In order to keep up with the changing expectations of organizations and employees in today’s market and economic conditions, HR professionals must be able to adapt.
HR directors will require plans by 2024 that incorporate artificial intelligence (AI) into routine tasks, accommodate worker demands for more compensation and flexibility, and adhere to changing regulatory requirements. Giving staff top priority will benefit organizations.
The six 2024 HR trends listed below will assist professionals in meeting the demands of their companies and workforces.
1. Artificial Intelligence (AI)
AI grew in popularity throughout the world in 2023 as a result of its ability to streamline processes and enhance consumer satisfaction. AI is probably going to stay a major component of business operations for a while to come. It may even assist HR managers in choosing employees, carrying out regular duties, and analyzing data.
Employers will need to give ethics and compliance-related concerns with AI top priority as it becomes more widely used. For instance, who will utilize the technology, how data will be used with AI, and how to stay in compliance with evolving legal and regulatory requirements. In addition, AI still raises questions about privacy, transparency, and even prejudice.
2. Skill Gaps and Skills-based Hiring
Candidates are assessed based on their talents rather than their education or experience in skills-based recruiting. Employers still struggle to recruit talent with the necessary skill set, despite the fact that the U.S. Bureau of Labor Statistics reports that there are 6.3 million unemployed people. Employers might refocus their hiring efforts this year and choose to hire people based more on skill than on traditional credentials.
Employers who have robust learning and development initiatives may select to teach a candidate a particular skill set after hiring them based on how well they fit inside the company. Instead of attempting to shape applicants into a predetermined job description, this enables companies to identify qualified prospects.
3. New Compliance Rules
Organizations will be subject to new benefit laws, retirement plan alternatives, and paid time off regulations in 2024. In 2024, a new rule pertaining to the application of the Fair Labor Standards Act’s (FLSA) minimum wage and overtime exemption for executive, administrative, and professional personnel is also anticipated to go into effect. Additionally, it might make it easier to qualify exempt workers and raise their FLSA wage levels.
In order to prevent future lawsuits, employers must also keep abreast of the rapidly evolving legislation pertaining to pay transparency and take preventative action. These restrictions will probably affect more firms if more states adopt pay transparency, which might be difficult for employers who have workers in several jurisdictions.
4. Return to Work
Proactive firms in 2024 should concentrate on striking a balance between employee needs and in-person requirements. While many people have appreciated the flexibility of working from home, businesses are putting more and more pressure on workers to come into the office. Some firms have experienced employee resentment as a result, and many employers fear that forcing staff members to resume in-office work will merely increase employee turnover or maybe harm their reputation.
5. Employee Engagement
There has been a significant decline in employee engagement and enjoyment since the COVID-19 pandemic began. According to an HR Bamboo report, since 2020, employee satisfaction has decreased by 6%. With a 9% fall since January 2023, the decline has been happening even faster. This pattern, which is sometimes called “the Great Gloom,” implies a close relationship between societal and economic factors and employee engagement. Increased workloads and layoffs are two cost-cutting measures that many firms have been compelled to adopt due to high inflation. These measures can worsen workplace morale, raise stress levels, and create a hostile work environment.
As the economy changes, so do the needs of employees; therefore, businesses must prioritize fostering employee engagement in order to satisfy changing demands. This could entail placing more emphasis on fairness, psychological health, and communication.
6. Competitive Compensation
Businesses predict that issues with hiring and retaining employees will persist through 2024. Many firms will respond by giving competitive raises in order to offset the rising cost of living. As per the most recent Salary Budget Planning Survey, firms in the United States have planned to raise salaries by an average of 4%. Employers are increasingly adopting benefits to enhance employee experience and boost retention, such as flexible work schedules and full health insurance.
Summary
By keeping an eye on trends that may affect the workplace in 2024, HR professionals can stay ahead of the curve. Employers who improve their workforce strategy will have a competitive advantage when supporting and attracting today’s workers, as employee expectations continue to change.
Donald Jones
Donald Jones is knowledgeable in many areas of national employee benefits, including: Interpreting complex legislation & regulations; Training HR people how to implement plans; Providing assistance to get employee benefits paid at a higher level; Working with insurance companies to get previously denied claims paid; and negotiating extremely favorable group rates for over 100 employees. DMJ Insurance Services offers a comprehensive Benefits Outsource Program that eases the burden of HR departments compliance. It also saves HR employee time and money. Visit DMJ Insurance Services.