Whiplash from the return-to-work scramble? You’re not alone. 2023 threw HR teams a curveball, and 2024 promises more twists.
A looming recession adds pressure to retain top talent while maximizing efficiency. But fear not, intrepid HR professionals! Gartner’s latest research pinpoints key trends that will shape people management strategies for the next 12 months. Buckle up, and let’s navigate the main Human Resource and talent management trends of 2024!
Table of Contents
People analytics in Business Intelligence
It is not an isolated trend, for years data analysis and automation has been essential for adequate decision making. But in 2024, people management professionals will further incorporate accurate measurement of the productivity and performance of each person in companies.
With the incorporation of people analytics and BI (Business Intelligence) platforms, the research method of the people who are part of the company will be improved and, consequently, it will help to make better decisions.
Obtaining data is not enough for complex reflections, since it is necessary to collect, analyze and visualize it correctly. This trend will improve the discovery of talent preferences and trends, monitor and make improvements on an ongoing basis, driven by the data obtained.
Key indicators to implement
When developing a people analytics strategy and implementing BI software, it is essential to know the most important indicators to obtain the best results based on the proposed objectives.
Mainly, knowing the origin of the organization’s hiring is a method of identifying which sources are working best when it comes to attracting talent. At this point, it is advisable to carry out monthly monitoring of the sources to improve the recruitment strategy.
On the other hand, measuring the average hiring time can be a functional indicator to evaluate the efficiency of the hiring process. According to the Society for Human Resources Management, this period ranges from 41 days. Furthermore, the average length of stay in the organization proportionally measures key aspects such as: people’s satisfaction, working conditions or staff remuneration, among others.
Other interesting issues to measure are the employee turnover rate, the absenteeism rate, the salary evolution of the workforce, diversity of gender, age and nationality, and overtime over a year.
Security and treatment of sensitive data
New technologies such as artificial intelligence or machine learning have brought numerous challenges to people management. First, organizations must face the pressure of new public regulations on privacy, processing and security of sensitive data. They must also be more transparent about how they use technology, make their data audits public, and give employees and candidates the option to opt out of data processing processes.
As more companies opt to implement high technology in selection processes, the ethical and moral extensions of these practices in relation to diversity, inclusion, privacy and data equity become increasingly indisputable.
Improving cyber security
Another challenge posed by new technologies is cybercrimes. According to a study by IBM and the Ponemon Institute, the average cost of a data breach reached $4.35 million in 2022, a record high. In addition, a growth of 20% is expected for 2024.
Given this panorama, it is not surprising that people management departments opt for a double security strategy: installing robust security systems and strengthening their defenses by predicting cyber threats.
VFS Global has selected the keys to improve cybersecurity in people management this 2024. Primarily, organizations must emphasize privacy from the design, that is, incorporate security systems into their work tools. Likewise, many organizations are moving toward a cookieless future by applying advanced methods for tracking and targeting users. For example, exploring the use of biometric access.
Generate more value with the same resources
In general, current and future employees continue to experience health problems as a result of the social, economic and political turbulence of recent years, accentuated by the pandemic. This can reduce productivity and performance, as well as increase overflow, abandonment or labor conflicts.
As Gartner indicates, 82% of employees say it is important for their companies to see them as people, rather than simply workers. For this reason, people management departments this year will emphasize proactive rest to improve performance, implement debate opportunities to work on difficult topics and promote the participation of specialists in traumatic situations.
On the other hand, hybrid work is proposed as the work model of the future, generating pressure among lower and middle managers of organizations.
In this context, middle leaders become the closest link to the company culture for those who opt for the hybrid modality. Therefore, in 2024, organizations will focus on improving assistance and training, thus reducing the deficit in management skills. In addition, they will focus on redistributing time and redesigning functions.
Talent attraction and retention
In 2022, a viral wave of headlines was generated about “silent resignation,” the idea of numerous employees who refuse to advance in their positions and do the minimum required. When employees act this way, organizations retain people, but lose competitiveness. In 2024, people management managers will opt for so-called “silent hiring”, incorporating new opportunities and alternative approaches to take advantage of workers’ performance and increase their skills.
Hybrid flexibility is another trend that is expected to take center stage in 2024. According to Gartner’s 2022 Reinventing the Frontline Worker Experience survey, 58% of companies that hire frontline employees have invested to improve conditions of its employees, in terms of schedule control, paid vacations and schedule stability. In addition, these same workers express their interest in other flexible issues, such as what they work on, who their colleagues are or the number of hours invested.
On the other hand, organizations will continue to promote diversity, equality and inclusion (DEI). However, as data provided by Gartner show, 42% of employees report some resistance to these implications.
The rejection of the staff invalidates the proposals and causes disconnections of the initiatives aimed at training isolated groups. Although many companies ignore employee reactions, for fear of being illegitimate, if left unchecked, they can decrease engagement and inclusion, causing deterioration.
Therefore, this year people management departments are going to address opposition to change, to avoid the most destructive resistance.
Selection and organization by professional skills
Organizations have been debating for years the strategic value of expanding and diversifying their talent pools. This idea is now supported by two emerging human resources trends:
- Employees are following non-linear career paths, that is, they apply for jobs outside their specialty.
- Companies no longer respond to their talent needs through traditional selection methods. Currently, people management managers focus on specific competencies.
Given this paradigm, critical positions in 2024 will be covered thanks to the evaluation of specific job management skills and motivation at work. These blocks support the candidate’s power, influence, orientation, results and collaboration with the work environment.
Redefining professionalism
Another challenge for people management is the inclusion of generation Z in the labor market. This generational group enters working life, marked by a pandemic and with complex educational and professional objectives to satisfy.
According to a study carried out in December 2021, 56% of young Indians between 18 and 25 years old consider that the educational system does not prepare them for the labor market.
Generation Z has not yet had the opportunity to develop interpersonal skills, such as networking, communicating in public, or debating a proposal. This lack of experience has a negative impact on companies.
In this sense, digital onboarding (chatbots, checklist, multimedia applications, etc.) is presented as the first element to avoid demotivation, accelerate adaptation, improve the retention rate, increase efficiency, promote commitment and integrate the younger people.
In 2024, companies face a competitive landscape, in which data security and personnel management prevail. These HR trends are high-impact and offer great opportunities to people management departments. But to address them in the best way, it is essential to use the appropriate digital tools and software for everyday life.
The digitalization of human resources processes, a trend that continues in 2024
Data security and personnel management are high-impact trends this year as they offer great opportunities to people management departments. But to address them in the best way, the use of digital tools and software is essential.
We recommend using a tool that allows:
- Obtain data from performance evaluations, workday records, career plans, among other indicators; that serve to analyze trends and discover patterns through People Analytics.
- Measure KPIs and maintain control of them to improve team motivation and create work development strategies.
- Protect and ensure the security of data and equipment information with encryption and two-factor authentication systems.
- View the most relevant information and most used functionalities in a personalized dashboard.
Final Words: Human Resource and Talent Management Trends 2024
The coming year presents a unique set of challenges for HR. As we navigate economic uncertainty and a changing work environment, these trends offer valuable insights into the evolving needs of the workforce. By staying informed and adapting to these shifts, HR can play a pivotal role in building a resilient and adaptable organization. The future of work is uncertain, but by focusing on these key trends, HR can ensure it’s a future filled with opportunity.
