Work environments are constantly evolving with new technology and ideas and hopes for the future. And it's up to HR professionals to recognize and integrate these changes into their workforce management strategy. Attracting and retaining top talent for your business will hinge upon these global HR trends for 2024.
Understanding these emerging trends will help you develop an effective HR strategy to improve the employee experience. As always, it's important to implement these ideas with a people-centric approach, prioritizing the needs and aspirations of your workforce.
Top 5 global HR trends of 2024
- Prepare for the year of AI
- Give employees room to grow
- Take advantage of outsourced expertise
- Invest in HR technology
- Optimize global teams
1. Prepare for the year of AI
Some businesses fear the rapid ascent of artificial intelligence, while others are excited to experience a new frontier. No matter how you may feel about AI, the reality is that it's here to stay. Businesses will need to learn how to adapt, evolve and integrate AI tools to enhance their HR strategy in 2024. Organizations should view AI as a means to enhance business processes, improve decision-making and drive innovation, rather than just as a tool for technological advancement.
Tip #1: Be strategic
It's important not to get caught up in the hype of artificial intelligence. Integrating AI into your business will require you to have a clear vision of how it can advance company goals. Setting strategic objectives for AI use will ensure your efforts are purposeful and contributes to the growth of the company.
A recent study found that 78% of C-suite executives report their organizations are using AI today, but only 42% of employees think they are using the technology—demonstrating a significant disconnect. So, while using this technology is valuable, making sure the team understands how it is being implemented is equally important. Creating a strategic plan to introduce AI will resolve employee concerns and ensure successful implementation. It may even put employees at ease to know how it is currently being used in their daily operations, without impacting their job security.
Tip #2: Start small
With so many AI tools in the market, it can be tempting to try to drink from the proverbial firehose. But doing too much too soon can be overwhelming and contradictory to your business goals. Start small, understand the technology and gradually scale up as you gain confidence and clarity about how AI can benefit your business.
Tip #3: Optimize the HR process
HR leaders have a chance to optimize and streamline diverse HR processes. Expect to see a beneficial fusion between AI and HR process automation in the near future. AI can enhance your HR operations from recruitment, performance management, employee engagement and more.
AI-driven algorithms will play a pivotal role in simple, repeatable tasks like resumé screening and candidate shortlisting. This will ultimately reduce the time and effort of HR teams during the hiring process, allowing them to focus on higher priority initiatives. Additionally, the integration of chatbots and virtual assistants has become helpful in addressing candidate inquiries and guiding them through the application process.
The automation of diverse human resources functions through AI also simplifies routine administrative tasks, including payroll processing, benefits management and leave approvals. Benefits of implementing AI may include increased accuracy, diminished administrative overhead, and expedited response times.
For now, AI isn't good enough to replace the human element of human resource jobs. But it is a new technology that is designed to empower HR professionals to adopt a more strategic role in shaping the future of workforce development.
2. Give employees room to grow
One of the challenges of the current workforce is the limited number of leadership positions. Older generations are choosing to stay in their management positions, rather than retiring. At the same time, millennials and Gen Z are demanding raises and growth opportunities.
This will create a significant shift in workforce dynamics, as workers opt to extend their tenure at their current organizations. This global HR trend in 2024 is a response to growing market instability, rising unemployment rates and decreasing non-farm employment since the start of 2023.
Tip #1: Provide paths for professional development
As experienced employees stay in the workforce, fewer leadership roles are available for younger talent. This is not a reflection of their performance or skills, but rather availability. If there are fewer leadership vacancies, younger employees need to know there are still growth opportunities. Provide personalized training programs that align with their career aspirations. This allows employees to increase their value and pay, while preparing for leadership roles in the future.
Tip #2: Create a long-term retention plan
Take advantage of employees wanting to stay at your organization by developing a plan to support and nurture longer tenures. The key to achieving this is enhancing employee skills through training, particularly for workers with invaluable institutional knowledge. These training programs should take months or years to complete, thus creating greater employee satisfaction.
3. Take advantage of hiring expertise
Balancing in-house and outsourced expertise will continue to be a global HR trend in 2024. Outsourcing recruitment and hiring efforts remains a strategic initiative for businesses seeking to tap into global talent and navigate market fluctuations. At the same time, in-house teams provide a certain level of stability and consistency in your global growth journey.
Tip #1: Create a flexible working company culture
Outsourcing is more than just a cost-cutting measure. It enables businesses to access specialized skill sets that may not be readily available in-house. Given the rapid pace of technological advancements, sourcing expertise from a global talent pool becomes a global expansion reality. Leveraging flexible work classification or outsourced expertise allows companies to adjust quickly to evolving market demands without committing to long-term obligations and overhead associated with large in-house teams.
Tip #2: Make scaling your operations a top priority
Think of outsourcing as a strategic response to shifting market dynamics. With fluctuating budgets and project scopes, maintaining a network of reliable outsourced professionals enables businesses to scale up or down as required. This adaptability proves invaluable in a business landscape where change is constant.
Strategically integrating outsourced specialists will give companies a competitive edge in the global markets. Companies can start with specialists and eventually transition to full-time employees as their business expansion stabilizes.
4. Invest in HR technology
According to Gartner's 2024 HR Technology Imperatives, there will be some significant changes to the global HR trends for 2024 when it comes to tech. This likely ties back to the development of AI, but a massive 89% of HR leaders plan to increase or maintain their technology budgets. This means there will be a strong push for more technology tools in talent acquisition, people analytics, human capital management and internal communication.
Tip #1: Upskill and reskill
These technology platforms should be part of your plan to ensure your employees have room for long-term growth at your company. This will allow you to develop a work environment that can adapt to the constant and rapid technological changes. Having this top of mind will create harmony between technological advancement and the core human elements of employee mental health.
Tip #2: Don't lose the human touch
HR technology should streamline and improve HR processes and functions. But that doesn't mean HR professionals will have less to do, in fact, it might be the opposite. With more available time away from automated tasks, HR leaders should focus on employee welfare and development. Spend more time actively supporting and empowering employees in their professional growth and ability to adapt to future challenges.
5. Optimize global teams
Remote work might not necessarily be a new global HR trend for 2024, but it is still relevant. In 2023, businesses started to learn the difference between hiring independent contractors, using employer of record (EOR) services and setting up their own legal entities. Now companies can focus on the right path for international growth and expansion into new markets.
This is especially true for high-growth industries like the technology sector, which has grown by 16% per year on average, according to ASIC. With the increase of remote work and outsourced employment structures, there are more opportunities for businesses to extend their operations internationally. Companies that confine themselves to domestic boundaries and overlook the advantages of incorporating diverse global experiences run the risk of falling behind their competition.
Tip #1: Understand the phases of global expansion
Growth doesn't happen all at once. It may start with a single independent contractor, and as your needs grow, you can upgrade to an EOR or your own legal entity. Knowing the pros and cons of each employment option will help your business make the best decision for long-term success. This will also ensure you stay compliant with local regulations.
Tip #2: Centralize outsourced vendors
One of the greatest HR inefficiencies occurs when businesses use multiple vendors for multiple countries. As they grow and expand, it becomes impossible and overwhelming to manage the compounding list of providers. Centralizing your global teams under one vendor and one system will ensure you maximize all the technology and tools you invest in.
Supporting your HR strategy in 2024
Global companies often spend disproportionate amounts of time and resources just to keep pace with day-to-day human resources, payroll, accounting, tax and legal challenges. We want to help you create the perfect HR strategy for your business in 2024 and beyond. Our suite of workforce management solutions can help you meet your growth objectives in 170+ countries.
With 2024 having so many global HR trends to prepare for, we wanted to share some additional resources to support your international initiatives.
- Want to focus on developing your in-house team? Check out DIY global expansion.
- Need an overview for what to expect with global hiring? Check out the Global hiring playbook.
- Ready to optimize your international recruitment? Check out our 5 tips for optimizing your global hiring strategy.
- Do you want to retain and build your workforce? Check out the 11 key tips to retain top talent.