New and emerging trends continue to reshape the workplace and impact the role of HR. Here are some of the top areas employers are focusing on in 2024.
1. Leveraging New Technology
As we move into the new year, HR professionals are leveraging new technology to streamline processes and enhance decision-making. As the fast-growing technology, generative AI contributes up to $4.4 trillion annually to the global economy. According to Deloitte, in 2024, employers investing in AI will experience a 30% increase in their investment, and more employers will develop their own generative AI models.
Training and Reskilling Workers on AI. As AI continues to evolve, the need for training and reskilling becomes increasingly important. According to a recent study by Morgan Stanley, generative AI technologies are projected to impact 25% of all occupations, and this percentage is expected to rise to 44% within the next three years. Consequently, the displacement caused by generative AI will create a $16 billion market to address the demand for training and reskilling workers.
Artificial Intelligence in Recruitment. AI is transforming how companies hire new employees. By utilizing AI, HR teams can quickly and accurately sift through resumes, assess candidates, and even conduct preliminary interviews. This not only speeds up the hiring process but also guarantees a more impartial and data-driven approach to candidate selection.
Personalized Learning Paths. Utilizing the power of innovative AI technology, HR teams have the ability to design personalized learning paths for employees, enabling them to assess their individual strengths and weaknesses. This allows for the creation of training programs that cater to specific needs, ultimately enhancing employee development and growth.
Employee Experience Platforms. Employee experience platforms are gaining traction, providing a unified interface for employees to access HR services, training modules, and performance feedback.
2. Remote Work Continues to Grow
The remote work trend has accelerated and continues to grow as employers learn hybrid work environments are good for business. Research shows that since the pandemic, offering hybrid work has also played a pivotal role in keeping and attracting workers.
Hybrid Workforce Management. Hybrid work models, which involve a combination of remote and in-office work, are quickly becoming the new standard. HR professionals must focus on creating policies that support flexibility while still maintaining team collaboration. Virtual collaboration tools and project management software are essential for effectively managing hybrid teams.
Well-being and Mental Health Support. In 2024, the employee well-being remains a top priority. Companies are placing a strong emphasis on mental health programs, offering flexible schedules, and implementing initiatives for work-life balance. These efforts are important in nurturing an engaged and productive workforce, and will continue to evolve and adapt to meet the changing needs of employees.
3. Increased Emphasis on Diversity, Equity, and Inclusion
A diverse and evolving workforce necessitates a steadfast commitment to fostering diversity, equity, and inclusivity.
Addressing Shifts in Workplace Demographics. Today's workforce includes a diverse mix of full-time and part-time employees, contractors, and remote workers. This diversity increases as older generations retire and new generations enter the workforce.
To prevent turnover, employers must adapt to these demographic changes and address specific needs in employee benefits, skill development, training, communication, and management practices.
Commitment to Pay Equity & Pay Transparency Measures. In the new year, employers will face a growing expectation to prioritize transparency when it comes to compensation, covering both salary and benefits. To meet this demand, employers are opting to disclose their pay structures, conduct regular audits to ensure pay equity, and implement corrective measures for fair compensation. However, multi-state employers may encounter an even greater challenge in maintaining confidentiality regarding compensation, as numerous states have enacted laws mandating pay transparency and equity. These laws may require employers to disclose compensation details in job postings and during the applicant screening process, further emphasizing the need for transparency in the workplace.
4. Developing Skills to Stay Competitive
Finding and keeping skilled employees continues to be a priority in 2024. According to a study by Deloitte, 90% of employers will shift to a skills-based approach, seeking specific skills to build their workforce. Employers will invest in employee development and engagement programs and provide more personal and professional growth opportunities to workers.
5. Stronger Focus on Multi-State Compliance
Multi-state compliance continues to be an issue for employers with employees working across state lines. Because state laws can vary, employers need to understand their responsibilities, such as taxes, benefits administration, and changes in laws that may impact their business, such as minimum wage increases and paid leave requirements.
6. Leverage Outsourcing Strategies
As the demand for skilled workers continues to grow, many employers are turning to outsourcing to support their HR teams. Many small businesses already take advantage of the resources and expertise by outsourcing to a Professional Employer Organization (PEO), like Propel HR, for HR-related tasks such as benefits, payroll, compliance, and general HR, as well as a host of services that can also be customized.
Outsourcing some of your HR functions can significantly reduce your administrative workload and give you more time to invest in growing your business. For instance, if you want to improve your customer service, outsourcing that function can make you more competitive. Similarly, if you need to expand your HR department but cannot afford to hire (or find) skilled staff, outsourcing can provide the expertise, knowledge, and resources you need. Even if you already have an in-house HR manager, outsourcing to a team of HR experts can make good business sense.
New Year, New Trends: Prepare for Changes Ahead
To navigate change, you need to know what trends are shaping the workplace. In 2024, the workplace will be impacted by technological innovation, demographic changes, a demand for transparency, and a dynamic approach to skills development and performance management.
We hope your year ahead is both productive and successful. If you want more information on how outsourcing can help your business, please call us at (800) 446-6567 or visit www.propelhr.com.
About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 25 years. Propel partners with small to midsized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. Visit our new website at www.propelhr.com