A new year brings a new set of challenges and expectations. The world of HR is ever-changing and the demands of the previous year may not continue to be relevant to the current landscape, with new challenges and expectations requiring attention and strategy.  Here are three key trends anticipated will make the greatest waves in the HR sector over the next 12 months.*

Trend #1: Companies will hire less, choosing instead to develop internal talent
Expect to see a decline in hiring across all sectors in 2024. The anticipated decrease is due to several demographic reasons but can most notably be attributed to a generation of key talent ageing out of the workforce. As these highly skilled workers retire, a new generation of workers are just starting their career journey. The problem lies in the fact that these less experienced younger hires are struggling to fill the gaps left behind by their predecessors. These factors will result in the need for companies to adapt accordingly to overcome these challenges. 2024 will see more introspection when it comes to the hiring process, with organisations preferring to develop internal talent instead of looking outwardly to fill roles.

Upskilling and reskilling are set to become major strategies for HR departments looking to fill roles in 2024. Upskilling programmes aim to expand employees’ skills within their areas of expertise. On the other hand, through reskilling, employees develop new skills that will allow them to fill different positions. “HR departments that choose to implement these strategies and nurture existing talent can not only effectively deal with hiring issues, they can also guarantee employees have the opportunity to grow within the company, keep their staff up-to-date with the latest market demands, and increase talent retention” explained Dr. Ryne Sherman, Chief Science Officer and co-host of The Science of Personality Podcast.

Trend #2: There will be a shift towards prioritising the employee experience
Employee experience is not a new concept in HR, but it remains a key trend for 2024. Employee experience is the holistic perception of an employee’s journey with an organisation, from the recruitment process to the exit interview. HR plays a key role in designing and improving the employee experience at every point within an organisation. From flexible work arrangements and mental health support to wellness initiatives and work-life balance policies, organisations looking to appeal to the needs of their employees must strive to create a positive and supportive work environment.

Employees are also getting more focused on what they want from their careers. The power balance in businesses has shifted to employees, and employee activism is now a force to be reckoned with. “Gone is the idea of moving jobs every few years for career progression. Now, talent is instead choosing to focus on seeking out new jobs only if they align with their values” commented Dr. Sherman. “In 2024 we will see career movement not just based on salary expectations and benefits, but with more emphasis placed on social impact and personal values to ensure a career path where employees feel valued, engaged, and find their work more fulfilling.”

Trend #3: AI will heavily shape HR departments moving forward
Companies can anticipate the adoption of more intelligent, easy-to-use HR technologies in 2024. This includes an increased use of AI. While AI had a major moment in 2023, its use will likely continue to expand in corporate settings to optimize HR and payroll tasks and dense processes to enable leaders to prioritise their workers and scale operations without adding resources. Consequently, companies can expect a potential reduction in costs and time constraints as they utilise scores of data and convert time-consuming tasks into rapid to-dos for knowledgeable AI assistants.

However, with its increased use organisations should also address the ethical and compliance aspects of data and generative AI. “With its increased integration across the corporate world, companies must strategise on how best to account for data privacy and data security, as well as the rights of their employees when it comes to their data being used to train generative AI models. As an industry, we must continue to observe these developments across AI ethics and compliance for the adoption of this technology to become truly transformative” noted Dr. Sherman.

*Provided by Hogan Assessments