HR in 2024: 6 Trends and Challenges
To understand what the big topics of 2024 will be, there’s no better place to look than a recap of 2023. Decide for yourself if any or all trends will persist into your 2024 strategy and beyond
1. The Rise of AI in HR: Transforming Practices
In 2023, AI brought a major change to HR practices, highlighted by platforms like ChatGPT. The AI revolution in HR is set to continue, impacting core functions like recruitment and performance management. The changing role of HR in this AI driven environment presents a significant challenge in the years ahead.
2. Skills Development: Adapting to a Rapidly Changing Work Environment
The fast pace of technology and changing job roles emphasised the need for ongoing skills development in 2023. Priorities included identifying skill gaps, implementing training and providing continuous learning opportunities for employees. With increased integration of automation and AI in business, the necessity for upskilling and reskilling initiatives is clear. Companies must foster a culture of learning, ensuring employees have the skills to thrive in an ever changing work environment.
3. Cost Savings: Adapting to Economic Realities
Amid rising interest rates and living costs, many businesses in 2023 focused on cutting HR related costs. Strategies included freezing new hires and exploring ways to reduce headcount or control payroll expenses. Streamlining through new software adoption and outsourcing gained traction. The next year is expected to see more businesses scrutinise HR operations, identify strengths and outsource remaining tasks.
4. Employee Wellbeing and Mental Health: A Priority in HR
In 2023's dynamic workplace, employee wellbeing and mental health had a heightened focus. The return to the office, amidst ongoing uncertainties, posed new challenges for employees. There is a need for resources and initiatives to support mental health in the work environment and this emphasis on wellbeing is anticipated to persist as a key concern in 2024.
5. Legislative Reforms: Strengthening Employee Protections
The Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022, effective from December 2022 to December 2023, introduced significant changes, including provisions against pay secrecy, domestic violence leave, sexual harassment prevention and strengthened discrimination measures. These changes demonstrate a commitment to bolstering employee protections within the legal framework.
In 2023, the Fair Work Legislation Amendment (Closing Loopholes) Bill took the spotlight, aiming to address federal law technicalities that might undermine pay and working conditions. Though not yet passed, the proposed changes could reshape contractor/employee relationships and impact laws concerning casual employees.
6. Organisational Culture: Your culture impacts everything
In the midst of a transformative HR landscape of 2023, it's clear that culture is the most important factor for organisational success. Culture serves as the foundation upon which teams thrive. As businesses continue to evolve, a strong and positive culture is not just a nice to have, it’s a driving factor behind attracting top talent, employee engagement and retention. In 2024 HR professionals have a pivotal role in aligning culture with the organisation's purpose and strengthening constructive workplace behaviours.
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