Looking back at the developments of 2023, we can see that some of the trend predictions have come true and will continue to be relevant this year. In 2024, the focus of HR work will increasingly be on efficiency and appropriate technological equipment, also due to the economic situation. On the other hand, the softer and more glamorous topics that have often dominated HR trends tend to take a back seat at the moment. The coming years are therefore likely to be characterized by hard facts: technology, key figures, knowledge and structure.
These HR trends have been of particular concern to us in 2023:
Work-based learning and professional development
Many companies have taken a close look at the development of their employees in order to promote internal talent and also offer promising opportunities to new applicants in the "war for talent". A lot of emphasis has been placed on personalized learning in the workplace, both through learning management systems and in-house training on current topics. A much-discussed buzzword was "re- and upskilling".
Mixed workforce
After the Corona pandemic was a few years ago, the concepts of the mixed workforce, i.e. the combination of different working models (hybrid, home office, on-site, etc.), have become firmly established in 2023. This working model is particularly in demand in the competition for young talent, as it promises flexibility and cooperation at the same time. After a turbulent transition phase, appropriate regulations, agreements and concepts have now been developed.
AI-powered data analysis
Artificial intelligence, especially generative AI, accompanied us in all industries in 2023 and can also measurably increase productivity in the HR sector. This trend picked up speed in 2023 with the increased use of ChatGPT and the first AI-powered HR tools and will continue to be with us in 2024. More on that later.
Looking back at the developments of 2023, it is clear that some trends have been confirmed, while others will continue to be important in the coming year. In 2024, HR work will be increasingly focused on efficiency and appropriate technological integration, which will also be influenced by economic factors. The rather soft and glamorous topics in the HR area will take a back seat for the time being, as the focus will increasingly be on hard facts such as technology, key figures, knowledge and structure.
AI in HR – buzzword or really already applicable in human resources?
The year 2023 was the big year for new concepts in the field of artificial intelligence and especially for generative artificial intelligence. The most prominent example of this is and remains ChatGPT. A topic and a term that we have already heard enough in 2023, but nevertheless studies show that it has still not reached everyone who could really benefit from it.
The use of chatbots of this kind to support daily tasks should become part of the everyday life of all HR employees as soon as possible. It is currently probably the cheapest and easiest way to increase daily productivity. As a result, many tasks can be significantly simplified, or even solved completely. In this way, time can be created for strategic topics. It is also important to familiarize all employees with this technology in order to be able to participate in further developments based on artificial intelligence and to stay up to date. In 2024 and beyond, the new possibilities offered by (generative) artificial intelligence will become even more noticeable.
Retaining and developing talent – quality comes from within
This trend has been with us for some time and should be seen as a clear strategic task of the HR department. The main aim here is to keep existing talents in the company and to provide them with suitable career paths and development options based on their individual skills. Retaining good talent is important both because it increases internal competence and in order to be able to offer potential candidates good and long-term development opportunities. This creates an internal talent pool.
The overview of this will lead to a more sustainable and targeted access to talent in the future. In this task, software solutions offer great added value, both to keep track of things, to identify trends in the company and to remain transparent for all employees.
Talent Management and Skill Management – With and without Artificial Intelligence
In an increasingly flexible working world, in which the once clearly defined positions and fields of activity are becoming more and more blurred and there are therefore fewer and fewer clear requirements for a position, positions and employees will be defined and used in the future by the required and existing skills or abilities. In this way, it is also possible to find a position for each individual composition of skills where they can be used optimally. The clear and cross-company definition of skills allows employees to find clear development opportunities in order to be able to face new challenges in the future. Since these are also a lot of data points, the support of artificial intelligence will also be relevant here in 2024. The first providers have already presented their own new solutions. Some of them can also be found in this article.
Revolution in Recruitment with Artificial Intelligence – The Next Logical Step
In the coming year, more and more software providers will offer the opportunity to use artificial intelligence to analyze applicant data and job postings. AI models are explicitly trained on extensive datasets of candidates and job postings in order to identify the best connections between them and learn from them. This makes it possible to fill open positions both internally and externally with the right candidates. Although this data-driven approach will be new to most HR departments, we see it as a significant advancement in the recruitment process that is worth leveraging early on to gain a competitive advantage through efficiency and find the right people faster.
Leadership training – Now it's your turn!
This trend continues from the HR trends of 2023. It is not only the responsibility of the HR department to create development opportunities for employees, but also for managers. With a new generation of leaders, it is becoming increasingly important to provide clarity, especially in this area. By training managers, there is an opportunity to develop and promote the right leadership skills, and to reflect the company's values in the managers as well. These competencies are then passed back on to the team, fostering collaboration and shared mission. The past has shown us how important it is to have good leaders, especially in times of unexpected challenges such as the Corona pandemic. Therefore, now is the right time to invest in this development and at the same time define a clear profile of a leader.
Setting clearly defined HR goals – focus on long-term orientation
Often, companies give a certain direction, and then it's up to the HR department to identify the right talent and candidates for that development. As the previous trends show, HR is increasingly developing into a strategic, technologically oriented and consulting department. In light of this evolution, it is crucial that HR departments set clear goals for long-term direction as part of these changes. Part of this objective is also the evaluation of software solutions that can optimally support this trend and the review of whether new solutions are needed or whether existing ones can continue to be used. In the future, the HR department should also be present at the decision-making table when it comes to the future of the company.
Systemic HR – An Integrative Approach
Currently, HR departments in many companies are structured according to specialists for different areas of responsibility. Studies and trends suggest that an integrative approach promises more success. All HR employees should not only be specialists in a specific topic, but also have a basic understanding of all relevant topics. This not only leads to a much more dynamic department, but also to well-founded strategic decisions, as a collective exchange on relevant topics is possible. The evolution is moving away from isolated teams of specialists working on a specific topic to a more flexible and dynamic department where everyone can flexibly take on different tasks. The term "systemic HR" was coined by Josh Bersin to describe this integrative approach. This trend essentially summarizes the previous developments and gives the development a name. It is intended to make it clear that the various trends should not work together in isolation, but in a clear direction in which HR will develop in the future.
Summary
In 2024, the importance of the HR department in the company will continue to increase. It is evolving from traditional HR tasks such as recruiting to clearly defined strategic functions. This requires an efficient HR organization that has the necessary expertise in dealing with relevant technologies and dealing with topics such as data flows, HR IT architectures and new technologies.
Preparing for 2024 – A successful HR start to the new year
A clear trend in HR is the increased use of (generative) artificial intelligence. In case you don't have any experience in this field, it's wise to familiarize yourself with the basics. Even for those who already have knowledge, it is important to consider how artificial intelligence can continue to support and share knowledge with colleagues in everyday work.
In addition to AI tools, other technological digital topics have also been decisive levers for efficiency gains in the HR sector for years and are therefore increasingly moving into the focus of management. Nevertheless, the greatest effects always unfold when carefully selected tools interact with a well-thought-out interaction of different systems in suitable processes (keyword: interfaces and master data flow).
Therefore, it is advisable to reconsider in 2024 whether the tools and software solutions currently in use are still suitable for achieving the envisaged goals in the face of changing market conditions. It should also be examined whether these instruments continue to offer sufficient scope for further development in the future.
