when applying for jobs
are:
* opportunities to learn and grow,
* interest in the type of work, and
* opportunities for advancement.
Organizations have caught on as well, with 48% of companies identifying
improving talent progression and promotion processes as key business practices
to increase the availability of talent, making it one of the most important HR
trends of 2024.
Impact: Talent strategies are changing
Talent strategies will change in 2024. Where organizations have long used talent
pools to manage external talent, they will increasingly build internal talent
pools, proactively identifying and developing transferable skills.
The emergence of non-traditional talent pools will also involve a re-evaluation
of traditional career pathing. This means that organizations have to re-evaluate
their career structures and promote self-directed and democratized career
management, where employees can manage their own careers based on the skills
they’ve built in the past and the skills they are looking to develop in the
future.
It’s also about moving away from traditional career ladders and promoting
horizontal and diagonal career moves through a career lattice approach.
HR action: Creating access to talent
There’s an opportunity for organizations to help employees proactively manage
their careers inside the organization. A focus on internal career development
will require a shift in mindset and culture to support and promote internal
mobility, which should go beyond merely moving employees internally, instead
aiming to create access to skills that the organization needs.
When done well, internal mobility will become a key talent strategy, helping
organizations plan for and manage their talent supply. Using data and
technology, organizations can link mobility practices to workforce planning,
proactively pool and access talent, and deploy skills where they add the most
value. By refocusing internal mobility to drive business outcomes, we will also
see less shuttling of low performers from one department to another, which has
historically spread inefficiency and demotivation.
Technology will also play a key role in supporting access to internal talent.
From identifying transferable skills to creating internal talent marketplaces;
digital platforms can now match candidates to roles based on skill sets,
aspirations, and potential, thereby democratizing access to opportunities.
This emerging way of managing talent is less about acquiring the talent to fill
gaps and more about identifying, unlocking, and nurturing the potential from
within.
A FINAL WORD
2024 stands as a transformative year for HR, where its influence will extend
beyond the traditional scope of the function.
As these 11 HR trends unfold, HR will not only address immediate organizational
needs but will also lay the groundwork for a sustainable future. Embracing these
changes will empower HR to create a work environment where employees thrive, and
businesses achieve what they’ve set out to do. While the challenge is vast, the
potential rewards for organizations, workers, and broader society are
immeasurable.
The blend of innovation and strategic thinking that HR brings to the table will
drive growth, inclusivity, and resilience. In taking up this expanded role, HR
will guide organizations to new heights of excellence. 2024 presents a world of
opportunity; it’s time for HR to rise and shine in this new era of work.
You can read about 2023 HR trends here.
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ERIK VAN VULPEN
Erik van Vulpen is the founder and Dean of AIHR. He is an expert in shaping
modern HR practices by bringing technological innovations into the HR context.
He receives global recognition as an HR thought leader and regularly speaks on
topics like People Analytics, Digital HR, and the Future of Work.
DIETER VELDSMAN
Chief HR Scientist
Dr. Dieter Veldsman is an Organizational Psychologist with 15+ years of
experience across the HR value chain and lifecycle, having worked for and
consulted with various organizations in EMEA, APAC, and LATAM. He has held the
positions of Group Chief People Officer, Organizational Effectiveness Executive,
Director of Consulting Solutions, and Chief Research Scientist. He is a regular
speaker on the topics of Strategic HR, Future of Work, Employee Experience and
Organisational Development.
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Contents
11 HR Trends for 2024: Elevating Work
1. Resolving the productivity paradox
2. Tapping into the hidden workforce
3. The point of no return for DEIB
4. HR driving climate change adaptation
5. From silos to solutions
6. HR leans in
7. HR meets PR
8. AI-empowered workforce evolution
9. Shifting work-life balance to work-life fit
10. The end of BS jobs
11. From talent acquisition to talent access
A final word
Relevant Articles
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Termination of Employment Contract: Everything HR Needs To Know
How To Design a Job Safety Analysis [+ Free Template]
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