5 Key HR Trends That Will Shape Organisations in 2024
As we step into 2024, HR departments will experience significant shifts, driven by the acceleration of change, technology, workforce dynamics and employee needs.
Let's delve into the top five HR trends that are set to define 2024.
Individual vs Culture Focus
According to research, the role of HR as a strategic partner has increased to 50% in 2024, from 36% in 2021. HR teams are increasingly being called upon to help plan and execute the company-wide strategy, while simultaneously dealing with time, cost and resource challenges.
To reflect this, HR is evolving from a “personnel” function to a people, teams and culture function. This signals a shift in how HR departments function, how they are viewed, and their role within the business – from transactional to transformational.
Integrated Technologies and AI
Successful organisations are moving from a siloed approach to an integrated platform mindset. As the power and capabilities of tech keep increasing, a data-first approach to managing HR is required to accelerate growth and better manage talent.
Talent platforms free up HR resources to focus on strategic initiatives and partnering with the business. The natural step in the digital evolution is to select platforms that integrate with other business technologies, providing cross-functional intelligence and insights that leaders can leverage to make better decisions.
Sophisticated technology no longer only applies to large businesses. Small to medium-sized organisations (SMEs) are increasingly recognising the value of talent management technology to consolidate costs, optimise limited resources and scale as the business grows.
Artificial intelligence (AI) and machine learning (ML) were key trends in 2023, with significant advancements forecasted for the years ahead. AI is expected to take on a bigger role in HR and talent processes. Simultaneously, leaders are grappling with the changes it brings and the potential impact on employees, thought leadership, ethics and data privacy.
Equipping Leaders to Manage Change
The core mindset of organisations is shifting in terms of how they engage with change. In previous years, there was a significant focus on planning for change. However, the reality is that not everything can be planned for.
The onus is now on HR to equip employees and the organisation itself with the core competencies and abilities needed to quickly respond to unknown changes. Strategies to achieve this include focusing on the development of an agile culture, together with the digital skills and leadership competencies needed to manage agile teams.
Research by Gartner shows that 82% of HR leaders feel that their management team are not equipped to lead change. This demonstrates a significant gap between the needs of the business and the capability of leadership, which is set to become a core focus in 2024.
Dealing with Change Fatigue
The same study by Gartner revealed the role of change fatigue on employee effectiveness. 77% of HR leaders shared that their people are fatigued by the volume and pace of change, while only 8% felt they had a plan in place to manage it.
In 2024, high performing organisations will start to recognise the impact of change fatigue and strategically address it in their change management processes.
Beyond the tried-and-tested, traditional approaches to change management, HR will need to lead organisations in implementing proactive fatigue management strategies to help identify, address and prevent any harmful impacts.
Culture within the Hybrid Workplace
The return to office question is still a concern for many organisations. As employees continue to resist the return to an on-site workplace model, HR needs to take on a strategic role and guide the organisation on how best to implement flexible work models that address the needs of both leadership and employees.
Equally, in hybrid or fully remote working environments, HR leaders are increasingly perceiving a disconnect in the company culture and grappling with how to address this.
The best advice is to augment traditional culture-exchange mechanisms with intentional culture connectedness. Understanding the culture is not sufficient; employees need to be prompted to identify with, care about and experience a sense of belonging with their team and company culture. Strategies to achieve this include:
- a focus on emotional proximity over physical proximity,
- shifting from large group to smaller group culture experiences to intensify relationships
- ensuring the culture is not only diffused through the office but also through the everyday work and engagements with employees
The HR landscape in 2024 highlights the need for technological innovation, employee-centric approaches, and a commitment to fostering inclusive and sustainable workplaces. As we navigate the year, staying attuned to these trends will be crucial for HR to drive positive strategic changes within their organisations.
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