As organisations grappled with unprecedented challenges in 2023, the human resources (HR) landscape underwent transformative shifts. From prioritising employee well-being to embracing skills-based hiring, the trends reflected a commitment to adapt to the evolving nature of work. Now, as we stand on the cusp of 2024, it’s important to explore the anticipated shifts and examine the interconnectedness of HR trends in shaping the future of work.
Top 5 HR Trends we saw in 2023
1. Prioritising Mental Health in the Workplace
In 2023, companies noticed a rise in workplace stress and made a conscious effort to prioritise employee well-being. This showed a growing recognition of how crucial it was for organisations to address mental health concerns. This change highlighted a commitment to creating a supportive work environment, understanding that it contributed to both individual and team success.
2. A Surge in Skills-Centric Recruitment
In 2023, skills took centre stage in the job market, surpassing academic qualifications. This shift not only broadened the talent pool but also led to a significant 63% increase in skills-based hiring, signalling a notable change in recruitment strategies, according to Remote’s research. Interestingly, more than one-third of the top 20 skills sought in job postings have evolved since 2016. The trend showed a clear focus on human-centric skills gaining increased importance.
3. Evolving Work Schedules and Hybrid Work Environments
Flexibility in the workplace has evolved beyond remote work to encompass varied work schedules. Executive Networks Global Research emphasised the importance of flexible work timing, recognising the diverse needs of both knowledge workers and frontline workers. Predictions suggested that hybrid working was becoming the norm for nine out of ten organisations, with a clear focus on tailoring approaches to define what hybrid meant for each organisation. As remote work continued, major corporate offices underwent redesigns to align with this shift. This transformation also underscored the need to rethink real estate functions, with a focus on enhancing the overall employee experience.
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4. Integrating Sustainability Metrics for Strategic Corporate Success
The need for Environmental, Social, and Governance (ESG) reporting grew because of rules and regulations. More and more companies started including ESG metrics in the pay plans for top executives. Stakeholders, like employees, customers, and others, had a big say in this. Being clear about how well a company does in ESG areas affected how easy it was to hire and keep talent and influenced what customers liked. The mix of rules and what stakeholders wanted showed that more and more people saw that sustainably doing things wasn’t just the right thing to do but also a smart move for a company’s success.
5. Nurturing HR Well-Being by Reducing Burnout
HR jobs got more complicated, strategic, and involved multiple areas, leading to more burnout. To tackle this issue, leaders realised they had to do something urgently. They put in place things like better training, coaching programs, and more recognition to ease the stress on HR professionals. This acknowledgement and quick action showed a commitment to making the HR workplace healthier and more sustainable.
Top 12 HR Trends for 2024 that we are expected to see
The trends observed in 2023 collectively underscore a holistic approach to HR, emphasising employee well-being, skills-based hiring, flexibility, ESG reporting, hybrid working and addressing HR burnout. As we transition into 2024, these trends set the stage for a transformative year in HR, with several noteworthy shifts and challenges:
1. Fostering a proactive total well-being approach
Companies are shifting from reactive to proactive approaches, placing a strong emphasis on well-being and stability. Recognising the burnout crisis signifies a commitment to the holistic health of employees and extends to Human Resources professionals. This shift emphasises the importance of a proactive stance in fostering a workplace culture that prioritises the mental and physical health of all team members.
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2. Purpose-Driven Organisations: Aligning Work with Meaning for Talent Engagement
The need for meaning in work has emerged as a key differentiator for organisations. It highlights the growing understanding that employees want more than just a job—they desire a sense of purpose in their work. Acknowledging the connection between work and a broader sense of purpose is seen as vital for retaining, attracting, and engaging talent. This awareness signals a shift in organisational priorities, emphasising the creation of environments where employees experience deeper satisfaction and fulfilment through their meaningful contributions to the larger goals and values of the organisation.
3. A Renewed Approach to Remote and Hybrid Work
HR faces the challenging task of creating remote work policies that are future-proof while adjusting management and recruitment practices to match the evolving dynamics of the modern workplace. The focus on competitiveness highlights the ongoing importance of remote and hybrid work models for attracting and keeping top talent. Additionally, HR’s evolving role now includes the contingent workforce, demonstrating a commitment to providing a positive and inclusive work experience for all employees. This strategic shift acknowledges the dynamic nature of the workforce, emphasising the need for a comprehensive HR approach that not only adapts to current trends but also anticipates and navigates the ongoing transformations in the way we work.
4. Empower Deskless Workers
The unique needs of deskless workers and the importance of providing tools tailored to their specific purposes will be a focal point. In response, HR will be strategically called upon to delve into a subtle understanding of deskless workers and to empower them beyond traditional compensation. This strategic approach will acknowledge that the support and tools provided to deskless workers extend beyond monetary considerations, aiming to enhance their overall work experience and ensure their specific needs are met comprehensively. It will reflect a commitment to inclusivity and a recognition that a one-size-fits-all approach is insufficient in addressing the diverse requirements of the modern workforce.
5. A Holistic Approach to Diversity Across the Employee Lifecycle
HR is expected to review the entire employee lifecycle with a focus on promoting diversity, equity, and inclusion. Inclusive practices are seen as crucial and are planned to be integrated into various HR functions. This approach signifies a strategic and holistic effort to cultivate an inclusive workplace culture. Taking a proactive stance emphasises the acknowledgement that diversity and inclusion should be present at every stage of the employee journey. This reflects a commitment to creating an environment where all individuals feel valued, supported, and able to thrive.
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6. Entering AI and Embracing Innovations in HR Technology
Organisations are actively exploring the metaverse as a tool to reach a broader audience and foster collaborative workplaces. This showcases a commitment to innovation by incorporating emerging technologies into HR functions and exploring new possibilities in the digital landscape. Simultaneously, there’s a strategic focus on using technology to reduce bias, improve decision-making processes, and streamline administrative tasks.
However, there’s a note of caution with these technological advancements, as there’s a mindful acknowledgement of potential risks and ethical considerations linked to the implementation of algorithmic HR. With the transformative impact of Generative Artificial Intelligence (GAI) expected in 2024, organisations face the challenge of adopting a holistic approach to AI, recognising its significance for sustained business growth in the evolving landscape of work and technology.
7. Elevating the CHRO by Shaping Strategies as a Trusted Advisor in the C-Suite
The Chief Human Resources Officer (CHRO) will be strategically positioned within the C-suite inner circle, taking on the role of a trusted advisor to the CEO. This will signify a growing recognition of the strategic importance of the CHRO’s role, indicating a broader organisational shift towards Human Resources playing a more central and strategic role in decision-making processes. The elevation of the CHRO’s position will highlight an increasing acknowledgement of the critical impact that effective human resources management will have on shaping organisational strategies and fostering success in a rapidly evolving business landscape.
8. Reshaping Workplace Learning
To attract and keep talent in a competitive job market, organisations are strongly advised to offer plenty of upskilling opportunities as a strategic initiative. Recognising the dynamic nature of the contemporary workforce, learning and development are crucial components for both organisational success and employee retention. Emphasising continuous skill development not only boosts workforce capabilities but is also a key factor in creating a workplace culture that values and invests in the growth and professional development of its employees. By prioritising learning initiatives, organisations show their commitment to staying ahead in a rapidly evolving business landscape and fostering a workforce that remains adaptable and resilient.
9. Strategic Initiatives for Next-Gen Manager Development
There’s a clear focus on evaluating and empowering the next generation of managers through specific initiatives aimed at accelerating their development. This strategic emphasis demonstrates a dedication to building a strong talent pipeline within the organisation, acknowledging the importance of fostering effective leadership pipelines. Recognising this need reflects a proactive approach to leadership development, ensuring that the organisation is well-prepared for the future by consistently bringing in skilled leaders. These leaders can guide the company through changing challenges and opportunities.
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10. Focusing on Crafting Meaningful Roles for Employee Fulfillment
To stay competitive, organisations must create jobs that have inherent meaning for employees and match their individual strengths. The challenge is dealing with the widespread perception in a significant portion of the workforce that their jobs are socially useless. Recognising this challenge requires a strategic focus on job design that not only meets organisational objectives but also ensures each role contributes meaningfully to individual fulfillment and the overall success of the company. This move toward purposeful job design is crucial for retaining talent, boosting employee satisfaction, and cultivating a workplace culture that values the meaningful impact of each employee’s contributions.
11. Shifting from Talent Acquisition to Internal Talent Access
Organisations are increasingly shifting their focus from hiring external talent to promoting internal growth. This trend highlights the strategic need to establish pathways for accessing and developing talent from within the organisation in 2024. Emphasising internal talent recognises the value of nurturing existing skills, knowledge, and expertise within the workforce. By prioritising internal progression, organisations not only encourage a culture of continuous growth but also leverage the potential within their current employee base. This approach promotes loyalty and offers advancement opportunities that contribute to both individual and organisational success.
12. Aligning Internal and External Narratives by Collaborating in Public Relations
Organisations are collaborating more with marketing to shape public perceptions, especially with the increased visibility of employee experiences. This reflects an acknowledgement of the interconnectedness of employee and public relations. However, a challenge arises as organisations navigate the need for a strong public relations strategy to address potential discontent from internal policies being shared externally. This dynamic landscape underscores the importance of proactive communication and aligning internal practices with external perceptions to maintain a positive organisational image.
A Transformative Year for HR
As we navigate through the intricate web of HR trends in 2023 and anticipate the shifts in 2024, it becomes evident that HR is at the forefront of a transformative journey. The interconnectedness of trends underscores the need for a holistic, adaptable, and strategic approach to workforce management. From prioritising employee well-being to embracing emerging technologies, HR professionals are tasked with shaping the future of work in a dynamic and evolving landscape.
In conclusion, the trends for 2024 indicate a shift towards a more strategic, inclusive, and adaptable HR function that considers societal changes, technological advancements, and the evolving expectations of the workforce. The focus is on redefining priorities, adapting operating models, and positioning HR as a force for positive change in the workplace. As organisations embrace these trends, they are likely to create environments where employees thrive, and businesses achieve their goals in the ever-evolving world of work.
