The Top 5 Trends Shaping Human Resources in 2024

What are the biggest HR trends for 2024? Of course, that depends on who you ask. But all year long, I've spoken to HR professionals and technology companies, and these topics are at the top of everyone's agenda:

1. GenAI

It's no surprise that GenAI will play a big role in numerous HR functions. In 2024, we will use it more wisely and thoughtfully than in 2023. It will play a major role in treating employees like the consumers they are, albeit with some caveats.

I've seen many companies jump into the possibilities of GenAI without fully understanding how it works and what it's good for. There are certainly two sides to the matter, and there is much to consider. The collision of authentic thought leadership and GenAI is interesting to say the least, and we've also seen some ethical and potential privacy issues.

What's also interesting is that the use of GenAI's power (and ability to shorten individual efforts) was partly responsible for two strikes among actors and writers working with Hollywood. The agreement reached to end the strikes could have huge implications for how employers outside of Hollywood can use AI in the future.

GenAI certainly isn't going anywhere, and there's a lot of positive things to report. In HR, it allows us to automate countless talent acquisition and management tasks and improve, refine and streamline many processes. It provides support and help that is actually intelligent, reducing friction and improving employees' experiences when they need answers and information. It helps us make smarter decisions, from hiring to hiring to service delivery.

2. Compensation

Compensation is changing. With new expectations and needs in terms of flexibility, equity, transparency and performance, what was once a relatively sober process has become something of a Wild West show. In 2024 it will settle in a better model that corresponds to today's realities.

A big reason for this is that the world of work has been rocked in recent years by the increase in "silent dismissals" and employers have had no choice but to take employees' needs into account. As Gallup noted in its 2023 State of the Global Workplace Report, pay has a lot to do with not just what people are paid, but when and how. In the report, 28 percent of respondents said they would change things related to pay at their workplace, such as: more timely pay and reward for their role in great results, such as: Gasoline vouchers that make commuting easier.

That won't change. In 2024, this will be even more important: as more employers consider return-to-work policies, they will need to offer compensation and benefits that take into account employees' pain over pay and the costs of returning to work.

Taking into account transparency and equity as well as performance, compensation requires a new approach. The possibility, for example. Offering off-cycle and on-demand pay options and varying the frequency of pay speaks volumes about an employer's willingness to treat employees as individuals rather than numbers thus creating a positive engagement between them.

3. Employer/Employee Relations

Given the many changes in the place, time and way of working, not only the friction in the relationships between employers and employees has increased significantly, but also the impact on this fundamental connection. In 2024, smart employers will work to reduce these frictions and their impact on everything from engagement to performance to retention to growth. This will also extend to assessing the stress on managers and help to maintain a good relationship between the employer and the employee.

What does a bad relationship look like now? According to a Gartner report, sentiment around return to work, performance and confidence varies widely. Only 26 percent of companies report that their employees fully meet on-site attendance requirements - that's barely more than a quarter of the company's workforce.

Performance expectations remain inadequate: almost 50 percent of employees consider their current performance to be inadequate. When it comes to trust, only 50 percent of employees actually trust their company. There is still some pain felt over pandemic-era contraction and layoffs, even if they are temporary. It doesn't take much to see a connection to the need for more transparency.

4. HR tech platforms

HR technology in general is becoming more sophisticated, powerful and intelligent. But with the emergence of HCM and other HR platforms that handle a range of functions, more companies of all sizes will approach their HR tech needs from a platform perspective.

The reason for this is much more than "if you build it, they will come." Companies need to accelerate and scale growth, better manage talent, provide a consistent user interface and support, and make smarter decisions - all just to stay afloat. Compliance issues and other employment-related regulations and laws are constantly evolving, and staying on top of them requires a systemic approach. Remote, hybrid, flexible and multi-hub workplaces add a staggering layer of complexity that AI and machine learning (ML) can manage, streamline and overcome.

However, the emergence of AI and ML has its own profound implications. Companies need to consider how they use AI (e.g. in recruiting and hiring) and ML (e.g. in predicting employee retention). For many, the answer lies in a comprehensive platform that integrates with existing programs but keeps all employees in the same environment and provides all the intelligence and data leaders need to make strategic decisions. I also note that these muscular platforms are not only suitable for large companies: SMEs can also rely on them.

5. Qualification plus learning and development

I see both of these trends and one - and by bringing them together, I also advocate for employers to recognize that they are two sides of the same coin when it comes to setting up their employees and leaders for success. I hope that in 2024 we will focus on developing our existing talent from a skills perspective and that leaders will recognize the role of L&D in growing their companies.

First about skills: During digital transformation, the idea of core competencies was, well, thrown out the window. Leveraging increasingly sophisticated and powerful technologies to do our jobs better requires special skills - at all levels. The pandemic has made us far more reliant on digital work environments, which means we need to learn these tools. Artificial intelligence has led to another leap in skills as we learn to use it. When we move from focusing on degreesor years of experience to skills, HR professionals and managers can be much more flexible when it comes to finding or developing the right talent.

And now the L&D part: Leaders not only have to offer L&D programs, but they have to create a learning culture - and they have to deal with the fact that they are not doing that. A recent study by edX uncovered a gap that needs to be filled: While half of executives believe their company provides employees with a strong learning culture and the time they need to learn, this is not the opinion of most employees.

In fact, only one in five employees completely agree. This isn't because leaders don't value L&D or don't understand its role in relation to business and talent goals: they see L&D programs as a way to increase skills (53 percent) and employee performance at scale to improve (50 percent) and to maintain employee commitment (also 50 percent). I have participated in discussions about the merits of L&D, particularly in a time marked by quiet layoffs and other hidden influences on the workplace. The trend is simple: it is more important than ever.

There's more

What I didn't include in this list of my top five are a few more. Diversity, equity, inclusion and belonging (DEIB) initiatives continue to be important in both talent acquisition and talent management. Internal mobility strategies will continue to play a key role in retaining employees - and can be better leveraged with DEIB in mind.

Finally, the pace of change is an ongoing trend. The sheer speed at which HR technology is evolving can put HR teams in a bind when it comes to having the best, fastest, smartest and newest. But HR has also reached a point of maturity in terms of effectiveness and scale. That's not to say there won't be further improvements, but we have an incredibly strong foundation of skills to work with.

My advice: Don't feel like you have to reorient yourself after every adjustment or change. Regardless of the technology you use, your talent strategies should focus on transparency, communication, relationships, and data-driven reporting. This is not a trend now. But it is always a good practice.

Tips by IceHrm, your trusted HR management software partner, helping organizations streamline their HR processes.