HR trends in 2024: What All HR leaders need to know.

As we step into 2024, the landscape of Human Resources is undergoing unprecedented transformations, driven by the swift pace of digital transformation, the growing emphasis on diversity, equity, and inclusion, as well as the surge in remote and hybrid work models. 

HR leaders must not only adapt but also proactively shape the future of their roles, staying ahead of challenges and leveraging opportunities for organizational and employee growth.

What’s in store for HR in the new year?

As HR professionals, we need to adapt accordingly and be prepared for these changes. We must be proactive, strategic, agile, invested in HR innovations, empathetic, and impactful. 

We must elevate our work to align with the needs of our organization and the aspirations of our people by embodying a strategic HR mindset for 2024 and beyond.

Now, what exactly are these challenges and opportunities?

What are the imperatives for HR in 2024 that will drive this transformation?

How can you tackle them effectively and efficiently?

How can you leverage your unique strengths and capabilities to create value for your internal customers?

How can you tailor and apply the solutions to different contexts and situations?

How can you measure your progress and impact?

To answer these questions, Strategic Outsourcing Limited has meticulously culled what has been identified as the “Seven Imperatives for HR in 2024”, to equip HR professionals with a profound understanding of the forthcoming challenges and the required strategies to navigate them adeptly. 

These are the key issues HR practitioners like us need to tackle to elevate HR’s work and achieve its goals in the coming year.

Seven Imperatives for HR in 2024

Here are the seven HR challenges and priorities SOL Nigeria has identified as what people experts can expect in the industry in 2024.

1. Remaining relevant in HR

2. Re-evaluating the employee relationship

3. Rethinking the roles of managers in an era of hybrid and remote working

4. Reconsidering talent acquisition and internal mobility

5. Maintaining wellbeing in a digital world

6. Redefining diversity, equity and inclusion

7. Doubling down on adopting the right HR technology

1. Remaining relevant in HR

In 2023, widespread layoffs were observed across global industries, impacting not only employees but also HR teams. This short-term measure in response to economic challenges has prompted HR leaders to reassess the relevance and strategic contribution of their function. 

Veronika Birkheim, Director of People Experience at Aurebus Consulting, emphasizes the need for HR leaders to elevate their roles within the organization, stepping into management and C-level positions while moving away from supporting partner roles. To achieve this transformation, Birkheim advocates leveraging technology, particularly through enhancing data literacy and communication skills.

According to Patrick Amm, Principal Consultant at HRpepper Management Consultants, the effective implementation of generative AI could revolutionize HR processes such as recruitment and development. Amm encourages companies to familiarize themselves with these advanced tools, identifying use cases for seamless integration into daily operations. This proactive approach, he suggests, will give rise to innovative HR services, policies, and roles. 

Despite these opportunities, a significant gap remains, as only 59% of HR leaders currently report adopting people analytics in their organizations, while 40% of the C-suite perceives HR as overly focused on paperwork and administrative tasks.

2. Re-evaluating the employee relationship

In 2023, widespread employee strikes occurred, driven by discontent with pay and working conditions. This unrest highlighted a breakdown in the employer-employee relationship, a sentiment amplified by reflections prompted by the pandemic.

Employees, reassessing job satisfaction and working conditions, were no longer willing to accept the status quo. Christine Temple, Chief Consulting Officer at Exaqueo, emphasizes that employers must move beyond pacifying measures and instead focus on redefining their relationship with employees, involving a thorough examination of organizational identity and a commitment to creating an authentic employee experience.

Research (a Gartner survey that was showcased during the Gartner ReimagineHR Conference, taking place on October 23-25, 2023 in Orlando) indicates that 83% of HR leaders expect an increased emphasis on employee experiences. The survey was based on the responses of 287 HR leaders in July 2023. However, Christine Temple argues that this extends beyond tangible offerings to the fundamental nature of the employer-employee relationship. HR professionals are urged to collaborate proactively with executive teams to establish effective channels for listening to employees and respond authentically.

She emphasizes that genuine efforts to address employee concerns will enhance an organization's attractiveness. While technology can facilitate experiences like flexible and remote working and streamline communication, it is viewed as a tool rather than a solution. The primary focus must be on the foundational work of rebuilding a robust relationship with employees.

3. Rethinking the roles of managers in an era of hybrid and remote working

Approximately half of hybrid managers’ report reduced visibility into their employees' work compared to in-person managers. The conventional hierarchical management model, designed for fixed jobs and physical workplaces with downward information flow, no longer aligns with the evolving work landscape. 

Julie Hodges, Professor of Organisational Change at Durham University Business School, notes that managers grapple with increasing ambiguity, managing people amidst technological advancements and hybrid work setups. To navigate these challenges, HR plays a crucial role in reshaping managers' roles and mindsets, identifying essential future capabilities.

Grant Weinberg emphasizes a shift toward empowering employees with direct access to resources, fostering self-sufficiency, and enhancing managers' people management skills. The goal is to create a culture that combines freedom and flexibility of remote work with effective leadership. 

Sankalp Chaturvedi, Professor of Organisational Behaviour and Leadership at Imperial College Business School, highlights the significant impact of AI on leadership. AI intervention is expected to revolutionize our understanding of motivation mechanisms, influencing aspects like fair application across the board and employee appraisals. As organizations adapt to these changes, HR's strategic collaboration with managers becomes paramount for success.

4. Reconsidering talent acquisition and internal mobility

The imperative for organizations to upskill and reskill their workforce is increasingly evident, with the World Economic Forum cautioning that over 50% of global employees must enhance their skills by 2025 to remain competitive. A tight talent market, coupled with shifts in employee preferences regarding work arrangements, has prompted companies to focus on internal mobility to retain valuable skills. 

According to Bill Boorman, Founder of Tru, the landscape is evolving from traditional talent acquisition to a more comprehensive approach of talent management. Internal retention takes precedence, with a potential convergence of talent acquisition and learning development roles within HR. Bill emphasizes that training and learning will shape the employer brand, necessitating a reevaluation of the employee value proposition.

As the talent landscape undergoes transformation, HR faces the challenge of assessing skills beyond conventional profiles or CVs. Bill underscores the shift toward data-driven approaches for workforce planning, skills assessment, and career pathing. With automation and AI expanding their capabilities, employers seek individuals with unique knowledge and soft skills that machines lack. Learning management systems must adapt to accommodate the evolving workforce needs, reflecting the changing dynamics of the employment landscape. In this context, the focus on proprietary knowledge and a holistic approach to talent management becomes crucial for organizations navigating the future of work.

5. Maintaining wellbeing in a digital world

Gallup reports a historic high in worker stress, costing the global economy $8.8tn (£7tn) – this is a whole lot of money. The rapid pace of digital transformation, while bringing numerous benefits, has created unprecedented uncertainties. David D’Souza from the CIPD emphasizes the challenge of navigating this wave of transformative technology amid economic difficulties, a pandemic, geopolitical volatility, and changing work dynamics. Amidst this unpredictable terrain, prioritizing time for reflection and focusing on personal and team wellbeing becomes essential for effectively guiding others through change.

Julie Hodges underscores the importance of integrating wellbeing into transformation designs to foster sustainable change, ensuring workers feel and perform at their best. Practices that mitigate the negative impact of transformation on health and wellbeing are crucial. Sankalp Chaturvedi emphasizes the need for organizations to manage expectations during the AI transition, urging them to provide guidelines and integrate mental health into their core strategies rather than treating it as an add-on. This one clear direction Strategic Outsourcing Limited is headed with its over 10,000 staff across Nigeria, said its CEO, Sir Femi Ogunlowo.

6. Redefining diversity, equity and inclusion

In the current climate of economic uncertainty and cost-cutting measures within corporations, the momentum behind diversity, equity, and inclusion (DEI) initiatives has slowed down. 

Despite previous pledges by many companies to promote equity, a lack of infrastructure to support these initiatives has hindered substantial progress. Grant Weinberg emphasizes the need for organizations to reaffirm their commitment to DEI, suggesting integration into change management strategies. This involves not only focusing on external hiring but also nurturing existing talent to foster inclusivity and equity throughout all facets of operations.

Founder and CEO at PILOT, Ben Brooks, anticipates that technology will play a crucial role in revitalizing DEI efforts amid stagnant commitments at higher organizational levels. The link between DEI and environmental, social, and governance (ESG) reporting, as well as increased shareholder awareness, will drive the utilization of technology to accelerate progress. 

Brooks emphasizes the importance of technology's flexibility in creating an inclusive workforce and retaining top talent. However, Sankalp Chaturvedi underscores that the transformative power of technology must be preceded by fundamental shifts in organizational culture. Changing defaults to create a sense of belonging for everyone, he argues, is a vital initial step. 

Chaturvedi stresses that DEI should not be exclusive but rather an inclusive awareness that transcends mere checkbox exercises, urging the normalization of differences in the selection, performance appraisal, and promotion processes.

7. Doubling down on adopting the right HR technology

In 2024, HR leaders will face increased board pressure to adopt efficient technology, a continuation from the "year of efficiency" in 2023. Scrutiny on technology spending will focus on platforms providing clear metrics and data-driven business cases. Legacy HR technologies lacking metrics may be replaced, and the challenge for HR is adopting tech for compliance and managing complexities like varying state employment laws, as noted by Andrew Johnson.

Ben Brooks (the Founder and CEO at PILOT) predicts HR tech innovation addressing persistent challenges like culture, diversity, equity, and inclusion (DEI), with a focus on hybrid work dynamics. Patrick Amm expects increased experimentation with technology, especially in generative AI-driven digital HR assistants for data and knowledge management. Despite opportunities, experts caution on responsible tech use, emphasizing the need for personnel training in the absence of industry regulations. The collective advice is to guide tech choices with a long-term perspective, understanding risks, and considering ethical implications in HR technology advancements.

As HR professionals, the challenges, and opportunities in 2024 are immense, requiring strategic foresight, adaptability, and a commitment to innovation. As a thought leader in the HR industry in Nigeria, Strategic Outsourcing Limited believes that by focusing on the imperatives outlined and leveraging the insights from HR experts, organizations can navigate the evolving landscape successfully, ensuring the well-being and growth of both the workforce and the business in year ahead. The key lies in remaining agile, empathetic, and proactive in the face of change, making 2024 a transformative year for HR.

Culled from Sage Advice

Powered by Froala Editor