HR Trend Report 2024
HR Trend Report 2024
HR Trend Report 2024
2024 HR leans in
HR meets PR
AI-empowered workforce
While we feel busier than ever, productivity has As HR's work comes under increased public scrutiny,
stagnated. HR can use trusted HR tools and new tech practitioners will need to take a page from Marketing
to empower employees and get productivity back on and PR's book to not just drive value, but avoid doing
track. damage.
Elevating work
In the world of work, change is desperately HR will act as a force for good. In 2024, HR
needed. has a unique opportunity to drive business
results through better employee practices.
Organizations face a labor shortage while
millions of workers are unnecessarily Change is never easy. But if HR has the
sidelined. Productivity stagnates despite the courage to step up during the impending
democratization of powerful new transformation of work, everyone stands to
technology. And as workers reexamine their benefit.
relationship with work, it's clear that
traditional career structures have reached
their limit.
Erik van Vulpen
Work is at a crossroads. And HR can provide Founder of AIHR
the breakthrough needed to get it back on
track.
Dieter Veldsman
HR will realign priorities. External factors
Chief Scientist, HR
are driving a major transformation in HR, & OD at AIHR
putting traditional HR frameworks and
priorities under scrutiny.
3
OVERVIEW
Table of contents
HR leans in
6 Page 15
4
Trend 1
2024 finds us at a crossroads. On the one hand we This isn't just bad for business. Poor organizational
have historically low unemployment and the highest performance directly affects employees too, causing
job satisfaction in 36 years. But companies are still insecure employment and lower wages.
struggling with a systemic lack of technical skills in
OECD data shows that office worker productivity has
the workforce, and stagnant productivity.
flatlined since 2008. This is a problem that HR
This problem is hitting both companies and should own and overcome in the name of employee
countries. Australia's productivity grew by just 1.1% wellbeing.
between 2010 and 2020, and we are seeing similar
trends around the world, such as in the GCC
economies and Britain.
5
What this means
for HR
Efficiency through GAI
Key takeaway
Solving the productivity paradox is one of the most impactful things HR can do for the
workforce. In order to achieve this, they can use an array of trusted HR tools and new
technologies to empower employees and get productivity back on track.
6
Trend 2
The hidden workforce, also known as the forgotten Some of the hidden workforce already work (often as
workforce, includes retirees who want to work, hourly employees) but want to work more, while
caregivers, neurodiverse people, people with others want to work but have not found the right
long-term health problems (including long Covid), conditions to do so.
ex-inmates, and people without degrees.
The conditions can be fixed. And companies that do
In total, the hidden workforce is estimated to make will have a first-mover advantage: while 77% of
up between 14-17% of the total U.S. workforce. employers report difficulty in filling roles — a 17-year
Which begs the question: why is so much talent high — only 33% of organizations are looking at new
being ignored during an ongoing labor shortage? talent pools.
77% 33%
of employers of organizations
report difficulty are looking at
filling roles new talent pools
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What this means
for HR
Increasing access A necessary evolution
The first step to tapping into the hidden workforce as While we have included it in this report, we want to
a talent pool is actively seeking out these forgotten reiterate that the recognition and integration of the
workers in talent acquisition practices. This could hidden workforce is not just a trend: it is a necessary
include writing more inclusive job descriptions, using evolution in the world of work. Organizations that
skills-based hiring, and offering training and remove obstacles to work for this vast talent pool
reskilling programs. will be better able to address critical staffing needs,
while also paving the way for a more diverse,
The key here is to critically evaluate your current
inclusive, and equitable corporate landscape for the
talent acquisition practices to identify and address
future. That makes this a great example of systemic
unnecessarily exclusionary criteria.
DEIB.
Offering accommodations
Key takeaway
Despite the ongoing labor shortage, organizations have long overlooked the hidden
workforce. HR can help organizations tap into this massive talent pool by driving
changes to make work more accessible and accommodating.
8
Trend 3
Three major shifts have brought DEIB to the brink. Public debate surrounding diversity is also reshaping
the field.
First there is the Supreme Court ruling striking down
affirmative action in college admissions — and Companies run the risk of being called out in the
attorney generals then reaching out to Fortune 100 public domain and boycotted by sections of their
CEOs to confirm that this ruling also applies to audience regardless of whether they take an
private companies. outspoken stance or remain quiet on the topic of
DEIB.
Then there is the growing discontent with DEIB
within organizations, which may well be a factor in But it has become clear that when it comes to
DEIB roles being hit disproportionately hard by the showing support for DEIB, speaking out is not
recent layoffs. enough for today's consumers, who are not satisfied
with lip service.
This brings us to the third pressure point: the
struggles faced by diversity officers. We see that Ticking boxes with interventions that don't resonate
leaders in DEIB struggle to find a sense of belonging throughout the organization will not serve
themselves, or fail to see the impact of their work. organizations in 2024 onwards. That's why we
expect HR to take a different approach.
‟
These paths are often lonely, uphill
battles. Leaders in these positions
need the support, love and
advocacy while they are in the roles,
not only when their departures
make headlines.
Jeanell English
former VP of Impact & Diversity at the Academy
of Motion Picture Arts and Sciences
9
What this means
for HR
Systemic DEIB Equitable practices
We propose systemic DEIB as a viable alternative. With a clear vision in place, HR will be able to
identify the organizational systems needed to make
This approach leaves behind high-visibility actions in
the vision a reality.
favor of bringing DEIB back to its three core
elements: HR voice, equitable practices, and The goal of these practices is to democratize
targeted action. opportunities within the workforce — in other words,
eliminating obstacles to growth and development
HR voice that disproportionately affect different employee
segments.
In systemic DEIB, the HR voice describes the
organizational vision on what an equitable and For example, organizations could conduct an
inclusive workplace looks like. analysis to see which prerequisites are valid to
screen for during the talent acquisition process.
Crucially, it also provides proof points that this vision
is or will soon be part of the organizational identity. Targeted action
These proof points should hold up under scrutiny
from employees, customers, and the wider public. Finally, targeted action is about bridging the gap
between the organization's current systems and the
In order to make this happen, most HR departments
equitable practices needed to realize the vision.
will need to collaborate closely with Marketing to
create an authentic way to speak about DEIB within This could look like taking a skills-based approach to
and beyond the organization. Otherwise, companies recruitment instead of focusing on degrees, and
will still run the risk of being dismissed as doing it for exploring alternative talent pools. Here again, data
the optics. can grant insight into where talent is sourced from
and help HR evaluate whether these talent pools are
unbiased towards specific socioeconomic
backgrounds, industry experiences, or schools.
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Trend 4
‟
been an issue of (employer) branding — or not an
In Texas last year, at least
issue at all. But in the face of changing legislation
and increasingly disruptive weather, that is set to 306 people died of
change.
heat-related causes,
The increasing impact of climate change on daily life
and public discourse is already changing HR. For according to the state health
instance, more ESG metrics are being added to the
department — the highest
HR scorecard, the Chief Sustainability Officer and
CHRO roles are increasingly being integrated. annual total in more than
While this is a good start, it will not be enough. two decades.
So far, HR has focused primarily on driving initiatives
The New York Times
focused on mitigating climate change, such as green
commuting and reducing the organizational carbon
footprint. But in the face of growing urgency, HR
needs to accept that climate change is a reality, and
needs to help organizations adapt.
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What this means
for HR
Auditing and planning Changing legislation
A strong first step in driving adaptation is conducting The increasing impact of extreme climate events is
climate risk audits that review current work sites, also driving legislative change around the world.
practices, and processes to identify risks.
The SEC is working on climate change disclosure
HR can then use the audit outcomes to create a rules. The EU has already introduced the Corporate
roadmap for organizational climate adaptation. This Sustainability Reporting Directive, requiring
could include forming a council on business companies — including EU subsidiaries of non-EU
continuity and disaster recovery. But depending on parent companies — to disclose information about
your business, this might not be enough. how climate change and other sustainability-related
factors affect their operations.
Protecting the workforce
Whether it's operational or administrative, HR needs
The heat deaths in the U.S. and Europe in the to take action to drive climate adaptation — or the
summer of 2023 show that a lack of climate business will feel the consequences.
adaptation can hurt workers — or worse.
Key takeaway
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Trend 5
Design thinking and customer-first principles have These new solution areas will still work closely with
grown influential in people practices over the past the in-business HR teams. However, they should be
years. As HR adopts these principles, we will see more actively involved in implementing solutions in
siloed Centers of Excellence broken down into collaboration with business HR.
solution areas focused on delivering a specific
outcome for internal customers.
13
What this means
for HR
Putting value first
The evolution from siloed CoEs to new solution areas By adopting these capabilities across all HR roles,
reflects HR's increased focus on delivering business organizations take a first step toward a new,
value. That's why it is essential for all HR multi-skilled HR professional as they break the
practitioners to understand not just how to excel in traditional barriers between generalists and
their domain, but how their specific role adds value specialists.
to the business.
Experimental HR
Business partnering is no longer reserved for HRBPs.
Instead, it is becoming relevant to everyone in HR. These two shifts are the first steps toward new HR
Operating Models built on new organizational design
Fundamental data skills principles that encourage agility, fluidity, and
adaptability.
Another competency that will only grow in
importance for all HR practitioners is data literacy. This isn't the only shift we expect to see in this area.
As HR teams drive more project-based delivery
Developing hypotheses, setting KPIs, reading and
methods, HR teams will combine different skills and
interpreting data, and persuasive storytelling using
experiment to find better solutions to the business'
data: these skills were once limited to people
ever-changing people priorities.
analytics functions. However, these skills are
fundamental to driving impactful decisions and
strategic contributions, and so will become more
widespread among HR practitioners.
Key takeaway
As organizations evolve to become more adaptable, so will HR. This will mean letting
go of the traditional silos and instead shifting to solution-focused multidisciplinary
teams. This shift will also mean a rethinking of what we consider fundamental HR
skills, with data literacy becoming a key enabler for business impact.
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Trend 6
HR leans in
The HR function continues to struggle with misconceptions about its value across all layers of
the organization. If HR wants to get the recognition due in 2024, it needs to accept that this
situation is a result of its own choices — and in its own hands to resolve.
Reframing HR
Perception of HR
The core of the issue is that HR has not given itself
the same support, guidance, and development
opportunities they offer to other departments. This
has left HR with lagging skills development, digital
adoption, and (perhaps most crucially) confidence in
its ability to contribute to the organization.
63%
This is reflected in organizational perceptions of HR
as a function focused on processes and paperwork.
Little wonder then that recent layoffs have hit the of C-suite leaders still
people function disproportionately hard. see HR's role as
The key to effectively repositioning HR in the absolutely does contribute to collective success,
business is clarity on and confidence in its strategic which is why this is the year that HR will claim its
vision. This encompassess HR's purpose, role, and identity as a profession with standards, a robust
contribution to collective success. body of knowledge, and recognized impact.
Because let's be clear: HR has become a profession And it's time for HR to see itself as the profession it
backed by data and robust science, practiced by has become.
knowledgeable specialists who wholeheartedly
chose a career in HR, and deserving of respect. It
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What this means
for HR
Strategy & boundaries
Key takeaway
HR has an image problem, and the means to solve it. By recognizing its own strategic
value and giving the function the same support it offers other departments, HR will
be able to change perceptions, empower its practitioners, and drive even more value
for the business.
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Trend 7
HR meets PR
Amidst changes in employee expectations and how we engage with our work, HR's work is
under increased scrutiny. In order to navigate this complexity, HR needs to take a page from PR
to ensure they don't hit the headlines for all the wrong reasons.
‟
Internal becomes external
Google prides itself on solving
The employee experience is increasingly public.
difficult problems. How to
This can benefit companies, with new hires happily
notify people gracefully and with
sharing their onboarding package with the world or
posting enviable day-in-the-life videos. But it can respect that they're getting laid
also be a PR nightmare.
off is a difficult problem and I
2023 saw plenty of examples of this, such as internal
communications being discussed in high-profile think they could have done a
media outlets and viral TikTok videos of people
better job solving it.
getting laid off. Now in every difficult conversation,
HR needs to not just take the employee into account,
Jeremy Joslin
but a potential worldwide audience listening in via
Ex-Google employee
social media.
17
What this means
for HR
Marketing-proof messaging Culture & policies
In order to avoid having sensitive situations In a media landscape where company policy
becoming public discourse, HR will need to take a changes can make headlines, transparent and fair
page from PR and Marketing's book. HR policies are a strategic asset.
This means understanding the public's perception of For maximum effect, companies need to go beyond
internal policies, practices and decisions, and regulatory compliance and actively manage (public)
adjusting approaches where necessary. It also expectations, communicate clearly and intentionally,
means actively monitoring employer brand and deliver on their employee promise.
perceptions online, and preparing responses for
And, because disagreements are inevitable, it is vital
potential PR issues to avoid being caught off-guard
that companies build a culture in which
by controversy.
disagreements can be expressed and swiftly
Here it is crucial that any messaging aligns with core resolved inside the organization — before it can boil
company values. This will ensure it resonates with over into public discourse.
employees and is suitable for both internal and
external channels.
Key takeaway
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Trend 8
AI-empowered workforce
It was impossible to ignore the meteoric rise of Generative Artificial Intelligences (GAI) such as
ChatGPT and Google Bard in 2023. In 2024, HR will play a key role in ensuring employees are
empowered to make optimal use of AI without opening the organization up to risk.
Research shows that GAI decreases the difference The potential GAI offers is not without risk. Many
between high-performing and low-performing organizations are bringing ChatGPT and similar GAIs
workers, with low performers converging towards in-house to guarantee data protection, and educating
their better performing peers. employees on how to safely and ethically use the tool.
This makes sense: struggling performers benefit These steps help reduce the risks associated with the
more from using GAI, which is essentially a highly use of GAI in the workplace, but this puts the onus on
intelligent peer supporting them in their tasks. AI safely using the tool on the employee.
has the potential to equalize the playing field in
And this is why HR will play a critical role in ensuring
many professions.
organizations are helped, not harmed by AI.
No AI
+126%
Using AI
+59%
+13.8%
19
What this means
for HR
Building confidence & abilities Better work within reach
HR must build technology self-efficacy among When done well, AI will add impact and
employees. This means promoting a positive much-needed meaning to work by increasing work
mindset and perception around GAI, encouraging efficiency and quality, and also allowing the
experimentation, and removing the barriers to use automation of mundane and repetitive tasks. This
within the organization. allows employees to focus on the creative, strategic,
and interpersonal aspects of their work.
It is not enough that the tool is available. Without the
right confidence and abilities, employees will not be It is a bright future, but the path there is not
able to use GAI to its full potential and close the straightforward. It is up to the HR department to
performance gap. HR can prevent this by providing guide the organization and strike a balance between
clarity, education, and setting a strong example in its innovation and integrity.
own work.
Crucial safeguards
Key takeaway
Generative AI can help organizations boost worker productivity and output quality, but not
without risks. HR has a key role to play in empowering the workforce to make smart, innovative,
and safe use of this new technology.
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Trend 9
21
What this means
for HR
Clarity on expectations Renewed relationship with work
Focus on compliance
Key takeaway
Employee needs aren't just changing: they're diversifying. HR can help organizations
adapt to this wide array of employee demands, so that they can offer the freedom,
flexibility and fairness employees need to flourish at work.
22
Trend 10
HR needs to cast a critical eye on how we design jobs. How work is done is also a crucial factor.
Traditional job design prioritizes the clustering of Some employees have goals and ambitions that
tasks, activities, and skills required to deliver specific make them deeply invested in work that others
outputs. Meaningful work comes secondary. would see as meaningless. And some employees see
their job as a way to make money while they achieve
This needs to change. And thanks to modern
their personal ambitions in other areas of life.
technology, it can.
What may drive meaning for one employee can
83 million jobs are projected to be lost, and 69 million
achieve the opposite for another. In order to help the
new jobs created thanks to technological
organization effectively manage this complexity, HR
advancements. This is a prime opportunity for HR to
can support the development of high-quality middle
redesign jobs to be more meaningful, and better
management practices and set the stage for
aligned with employees' strengths.
work-life fit.
23
Trend 11
24
What this means
for HR
Creating access to talent
Organizations have a goldmine of talent at their But simply setting the stage isn't enough. HR also
fingertips, and HR can help the organization needs to empower employees, promoting
capitalize on this. self-directed and democratized career management.
This allows employees to manage their own careers
However, for internal mobility to truly help bridge the
based on the skills they’ve built in the past and the
talent gap, more is needed than simply moving
skills they are looking to develop in the future.
employees through the organization. If not handled
well, this could result in low performers being Driving change with technology
shuttled from one department to another, which has
historically spread inefficiency and negatively Technology will also play a key role in supporting
Instead, HR needs to remain laser focused on From identifying transferable skills to the creation of
creating access to skills that the organization needs. internal talent marketplaces, digital platforms can
now match candidates to roles based on skill sets,
Rethinking career paths aspirations, and potential, thereby democratizing
access to opportunities.
To encourage talent mobility, HR needs to change
the perception of career progression, broadening Data and tools can also help organizations link
employees' horizons beyond traditional upwards mobility practices to workforce planning, proactively
progression to also include horizontal and diagonal pool and access talent, and deploy skills where they
moves. add the most value.
Key takeaway
In the new era of talent management, it's less about acquiring the talent to fill gaps and more
about identifying, unlocking, and nurturing the potential from within.
25
HR teams are only as successful as their skills are relevant. With
engaging in-depth training and resources, AIHR helps HR teams
become better at what they do and drive more business value.