Five HR trends to watch in 2024

When developing 2024 plans, HR leaders need to consider the trends that will affect their workforce in the year ahead. Each organization is different, so the undercurrents affecting workers will vary across industries, and leaders must devise strategies that fit their sector’s unique needs. That said, the introduction of new technologies like generative AI and lingering pandemic aftereffects, like elevated burnout rates will impact most organizations, so it’s helpful to examine them in more detail.

Here are five HR trends that will affect employees and employers in 2024, plus a look at how HR and benefits professionals can creatively respond in the new year.

1. Employees will struggle to adjust to rapidly evolving technology: The public launch of ChatGPT in November 2022 provided a preview of the possibilities of generative AI, which continues to  transform workplaces today. And we’ve just scratched the surface of its capabilities, so companies need a long-term strategy to help employees adapt as AI and other technologies evolve. Listening to employee concerns and being transparent about how roles will be affected reassures employees who are anxious about job security. An emphasis on how new tools help workers perform more effectively creates the buy-in needed to successfully implement and optimize the tech. Keep in mind that generally, it’s better to overcommunicate than say too little. Meetings, training sessions and workshops can help employees adjust.
2. Organizations will implement new strategies to combat employee burnout: The stresses of the pandemic and subsequent worker shortage worsened an existing employee burnout problem. Employers will look for new ways to confront the issue in 2024, and enlisting middle managers in the effort is essential because they have the most direct exposure. To help managers address the burnout crisis, make sure they are familiar with the symptoms so they can get ahead of the issue and provide support when needed. Encourage them to have open, supportive conversations with team members that touch on wellbeing as well as business results. They can also lead by example when it comes to setting a healthy work-life balance by refraining from practices like emailing staff after hours and contacting employees when they have scheduled time off. Most importantly, make sure employees have opportunities to recharge.
3. HR teams will expand efforts to achieve organizational resilience: Pandemic-era business disruption and ongoing economic uncertainty underscore the value of organizational resilience. In 2024, HR leaders will focus on ways to increase their company’s ability to respond to unexpected events and pivot quickly to take advantage of new opportunities. Upskilling and reskilling employees will be popular methods as HR teams recognize that meeting the organization’s needs in the future will be less about formal schooling and experience and more about skills that are transferable to new roles as organizational needs change.
4. Organizations will place a greater emphasis on leadership development: Only 27% of leaders say they are very effective at leading hybrid or virtual teams, making it leaders’ least-effective area overall. This shows the need to focus on leadership development, especially as the skills leaders need to manage businesses in today’s economy are changing. The best practices for addressing these new requirements include forming peer groups where leaders can share ideas and make connections, offering training assets like online learning platforms, providing curated development paths to address specific areas where leaders need improvement, and onboarding programs that feature robust training toolkits and mentorship assignments to help newer leaders operate more effectively. Leaders need to be adaptable and resilient to guide their companies to success in the new year.
5. HR teams will increase their focus on performance and engagement: Employers have struggled to address an employee engagement crisis for years, and that work will continue in the year ahead. Look for leaders to focus less on discipline and emphasize performance enablement instead, which is a more effective way to improve productivity and retain qualified and motivated employees. Recommended tactics include ongoing conversations about employee objectives and support to help them with career development, surveys to identify key engagement drivers and pairing high-performance workers with colleagues who are less productive to help close performance gaps.

Related: The future is now: How is technology impacting the benefits industry?

Organizations are evolving in response to new challenges and opportunities, and HR and benefits managers are adjusting their approach to ensure their companies remain ready to execute their business strategy. But a basic principle of sound management always applies: Treat staff right, and results will follow. For HR, this means taking action and making decisions based on the overall outcomes desired for the business and the people.

In the year ahead, this will look like maintaining focus on fairness issues, including diversity, equity and inclusion initiatives. Embrace a people-first strategy that solicits employee feedback, considers the team’s wellbeing in decision-making and provides the technology and skills development opportunities employees require today while keeping business objectives top of mind.

Since every company is different, the specifics of your plan will be unique. Leaders at one company may be able to attract and retain employees with higher salaries, whereas others who can’t offer higher wages can provide better training opportunities, more flexibility or richer benefits packages. Keep these 2024 trends top of mind as you leverage your organization’s assets to build a people-first culture and set your team up for success in 2024.

Wellington Wu, VP Global Talent at Unit4