HR trends 2024: The challenges and opportunities for HR managers

Last year, employee wellbeing, flexible working arrangements, diversity, equality, and inclusion were at the top of organisations’ priority lists. In the midst of change, they have learned to adapt and respond flexibly to new requirements. A look into the future shows that many of these trends will continue to play a key role and even evolve.

Gen AI – integration of artificial intelligence in the workplace

It will hardly surprise anyone: artificial intelligence has become one of the biggest megatrends in HR. Generative AI, such as ChatGPT and similar technologies, are changing the way we manage talents and organise workplace dynamics. According to a Gartner survey, 76% of HR leaders believe their organisation will fall behind in the next 12 to 24 months if they don’t implement AI solutions. From recruitment to staff development to employee productivity, HR professionals can optimise many processes with the help of AI. At the same time, a balance needs to be achieved between efficiency and human qualities.

Upskilling, reskilling, and professional training for employees

In 2024, HR teams will need to identify the skills required for their organisations to thrive in an era where technology and AI are becoming more powerful. This requires an understanding of how transformative technologies are enhancing existing roles and which human qualities are required to complement and best operate machines and AI.

89% of HR leaders believe that career paths in their organisations are unclear for most employees. When adding rising turnover rates to an already competitive labour market, HR leaders’ uncertainty continues to grow.

In a rapidly changing labour market and an increasingly complex business world, it is important to constantly update and expand employees’ skills and knowledge. Offering or supporting further training also helps to increase the attractiveness of the company as an employer and strengthen employee loyalty.

Did you know? Temporary workers benefit from a special perk. Thanks to “temptraining”, a further training fund, they receive financial support for as little as 88 hours of temporary work, enabling them to develop themselves with selected further training courses and improve their career opportunities and employability on the labour market. More information can be found here.

Focus on generations: the challenges of the older generation

Already last year, more and more elderly employees were looking to return to the labour market. This trend is continuing this year, with the unemployment rate for people between 50 and 64 continuing to fall. In September 2023, this stood at 1.9%. The experience and expertise of senior workers is in demand, and thanks to targeted training programmes, these groups are helping to reduce the shortage of skilled workers.

At the same time, Generation Z is increasingly stepping into the spotlight, while millennials are stepping up into management positions. This represents an exciting challenge when it comes to balancing the needs and circumstances of both groups of employees in terms of corporate culture and working life.

Flexible working models

Managing the opportunities and challenges associated with flexible working models will be a focus for HR professionals, particularly in large organisations with geographically distributed employees. More and more organisations are offering their employees flexible working hours, remote working, and other forms of flexibility. This has many benefits, such as a better work-life balance for employees, increased motivation and productivity, and the ability to attract talents from all over the world.

Flexibility is also seen as an important factor in the attractiveness of an employer and can be an advantage in the competition for skilled labour. More and more people are looking for this flexibility in their job in order to organise their work in a self-determined way, to manage their time and resources according to their needs, or to work on several projects at the same time.

Returning to the office

Forcing employees back into the office doesn’t work, as the figures show. When trying to encourage employees to return to the office, HR professionals need to ensure that the benefits of working in the office are clear. It’s not just about cosy corners, it’s about creating opportunities for collaborative productivity, professional development, and networking that can’t always be replicated 1:1 from home.

More salary transparency

Fair pay is an important part of the employee experience. The EU directive on pay transparency, adopted in January 2023, will force companies to monitor and report pay inequalities in 2024. The directive goes beyond monitoring equal pay and includes a series of binding measures. The directive will be implemented into national law within three years and can serve as a model for other countries around the world, particularly Switzerland.

In 2021, Switzerland already introduced the Federal Act on Gender Equality, which obliges companies with 100 or more employees to regularly carry out equal pay analyses. Initiating plans to ensure a seamless transition is crucial, and those that proactively engage and address the issue will be best positioned.

Conclusion

Thanks to the New Work movement, employees are increasingly becoming the focus of companies. The topics of work-life balance, workation, and now increasingly employer wellbeing, are gaining in importance. Diversity also remains a key factor for talent attractiveness and employer branding. Equality and inclusion are crucial to promoting diversity and require a high degree of sensitivity and soft skills from HR managers.

In 2024, HR leaders will need to understand these trends, manage them effectively, and ensure a balance between innovative technology and human qualities. This is the only way they can successfully meet the challenges of the constantly changing world of work.