As we dive into the early days of 2024 and look at the workforce and HR trends that will shape our world, it\u2019s worth understanding the recent forces that brought us to this point. Emerging HR trends are often reactions to \u2014 and sometimes carryovers of \u2014 workplace, cultural, and economic shifts of the recent past. They reflect our responses to technological advancements and our unmet needs. So, before we dive into HR predictions for 2024 with Betterworks\u2019 industry veterans and subject-matter experts, it is worth taking a quick glance in the rear-view mirror at some of the major HR trends of the past year. Given the influence of the past on the present, these objects may be larger than they appear as we look toward the HR trends for 2024.<\/p>\n\n\n\n
HR trends that shaped us in 2023 <\/h2>\n\n\n\n
The anticipated \u201cGreat Return\u201d to work debate ignited widespread workforce demands for continued flexibility and solidified hybrid work as the culturally accepted standard for work, even as a few high-profile CEOs demanded their employees return to the office full-time due to concerns about cultural cohesion and productivity. <\/p>\n\n\n\n
By mid-year, hybrid work models had become the dominant form \u2014 here to stay for most workers \u2014 and required companies to address challenges like collaboration and communication. Worries about hybrid burnout arising from blurred work-life boundaries led to discussions about employee well-being and strategies for disconnecting at the end of the \u201cworkday\u201d to combat burnout. The four-day workweek also gained traction and legitimacy among companies large and small, in part as a way to improve both work-life balance and productivity.<\/p>\n\n\n\n
The \u201cquiet quitting\u201d phenomenon, which spun up in 2022, continued in 2023, as a growing wave of employees decided that they would do the minimum required to keep their jobs, but not go above and beyond. Meanwhile, high-performing employees saw an opportunity to expand their skills and value to their organizations through the \u201cquiet hiring\u201d trend in which employers gave additional work to existing employees and freelancers to avoid the costs associated with hiring new employees. Employees gained new skills and opportunities for internal mobility while companies were able to reduce recruitment costs and expand skill sets in a tight labor market.<\/p>\n\n\n\n
The other two major HR trends of 2023 remain major forces impacting current HR trends: the skills shortage and the rise of generative AI at work. Upskilling and reskilling initiatives continued to be a top focus to address a tight labor market and a skills shortage last year. In 2024, as we explain below, multiple forces will continue to put increased pressure on HR to find new ways to address this gap. And, the biggest technology of the year in 2023 \u2014 generative AI \u2014 continued its meteoric rise, infiltrating workflows and workforces. GenAI generated both apprehension and anticipation \u2014 from worries about safety and how to upskill entire workforces to adapt to AI to elation about how it will improve efficiency and productivity while also giving employees greater freedom and power to innovate.<\/p>\n\n\n\n
And with that recap, let\u2019s now look forward into the near future and what HR leaders can anticipate.<\/p>\n\n\n\n <\/p>\n\n\n\n If 2023 was the year of generative AI making its way into the public consciousness, then 2024 will be the year that businesses begin to sharpen their strategies around it. The efficiency gains are clear, and employees quickly caught on to the fact that services like ChatGPT have value beyond functioning like a sophisticated search engine. They\u2019re already using it to perform work tasks, like writing performance reviews or feedback to their peers, with or without the support of their company\u2019s IT team. <\/p>\n\n\n\n But the benefits of AI go much further. For example, Betterworks is enabling managers to be more effective coaches by helping them identify whether employees are making appropriate progress against their goals \u2014 and if not \u2014 making data-driven recommendations so the manager can reach out and remove roadblocks. We\u2019re also leveraging AI to help create more accurate and unbiased performance evaluations using an employee\u2019s performance data. I think in the coming year, we\u2019ll see more and more CEOs and CHROs stepping up and embracing the opportunity to not only help their employees be more productive with AI but harness its power to build more equitable and fair workplaces. <\/p>\n\n\n\n \u2014 Doug Dennerline, CEO<\/em><\/strong><\/p>\n\n\n In 2024, the landscape of HR technology is poised for a revolutionary shift as generative AI plays a central role in optimizing workflows. From recruiting to talent management and beyond, the infusion of generative AI promises to supercharge the capabilities of managers and HR business partners, empowering them to drive tangible business results. Organizations will unlock new efficiencies in talent acquisition, identifying and nurturing top talent, aligning rewards with performance, and implementing intelligent succession planning strategies.<\/p>\n\n\n\n With generative AI seamlessly integrated into HR workflows<\/a>, managers and HR professionals will be able to make informed decisions at every stage of the employee life cycle \u2014 from identifying high-potential candidates and personalizing employee development plans to dynamically adjusting compensation structures. By automating routine tasks and offering data-driven recommendations, generative AI liberates HR professionals to focus on strategic initiatives, fostering a more agile and responsive organizational culture.<\/p>\n\n\n\n Looking ahead, the symbiotic relationship between human expertise and AI-driven insights will redefine the role of HR in driving organizational success. HR professionals can elevate their strategic impact, paving the way for a future where talent management is not just a function but a strategic imperative driving sustainable growth and innovation. <\/p>\n\n\n\n \u2014 Cheryl Johnson, Senior Vice President, Engineering<\/em><\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n Skills will take center stage this year, strengthening their position as the \u201ccurrency for talent and business.\u201d Every employee must have a skills profile to understand how they are doing in their current role and how they can evolve to other roles. Likewise, managers will need to speak the language of skills to provide relevant feedback to their team members and help them take on the right professional development opportunities. In turn, this will necessitate that leaders, including HR leaders, have analytics on skills data to understand whether their teams are designed for success now and in the future: Do they have the skill makeup that it takes to adapt to a fast-changing market environment?<\/p>\n\n\n\n While this may seem controversial to some, I believe that talent marketplaces, which have been all the rage these past few years, will be challenged to retain their customers. Staffing people on gigs is useful, but companies want to see ROI in the form of demonstrated employee development and performance, an increase in productivity, and lower turnover<\/a>. To be truly successful, companies will need a more comprehensive approach that helps teams identify and develop needed skills, uncovers hidden skills and adjacent skills, and<\/em> provides a system for guiding and monitoring skills development that aligns employees\u2019 interests and the business\u2019 strategic needs.\u00a0<\/p>\n\n\n\n \u2014 Arnaud Grunwald, Chief Product Officer<\/em><\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n HR leaders are finding themselves in the middle of a sizable skills gap that they will need to bridge. Think of it as the perfect storm. On the one hand, the continuing tight labor market makes it difficult for companies to find the right people with the right skills. While the acceleration of generative AI will ease administrative tasks and make higher-order activities easier and faster to complete, it is also driving the need for new AI-based skills, requiring massive upskilling and retraining across the workforce. <\/p>\n\n\n\n Simultaneously, the wave of anticipated baby boomer retirements will peak between 2024 and 2027: 4.1 million are expected to turn 65 every year, equivalent to more than 11,000 Americans every day. Even with analysis from Pew Research Center<\/a> showing that 1 in 5 people over age 65 continue to work, the potential exodus outweighs the number who remain or return. The real issue is the rapid loss of hard and soft skills and cultural knowledge that is about to take place. A recent survey <\/a>shows that 57% of the aging workforce has transferred less than half of their knowledge to the incoming one, with 21% yet to do so. <\/p>\n\n\n\n HR leaders will need to assess where their organization stands with regard to these skills gaps, understand the business challenges this poses, and double down on strategies to address them. Action may include focusing on development and mentorship programs and implementing AI training.<\/p>\n\n\n\n \u2014 Jamie Aitken, VP of HR Transformation<\/em><\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n This year, we anticipate a trend where HR initiatives, particularly those branded as \u201cemployee experience,\u201d will face increased scrutiny from CEOs and CFOs. HR leaders will need to align their strategies with business objectives, showing a direct correlation between HR initiatives and enhanced business performance. The focus will pivot toward a more rigorous assessment of these programs. It is no longer just about employee satisfaction or engagement but rather how these initiatives translate into measurable impacts on the company’s financial health and operational efficiency.<\/p>\n\n\n\n It will be crucial for HR leaders to articulate the value of their initiatives in terms of clear business outcomes like their effect on operating margins, enhancing workforce planning capabilities, and boosting employee productivity. The spotlight will be on projects that directly influence the effectiveness and efficiency of both managers and employees.<\/p>\n\n\n\n Strategic alignment will be about creating a symbiotic relationship between employee well-being and organizational success, proving that investing in people is not just a matter of good ethics but also sound business strategy. <\/p>\n\n\n\n \u2014 John Schneider, Chief Marketing Officer<\/em><\/strong><\/p>\n\n\n\n Interested in learning more about what HR leaders can do to be prepared to address the emerging HR trends for 2024? Join us at Empower HR <\/a>on March 14 (Americas) or March 21 (Europe).<\/p>\n\n\n Be ready for HR trends for 2024<\/p><\/div>\n Learn how to prepare for the HR trends expected in 2024 by understanding the underlying technology, workforce, and business forces that are affecting HR. <\/p>\n","protected":false},"author":111,"featured_media":104351,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"\n The magnitude of change and complexity of work in the past three years can make predictions about HR trends for 2023 seem like a game of roulette. That\u2019s why we\u2019ve asked several HR industry veterans and leaders who work at or with Betterworks to share what trends they believe HR leaders can expect to see. While by no means an exhaustive list, these 2023 predictions take into account the workforce behaviors, gaps, challenges, and cultural and demographic changes that we have seen building over the past year.<\/p>\n\n\n\n With future trends anchored by recent history, it\u2019s worth first taking a look back at the \u2018year that was\u2019 as a way to frame predictions for 2023.<\/p>\n\n\n\n The past year may well be remembered as the year when employees collectively extended their palms out and up to say \u201cno more.\u201d The Great Resignation even got its own unofficial anthem, Break My Soul<\/em>, <\/em>by Beyonc\u00e9. Many of those who didn\u2019t leave their jobs decided to enforce stricter boundaries between work and personal life, as evidenced by \u201cquiet quitting.\u201d<\/p>\n\n\n\n Behind these trends were underlying forces, call them trends if you will: The reality of permanent hybrid and remote work for many employees juxtaposed with return-to-office mandates (or the possibility of them) for others. An ongoing talent shortage and the skills mismatch continued to vex employers. And, the levels of post-pandemic stress and burnout experienced by everyone \u2014 regardless of position \u2014 fueled a reevaluation of work\u2019s value and place in our lives. Employees realized they wanted and needed more agency and control. And of course, demographics played a starring role. These key trends seemed to define nearly every HR response.<\/p>\n\n\n\n Though painful, these factors accelerated the shift to employee-first cultures and human-centered leadership. (Of course, human-centered leadership is what we should have been engaged in all along.) Newly freed to live anywhere or to work untethered to an office much of the time, remote workers rapidly became accustomed to the flexibility and autonomy afforded by this transformation. Flexibility is now table stakes for companies that wish to attract the best talent. On the uglier side, some organizations doubled down on identifying high-performing and low-performing employees, and singling out the latter, in response to a slowing economy and the need to cut costs.<\/p>\n\n\n\n For employees who remained in the driver\u2019s seat, we saw a renewed emphasis on better pay and meaningful benefits, with more efforts by HR to customize benefits to the needs of employees. As the ratio of job openings to people willing to fill them remained at roughly 2:1, organizations focused on attracting and retaining employees by offering higher pay, and promoting purposeful work and skill-building opportunities. <\/p>\n\n\n\n Hybrid work (and the short shelf life of hard skills) have made soft skills like communication, collaboration, and empathy more valuable \u2014 a trend that will continue well into the future. Listening and establishing cultures of transparency, trust, and inclusion have risen in importance as employees have sought roles that provide psychological safety. <\/p>\n\n\n\n As Gen Z employees entered the workforce in greater numbers, they flexed their collective muscle, demanding greater priority on relational issues such as empathy, intentionality, collaboration, inclusive decision-making, and deeper connections. <\/p>\n\n\n\n While some may question whether this \u201crise of the employee\u201d will reverse if the economy slows down and layoffs deepen, it should be recognized that the fundamental psychological shifts of the past few years are unlikely to reverse anytime soon. Given this backdrop, what do our experts see as the big HR trends of 2023?<\/p>\n\n\n\n All signs are pointing toward companies and leadership forcing their employees back into the office in 2023, which will lead to a spike in turnover. In-office requirements mean limited reach. Organizations are guaranteed to lose great people, not only for lack of flexibility, but because many of the best employees moved out of expensive cities during the pandemic and won\u2019t be moving back. According to a recent Gartner<\/a> study, 75% of hybrid or remote workers report that their expectations for working flexibly have increased, and four out of 10 employees may leave if they are required to return to an in-person office environment. With the right performance management technology in place, where productivity can reach optimal levels and the best talent can work from anywhere, there\u2019s no reason employees should be forced to work from an office. Work is about achievement, not when and where you\u2019re working from. <\/p>\n\n\n\n \u2013 Doug Dennerline, CEO, Bettworks<\/em><\/strong><\/p>\n\n\n\n Many current HR processes \u2014 including performance management \u2014 are ill-suited for today\u2019s workforce. We are at a point of confluence where the employee experience directly impacts business execution. The most successful HR leaders will be those who can help their companies navigate downstream by leveraging their experience to push for transformational change.<\/p>\n\n\n\n This means moving from being operational to being strategic<\/a> by making the business case for how the employee experience directly impacts what leaders care about. These include bolstering productivity in an economic downturn where hiring will be limited, reducing costs, and decreasing risk. These transformative HR leaders can link concepts like employee experience and satisfaction to business metrics. In addition, they are able to provide transformation roadmaps that go beyond technology implementation to include change management strategies and governance. The complexity of this work means that strategic HR leaders must build partnerships across their organizations to gain insights, find other innovators, and develop solutions that reflect stakeholder needs. <\/p>\n\n\n\n \u2013 Jamie Aitken, VP of HR Transformation, Betterworks<\/em><\/strong><\/p>\n\n\n\n A top reason employees stay \u2014 or leave \u2014 at an organization is tied to their manager relationship. To build stronger, authentic relationships, people managers will need to become highly relational \u2014 forming connections based on similar interests and listening in order to learn new perspectives and new ideas. Understanding what employees do outside of the office (e.g., on weekends, commuting) goes a long way. Connection, collaboration, and transparency lead to trust. Trust is critical when leadership asks employees to switch direction, which will be expected as we move into 2023 and an anticipated economic downturn. <\/p>\n\n\n\n Pivoting from \u201cmanaging\u201d employees to being coaches and performance enablers will be key. With millennials and Gen Z predicted to make up 61.8% of the workforce in 2025<\/a>, it\u2019s no longer expected that employees will stay in a role more than two years. Rather than lose talent to a competitor, companies will need to keep and guide them to their next career in the organization. This can only be done by understanding what motivates and inspires employees. <\/p>\n\n\n\n \u2013 Andrea Couto, VP Solution Engineering, Betterworks<\/em><\/strong><\/p>\n\n\n\n The ethnic and racial diversity of Gen Z means that if companies don't create an environment that attracts and<\/em> retains a diverse workforce, they will be even more hard-pressed to access the talent they need. This generation holds their employers to a high standard \u2014 and this will not go away next year and for many years down the line. In a September 2022 poll<\/a>, Staffing Industry Analysts found that 75% of Gen Z said they would reconsider applying at a company where diversity, equity, and inclusion efforts are lacking. An inclusive workplace is often a more productive and engaged one, so companies will have to continue to invest in this space in order to find and retain great talent. DEI initiatives <\/a>will need to be elevated within the organization and treated as a company-wide goal with measurable outcomes for which individuals are held accountable \u2014 in the same way they are responsible for achieving other work goals tied to business strategy. <\/p>\n\n\n\n \u2013 Kristen Robinson, Betterworks HR Advisory Council<\/em><\/strong><\/p>\n\n\n\n Be prepared for job applicants and employees to ask more direct questions about pay. This past October, New York City passed a new law that companies with at least four workers that post a job will be required to include salary ranges \u2014 joining a few other states that require employers to disclose salary information. According to Harvard Business Review<\/a>, at the beginning of 2023, a fifth of all U.S. workers will be covered under pay transparency laws. This trend will only continue to grow as a culture of transparency remains a priority in the modern workforce. With employees clearly in the driver\u2019s seat and a talent shortage that is unlikely to abate, employers will need to be forthcoming in their explanations of how pay is determined. Economic conditions, including inflation, have made many sensitive to pay gaps according to Gartner<\/a>, and only one-third believe they are being compensated fairly. An employee\u2019s perception of whether they are being treated justly impacts their trust in their employer and in turn, their willingness to stay.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/HR-Trends-Predicted-for-2024-Internal-1-1024x580.jpg\")
<\/figure>\n\n\n\nHR trend 1: Generative AI will become central to driving workforce efficiency and <\/em>better employee experiences<\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/10\/Doug-Dennerline-POV-on-AI-in-Performance-Management-Thumbnail.jpg\")
\n <\/div> \n HR trend 2: AI will power HR innovation and elevate HR\u2019s strategic value<\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/HR-Trends-Predicted-for-2024-Internal-3-1024x580.jpg\")
<\/figure>\n\n\n\nHR trend 3: Skills-based development and performance will drive success <\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/HR-Trends-Predicted-for-2024-Internal-4-1024x580.jpg\")
<\/figure>\n\n\n\nHR trend 4: Organizations will accelerate strategies that close a multi-dimensional skills gap <\/h2>\n\n\n\n
HR trend 5: Effective HR leaders will link workforce initiatives to measurable business outcomes<\/h2>\n\n\n\n
2022 HR trends in the rear-view mirror<\/strong><\/h2>\n\n\n\n
Putting employees at the center \u2014 mostly<\/strong><\/h2>\n\n\n\n
HR<\/strong> trend 1: In-office mandates will lead to a spike in turnover<\/strong><\/h2>\n\n\n\n
HR trend 2: The most successful HR leaders will be strategic business leaders<\/strong><\/h2>\n\n\n\n
HR trend 3: Greater emphasis on building hyper-personalized employee relationships will drive performance and retention<\/strong><\/h2>\n\n\n\n
HR trend 4: The most diverse and inclusive employers will win the talent war<\/strong><\/h2>\n\n\n\n
HR trend 5: Pay transparency will become a common practice<\/strong><\/h2>\n\n\n\n