In a recent webinar hosted by Gartner, nine work trends were discussed that are most likely to impact the Human Resources strategy of organizations in 2024. With the lingering aftermath of the Covid-19 pandemic and political climate changing the operating landscape, it is unsurprising that CHROs do not feel prepared for the future of work. In fact, only 12% of CHROs indicate that they are confident in driving action and change in 2024.
Employee expectations and needs are evolving. For many, this is causing employers to feel at odds with employees, thus creating workplace tension.
87% of HR leaders agree that, compared to three years ago, employees expect a more personalized work experience that suits their unique needs.
1. The Cost of Work Crisis Reaches a Breaking Point
Employees have always had to consider how they will access their work, including factors such as commuting, clothing, and lunches out. Gartner estimated that the extra cost for coming into an office is on average $61.38 USD daily – that’s the cost of, on average, two extra hours of work daily. These considerations reflect the differences between the cost of living and work. Since the pandemic, the question of who should have to bear the cost of work has shifted. As employers gave more flexibility during the pandemic and employees demonstrated their productivity, employees realized they didn’t have to bear all of these additional costs. 67% of employees feel that going to the office takes more effort than pre-pandemic. Employees view these costs and efforts as unnecessary disruptions. Thus, employers should be prepared to be flexible and adjust to the new era of hybrid working.
2. The Four-Day Workweek Goes from Radical to Routine
Many are looking at the four-day workweek from the same lens as the remote work discussion. With evidence that employee productivity is maintained when working from home, many wonder if a similar outcome could result from a four-day workweek. 92% of companies who piloted a four-day workweek are planning to continue with it. For some organizations, not only will the cost of work for employees be reduced, but a more diverse workforce can be reached. Those with large opportunity costs associated with working a typical five-day workweek may now be potential new assets to your organization.
3. Climate Change Protection Becomes a New In-Demand Employee Benefit
2023 saw a lot of costly disasters due to climate change such as fires, flooding, and heat waves. Disasters aren’t just headlines – it’s real life. Climate change protection in many organizations is a real necessity. This can take the form of measures to protect physical safety, financial assistance, and mental health support. The process of making informal approaches official in organizations and including them within strategic scenario planning and communications related to natural disasters will help put employees at ease.
4. Employee-Conflict Resolution is a New Must-Have Skill for Managers
Leaders and managers are encouraged to reevaluate how employee conflict resolution is handled within organizations. Traditionally, the approach has been to leave conflict out of the workplace. With the continuing buzz of polarizing topics such as the upcoming American election, it is in fact the workplace itself where people are most likely to interact with those who have opposing views. Therefore, it is unrealistic to keep conflict out of the office and should be actively managed by leaders.
5. DEI Doesn’t Disappear, It Becomes the Way We Work
The labour market is diverse – leaders need to recognize the importance of being adaptive. In the past, diversity, equity, and inclusion strategies have been additive; and in doing so, EDI has become something distinct from the business. Instead, organizations need to embed DEI in their processes, priorities, and people by ensuring teams working on product or operational solutions are diverse.
2/5 of employees report feeling alienated by their organization’s DEI strategy.
6. Career Stereotypes Collapse in the Face of Workforce Change & 7. Skills Overtake Degrees as the Paper Ceiling Crumbles
As stereotypes for what a successful candidate looks like evolve, old career path models and standards don’t work anymore. Skills are overtaking degrees as the paper ceiling rips down. Organizations can widen the talent pool by taking away credential and degree requirements and acquiring more non-traditional talent. Moreover, skills are changing more rapidly than ever. For many organizations, it may now be preferable to train in-house or offer in-house universities and business schools. Careers aren’t as linear anymore – employees don’t systematically work their way up until retirement as in the past. Individuals with in-demand expertise will start fast and uniquely skilled people may jump between industries. In fact, employees might accept temporary cuts to compensation to go elsewhere to quickly make it up. If employers want to engage the best talent, they need to meet the growing variability of careers.
8. Generative AI Experiments Will Yield Hard Lessons and Painful Costs & 9. AI Creates, Not Diminishes, Workforce Opportunity
Although reporters are quick to sound the doom and gloom around AI, Gartner anticipates that more organizations will aggressively communicate the may ways that AI can enhance jobs and performance. When it comes to generative AI, we are still in the early phases. Therefore, judgement, training, and information skepticism remain important. From an HR perspective, a “Responsible AI Committee” could be something useful to consider implementing.
With the pandemic, politics, climate change, and changing expectations all being juggled by employees, it is critical for leaders to identify the key drivers of change and action in 2024 and beyond. Check out more from Gartner’s webinar here.
