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HR is constantly evolving, and HR professionals have to stay up to date with the latest changes to support business growth and ensure the business’s talent needs are met. This includes keeping an eye on emerging trends in the workplace, changing workforce dynamics, and new technologies that drive change in the HR space.
Predicting exactly what lies ahead is impossible, but keeping up with the expected HR trends for 2024 is a good starting point. What innovations are forecasted to drive change in hiring and recruiting? What to expect from HR tech in the next year? What should be the top priorities for HR leaders in 2024? Read on as we take you through next year’s HR priorities forecasts.
Artificial intelligence is driving change across industries, and HR is no exception to that. There are numerous ways how AI can be used to enhance HR operations, including:
Managing employee records,
Managing employee performance,
Screening CVs of potential candidates,
Tracking applicants throughout the hiring and recruiting process,
Onboarding new employees,
Offboarding employees, and
Enhancing the employee experience throughout the entire employee lifecycle.
The use of artificial intelligence and machine learning is trending in Human Resources departments, and the use of smart technologies across HR functions is set to increase even further. According to the Eightfold AI’s report “The Future of Work: Intelligent by Design”, 92% of HR leaders are planning on increasing their use of AI in at least one area of HR.
The same goes for automation. HR automation is on the rise. Payroll automation is just one example of how automation technologies can drive efficiency in Human Resources. Other HR tasks that lend themselves to being automated include leave management, onboarding, and offboarding.
Similar to other business functions, HR is also becoming increasingly aware of the value provided by data insights. Tools like people analytics software allow businesses to analyze large sets of workforce data and gain powerful insights into trends and patterns that can inform business decisions.
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2020 was the year that forced large parts of the global workforce into working from home. Now it seems like 2024 will be the year that reverses the trend towards a fully remote workforce. As a survey conducted by ResumeBuilder reveals, 90% of organizations will have returned to the office by next year.
The main reason why businesses want to go back to traditional in-office work is to generate more revenue. According to the survey results, 72% of organizations are convinced that requiring employees to return to the office will improve revenue. 28% of companies even say that they will consider terminating employees who refuse to comply with RTO policies. What does this mean for HR professionals?
Working from home and flexible working arrangements are popular employee benefits. In the current situation, where talent attrition, quiet quitting, and high employee turnover rates are already putting companies to the test, depriving employees of a perk that, for many, is a decisive criteria when choosing a new position, might seem counterproductive. HR and talent management functions hence have to create more attractive benefits packages and find suitable alternatives.
In recent years, companies have become more aware of pay equity among employers. In 2024, the topic of pay equity will likely evolve to a discussion around pay transparency. With the EU Pay Transparency Directive coming into force in 2024, there is no doubt that salary transparency will be a major HR topic in the next year as organizations start to take concrete steps to comply with the new requirements.
Data provided by job platform Indeed showed that, in August 2023, half of U.S. job postings on the platform included at least some salary information provided by the employing organization. And this share is expected to grow even larger. For one thing, complying with legal requirements surrounding pay transparency is non-negotiable. For another thing, being transparent about pay practices and structures offers companies an advantage when hiring new talent.
The 2023 Workplace Learning Report by LinkedIn showed that providing learning opportunities to employees was the main approach chosen by organizations to improve employee retention. It’s clear that providing opportunities for personal growth and professional development also enhances employee engagement.
In 2024, upskilling and reskilling will continue to be important driving factors in the Human Resources space. The main reason being the ongoing struggle of attracting and retaining talent many businesses are facing. If there is no talent available on the market to fill open positions, the best approach for businesses is to focus on internal mobility and upskilling existing employees.
According to the LinkedIn report, creating opportunities for employees to move into different roles within the business was the second-highest priority among C-level executives last year. The XpertHR 2024 HR Budget Pulse Survey shows that skills development continues to be a priority for businesses in 2024. 40% of HR leaders questioned indicated their intention to invest heavily in developing the skills of their workforce.
Another HR trend to look out for in 2024 is a strong focus on diversity, equity, and inclusion (short: DEI). Diversity and inclusion foster innovation and growth in an organization, and this should also be reflected in the workplace.
As 2024 approaches, more organizations are expected to take action and create a more inclusive workplace experience and culture and eliminate bias from their hiring and recruiting process to build a more diverse workforce. Developing inclusive leadership practices, creating equal opportunities, and considering diversity right from the beginning of the talent acquisition process are just some of the innovations HR professionals should prepare for.
According to Gartner, the HR top priority for 2024 is leader and manager development. In Gartner’s annual HR Priorities survey, 76% of HR leaders said that managers were feeling overwhelmed by the growth of their job responsibilities, while another 73% considered their leaders and managers to be unequipped to lead change.
The recommendation for HR professionals is to move away from traditional approaches to manager development and focus on adjusting the job profile instead. In other words, rather than wasting efforts on trying to prepare managers to do a job that is no longer manageable, the focus should be on improving the job conditions.
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