The top trends in Human Resources for 2024
The top trends in Human Resources for 2024
As we march towards the end of what feels like a very long January; here are my top HR trends I expect us all to see in 2024.
Coming in At NO 1 - Artificial Intelligence
AI popped its head above the realms of science fiction and computing geeks in 2023. To start with there was a bit of panic, partly over potential job losses but also about how it could be stopped. Now in 2024, we realise that AI is just another tool we can use to make life and processes easier and less error prone – or is it? (Sounds like an assignment question to me).
One key area where AI can make a difference in HR is recruitment, by firstly, generating accurate and quality job specifications. Secondly, sorting CVs in big recruitment campaigns can be done in far less time than when done manually, releasing hard working administrators to do more interesting work. The supporters of AI say that this can also remove unconscious bias in the recruitment process. However, we can also see that as AI learns from what the internet provides, so the potential for unconscious bias of its own to creep in is a little alarming.
Will this mean the loss of HR jobs? Possibly not, early indications are that whilst AI can be a fast and helpful tool, outputs can be rather generalised, sometimes misleading, and occasionally downright wrong. Well trained and knowledgeable staff will always be needed. Also, AI is not always infallible or even well behaved. For example, the AI Chatbot used by DPD that swore at customers and called the company ‘worst delivery service. (ITV News 2024)
AT NO 2 - Getting people back into the office
According to The Guardian, two thirds of CEOs think staff will return to the office full time within 3 years. Why is this? Well, there are many who believe that managing employee performance is easier and more effective in person. Effective communication and collaborations are easier to achieve when employees are in the same room together. As establishing and maintaining an authentic company culture is harder (if not impossible) when employees are never in the same physical space. Technology in terms of video calling etc has helped address all three concerns, but still there are some yawning gaps – not least for new, younger recruits.
So do employers opt for the carrot – rewarding employees with free lunches, financial rewards, and social events – or the stick, ordering employees to come into the office or face disciplinary measures/ loss of promotion opportunities etc. While some employers may take heart from the recent Employment Tribunal case, where a woman who launched a tribunal claim after her request to work from home full time was rejected has lost (Personnel Today 2024). A word of caution - some reports suggest that 12% of employees left their jobs during 2022/23 due to a lack of flexibility (The Guardian, 2023)
Perhaps it’s time to address the fact that the pandemic has changed employee expectations and that new generations want something different from work, and change the way we do things around here?
At NO 3 – Increased Pay Pressures
From the first of April 2024, the National Living Wage (often called Minimum Wage) – will increase. Anyone who is over the age of 23 will see an increase from £10.42 to £11.44 per hour. These increases are still below the Real living Wage (RLW), set every October, which currently stand at £12 per hour outside London, and £13.15 per hour in London.
Whilst these increases are vital to those struggling with the current cost of living, the impact on business of paying higher wages should not be overlooked. In fact, some high-profile employers such as Capita, Brew Dog and Wetherspoons are talking about withdrawing from the RLW, citing cost issues. Why? Because it doesn’t stop with the lower pay levels as staff further up the reward ladder may seek to maintain wage differentials based on their skills and experience. HR can expect more conversations on salary structures, job evaluations, and opportunities for advancement. HR departments might need to reassess their strategies for attracting and retaining talent in a potentially more expensive job market - perhaps focusing on the concepts of total reward and employee engagement.
FINALLY, AT NO 4 - ROWING BACK ON EDI
And finally, the last and rather alarming trend that I feel needs to be highlighted. Despite much press coverage and lots of well-crafted and meaningful corporate statements, the CIPD’s inclusion at work 2022 report shows that only 30% of UK employers say that their leaders are completely committed to having an inclusive and diverse workforce. It is really disheartening that following last year’s US Supreme Court ruling, that race-based affirmative college admission schemes are unlawful, there are indications that employers are becoming wary of potential legal challenges against EDI initiatives in the US. 2024 promises to be an exciting year and HR will play a pivotal role, supporting both employers and employees to find solutions to tricky problems.
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