What challenges and opportunities will HR leaders will face in 2024? Based on data gathered from over 500 HR leaders in 40 countries, Gartner’s report clearly shows a gap between awareness and the ability to act when it comes to employee wellbeing, engagement and retention.
The factors at play should give us cause for concern and they are:
- Unsettled employee-employer relationship – nearly 50% of employees stated they can’t continue working like this so it’s not surprising that roughly the same number don’t trust their organisation. They’re being asked to do too much – no amount of reward is worth it. Meanwhile, only 26% of organisations say their employees are on-site when they want them to be. The fracture between employees and those in charge is hurting business.
- Persistent skills shortage – the days of the great resignation are far behind us, but just over a quarter of CEOs believe talent shortage harms their business outlook.
- Rising impact of AI on organisation and workforce – the belief in AI is there with 68% of executives thinking that the benefits outweigh the risks. This is great news until you realise that only 22% of HR leaders are ‘highly engaged in enterprisewide discussions on GenAI’. Intention without action will lead to a lack of joined-up thinking.
- Pressure for operational efficiency – in times of economic uncertainty, it’s natural to keep the numbers in mind but at what cost?
Where we think the winners will be putting their energy this year:
Combining experience from our work on the front line and Gartner’s overview, these are our predictions.
1. Leader and manager development & evolutionThe problem – roughly three-quarters of HR leaders say that their managers are overwhelmed by and underprepared for change. Managers are breaking under the weight and the kind of training they’re being offered doesn’t help.
The answer – evolve the role itself.
2. Organisational culture in hybrid times
The problem – employees’ connection to the culture of an organisation is being disrupted by hybrid work according to 41% of HR leaders and yet nearly half of HR leaders don’t know how to put this right. Physical remoteness can lead to a cultural disconnect.
The answer – see alignment and connectedness as a right-brain/left-brain balance. Knowledge, belief and action marry up with identity, caring and belonging. It takes intention. ‘Culture connectedness is in crisis and must be accounted for in the hybrid workplace.’ Facilitate the solution, don’t ignore the problem.
3. Yoking HR technology with human intention
The problem – just over half of HR leaders do not think that their HR strategy and solutions meet their business needs now and in the future. 60% are unsure about the impact GenAI is going to have on HR and talent. 76% fear their organisation will lag as a result.
The answer – ensure there’s a strong human element in AI and data-led strategy. This involves intentionally questioning issues to do with risks, ethics, vendors, ownership and workforce readiness. Be informed and responsible. This is not the time to go with the flow.
4. Evolving change management
The problem – unsurprisingly, 77% of HR leaders say that their employees are worn out but 82% don’t feel like they’re equipped to lead change. It’s not that employers aren’t trying but change fatigue leads to lower retention, less discretionary effort and lower performance.
The answer – that change fatigue management becomes the secret ingredient in transitory times. This involves the prioritisation of ownership, psychological safety and proactive rest alongside more traditional elements like communication and training.
5.Career management and internal mobility
The problem – a staggering 9 out of 10 HR leaders believe there’s a lack of career path clarity for the employees in their organisation. What’s more, 66% think these paths aren’t even compelling. The truth is that traditional career maps to a defined destination are failing.
The answer – dynamic career mapping that moves in tighter cycles offering greater opportunities for reflection and redirection. From a perspective of HR delivery, it becomes more about experience rather than just providing information. It’s about building confidence, acknowledging individuality and expanding the scope of what we know as career support.
Have a great day!