Quick look: The human resources industry has changed substantially in the last several years—a pattern that will continue in 2024. Today’s business landscape is highly competitive, meaning organizations must brush up on and adapt to the latest HR trends. In the ExtensisHR 2024 Trends Report, review the top 10 latest industry developments and the steps your business can take to succeed, straight from our internal thought leaders. Here we recap the report, which can be downloaded in full using the form below.Get Full Report
Today’s workforce demands, technological advancements, and shifting demographics are causing the human resources (HR) industry to transform rapidly. The speed at which the business landscape is evolving means employers must quickly adapt to remain competitive; gone are the days of researching emerging trends and bookmarking them for later.
Designed to highlight critical industry developments, ExtensisHR’s 2024 Trends Report features insight from our professional employer organization (PEO) subject matter experts.
This overview summarizes the report’s 10 key points, from the need to focus on an increasingly diverse workforce to the growing role of artificial intelligence (AI) in HR. You may also download the complete report, which provides more in-depth information and actionable guidance.
Trend 1: Enhancing leadership effectiveness
According to Gallup, just 10% of the population are natural leaders, and 20% possess leadership traits and can become great leaders with proper guidance. Many seasoned leaders are retiring, and their successors may benefit from training to help them become even more impactful in their new roles.
This coaching can pay off—effective leadership can inspire teams, enrich organizational culture, and spark innovation.
Trend 2: Cultivating organizational culture
Ultimately, a business’s culture is what sets it apart from other comparable organizations. Employees today don’t want to simply collect a paycheck—they want to work somewhere they feel welcome and appreciated, and at a place they believe shares their values.
Developing a diverse workplace also boosts an organization’s social responsibility and can improve its decision-making by unifying diverse experiences, skills, and ideas. For these reasons, diversity, equity, and inclusion (DEI) remains one of the largest corporate priorities for the upcoming year.
Trend 3: Advancing HR technology integration
AI isn’t just in movie plots anymore—it’s here, and it’s here to stay. AI-powered HR tools can help organizations make decisions and manage their workforces more effectively. These technologies can also help HR functions become more efficient, equitable, and data-driven.
Take, for instance, the role AI plays in recruiting. By analyzing vast amounts of data, these tools (in tandem with human professionals) can identify top job candidates and reduce hiring bias. AI-powered programs can also find skill gaps and patterns of bias in promotion and compensation, helping to create a fair and diverse culture.
Trend 4: Managing organizational change
The only constant is change, and to succeed in 2024, businesses must be equipped to navigate the complexities of change management to ensure seamless transitions in business processes, workforce composition, and organizational structure.
Change comes in many shapes, whether it’s restructured leadership roles, mergers or acquisitions, new technology rollouts, updated business models, or refreshed service offerings. To prosper through it all, organizations must be prepared.
Trend 5: Promoting career mobility
Supporting workers as they learn new skills will be critical to business success in 2024. According to the American Staffing Association, 80% of U.S. employees consider a potential employer’s professional development and training offerings important when accepting a new job. Further, skillsets for jobs have changed by around 25% since 2015, a figure that’s expected to double by 2027. Prioritizing continuous learning and upskilling helps organizations pivot and adapt to the ever-changing business landscape and hire and retain top talent.
Understanding the latest HR trends is just half the battle—to succeed, your organization must tweak its operations to meet the workforce’s transforming needs. Download the full 2024 HR Trends Report now to access helpful tips for your small business.
Trend 6: Utilizing skills for development
Coming out on top of rapidly changing business circumstances will depend on your workforce having up-to-date skills. In fact, the World Economic Forum reports that in the next five years, 44% of workers’ skills will be disrupted.
Ideally, corporate cultures should value upskilling and reskilling, and strive to unlock employee potential, improve job satisfaction, and drive engagement to encourage increased productivity and retention.
Trend 7: Adapting to workforce demographics
The labor force is increasingly diverse, and in 2024, it will continue to be critical for organizations to adjust operations to accommodate this.
On one hand, Millennials and Generation Z comprise the majority of the workforce. On the other hand, many employees are choosing to work past the traditional retirement age or return to work after retiring. This makes it key for businesses to understand and cater to each generation’s priorities. Additionally, organizations should strive to achieve gender and ethnic diversity for ethical reasons and to inspire innovation.
Trend 8: Reevaluating compensation models
Being transparent about how your staff’s pay is determined, communicated, and benchmarked against industry standards is crucial, especially considering the modern multistate workforce and gig economy.
Business leaders should also focus on overall compensation and consider providing mental health support, enhanced parental leave, learning stipends, flexible work arrangements, and more.
Trend 9: Strengthening employer branding
A strong employer brand will be necessary to hire and keep top talent in 2024. In fact, it can significantly improve recruiting efforts, reduce hiring costs, and decrease turnover thanks to its ability to ensure the company’s ethos and job candidates’ values align. However, a strong brand must be a thoughtful, ongoing process with constant evaluation and adaptation.
Trend 10: Hybrid and flexible work models evolve
Many employees work hybrid or exclusively remote, and these accommodations will remain relevant in 2024. Organizations should offer these work arrangements to appeal to potential employees and retain current ones, if possible.
Just as important is focusing on creating and maintaining a healthy company culture, no matter where staff members work, so every employee feels engaged and connected.
Don’t just stay afloat—charge forward—with a PEO
With limited staff and a long list of business-imperative priorities, it can be challenging for small- and medium-sized businesses to flourish in a continuously changing business climate. Your organization may not have extra time to devote to the intricacies of HR trends and employer compliance concerns, but a PEO does.
A PEO like ExtensisHR helps businesses like yours navigate these changes by providing industry-leading HR expertise, resources, and support. A compliant workplace full of diverse, engaged employees, abundant institutional knowledge, and an attractive compensation model can be achieved by leveraging ExtensisHR’s services, including:
- Personalized employee benefits at competitive large-group rates, as well as benefits planning and administration services.
- A dedicated HR Manager to help you craft policies to meet the workforce’s evolving expectations.
- Risk and compliance expertise to keep your business compliant during legislation changes and the growth of a multistate or global workforce.
- An intuitive DEI Dashboard that provides valuable, real-time DEI data on pay equity, salary trends across both gender and race demographics, employee turnover, promotions, and more.
- Access to 15Five, a top employee engagement and performance management platform.
- And more
You’re not alone, as the expectations for employers and their HR staff fluctuate. The right PEO partner can help you remain aware of and adapt to the latest HR trends and not just survive but thrive in the future of work.
Are you prepared for what’s to come (and what’s already here)? Download the 2024 HR Trends Report for a deep dive into the industry’s major developments, or contact the experts at ExtensisHR to schedule a free PEO consultation.
Download your copy of the 2024 HR Trends Report
Get the full breakdown of key industry developments impacting today’s workforce to help guide your HR strategy in 2024 and beyond.