The top 10 trends in HR going to 2024

While 2023 was a year of rethinking HR and establishing its new function, 2024 has been all about pushing the limits of what HR can do. The way we work and how businesses operate has continued to evolve dramatically over the past few years. The disruption to our economies and organizations has been ongoing, with the initial shift toward remote work, frequent lockdowns, and health concerns giving way to the Great Reopening, the Great Resignation, and ongoing talent shortages.

No other company function has been under more pressure than Human Resources to keep up with this rapid pace of change. That's why in 2024 and beyond, it is critical to be aware of key HR trends and understand how to leverage them to create transformation and add more business value. Understanding and adapting to these trends will be essential for organizations looking to thrive in the years ahead.

Virtual work is here to stay

The shift to a more flexible, worker-centric way of working that emerged during the pandemic has become the new normal. Companies like Twitter, Microsoft, Facebook, Shopify, and Slack have all embraced remote and hybrid work models, recognizing that the traditional office-based approach is no longer the default. Surveys show that the majority of employees want to continue working from home at least part-time even after the pandemic fully subsides.

Adapting to this more virtual, digital work environment is a top priority for businesses. HR teams are tasked with developing policies, processes, and technologies to support this new way of working. Maintaining company culture, ensuring productivity, and providing the right tools and resources for remote and hybrid employees are all critical challenges that must be addressed.

Companies Double Down on Digital

To support this shift to remote and hybrid work, companies have significantly increased their investments in digital collaboration and communication technologies. According to research, 77% of CEOs want to expand their use of these tools, and 67% prefer to invest in technology over worker skills.

This "digital-first" approach has far-reaching implications for company culture, values, and the employee experience. HR is at the forefront of ensuring that the adoption of these new technologies enhances rather than detracts from organizational effectiveness. Balancing the hybrid work model, fostering digital fluency, and leveraging data to drive insights are all key responsibilities for HR in this new landscape.

Teams Play an Essential Role

"Superteams" that combine people and technology are becoming the way of the future, enabling organizations to achieve results faster and at a larger scale. Key factors for successful superteams include fostering a culture of adaptability, upskilling and reskilling the workforce, and implementing new technologies.

HR plays a critical role in shaping and supporting these high-performing teams. Designing the right team structures, providing the necessary training and development, and cultivating a collaborative, growth-oriented culture are all essential HR functions. By empowering employees with the tools, skills, and environment to thrive in a team-based, technology-driven work model, HR can drive significant business impact.

HR Design is a Strategic Focus

The concept of "HR design" is a major priority, as it helps shape the future of work and the new competencies required. This includes organizational design, job design, scenario planning, and other techniques that may not have traditionally been part of the HR toolkit. Applying a design-centric approach allows HR to proactively address the changing nature of work and ensure the workforce is equipped to meet evolving business needs.

Managers who aren't equipped to lead this change are a significant challenge. HR must take an active role in reskilling and supporting managers to become effective change agents. Developing the right leadership capabilities, fostering agility, and driving a culture of continuous learning are all critical focus areas for HR design initiatives.

Employee Experience is Redefined

Employee experience remains a critical focus, with companies seeking to give employees a voice through feedback mechanisms. Organizations that act on employee feedback see benefits like higher engagement, retention, and resilience. Going forward, the goal is to link employee experience to both customer experience and investor confidence.

Elevating the employee experience is no longer just about perks and amenities - it's a strategic imperative that impacts the entire organization. HR must take a holistic, data-driven approach to understanding and meeting the evolving needs of the workforce. Connecting the employee experience to tangible business outcomes is the next frontier for HR in this domain.

Mental Health Gets the Attention it Deserves

The pandemic took a significant toll on employee mental health, with high rates of depression, burnout, and emotional drain reported. Companies have responded by providing greater access to counselling, wellness programs, and other mental health resources and support.

Addressing mental health is not just the right thing to do - it has a direct impact on productivity, engagement, and retention. HR is in charge of destigmatizing mental health challenges and embedding wellbeing into the fabric of the organization. Innovative approaches like peer support networks, mental health days, and proactive outreach are becoming more commonplace.

Data Becomes the New Currency

The shift to remote work has driven an increased reliance on data and analytics to measure employee engagement and productivity. Over 60% of executives see data-driven decision-making through personnel analytics as a critical HR trend.

HR is leveraging a wealth of new data sources, from collaboration tools to pulse surveys, to gain real-time insights into the workforce. This data-centric approach enables HR to make more informed, evidence-based decisions about talent management, organizational design, and strategic initiatives. However, balancing the use of data with privacy concerns and ethical considerations is an ongoing challenge.

DEI Receives Major Focus

Diversity, equity, and inclusion initiatives have taken on greater urgency, with over 80% of CEOs publicly declaring new actions to address racism and other issues. The pandemic has also exacerbated challenges for women in the workforce, and companies are working to address this.

HR is at the forefront of driving meaningful progress on DEI. This involves everything from reviewing hiring and promotion practices to providing unconscious bias training to fostering an inclusive culture. Measuring and reporting on DEI metrics, collaborating with employee resource groups, and aligning DEI efforts with business objectives are all key responsibilities for HR.

Upskilling and Reskilling are Vital

The rise of AI, automation, and robotics is driving a significant need for employees to develop new skills. Over 50% of companies expect 50-100% of their workforce to require upskilling or reskilling in the next few years. HR is playing a central role in equipping the workforce with the competencies needed to navigate this changing landscape.

Identifying critical skill gaps, designing targeted learning and development programs, and creating a culture of continuous learning are all essential HR functions. Leveraging tools like internal talent marketplaces, mentorship programs, and career mobility initiatives can help employees acquire the skills needed to thrive in the future of work.

HR Offers Guidance to Drive Success

An "organizational guidance system" that specifies desired outcomes across talent, organization, leadership, and HR is emerging as a key trend. This prescriptive approach, enabled by data and analytics, helps organizations identify and implement the optimal activities to achieve their strategic goals.

By taking a more proactive, outcomes-focused approach, HR can better align its initiatives with the organization's overarching priorities. This "guidance system" shifts HR's role from a reactive service provider to a strategic partner that drives tangible business impact. Leveraging data and insights, HR can make more informed recommendations and decisions that support the organization's long-term success.

Overall, the HR function has been transformed in recent years, becoming a critical strategic partner in helping organizations adapt to the rapidly evolving world of work. By staying ahead of these key trends, HR can continue to create value and drive success for the business.