12 Opportunities for HR in 2024: From Support Function to Strategic Partner
This decade has been uniquely challenging to business with economic uncertainty, geopolitical tension, and the aftermath of the largest global pandemic for a century. But in the coming years, disruptions are likely to increase in frequency and severity (1). The business environment is increasingly volatile, uncertain, complex, and often ambiguous (2). Coupled with rapid advances in technology, organisations are transforming at an unprecedented pace and frequency – from ‘episodic transformation’ toward ‘continuous transformation’ (3).
At the same time, companies are confronted with a series of organisational shifts that have significant implications for structures, processes, and people. These include complex questions around finding the optimal balance between in-person and remote work, building new organisational capabilities in the face of challenging workforce demographics and talent gaps, and focusing on developing a healthy, inclusive, and thriving company culture (4).
HR is the CEO's right-hand in enlightened organisations.
(Barbara Lavernos , Deputy CEO at L'Oreal (5)
HR’s journey from support function to strategic partner has accelerated in recent years. During the pandemic, the CHRO and the HR function became as important to the company as the CFO and the finance function were in the global financial crisis (6). The importance of the CHRO and the function they lead will likely continue as many of the most significant challenges facing organisations (see FIG 1) essentially have people elements at their core. The ability of CHROs to assume new responsibilities, drive transformation for the enterprise, and reinvent and upskill the HR function, and therefore meet these higher expectations, will be critical to organisational success (7, 8).
CHROs have the ability to drive a company’s growth and business outcomes by effectively using people strategy, data insights, and technology to the company’s advantage.
Chuck Robbins, Chair and CEO at Cisco (9)
FIG 1:
For over a decade, I’ve published an annual set of predictions or trends that will shape work and HR for the upcoming year. For 2024, I want to frame these instead as ‘opportunities’ rather than ‘predictions’ – mainly because they will likely take more than a single year to play out. They are informed by the research and work we do at Insight222, interviews with guests on the Digital HR Leaders podcast, conversations with senior HR leaders, thinkers, and industry analysts, and market analysis. References are numbered throughout, and a comprehensive list is included at the end of the article.
Get involved – what should opportunities #11 and #12 be?
Readers may note that the title and accompanying image indicate 12 opportunities, whereas only ten are outlined. That is because – as was the case in the previous three years - I’m keen to crowdsource the final two opportunities from readers. What other opportunities should be included? Please let me know in the comments section below, and I’ll add my favourite two to an updated version in the New Year.
THE 2024 OPPORTUNITIES FOR HR
The first ten opportunities for HR to accelerate its journey from support function to strategic partner are set out below:
1. Prove the value of a fairer, healthier, and more humane organisation
One of HR’s key responsibilities as the steward of people and culture in the organisation (10) is to advocate for a ‘people, first’ approach. With record levels of burnout (11, 12, 13), deepening skills shortages (14), and raised employee expectations about work (15), HR has a pivotal role to play not only in hiring, developing, and retaining great talent, but fashioning the culture and environment to enable talent to perform and thrive. Putting wellbeing at the centre, developing an inclusive and equitable culture, personalising the employee experience, and listening and acting on the employee voice, are just four ways to deliver on this opportunity. Collectively, these initiatives are designed to reinforce the ‘H’ in HR and demonstrate that building a fairer, healthier, and more humane organisation isn’t just the ‘right thing’ to do for the workforce, but that it drives business success too (16). Indeed, research by firms including McKinsey, BCG and PwC (see FIG 2) finds that companies that provide a clear people advantage, who consistently invest in building and developing their human capital and imbue a compelling employee value proposition and experience are more resilient and enjoy better financial performance than their peers (17, 18, 19).
FIG 2:
2. Prepare the organisation and HR for the age of AI
While the hyperbole about generative AI has deepened HR’s engagement with AI (20, 21), research from Gartner finds that only 22% of HR leaders are highly engaged in enterprise-wide discussions on the topic (22). HR should seek to play a leading role as early studies find that AI doesn’t just boost operational performance and productivity (23) but can be used to build better organisations too (24). Four areas where HR should lobby to get involved – all while reinforcing the ‘H’ in HR - are (i) Aligning the workforce transformation that will be required due to AI in line with company strategy and vision (25). (ii) Leading on the development of responsible AI policies and enablement programs (26). (iii) Prioritising high-impact use cases for deploying AI across HR programs and the employee lifecycle (27, 28, 29, 30, FIG 3). (iv) Reimagining the work of key HR roles including the automation of repetitive tasks and increasing the focus on high-value strategic work (31, 32) (v) Building upskilling programs for leaders, managers, employees, and HR professionals. Research finds that if companies can activate the growth combination of data, technology, and people, they stand to gain a premium of up to 11% on top-line productivity. (33).
AI is the defining technology of our time, creating a massive paradigm that will transform the way we work with even greater impact than the introduction of the PC
Kathleen Hogan , Chief People Officer at Microsoft (34)
FIG 3
3. Redesign workplaces and work for the hybrid era
Since the pandemic, 90 percent of companies have embraced a range of hybrid work models (35) with most employees now working remotely over 25% of the time (36, FIG 4). Moreover, eight out of ten CHROs say they have no plans to decrease the amount of remote work in the next 12 months (37). Indeed, Nick Bloom predicts here that in the coming years remote work will experience a ‘swoosh effect’ due to the impact of technology as well as new firms and managers being more open to remote. (38, 39). The debate shouldn’t just be fixated on where people work, it should also provide an opportunity to test traditional assumptions about how work is done and whatwork even is (40). It’s likely that this transition will play out over many years (41), and will require experimentation, data collection and analysis, and iterative learning. This provides the opportunity for chief people officers – and their people analytics teams - to play a leading role in the redesign of work and workplaces for the hybrid era. Research is already being published on topics such as when in-person matters most (42, 43), how teams that are intentional about collaboration are more productive (44), and how to drive innovation through adaptive teaming (45). Hybrid is here to stay, so let’s make hybrid work!
FIG 4
4. Shift people analytics from insight to impact
As Isabel Naidoo, chief people officer at Wise, articulated at the Insight222 Global Executive Retreat in Colorado in September, 2023: “People Analytics is the fastest route to credibility for the chief people officer.” (46). Certainly, for HR to be a truly strategic business partner, it has to have an impactful people analytics function. Insight222's fourth annual People Analytics Trends study, (47) finds that the discipline continues to grow in importance and influence with 22% of people analytics leaders now reporting to the CHRO (compared to 13% in 2020). The challenge for many companies is to move people analytics from insight to impact (48, 49). Our research identified eight distinct characteristics (see FIG 5) that set Leading Companies apart from their peers and enable them to deliver value on a consistent basis. Chief people officers wanting to shift their people analytics team to an ‘A Team’ (see FIG 6) should focus on understanding their organisation’s most pressing business priorities and then align and prioritise people analytics activities that will support them. A capable and flourishing people analytics team eases the path towards a quantified organisation (50) and an evidence-based HR function (51) Certainly, people analytics is a foundational capability to helping HR progress and realise the opportunities outlined in this article.
People Analytics is the fastest route to credibility for the chief people officer
Isabel Naidoo, Chief People Officer at Wise (46)
FIG 5
FIG 6
5. Partner more effectively with Finance
Deploying financial capital and human capital together is the secret to the success of a talent-driven organisation (52). If HR seeks to become a truly strategic partner to the business, then it needs to have an effective partnership with finance not least because of increasing regulation about the disclosure of human capital information (53, 54). Research by Insight222 (55) finds that when it comes to delivering value with people analytics, a strong relationship with finance can make the difference. Of the 65 (out of 271 companies) surveyed who confirmed that they had built a partnership with finance, 99% reported that the people analytics team had delivered measurable outcomes over the last 12 months. In HR, we need to be better at building business cases for investment, and in quantifying the commercial value of what we do – just like other business functions. Building a strong and mutually beneficial partnership with finance – like Alan Susi at S&P Global (56) and Laura Wright Shubert at MetLife (57) have achieved – is a good place to start.
6. Build the skills-based organisation
Talent gaps and shortages represent the most pressing challenge that companies face (58), with three-quarters of CEOs being concerned about how the availability of key skills will impact on their growth strategies (59). These talent scarcity challenges will only be exacerbated by shrinking working populations – especially in the G7 economies (60) and rapid advances in technology meaning that 44% of workers’ skills will be disrupted by 2028 (61). This is leading to a shift from the traditional focus on jobs to one on skills (62) and the continued rollout of internal talent marketplaces (63, 64) with one study finding that 90% of companies are moving towards a skills-based approach (65). The effort to do so should not be underestimated with the same study finding that less than 20% are currently adopting skills-based approaches to a significant extent. While it is still early days, benefits cited by companies that have made this shift include (i) Standard Chartered unlocking productivity of $2.1m from a talent marketplace pilot in India (66, 67), (ii) IBM improving diversity through skills-based hiring (68), (iii) Unilever increasing productivity by 40% and significantly reducing attrition through its internal talent marketplace (69), and (iv) J&J democratising career development and mobility for its employees (70). The undoubted potential of skills-based approaches for hiring, learning, internal mobility, compensation, and workforce planning is tantalising, but it also makes it difficult for organisations to know where to start. HR can help by identifying a challenge in a specific business function and/or location, partnering with a senior business stakeholder and piloting a skills-based approach, starting to build a skills taxonomy, and then learning and iterating as you go.
As companies jostle to build a complete picture of what they need (for the future of work) and how to get there, we’re fast learning that the real currency is skills
Placid Jover, Chief Talent Officer at Unilever (71)
FIG 7
7. Make workforce planning strategic
The shift to skills, the pace and frequency of transformation, and rapid technological advances have all increased the urgency for organisations to become proficient in strategic workforce planning. It is now a top three challenge for people leaders (see FIG 8, 72). The availability of data-driven insights is altering the landscape with responsibility for SWP increasingly coming under the auspices of the people analytics team – this is the case in 50% of companies, based on 2023 research by Insight222 (73). This is driving the expansion from a pure focus on cost and operational based workforce planning to strategic and skills-based workforce planning (74, 75), which enables organisations to get a clearer view on future talent needs and how to close any gaps (76, 77). Steps for HR leaders to do this well include (i) Linking SWP to the business strategy (78). (ii) Joint ownership of SWP with the business and close collaboration with finance. (iii) Prioritising the most critical workforce segments. (iv) Focusing on skills as well as cost. (v) Combining HR, business, and external data to get a full picture (79). (vi) Measuring the impact of workforce planning activities and linking these to business outcomes. (80, 81)
FIG 8
8. Advance diversity, equity, inclusion and belonging
The business case for diversity, equity, inclusion and belonging (DEIB) continues to grow stronger. In a recent McKinsey study, leadership diversity is convincingly associated with company performance, societal impact, and employee experience (82, FIG 9). Moreover, research by Insight222 found that in 2023 – for the third successive year - DEIB is the area where people analytics is adding the most business value (83). These timely reminders of the value of DEIB are important in a year where the US Supreme Court ruling on affirmative action led to some companies rolling back on their DEIB initiatives (84, 85). As such, HR leaders have a critical role to play in advancing the DEIB agenda in their organisations, demonstrating that it isn’t just the right thing to do, but that is demanded by employees and leads to better business outcomes. People analytics can help in terms of enabling the organisation to measure outcomes and drive action (86), using advanced analytics to get deeper insights on belonging and inclusion, and supporting organisational moves to be more transparent – including providing data that forms the basis of annual DEIB reports e.g. Microsoft (87). Also, with demographics meaning that 150 million jobs will shift to older workers by the end of the decade (88), HR has an opportunity to ensure that their organisation is able to attract, develop and retain older workers, and enable them to thrive.
FIG 9
9. Empower and invest in people managers
75% of HR Leaders say that their managers are overwhelmed by the growth of their job responsibilities (89) while more than 50% of managers report feeling burned out (90). These concerning statistics are not surprising given that the role of the manager is being changed beyond recognition due to digitalisation, hybrid work and agile initiatives (91, 92). The pressure is exacerbated by companies cutting middle management roles in the current macroeconomic climate. Given that studies find that investing in people managers leads to better firm financial performance (93) and is key to realising the opportunities from AI (94), it’s time to better support and empower people managers. One way HR can do this is through democratising people data to help managers to be more productive, support decisions on hiring, promotion and pay, and equip them with insights to be more effective and human leaders. The benefit of successfully democratising people data to managers are vast, with one 2023 study calculating that in a 10,000 person organisation, this could amount to $400 million in cost savings, and almost $200 million in revenue expansion (95, 96). HR leaders can also support people managers through being more thoughtful about spans and layers, reimagining the role of the manager, implementing capability building programs, and prioritising manager experience and wellbeing (97).
10. Prioritise HR upskilling
If HR is to become a true strategic partner to the business and realise the opportunities from new operating models (98) then chief people officers need to prioritise efforts to upskill their HR professionals – particularly on topics such as business acumen, technology, and analytics (99). At Insight222, our HR in the Digital Age study identified nine skills for the future HR professional to be more data driven, experience led, and business focused (100, 101). Additionally, our 2023 study, Upskilling the HR Professional: Building Data Literacy as Scale, highlighted the critical role of the chief people officer and their direct reports in role-modelling the use of people data and analytics (102). With another study by Mercer finding that 41% of chief people officers wish they had had greater depth in people analytics prior to assuming their roles, there is clearly significant room for improvement (103). On a more positive note, 55% of companies now say they have a data driven culture in HR, which is up from 42% in 2021. 2024 is the year to improve this further, and from a data literacy perspective, Insight222 research highlights five skills (see FIG 10) that HR professionals need to develop (104). Moreover, the study also highlights that the investment required is between $600-$800 per person for an upskilling program (see example in FIG 11). Now is the time to invest in upskilling HR professionals.
FIG 10
FIG 11
References
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(103) Gordin et al (see reference 7)
(104) Verghese and Ferrar (see reference 99)
A selection of other 2024 HR predictions and trends
There are a plethora of other resources documenting predictions and trends for HR and the future of work in 2024 including:
Gartner - Top 5 HR Trends and Priorities for 2024
Visier Inc. - 10 Workforce trends for 2024: The New Rules of HR
Mercer – 2024 Global Talent Trends
McKinsey - What matters most? Eight CEO priorities for 2024
Ken Oehler – RADICL People Predictions for 2024
Damon Klotz and Didier Elzinga - 7 trends that will define HR in 2024
Dr. Solange Charas and Stela Lupushor - HR and Workforce Trends Predictions for 2024
Dan Schawbel - 10 Predictions for 2024 from a World-of-Work Expert
Joelle Emerson - New Data: 2023 DEI Trends & 2024 Opportunities
Francesca Di Meglio - 8 HR Trends for 2024
LinkedIn News - 34 Big Ideas that will change our world in 2024
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ABOUT THE AUTHOR
David Green ?? is a globally respected author, speaker, conference chair, and executive consultant on people analytics, data-driven HR and the future of work. As Managing Partner and Executive Director at Insight222, he has overall responsibility for the delivery of the Insight222 People Analytics Program, which supports the advancement of people analytics in over 90 global organisations. Prior to co-founding Insight222, David accumulated over 20 years experience in the human resources and people analytics fields, including as Global Director of People Analytics Solutions at IBM. As such, David has extensive experience in helping organisations increase value, impact and focus from the wise and ethical use of people analytics. David also hosts the Digital HR Leaders Podcast and is an instructor for Insight222's myHRfuture Academy. His book, co-authored with Jonathan Ferrar, Excellence in People Analytics: How to use Workforce Data to Create Business Value was published in the summer of 2021.
2024 HR trends
2023年12月14日
2024 HR trends
Anita Lettink Challenges HR Norms: Adapting to the Unpredictable Work Landscape of 2024ANITA LETTINK:Why I'm not writing 2024 HR trends
Anita Lettink, in her newsletter, discusses why she is not writing the 2024 HR trends. She emphasizes the importance of a dynamic, continuous strategy over annual predictions in HR. The article reflects on the evolving nature of work and the need for a fluid, adaptable approach. Lettink argues that understanding and navigating HR challenges require responsiveness to rapid changes in technology, economics, and workforce dynamics. She introduces the 2024 HR challenge, encouraging HR professionals to maximize the use of their HR solutions and focus on making incremental changes to better support their workforce.
推荐给大家;
Hey future of work friends,
I probably find you during budgeting and planning time. For me, it’s the end of conference season. I did my final keynote on the New Employee Experience at Indeed FutureWorks last week. And now I am back home, and will use December to read everything I bookmarked to surprise you with new keynotes and articles next year. I’ll also write my annual HR Tech Startup report.
And if you’d like an in-company webinar on what to expect from AI in HR or how to prepare for Equal Pay please reach out - I’ve got you covered!
Thinking about the Future of Work is important. And yes, you’d already assumed I would say that. I've spent years analyzing trends at the intersection of economics, business, technology, and human resources. Each year, I've distilled these insights into trend articles, aiming to forecast the year ahead. However, I've realized that our rapidly evolving world demands a different approach. In this newsletter, I'll share why I've moved away from annual trend predictions and why we need a more dynamic, continuous strategy in understanding and navigating HR challenges. I'll explore how embracing a fluid, responsive stance can better equip us to handle HR (tech) developments.
Why I am not writing 2024 HR trends
I've always been deeply invested in keeping a finger on the pulse of our industry. For years, it was a tradition of mine to sit down at the end of each year and write an article on emerging trends in Human Resources, based on my analysis of developments in economics, business, technology, and HR. I wrote them to reflect on the past year and help you - and me - prepare for the next.
I stopped this tradition. And if you wonder why, it's not for a lack of trends or changes in the industry—far from it. The HR landscape is as dynamic as ever, perhaps even more so. But I've realized that these annual trend articles, while insightful, may not be as beneficial as I once thought. Sure, they give a nice overview of what’s happening and what might happen, but you can’t run after every trend. And most years there were way too many of them.
The world of work is evolving at an unprecedented pace, and the tools and strategies that were groundbreaking a year ago might now be outdated. In this fast-paced environment, I believe that what we need isn't annual predictions but a continuous, adaptable approach to understanding and navigating HR challenges. When you want to provide a stable environment for employees and your company, thoughtful, strategic adjustments might be much more impactful.
So, instead of offering predictions, I'm taking a different path. I want to share with you the reasons behind this shift in my thinking and why I believe it's crucial for all of us in HR to adopt a more fluid, responsive stance towards industry trends.
Embracing a fluid approach
This change was sparked by several realizations. Firstly, the very nature of HR is fundamentally about people, and people are inherently unpredictable. People also like stability. And while trends can give us a broad outline, they can't capture the nuanced, often sudden shifts in employee needs, workplace dynamics, and organizational cultures. We all remember the start of the pandemic, when we put everything aside to make sure that employees could work safely, and where possible, from home. And while we might think this was a once-in-a-lifetime occurrence, we also know the world has become more unpredictable, and we should be ready to deal with similar sudden events.
And that means we should think more in terms of how we can offer a stable base that can handle these sudden shifts. That also means we should not be so quick in dividing work in “the past” and “the future”. While some people argue you should only look at the future of work, I believe we should take a much more nuanced approach.
As example, the picture above: it’s often used to show the past and the future of work. In my thinking, both sides represent the future. It’s not either/or, it’s and/and. And when I speak about the New Employee Experience, I use it to encourage HR professionals to cast a wide net: how can you offer all work options, so you appeal to a larger section of the workforce? It’s not about discarding the past and looking at the future. It’s embracing both where you can. Some people like the 9-5 day, working from an office. Some people find profit more important than purpose. It’s about offering a wide range of choices, to attract and retain people in a time when the labor market is tight. That’s especially important when you work in the Global North, and a next major shift is upon us: a shrinking workforce due to demographics in combination with the lack of skilled workers.
How useful are predictions anyway?
Secondly, I noticed a pattern over the years. Many of the trends I predicted would either rapidly evolve or be overtaken by entirely new developments before the year was out. Just look at Generative AI: at the end of last year, no one predicted that this would be the main topic of 2023. This rapid (r)evolution made me question the usefulness of annual predictions: why do we write them only at the end of the year? In a world where change is the only constant, static yearly forecasts seem almost counterintuitive. How can we even begin to predict what is coming, when recent events put everything we know upside down?
And lastly, I also started to wonder if focusing too heavily on future trends might pull us away from the present. When we always look ahead, we might miss crucial opportunities to address current issues effectively or fail to build on the strengths we already have. It can sometimes cause us to miss out on addressing the immediate needs and challenges facing our employees and organizations.
By constantly chasing what might be ahead or new, we risk not fully leveraging the strengths and successes we currently possess. It's vital to strike a balance between preparing for future changes and optimizing our current practices. This way, we can ensure that our efforts are not only geared towards what the 'future of work' might look like but are enhancing today’s HR strengths, thereby creating a more holistic and effective HR strategy.
2024 Challenge
And to illustrate the above with a practical example, let me ask you this: what percentage of your HR solution do you actually use? I am not asking for an exact number, just an estimated guess. When you look at its current functionality, do you use all of it? Half? Maybe even less?
When you close a contract for an HR cloud solution, the vendor will not only maintain the solution in its current state, but also improve it over time. And the fee you pay covers all those new features and functionalities. That means you get more bang for your buck. But if you don’t activate any of these features, then the vendor is wasting development capacity, and you are paying for something you will never see. Would you consider that good use?
And the problem isn't just the use; you will also miss out on the potential to support your workers better and change your workplace. Every unused feature in your HR solution is a lost chance to improve employee engagement, streamline processes, or uncover people insights.
So, here’s my 2024 HR challenge for you:
1. Guess: How much of your HR solution do you use today?
2. Pick one unused feature in your HR solution, explore it, and make it available!
Try to make a gradual change every month. Repeat that during the first six months of 2024 and then evaluate your success or learn from your mistakes! And don’t forget to tag me with the results! Instead of focusing on yet another 2024 HR trend, let’s make sure that we first use our HR solution to the fullest, one feature at a time. I think this will be more helpful to your organization than you might think.
Let’s continue the conversation
I don’t want to leave you with the impression that looking forward isn't important. On the contrary, it's crucial. If only for the reason that what we build today will affect our future workforce the most. But we should do it with the understanding that HR is less about predicting the future and more about creating it through proactive, ongoing engagement with our workforce, our company, and the world around us. To maybe not take giant leaps but make incremental changes that benefit the people we work with most. People are tired of constant change. However, we can draw inspiration from social media tools - by implementing small, gradual improvements, we can consistently enhance the experience, allowing people to smoothly adapt to these changes over time.
This shift is not just about how we talk about HR trends; it's about how we do HR. It's a move towards a more dynamic, responsive, and collaborative approach that recognizes the complexity and fluidity of our work. It's about creating a living dialogue that evolves with our ever-changing environment.
We must talk about the future. But it shouldn’t be confined to the end of the year. There is no reason for such a hard cut. I look forward to engaging with you, in continuous conversations about what we're seeing, doing, and expecting in real-time. This approach, I believe, will not only keep us more connected to the immediate needs of our organizations but also better prepared to adapt to whatever the future holds.
While I don’t write HR trend articles anymore, my commitment to helping you understand and make sense of the future of work is as strong as ever. I will keep you posted on the latest developments as I see them. I will continue to write this newsletter about my observations on how we can improve work with the help of technology, especially new tech.
Good luck with planning the year ahead. And let me know if you would have preferred a list of 2024 HR trends,
Have a great day, Anita
What’s next for compensation?
Pete Tiliakos, Anke Mogannam and I participated in an online #WDAYChats. We shared insights and POV’s on modern payroll operations and how payroll leaders can help their organizations minimize cost and accelerate innovation.
Decusoft asked me how companies can prepare for pay transparency and equal pay. You can find my answers here.
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