The HR trends for 2024 that will shape your business

It doesn’t take a genius to work out that the economic downturn seen in the last 2 years has meant we’re all having to do more for less. A situation that is at best turbulent and far from ideal.

And against that background, it also won’t come as a surprise that for HR teams, the key trends for 2024 look like they’re going to focus on technology and the desire to automate more practices in order to devote as much ‘human’ time to key strategic tasks as possible.

But automation comes with risk, especially if it starts to erode a focus on equality and fairness, which should always be the number one priority of any effective HR approach.

So, what does the HR landscape look like for 2024, and how can your business use those trends to your advantage? Here are the key trends we expect to see in the next 12 months

LABOUR MARKET TRENDS

Fewer resignations: First the good news. Although under-35s are reporting less job satisfaction than previously, with a third of those recently surveyed admitting they’re looking for new opportunities in 2024, the number of employee resignations has dropped in the past year.

Reducing job growth: Many economists are predicting that the job market will slow in the first half of 2024 and the unemployment rate will climb. With immigration seeming highly likely to decrease, economic models forecast reduced worker engagement despite increased demand for labour.

ARTIFICIAL INTELLIGENCE (AI) IMPACT

Rise in AI transformation: AI technology (by which we’re really talking about Data analytics and machine learning) is likely to build automatable workforce strategies to keep personnel nimble, productive, and motivated. These will include functions like coding, cloud computing, and cybersecurity.

AI-led staff development: Development and staff training is one area where workplaces can improve career progression whilst also yielding significant time savings through automation with the help of AI. This will also contribute to ROI.

Increased use of chatbots: Using AI chatbots to answer basic employment-related questions more often will allow HR staff to focus on strategic tasks. Chatbots can also filter questions, ensuring only more complex inquiries are referred to HR managers or leaders for a personal response.

It’s important to remember, though, that humans are still needed, and that AI is not a silver bullet for all HR issues.

INCREASING USE OF MODERN TECHNOLOGY

Sunsetting of outdated tech: Firms are likely to abandon old software in favour of new and more flexible and adaptive solutions to handle complex programmes such as digital change and organisational transformation.

WELLBEING

People-focused employee benefits: There is a feeling that employee perks will shift in 2024, with standard, traditional benefits losing favour to personalised assistance for everyday issues, financial planning, and mental health.

Mental health: Gen Z's well-documented mental health issues and the tipping point of unchecked negativity will change the impact of mental health issues in the workplace, requiring HR teams to focus more time and attention on mental health support and stress resilience.

ONGOING ISSUES

Hybrid, remote, and in-office: It’s become the endless conversation loop of the last three years – how to transition back to greater in-office presence. This isn’t likely to change in 2024.

Individuals who can work remotely see no reason to return to the office if it does not impact their output, and companies that aggressively implement return-to-office (RTO) restrictions will have trouble recruiting and retaining talent.

THE ECONOMIC IMPACT

Organisations that cut too deep, too fast will be punished: Many companies have cut advantages like paid time off and remote work due to increasing cost and revenue pressures. This may well come back to haunt organisations that have been too fast and too aggressive in rowing back.

Strikes will decrease: The damage the last two years of industrial action has had on consumer confidence suggests organisations will work harder to achieve collective bargaining victories, even at the expense of income and productivity.

DIVERSITY, EQUITY, AND INCLUSION (DEI):

We are now fully aware of how an effective and successful DEI strategies can make a significant contribution to improved workplace culture and belonging, in turn adding value through productivity and profitability.

Businesses that strengthen efforts to promote diversity, equity, and inclusion within the organisation and develop strategies to create a more inclusive workplace, address biases, and ensure equal opportunities for all employees, will have an exponentially better chance of generating success during 2024.

These key trends are likely to be those that set the tone for 2024 within the HR world. They will have the collective result of ensuring teams remain focussed on staying effective and responsive to evolving workplace dynamics.

Naturally, the specifics will vary depending on industry, company size, and other factors.

If you’d like to find out more about how Constantia Consulting can help your business to navigate the challenges that 2024 will bring, we’d love to talk to you.