What three HR trends dominated 2023, and what to expect in 2024?
As the New Year is almost upon us, we reflect on the greatest trends of the past 12 months, as well as what to expect from the next.
News in Brief
More than half of surveyed employees shared they would consider leaving their organization if it did not offer flexible benefits.
2023 has been the year of generative AI, and according to experts, 2024 will be no different.
Throughout 2024, workplaces will start to prioritize change management, reskilling and connecting employees.
A lot can happen in 12 months, and although many of us can’t believe where the year has gone, simultaneously, January 2023 seems like a lifetime ago.
That’s why we’ve reflected on the key themes of the year, while predicting what we believe will be the hottest topics of 2024.
To do so, we’ve drawn upon research from leading technology organizations, such as Gartner and Boston Consulting Group, while also taking heed of the wise words shared from just some of the inspirational speakers that took center stage at UNLEASH World 2023.
2023
1. The flexibility kickback
Encouraging employees to return to the office on a permanent basis hasn’t necessarily been an easy fight for HR leaders – particularly as younger generations are demanding extra autonomy.
2023 therefore saw more employees calling for hybrid or flexible benefits, so much so, that Forbes states it was the most desirable working model for 97% of employees.
In fact, more than half (57%) of employees surveyed shared they would consider leaving their organization if it did not offer flexible benefits.
“Employees are saying that they, too, have had enough,” Josh Bersin, Founder & CEO, of The Josh Bersin Company said in his opening keynote at UNLEASH World 2023.
“They’re saying that they’re going to work from home whether their employer likes it or not. They’re going to quiet quit and they not going to say anything about it. And, in some countries, they’re even going to strike.
“Why? Because they’re realizing they have the authority to demand what they want. Now, CEOs and other managers are having to find ways of convincing employees to participate in this growth – AI has become a big part of this.”
2. Embracing new and emerging technologies
Although it’s been around for decades, 2023 was the year where generative AI really kicked off – mainly, due to breakthrough systems such as ChatGPT.
Since the increased adoption, generative AI has drastically enhanced HR delivery, providing better self-service, boosted productivity, and more personalized employee experiences, according to Boston Consulting Group. HR has therefore begun to take charge of organization’s broader technology strategy by emphasizing learning and redesigning workflows around generative AI.
During his keynote at UNLEASH World 2023, Hirsch explained that AI has revolutionized the workplace by sorting, analyzing, and making sense of vast amounts of data much quicker than humans can. For this reason, technology needs to be seen as an asset, rather than a threat.
“We now have the opportunity to use AI and data to do the boring work for us,” states Hirsch.
The businesses that have adopted this mindset shift are able to embrace the tasks that machines complete more accurately and efficiently than humans. People can then focus on what matters, what adds value, and the human touch.
Yet, according to research from Gartner, 60% of HR leaders are still uncertain about how it will impact HR and talent, with 56% of HR leaders believing their current HR technology solutions won’t match up with their future business needs.
With this in mind, the technology trend – specifically generative AI – is set to continue long into the next year, too.
3. Prioritizing workplace agility
Slowly but surely, workplace leaders were opening their eyes to realize that businesses need to be agile to survive the war on talent.
As Bersin highlighted, employers have been demanding greater autonomy, businesses have needed to become more agile to stay one step ahead of their competition.
“Fundamentally, we’ve been operating inside of organizations with a one-to-many approach. But we need to look at the evolution of work,” Kelley Steven-Waiss, chief transformational officer at ServiceNow said in an exclusive interview with UNLEASH. “When work was very repetitive, we could live within the confines of one job. Now, however, the pace of learning needs to pick up as the shelf-life of skills is shorter.
“In essence, organizations need to become more agile, which can include changing the operating model – it is a people, process, and technology issue,” she says.
“Technology is not the panacea, but as we move forward, it will be the great enabler for work, making it better for everyone. We will have to enable all work based on people skills and HR will have to be ‘consumerized’. This is the way the world of work has been going and the way it will continue to go.”
2024
1. Creating connections amongst employees
As generations are becoming more demanding, HR teams are receiving an increased amount of pressure to retain top talent.
One way in which they’re doing so, and will continue to do so over the next 12 months, is by fostering strong connections in the workplace.
During his exclusive keynote at UNLEASH World, Gary Bolles, chair for the future of work at Singularity University said: “We need to increase the quality and quantity of connections so that people feel included and connected. One way to achieve this, it by adopting the mindset of membership, which focuses on driving a greater feeling of connection through organizations by fostering a sense of inclusivity.”
According to Bolles, workplaces will face eight main obstacles:
- Decreased worker connection
- Increased worker mobility
- Increasingly distributes
- More non-traditional work roles
- Decreasing mental health
- Constant need for new skills
- Demand for diversity, equity, belonging and justice
- Demand for organizational purpose
2. Reskilling, upskilling and continuously learning
An ever-changing workforce requires ever-changing employees. Or, at least employees that are keen to learn, grow, and reskill. And with new technologies emerging thick and fast – and showing no signs of slowing down – 2024 will most certainly be the year when more businesses place their focus on learning and development.
In a recent exclusive interview with UNLEASH, Dr Laura Carnicero, vice president of people and organization at SEAT and CUPRA, explains: “Everything is changing fast. In the past, you could have gone to university and studied to become an engineer and that would have been enough for the rest of your life. But nowadays, it’s not like that. Everything keeps changing so quickly, so you must always be learning.”
Businesses will therefore be placing a greater emphasis on reskilling their current employees to utilize existing talent, rather than branching out and recruiting new employees.
3. Change management for leaders
The workplace has been struck by multiple change tsunamis in recent years, but whether you like or loathe the new, it needs to be embraced in 2024.
Now is, therefore, one of the best times for managers to take the reins, however, research from Gartner suggests that 82% of HR professionals feel that senior leaders within their organization aren’t equipped to lead change.
This is problematic for a number of reasons, but, most prominently, because excessive change can be exhausting for employees.
In fact, the report states that change fatigue causes employees to feel:
- 42% less likely to remain at their organization
- 30% lower levels of trust
- 22% less discretionary effort
- 27% less responsiveness
For the foreseeable future, employers and HR leaders must plan ahead to avoid – or at least, limit – change fatigue and to plan to drive successful business transformations.
Have your say
And just like 2023, that’s a wrap!
This year has most certainly been filled with groundbreaking advancement coupled with a variety of challenges that have graced the HR sector, so much so, that we can’t wait to see what 2024 brings.
But we’d like to ask – do you agree with our trend predictions? What do you think will be the biggest upcoming trends? Get in touch and let us know your thoughts!
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Senior Journalist
Lucy Buchholz is an experienced business reporter, she can be reached at lucy.buchholz@unleash.ai.
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