As we step into 2024, the landscape of human resources and workplace dynamics is set to undergo significant transformations. We try our hand at making some predictions for the upcoming year.
1. Turnover in the CHRO Role
In 2024 we might witness a substantial turnover in the CHRO role, reminiscent of the shifts seen during the COVID-19 pandemic. This time, the driving force behind this change is the need for CHROs with enhanced financial literacy and data analytics skills. A notable trend will be the appointment of professionals with diverse business operating experience — such as in production, finance, operations, and marketing — over traditional CHRO candidates. We anticipate this shift to signify the evolving expectations from HR leaders to be more aligned with broader business strategies and outcomes.
2. Increased Transparency in HR Metrics
Transparency increasingly is becoming a cornerstone in HR operations. Metrics previously kept confidential, such as attrition rates, average tenure, Employee Net Promoter Scores (eNPS), Human Capital Return on Investment (HCROI), and other financial HR metrics, will likely be shared with stakeholders. This move towards transparency will be in line with the growing emphasis on accountability and the strategic importance of human resources in organizational success in a predominantly service economy.
3. Workplace Dynamics in an Election Year
The convergence of an election year with existing workplace tensions presents a unique challenge for 2024. Questions arise about how this will impact productivity, mental and financial wellbeing, and civility in the workplace. Additionally, the increased emphasis on worker voice could lead to improvements in workplace conditions, potentially triggering more strikes and pre-emptive pay increases. Notably, there might be a rise in non-unionized workers receiving benefits typically associated with unionized workers. Furthermore, we anticipate an increase in workplace lawsuits, particularly those related to diversity, equity, inclusion, and pay equity possibly initiated by majority demographic groups.
4. The Integration of Tech and AI in HR
The rise of Large Language Models (LLMs) and AI assistants heralds a new era for HR. This technological advancement will require new policies and governance approaches and will inevitably create new job roles and skill requirements that HR has to source or help develop such capabilities. HR departments can also benefit tremendously from such capabilities to improve their own service delivery. Addressing questions about work (re)design for the “augmented human” era and measuring performance in this new context will be top issues for HR. As AI-generated outputs become more prevalent, redefining what constitutes “good” performance in this tech-enhanced landscape will be critical.
5. Economic Implications of the GenAI Era
The GenAI era might be seen as the next phase of insourcing/outsourcing, posing both opportunities for innovation and challenges in cost management. Outsourcing: Companies may increasingly lean towards AI-triggered cost cutting and workforce reduction. Insourcing: Integrating GenAI into job descriptions and productivity expectations, supported by comprehensive tech solutions will become more common. This shift raises important considerations around the balance between technological advancement and human workforce dynamics.
The year 2024 promises to be a pivotal year in the evolution of HR and workforce management. From the changing role of CHROs to the integration of AI in HR practices, these trends reflect a broader shift towards a more data-driven, transparent, and technologically advanced workplace. As these trends unfold, they will undoubtedly shape the future of work, presenting both challenges and opportunities for organizations and HR professionals.
*This blog post is a predictive analysis based on current trends and does not represent guaranteed future events. It is intended for informational and discussion purposes only.