These are the HR trends to expect in 2024

As we are at the start of the year, everyone is wondering which HR trends to expect, since these affect a company's strategy and influence its performance. It is no coincidence, then, that our gaze is also fixed on the trends shaping the future. Below, 5 trends are presented that also affect companies employing mostly blue-collar workers, not only those employing knowledge workers.

1. Generative AI will be one of your best colleagues

Over the past 12 months, generative AI has become part of the everyday work of numerous organisations. 55% of respondents to a survey conducted by McKinsey stated that the company they work for used artificial intelligence in 2023. In addition, according to a Gartner survey, 76% of HR leaders believe that their company, compared with those that already use AI, will fall behind if it does not introduce AI solutions in the next 12-24 months. This is also in line with the results of the McKinsey survey. According to it, more than two thirds of respondents expect companies' AI investment to grow over the next three years. This is also supported by the 2023 report produced by the World Economic Forum, according to which 75% of companies will introduce AI solutions to handle their everyday affairs within the next 5 years.

But what does this mean from an HR perspective?

According to Jared Cameron, head of the Digital HR and Technology consulting team at Mercer New Zealand, there are some very clear use cases for using AI in HR. 

"As we increase the complexity of the functions available through AI, we can see the potential of chatbots and virtual assistants in answering common questions, or in guiding personalised learning and career development."

It is no coincidence that CHEQ's solutions also include a chatbot-like feature for answering common questions. This way, HR staff only have to deal with the more complex questions. What is more, the tool also provides space for creating a company knowledge base, thereby supporting the development of employees' knowledge. 

"AI can help with analysing data, understanding the employee experience, the reasons for leaving a job, or the state of the leadership pipeline. These are all areas where AI is capable of adding significant value."

Jared Cameron

Our CHEQ users already know all this from experience, but since the avalanche set off by ChatGPT, more and more people are realising what an enormous business and competitive advantage using an AI-supported tool that fits the corporate strategy can provide. It is therefore not at all surprising that this is also part of the 2024 HR trends.

2. Managerial challenges in the world of AI

We can safely say that one of the fastest-spreading technologies is generative AI. According to Forbes, it has close to 200 million users. Almost everyone has already tried a tool with artificial intelligence behind it (e.g. ChatGPT, Invideo AI, etc.). However, depending on the purpose for which we use it - curiosity, self-entertainment, or precisely to boost work performance - leaders can play a serious role in acquiring this technological knowledge.

Although AI solutions are becoming ever better known, and are being introduced at more and more companies and in more and more areas, there is still huge resistance among employees. Many people fear for their jobs, perhaps not without reason. According to the World Economic Forum forecast, also reported by CNN, an estimated 83 million jobs will disappear by 2027 and 69 million new jobs will be created. That is, approximately 14 million jobs will be lost. This sounds frightening. However, one has to be aware that it will not be AI that takes away our job opportunities, but the people who know how to use AI effectively to achieve their goals.

Just think about it! With the appearance of cars, the work opportunities of blacksmiths (farriers), carriage-and-coach makers and drivers also decreased significantly. However, those who were open to progress retrained themselves and found new roles in handling the "iron horses": car mechanics, parts manufacturers, drivers, and so on. We can expect something similar to this industrial and technological revolution now too. And the sooner a person opens up to the new technology in order to master it, the greater their chance of finding work opportunities in the changing world as well.

What does this HR trend mean from the leaders' point of view?

Leaders have to work out how they can get their colleagues to use AI tools, and how they can train them in this area so that they use them effectively and in a way that complies with cybersecurity. With AI, certain work activities can be sped up and automated. This makes it possible, on the one hand, to increase performance and, on the other, to carry out more creative tasks.

According to Morgan Stanley's estimate, generative AI technologies probably affect a quarter of all jobs existing today, and this proportion may rise to as much as 44% over the next three years. This is quite an enormous problem, which can fill employees with anxiety, and this can have a negative impact on performance. In order to manage the problem, companies and leaders have to provide training for employees so that they can master the use of the AI tools affecting their work.

Leaders therefore have to provide support regarding the training of their colleagues, and even stand by them as a source of emotional support. That is, they have to be able to reassure their employees and assure them that, as a result of technological progress, no one who is open to further training or retraining will lose their job.

3. Career development and mobility are also among the HR trends

I have already mentioned above that many employees worry that they will lose their jobs because of artificial intelligence, or at least that their role will become obsolete. We can also quantify this thanks to a recent EY survey. According to it, 75% of employees are worried that AI could make certain roles obsolete, and 65% of them think that AI could replace their work. 

This fear prompts employees to further train or retrain themselves in order to acquire new skills. Employers who provide support in this can gain a competitive advantage. On the one hand, they can have employees working for them with up-to-date knowledge who can make the company profitable; on the other, they become an attractive employer in the eyes of more talented, more creative workers.

PwC, for example, announced that it is investing 1 billion dollars in training employees with AI, on topics such as AI ethics, the responsible use of AI, and the effective use of AI. Their goal is to involve the 75,000 PwC employees working in the United States in these courses, in order to expand their knowledge and offset the concerns caused by AI.

You, however, do not have to spend 1 billion dollars on this purpose!

CHEQ offers a far more cost-effective solution for training your employees, whether through micro-learning, more complex training courses, or precisely the company knowledge base.

4. The four-day working week is desired by blue-collar and white-collar workers alike

Although the concept of the 4-day working week has been with us for a few years now, it is nonetheless worth mentioning among the 2024 HR trends. At present, only close to 21 countries are experimenting with the 4-day working week, or have at least started thinking about it at government level. Among them is Germany, for example, where the mandatory working time is only 34 hours a week to begin with. Of course, there are also countries, e.g. Belgium, where the 4 working days a week mostly mean 4x10 working hours. These two extremes also show that this is still global-level experimentation. Which country, and which company, approaches the question and how, still varies enormously. One thing, however, is certain: employees' needs have changed.

Every employee, whether a frontline or a knowledge worker, needs flexibility. They want to decide for themselves when and how much they work, or even from where.

Based on what was reported in Forbes, it can be said that, according to a study conducted among a group of 1,301 employees, 41% of both frontline and knowledge workers would like their working hours to be more flexible. Digging deeper into the topic, it also emerged that 56% of frontline workers, and 69% of knowledge workers, would like there to be no reduction in their pay alongside the four-day working week.

Why is this worth it for companies?

According to another Forbes article, 61 companies in the United Kingdom subjected themselves to a trial of the four-day working week.  During the experiment they found that commitment to the four-day working week was 56%, the advantage of which was increased productivity and reduced employee attrition. 

• 49% of the companies taking part in the programme reported an increase in performance
• 71% of employees experienced a decrease in the feeling of burnout, but 22% experienced an increase
• at 57% of companies, attrition decreased compared with the previous year
• 15% of employees stated that there is no amount of money for which they would switch to a workplace where they have to work 5 days a week

These British companies applied the 80-100-100 model during the trial of the four-day working week. This means that they reduced working hours to 80% while giving employees full pay and preserving 100% of their productivity.

Experiments in the field of the shortened working week are also underway in the United States. For example, the Florida Chick-Fil-A store gives frontline workers the opportunity to work 13-14 hour shifts for three consecutive days on full pay.  On the remaining days of the week they can freely dispose of their time. Of course, anyone who does not want to take up the opportunity can work the week in the usual way. The results so far have been positive. Employee retention has increased, and customer service also operates efficiently.

It does not mean an extra burden for HR

Of course, you may now be thinking that such unconventional working hours will mean an extra burden for HR. This is not the case. If you use AI-supported corporate and HR tools, such as CHEQ, then you can automate tasks. Employees can, for example, request an employer's certificate at any time, even when the HR person responsible for issuing certificates is not working. But they can also update their own data themselves, without having to coordinate their working hours with HR because of it. They can also complete the training courses, as well as fill in the related tests, through CHEQ whenever they have time for it. This does not affect any employee's preferred working hours either.

5. Retraining for retention

I have touched on retraining several times already, but because of its importance it has to be mentioned separately among the HR trends.

Upskilling should be thought of as one of the pillars of employee retention. It refers to the process in which the business provides employees with new skills and knowledge. Through this they can take on new roles, or prepare for future changes affecting them, or possibly for opportunities within the organisation. By offering upskilling programmes, companies can demonstrate their commitment to developing employees. This can increase employee loyalty and reduce turnover. What is more, training opportunities offered within or by the company also positively support employer branding.

Companies that pay attention to upskilling can create a skilled and adaptable team. They can have employees who are able to respond quickly to changing business needs. In addition, they strengthen a culture of continuous learning and development, which is one of the best ways to increase employee engagement. Upskilling can also improve productivity and innovation, as employees acquire new skills and perspectives.

By investing in employee development and providing growth opportunities, companies can create a situation in which employees feel valued and motivated, while the organisation enjoys the benefits of a skilled and loyal workforce. And with the use of CHEQ, you do not have to spend billions on this. Find out more about this business and HR tool, and request our FREE demo.