The New Rules of HR: 10 Trends Shaping the Workforce in 2024
Visier's annual Workforce Trends Report is out now! Here’s a sneak peek at a few of the New Rules of HR. Download the full report to learn all 10 trends.
Visier's annual Workforce Trends Report is out now and ready to download! As we looked ahead to the HR trends of 2024 we envisioned a sort of second coming—a reemergence of a transformed function that doesn’t just measure impact behind the scenes, but creates impact right out loud through the power of people data insights. And the timing couldn’t be better for taking action.
Rewriting the rules starts with people analytics and insights
From the employees determining how to balance their passion with their purpose, to the line managers making small, everyday decisions about their people, to the executives shaping the future of the organization, it’s data-driven insights that will provide the buzzing undercurrent of power that not only keeps the lights on but ensures the brightest outcomes.
With data and analytics, CHROs can effectively lead a lasting HR transformation—but first they must fall in love with the business problems to solve and work their way back (Trend 1: The CHRO Leads From the Outside-In). Since people affect every business outcome, there has never been a better time for HR and the business to fully integrate, forming a mutually beneficial relationship that bolsters the success of both through the adoption and application of systemic analytics (Trend 5: HR and Business Become Symbiotic). And when people managers have direct access to data, they’re more effective managers (Trend 4: Discover Untapped Value via Manager Effectiveness) and are empowered to properly support their teams, which impacts business productivity and profitability. Data and analysis are crucial in addressing the misalignment of employer and employee expectations about new work norms (Trend 8: Establish New Work Norms To Reduce Chaos, Increase Certainty.
People analytics are guiding the path forward in leveraging generative AI at work (Trend 3: Take a People-First Approach to AI @ Work) and optimizing a skills-based approach to filling roles (Trend 6: New Tech Requires a Skills-Based Perspective), making DEIB efforts sticky and successful by tying them directly to the business (Trend 2: Anchor DEI to Business Outcomes for Maximum Success), and providing the detailed corporate reporting information increasingly demanded by investors and regulators of publicly traded corporations (Trend 10: Corporate Reporting Gets Hyper-Detailed).
New frontiers in analytics access are widening for smaller businesses (Trend 9: Small Business Is Primed for Big-Time Analytics) brought about in part by innovative AI-powered solutions like Visier’s Vee. And, a growing demand for more flexibility in building and scaling analytics means Platform-as-a-Service (PaaS) offerings that allow for customization by both HR technology vendors and enterprise users are trending (Trend 7: Customize Analytics to Specific Needs).
Here’s a sneak peek at a few of the top HR trends shaping the new workplace and the New Rules of HR in 2024—and beyond.
The HR trend: Take a people-first approach to AI at work
Artificial intelligence (AI) is creating a lot of hype and for good reason: Many consider generative AI to be ushering in the next work transformation akin to the steam engine or the Internet. Yet, fear persists that AI “will take human jobs” when, in fact, the reality is much more complex—and even promising—as long as employers keep a human-first perspective.
Many experts agree that AI will replace skills, and not jobs—in fact, people who are most likely to see their tasks altered by generative AI are also hopeful about using the technology. Many workers in highly affected roles are more likely to say that AI “will help more than hurt them personally.” Individuals who choose to ignore generative AI completely will lose their competitive edge—a real threat to employers, the job market, and the workforce.
The HR trend: The CHRO leads from the outside-in
HR has been in a state of transformation for decades. Why, then, does it seem like the function is as far away as ever from the business? It’s because many CHROs are still approaching problems to be solved from the inside-out rather than the outside-in, where CHROs fall in love with the business problem through deep data-backed inquiry into the key factors that drive positive change for the business through people.
For example, what are the key factors behind sales performance? Are there correlations with how and where we hire? The training we deliver? The specific managers leading the team? How individuals and teams work and how they work together? With the right data, these are answerable questions—and, once answered, HR can deliver actionable guidance to the business in ways that move the needle in big and bold ways.
“For me, [people analytics] is a connected ecosystem of technology that is purposefully architected to be able to deliver on insights of the workforce, intelligence for the business, and ultimately close that people impact gap so that we can ensure that what HR is delivering on is also showing the business the ROIs on the other side.”
-Lydia Wu, Panasonic Energy North America
The HR trend: Anchor DEI to business outcomes for max success
Diversity efforts are needed more than ever, but they are becoming endangered due to political division in the U.S., a surge in racist ideology permeating the culture, and financial concerns. For proof of an unraveling in diversity efforts look no further than the gender wage gap. After decreasing for five straight years, the male-to-female gender pay gap increased in 2022. And, for women of color, that chasm yawned wider.
When DEI is at the core of business practices and interwoven with how success gets measured, it’s more likely to be taken seriously across the organization. To truly prioritize DEI efforts organizations must tie them directly to business outcomes, making data the key for companies who wish to progress towards a truly diverse, equitable, and inclusive company. When organizations use fact-based insights to help organizational leaders and line managers understand how diversity and inclusion can drive strategic results, meaningful change happens.
Prepare for what’s next in 2024
There is no business as usual anymore. The global pandemic forced employees to work from home; now, organizations struggle to implement the right hybrid work and return-to-office policies as many try to bring employees back into the office. The Great Resignation forced HR leaders and managers to rethink employee retention tactics to curb voluntary turnover; now, in the face of tightening labor markets and a dynamic global economy, organizations must plan for how to avoid events like a reduction in force (RIF). In 2023, generative AI completely changed how work happens, rapidly driving the need for new skills and the importance of strong upskilling and reskilling programs.
It’s time to take all that we’ve learned through the challenges of the last four years and write the new rules. For a function that is forever evolving and transforming, HR now faces the biggest challenge—and opportunity—yet.
Download the full report to learn the 10 trends—or New Rules of HR—that will help people-centric leaders in 2024, a year that promises to be an exciting time for HR and for people analytics.
On the Outsmart blog, we write about workforce-related topics like what makes a good manager, how to reduce employee turnover, and reskilling employees. We also report on trending topics like artificial intelligence, using generative AI in HR, and how skills are rapidly evolving, and advise on HR best practices like how to create a strategic compensation strategy, how to manage HR data, and how to use reports vs. analytics. But if you really want to know the bread and butter of Visier, read our post about the benefits of people analytics.