Emerging Trends In HR In

2024: Key Insights For

Success
The HR landscape has gone through several changes in
the recent past, with the pandemic, AI revolution, and more.
But what will this ecosystem look like in 2024? Discover the
latest trends here.

Table of content:
• The Future of HR: Key Trends for 2024
• Skill-Based Hiring
• Prioritizing Employee Experience, Engagement & Well-being
• AI-Empowered Workforce Evolution and Its Impact
• Taking Diversity, Equity, and Inclusion Beyond Mandates
• Hybrid and Remote Work
 • Embracing the Gig Economy and Blended Workforce
• Transparent HR Practices
• Climate Change Adaptation in HR Practices
• Leveraging HR Analytics for Data-Driven Decisions
• Continuous Learning & Development to Improve Productivity
• The Office Buzz in 2024
• Bottom Line - HR Operating Model Needs A Shift
What will work look like in 2024? Currently, the workplace
includes a mix of hybrid work culture, technological
advancements, and a workforce comprising three generations with
distinct working styles - the Baby Boomers, Millennials and Gen
Zs.

This finding from the 2023 PwC Global Workforce Hopes &
Fears Survey highlights the stark disparities in attitudes of
different generations. As per the survey,

“Younger generations are much more likely to expect AI to

impact their careers across all of the surveyed impacts, both
positive and negative, whereas a little over one-third (34%) of
Baby Boomers think AI will not impact their careers, only 14%
of Gen Z and 17% of Millennials agree.”
To effectively navigate the changing needs of a workforce, talent
recruiters need to understand and adapt to emerging trends in HR
in 2024. By staying informed about these emerging trends, HR
professionals can proactively adapt their practices to meet the
evolving needs of their company and employees.
The Future of HR: Key Trends for
2024
Between the lingering effects of the pandemic and the upcoming
technological advancements, the emerging trends in HR in 2024
are centered around the idea of bridging the gap between the have
and have-nots, i.e., revolutionizing hiring and retention practices
to improve candidate experience, boost employee engagement,
and enhance overall productivity.

It’s no longer about finding the most qualified candidates, but

rather about finding the most skilled candidates and retaining them
by investing in both their well-being and development.
For organizations, this means getting on board with flexible work
arrangements, among other changes. For employees, it means
looking at AI as a tool to learn, not a force to compete with! In the
midst of it all, creating a sustainable work environment shouldn’t
just be a trend to jump on, but a basic requisite of any workplace
in 2024.

Let’s take a look at the key emerging trends in HR in 2024:

1. Skill-based hiring:

• Growing focus on skills and competencies over traditional

qualifications.
• Use of skills assessments and simulations to identify the
right talent.
• Increased adoption of internal mobility and upskilling
programs.
2. Improving Employee experience, engagement and overall well-
being:

• Prioritization of holistic employee well-being programs, with

a renewed emphasis on mental health awareness and
providing support resources.
• Creating an engaging employee experience throughout the
employee lifecycle.
• Personalized career development plans and feedback
mechanisms.
• Recognition and rewards programs to boost morale and
motivation.
3. AI and automation in HR:

• Automation of routine tasks like recruitment, payroll, and

performance management.
 • Use of AI for talent analytics, candidate matching, and
personalized learning.
• Ethical considerations for HR professionals.
4. Diversity, Equity, and Inclusion (DE&I):

• Continued focus on building a diverse and inclusive

workforce.
• Implementation of unconscious bias training and talent
acquisition strategies.
• Addressing pay gaps and promoting equal opportunities for
all genders and ethnicities.
5. Hybrid and remote work:

• The hybrid model (combination of office and remote work)

likely to remain dominant.
• Technology investments to support remote collaboration and
communication.
• Rethinking office spaces and policies to accommodate
flexible work arrangements.
6. Gig economy and freelance work:

• Rise of the gig economy and freelance work creating new

talent pools for companies.
• Need for clear policies and contracts to manage contingent
workers.
7. Greater demand for transparency

• Transparency is the main demand - especially for the rising

Gen Z workforce.
• From job descriptions to in-house promotions, HRs will need
to provide clear information at every stage.
 • Pay transparency and pay equity will need to take center
stage.
8. Heightened Focus on Sustainability:

• Increased focus on environmental, social, and governance

(ESG) issues in HR practices.
• Attract and retain talent who share their commitment to
sustainability and social responsibility.
9. Data-driven HR:

• Data analysis to inform HR decisions and strategies.

• Tracking key metrics like employee engagement, retention,
and productivity.
• Use of HR analytics tools for better decision-making.
10. Continuous learning and development:

• Reskilling and upskilling programs to help traditional

employees adapt to changing work models.
• Micro-learning and personalized learning platforms gaining
popularity.

Skill-Based Hiring
Skill-based hiring focuses on assessing and evaluating candidates
based on their specific skills and abilities rather than solely relying
on traditional qualifications or experience.

The idea is to prioritize candidates who possess the necessary

skills to perform the job effectively. This trend is driven by the
recognition that skills can be developed and honed through various
means, such as online courses, certifications, or even practical
experience.
According to the 2023 PwC Global Workforce Hopes & Fears
Survey, there are clear indicators that companies are overlooking
talent because over one-third (35%) of workers stated having skills
that aren’t apparent through their job histories or resumes.

Thus, by adopting skill-based hiring practices, companies can tap

into a wider pool of talent, including ‘hidden talent’ i.e. skilled
individuals who may not have the traditional qualifications.
Traditionally, such individuals have either been offered lower pay,
or contractual work with limited working hours. This also allows
organizations to consider candidates from diverse backgrounds
who may bring unique perspectives and ideas to the table.

Skill-based hiring can also help reduce hiring bias through

objective assessments, such as skills assessments or performance
tests, rather than subjective factors like educational pedigree or
personal connections.

Did you know? Research published by World Economic Forum,

in collaboration with PwC, found that creating skills-first labour
markets could help more than 100 million people worldwide get
better jobs.

Prioritizing Employee Experience,

Engagement & Well-being
Employee Experience and Engagement Taking
Center Stage
In an article on employee experience, Harvard Business Review
stated that even though 49% of C-suite executives believed their
company excels at acting on employee feedback, only 31% of
workers agreed. It’s disparities like these that impact employee
engagement.
Employee experience and engagement is not just an emerging
trend in HR in 2024 but a key focus area for overall growth.
Organizations recognize that happy and engaged employees are
more productive and loyal. As per Gallup's 2023 State of the
American Workplace report, highly engaged teams are 21% more
productive, 27% less likely to leave their jobs, and have 59% lower
turnover rates.

To enhance EX, companies will invest in initiatives such as

personalized development plans, wellness programs, mentorship
opportunities, and regular feedback channels. Fostering a positive
company culture through diversity and inclusion efforts will be
crucial for attracting top talent.

Comprehensive Employee Wellness Programs

While remote work offers convenience, it also makes it difficult to
achieve work-life balance with 80% of employees experiencing
work-related stress, while 50% suffering from burnout, as per
CXOToday. Thus, in 2024, organizations will focus on providing
holistic wellness programs that address various aspects of
employee health.
These programs may include fitness classes or gym memberships,
mindfulness training sessions, access to counseling services, or
workshops on stress management techniques. These initiatives
seek to create an environment where employees can effectively
manage their professional responsibilities while also having time
for personal activities and relaxation.

This emphasis on employee engagement and well-being aligns

with the growing recognition that happy and healthy employees
contribute to a more productive workforce.

AI-Empowered Workforce Evolution

and Its Impact
According to McKinsey’s 2023 State of Organizations report,
organizations used an average of 3.8 AI capabilities (eg, natural-
language generation, computer vision) in 2022, double the 1.9
used in 2018. The adoption of AI will only accelerate in 2024.
One of the key areas where AI will have a significant impact is in
streamlining recruitment and talent management processes. With
the help of AI-powered algorithms, organizations can efficiently
identify top candidates through a large volume of resumes and
match them with suitable job positions. This saves time, giving HR
professionals time to focus on strategic initiatives.

The integration of AI technologies into HR processes brings

numerous benefits such as increased efficiency, enhanced
employee experiences, and reduced administrative burdens.
However, organizations need to approach these advancements
with caution by ensuring ethical considerations are taken into
account when implementing AI solutions.

Taking Diversity, Equity, and

Inclusion Beyond Mandates
McKinsey’s State of Organization 2023 report perfectly
highlights the current state of DEI at the workplace. Per the report,
less than half (47%) of employees stated that they had the
infrastructure to realize their DEI aspirations. The reason DEI is
still an emerging trend in HR in 2024 is that now is the time when
it transitions from being just a corporate mandate to becoming a
part of the workplace fabric.

Diversity metrics are one way to drive accountability and measure

progress. Still, the need of the hour is for HR to collaborate with
other leaders to develop strategies that promote diversity at every
level of the company. This includes implementing inclusive hiring
practices, providing training on unconscious bias, and cultivating
an environment where everyone feels valued and respected.
Hybrid and Remote Work
Remote work is no longer a novelty brought on by the COVID-19
pandemic but rather the norm. This trend is expected to continue
into 2024.

As companies continue to embrace hybrid and remote work,

technology investments will play a crucial role in facilitating
collaboration and communication among remote teams. With the
shift towards remote work, the traditional concept of office spaces
will need to be rethought.

Instead of relying on physical office spaces, organizations need to

invest in digital tools and platforms that enable seamless virtual
collaboration. This will require a focus on technologies such as
video conferencing, project management software, and cloud-
based document sharing to ensure effective remote teamwork. By
leveraging technology, companies can create a flexible and
productive work environment that supports remote work
arrangements.

Did you know? In its State of Organizations 2023 report,

McKinsey listed “true hybrid” as one of the ten most significant
shifts facing organizations today. More than 80% of employees
who worked in hybrid models between 2020-22 want to retain
them, stated McKinsey.

Embracing the Gig Economy and

Blended Workforce
The emergence of the gig economy and blended workforce is one
of the key trends that HR professionals need to embrace in 2024.
Companies are increasingly relying on freelancers, contractors,
and gig workers to meet their business needs. This shift towards a
more flexible workforce brings both opportunities and challenges
for HR practitioners.

HR departments will need to adapt their talent acquisition

strategies to include external talent from the gig economy. This
means leveraging social media platforms, hiring challenges,
and specialized job portals to connect with potential candidates
outside of traditional hiring channels. It also involves building
relationships with freelancers and contractors who could bring
unique skills and perspectives to the organization.

Transparent HR Practices
An emerging trend in HR in 2024 will be transparent HR practices
to cater to employee expectations and attract better talent.
Accurate Job Descriptions
In 2024, job seekers and employees are increasingly seeking
organizations that are open and honest about the expectations and
requirements of each position. Accurate job descriptions are
crucial in attracting and retaining top talent, as they provide
candidates with a clear understanding of the role and its
responsibilities. This helps candidates know whether they are the
right fit for the position and allows them to align their skills and
qualifications accordingly.

Pay Transparency
There’s also rising demand for job descriptions where salary
information or pay range is clearly stated. As per the People at
Work 2023: A Global Workforce View report, for 61% of people,
the most important factor in a job is salary. An article by
SHRM backs this, stating that 4 in 5 candidates wouldn't apply for
roles without pay range information.

Not just for hiring, information about pay equity and salary
structure can even impact retention rates. Per compensation
software firm Payscale, “pay transparency decreases intent to quit
by 30% when analyzed in isolation.” Simply put, transparent
salary structures help to build trust and ensure that employees feel
they are being compensated fairly for their work.

Overall, the demand for transparent HR practices is on the rise in

2024. Accurate job descriptions, clear rules for in-house
promotions, and fair pay equity and salary structures are essential
elements that job seekers and employees are seeking from
organizations.
Climate Change Adaptation in HR
Practices
The emerging trends in HR in 2024 reflect the growing concern
about climate change among employees and the consequent need
to prioritize sustainability initiatives.

Employees, especially younger generations, are increasingly

concerned about environmental and social issues. They expect
their employers to align their values with sustainability practices.
Companies that demonstrate commitment to sustainability attract
and retain talent who value ethical and responsible business
practices. Offering eco-friendly perks like green commuting
options, sustainable food choices, and volunteering opportunities
can demonstrate commitment to sustainability and attract talent.

Leveraging HR Analytics for Data-

Driven Decisions
Predictive analytics will make a significant impact on HR
practices. By leveraging data from various sources such as
employee performance records, engagement surveys, and market
trends, organizations can use predictive analytics models to make
data-driven decisions related to workforce planning, talent
development, and career progression.

Tracking employee turnover rates, engagement levels, training

effectiveness, and other KPIs helps HR leaders identify
improvement and allocate resources accordingly. For example, if
the data shows a high turnover rate in a particular department, HR
can investigate the underlying causes and implement targeted
retention strategies.
Continuous Learning & Development
to Improve Productivity
Rapid technological advancements and the dynamic nature of the
business landscape have highlighted the importance of equipping
employees with the tools to stay competitive.

Continuous learning and development programs provide

employees with knowledge and skills enhancements, as well as
keep them current with industry trends. This not only benefits the
employees by boosting their confidence and job satisfaction but
also helps organizations improve productivity and achieve their
business goals.

The end goal for any organization should be developing a future-

ready workforce. This means investing in employees’ growth and
development. In other words, it’s not enough to hire for the skills
employees currently have; it’s also important to nurture talent for
the future.

The Office Buzz in 2024

Naturally, the emerging trends in HR in 2024 will be impacted by
office trends. If 2023 was about rage applying, quiet quitting and
moonlighting, 2024 is set to welcome coffee badging, quiet cutting
and lazy girl jobs. Confused? Take a look at the workplace trends
on the rise:

Coffee Badging
With offices transitioning from a remote work environment to a
hybrid working model, coffee bashing has made an appearance.
Coffee badging is the practice of turning up at the workplace for a
few hours to check in with your colleagues, report to managers,
and ‘share a cup of coffee’, before heading back to work from
home - which is considered to be a more productive environment.

Grumpy Stayer
As the term suggests, grumpy stayer refers to individuals who are
dissatisfied with their work but unable to shift or quit. It could
include highly skilled workers who feel they are either not valued
at work or don’t have the potential to learn and grow.

Quiet Cutting
This is a trend slowly gaining prevalence in workplaces. It’s a
practice of shifting or reassigning employees to different
departments instead of letting them go. It appears to be a stop-gap
measure to layoff but in some cases, reassigning departments has
also served an employee well in finding a role more suited to their
skills and interests. This approach also helps organizations fulfill
roles without investing in hiring or sourcing.

Lazy Girl Jobs

Don’t be deceived by the name! Lazy girl jobs are not for lazy
people but rather are roles that prioritize work-life balance. The
idea is to chase an equilibrium between financial compensation,
work requirements, and time for self. The term generated on
TikTok, and naturally, finds more favour with Gen Z - though it
holds a lesson for employees of all generations and even
employers. What’s the lesson? That work-life balance can no
longer be ignored.

Career Cushioning
With the rising economic uncertainty, and the constant news about
layoffs, career cushioning has become the go-to approach for
employees. It’s the practice of investing time and effort in building
a plan B. This could include networking within the industry,
undertaking courses to upskill, or building a portfolio of personal
work to showcase your skills. It all comes down to strategic career
planning.

Bottom Line - HR Operating Model

Needs A Shift
Overall, emerging trends in HR for 2024 highlight the importance
of shifting traditional operating models towards enhanced
collaboration to drive organizational success. This means
developing agile HR models that prioritize cross-functional
collaboration, with HR working as a strategic partner rather than
in silos. By breaking down silos and fostering collaboration,
organizations can leverage diverse perspectives and expertise to
drive innovation and improve overall performance.