Emerging Trends In HR In 2025: Key Insights For Success

15 mins read

What will work look like in 2024? Currently, the workplace includes a mix of hybrid work culture, technological advancements, and a workforce comprising three generations with distinct working styles - the Baby Boomers, Millennials and Gen Zs. 

This finding from the 2023 PwC Global Workforce Hopes & Fears Survey highlights the stark disparities in attitudes of different generations. As per the survey, 

“Younger generations are much more likely to expect AI to impact their careers across all of the surveyed impacts, both positive and negative, whereas a little over one-third (34%) of Baby Boomers think AI will not impact their careers, only 14% of Gen Z and 17% of Millennials agree.”

To effectively navigate the changing needs of a workforce, talent recruiters need to understand and adapt to emerging trends in HR in 2024. By staying informed about these emerging trends, HR professionals can proactively adapt their practices to meet the evolving needs of their company and employees.

The Future of HR: Key Trends for 2024

Between the lingering effects of the pandemic and the upcoming technological advancements, the emerging trends in HR in 2024 are centered around the idea of bridging the gap between the have and have-nots, i.e., revolutionizing hiring and retention practices to improve candidate experience, boost employee engagement, and enhance overall productivity. 

It’s no longer about finding the most qualified candidates, but rather about finding the most skilled candidates and retaining them by investing in both their well-being and development.

For organizations, this means getting on board with flexible work arrangements, among other changes. For employees, it means looking at AI as a tool to learn, not a force to compete with! In the midst of it all, creating a sustainable work environment shouldn’t just be a trend to jump on, but a basic requisite of any workplace in 2024.

Let’s take a look at the key emerging trends in HR in 2024: 

1. Skill-based hiring:

• Growing focus on skills and competencies over traditional qualifications.
• Use of skills assessments and simulations to identify the right talent.
• Increased adoption of internal mobility and upskilling programs.

2. Improving Employee experience, engagement and overall well-being:

• Prioritization of holistic employee well-being programs, with a renewed emphasis on mental health awareness and providing support resources.
• Creating an engaging employee experience throughout the employee lifecycle.
• Personalized career development plans and feedback mechanisms.
• Recognition and rewards programs to boost morale and motivation.

3. AI and automation in HR:

• Automation of routine tasks like recruitment, payroll, and performance management.
• Use of AI for talent analytics, candidate matching, and personalized learning.
• Ethical considerations for HR professionals.

4. Diversity, Equity, and Inclusion (DE&I):

• Continued focus on building a diverse and inclusive workforce.
• Implementation of unconscious bias training and talent acquisition strategies.
• Addressing pay gaps and promoting equal opportunities for all genders and ethnicities.

5. Hybrid and remote work:

• The hybrid model (combination of office and remote work) likely to remain dominant.
• Technology investments to support remote collaboration and communication.
• Rethinking office spaces and policies to accommodate flexible work arrangements.

6. Gig economy and freelance work:

• Rise of the gig economy and freelance work creating new talent pools for companies.
• Need for clear policies and contracts to manage contingent workers.

7. Greater demand for transparency

• Transparency is the main demand - especially for the rising Gen Z workforce.
• From job descriptions to in-house promotions, HRs will need to provide clear information at every stage.
• Pay transparency and pay equity will need to take center stage.

8. Heightened Focus on Sustainability: 

• Increased focus on environmental, social, and governance (ESG) issues in HR practices. 
• Attract and retain talent who share their commitment to sustainability and social responsibility.

9. Data-driven HR:

• Data analysis to inform HR decisions and strategies.
• Tracking key metrics like employee engagement, retention, and productivity.
• Use of HR analytics tools for better decision-making.

10. Continuous learning and development:

• Reskilling and upskilling programs to help traditional employees adapt to changing work models.
• Micro-learning and personalized learning platforms gaining popularity.

Skill-Based Hiring

Skill-based hiring focuses on assessing and evaluating candidates based on their specific skills and abilities rather than solely relying on traditional qualifications or experience.

The idea is to prioritize candidates who possess the necessary skills to perform the job effectively. This trend is driven by the recognition that skills can be developed and honed through various means, such as online courses, certifications, or even practical experience.

According to the 2023 PwC Global Workforce Hopes & Fears Survey, there are clear indicators that companies are overlooking talent because over one-third (35%) of workers stated having skills that aren’t apparent through their job histories or resumes.

Thus, by adopting skill-based hiring practices, companies can tap into a wider pool of talent, including ‘hidden talent’ i.e. skilled individuals who may not have the traditional qualifications. Traditionally, such individuals have either been offered lower pay, or contractual work with limited working hours. This also allows organizations to consider candidates from diverse backgrounds who may bring unique perspectives and ideas to the table.

Skill-based hiring can also help reduce hiring bias through objective assessments, such as skills assessments or performance tests, rather than subjective factors like educational pedigree or personal connections.

Did you know? Research published by World Economic Forum, in collaboration with PwC, found that creating skills-first labour markets could help more than 100 million people worldwide get better jobs.

Prioritizing Employee Experience, Engagement & Well-being

Employee Experience and Engagement Taking Center Stage

In an article on employee experience, Harvard Business Review stated that even though 49% of C-suite executives believed their company excels at acting on employee feedback, only 31% of workers agreed. It’s disparities like these that impact employee engagement. 

Employee experience and engagement is not just an emerging trend in HR in 2024 but a key focus area for overall growth. Organizations recognize that happy and engaged employees are more productive and loyal. As per Gallup's 2023 State of the American Workplace report, highly engaged teams are 21% more productive, 27% less likely to leave their jobs, and have 59% lower turnover rates.

To enhance EX, companies will invest in initiatives such as personalized development plans, wellness programs, mentorship opportunities, and regular feedback channels. Fostering a positive company culture through diversity and inclusion efforts will be crucial for attracting top talent.

Comprehensive Employee Wellness Programs

While remote work offers convenience, it also makes it difficult to achieve work-life balance with 80% of employees experiencing work-related stress, while 50% suffering from burnout, as per CXOToday. Thus, in 2024, organizations will focus on providing holistic wellness programs that address various aspects of employee health. 

Image credit: Freepik

These programs may include fitness classes or gym memberships, mindfulness training sessions, access to counseling services, or workshops on stress management techniques. These initiatives seek to create an environment where employees can effectively manage their professional responsibilities while also having time for personal activities and relaxation.

This emphasis on employee engagement and well-being aligns with the growing recognition that happy and healthy employees contribute to a more productive workforce. 

AI-Empowered Workforce Evolution and Its Impact

According to McKinsey’s 2023 State of Organizations report, organizations used an average of 3.8 AI capabilities (eg, natural-language generation, computer vision) in 2022, double the 1.9 used in 2018. The adoption of AI will only accelerate in 2024. 

One of the key areas where AI will have a significant impact is in streamlining recruitment and talent management processes. With the help of AI-powered algorithms, organizations can efficiently identify top candidates through a large volume of resumes and match them with suitable job positions. This saves time, giving HR professionals time to focus on strategic initiatives.

The integration of AI technologies into HR processes brings numerous benefits such as increased efficiency, enhanced employee experiences, and reduced administrative burdens. However, organizations need to approach these advancements with caution by ensuring ethical considerations are taken into account when implementing AI solutions.

Taking Diversity, Equity, and Inclusion Beyond Mandates

McKinsey’s State of Organization 2023 report perfectly highlights the current state of DEI at the workplace. Per the report, less than half (47%) of employees stated that they had the infrastructure to realize their DEI aspirations. The reason DEI is still an emerging trend in HR in 2024 is that now is the time when it transitions from being just a corporate mandate to becoming a part of the workplace fabric. 

Diversity metrics are one way to drive accountability and measure progress. Still, the need of the hour is for HR to collaborate with other leaders to develop strategies that promote diversity at every level of the company. This includes implementing inclusive hiring practices, providing training on unconscious bias, and cultivating an environment where everyone feels valued and respected. 

Hybrid and Remote Work

Remote work is no longer a novelty brought on by the COVID-19 pandemic but rather the norm. This trend is expected to continue into 2024. 

Image credit: freepik

As companies continue to embrace hybrid and remote work, technology investments will play a crucial role in facilitating collaboration and communication among remote teams. With the shift towards remote work, the traditional concept of office spaces will need to be rethought. 

Instead of relying on physical office spaces, organizations need to invest in digital tools and platforms that enable seamless virtual collaboration. This will require a focus on technologies such as video conferencing, project management software, and cloud-based document sharing to ensure effective remote teamwork. By leveraging technology, companies can create a flexible and productive work environment that supports remote work arrangements.

Did you know? In its State of Organizations 2023 report, McKinsey listed “true hybrid” as one of the ten most significant shifts facing organizations today. More than 80% of employees who worked in hybrid models between 2020-22 want to retain them, stated McKinsey. 

Embracing the Gig Economy and Blended Workforce

The emergence of the gig economy and blended workforce is one of the key trends that HR professionals need to embrace in 2024. Companies are increasingly relying on freelancers, contractors, and gig workers to meet their business needs. This shift towards a more flexible workforce brings both opportunities and challenges for HR practitioners.

HR departments will need to adapt their talent acquisition strategies to include external talent from the gig economy. This means leveraging social media platforms, hiring challenges, and specialized job portals to connect with potential candidates outside of traditional hiring channels. It also involves building relationships with freelancers and contractors who could bring unique skills and perspectives to the organization.

Transparent HR Practices

An emerging trend in HR in 2024 will be transparent HR practices to cater to employee expectations and attract better talent. 

Accurate Job Descriptions

In 2024, job seekers and employees are increasingly seeking organizations that are open and honest about the expectations and requirements of each position. Accurate job descriptions are crucial in attracting and retaining top talent, as they provide candidates with a clear understanding of the role and its responsibilities. This helps candidates know whether they are the right fit for the position and allows them to align their skills and qualifications accordingly. 

Pay Transparency

There’s also rising demand for job descriptions where salary information or pay range is clearly stated. As per the People at Work 2023: A Global Workforce View report, for 61% of people, the most important factor in a job is salary. An article by SHRM backs this, stating that 4 in 5 candidates wouldn't apply for roles without pay range information.

Not just for hiring, information about pay equity and salary structure can even impact retention rates. Per compensation software firm Payscale, “pay transparency decreases intent to quit by 30% when analyzed in isolation.” Simply put, transparent salary structures help to build trust and ensure that employees feel they are being compensated fairly for their work.

Overall, the demand for transparent HR practices is on the rise in 2024. Accurate job descriptions, clear rules for in-house promotions, and fair pay equity and salary structures are essential elements that job seekers and employees are seeking from organizations. 

Climate Change Adaptation in HR Practices

The emerging trends in HR in 2024 reflect the growing concern about climate change among employees and the consequent need to prioritize sustainability initiatives.

Employees, especially younger generations, are increasingly concerned about environmental and social issues. They expect their employers to align their values with sustainability practices. Companies that demonstrate commitment to sustainability attract and retain talent who value ethical and responsible business practices. Offering eco-friendly perks like green commuting options, sustainable food choices, and volunteering opportunities can demonstrate commitment to sustainability and attract talent.

Leveraging HR Analytics for Data-Driven Decisions

Image credit: Freepik

Predictive analytics will make a significant impact on HR practices. By leveraging data from various sources such as employee performance records, engagement surveys, and market trends, organizations can use predictive analytics models to make data-driven decisions related to workforce planning, talent development, and career progression. 

Tracking employee turnover rates, engagement levels, training effectiveness, and other KPIs helps HR leaders identify improvement and allocate resources accordingly. For example, if the data shows a high turnover rate in a particular department, HR can investigate the underlying causes and implement targeted retention strategies.

Continuous Learning & Development to Improve Productivity

Rapid technological advancements and the dynamic nature of the business landscape have highlighted the importance of equipping employees with the tools to stay competitive.

Continuous learning and development programs provide employees with knowledge and skills enhancements, as well as keep them current with industry trends. This not only benefits the employees by boosting their confidence and job satisfaction but also helps organizations improve productivity and achieve their business goals.

The end goal for any organization should be developing a future-ready workforce. This means investing in employees’ growth and development. In other words, it’s not enough to hire for the skills employees currently have; it’s also important to nurture talent for the future. 

The Office Buzz in 2024

Naturally, the emerging trends in HR in 2024 will be impacted by office trends. If 2023 was about rage applying, quiet quitting and moonlighting, 2024 is set to welcome coffee badging, quiet cutting and lazy girl jobs. Confused? Take a look at the workplace trends on the rise: 

Coffee Badging

With offices transitioning from a remote work environment to a hybrid working model, coffee bashing has made an appearance. Coffee badging is the practice of turning up at the workplace for a few hours to check in with your colleagues, report to managers, and ‘share a cup of coffee’, before heading back to work from home - which is considered to be a more productive environment. 

Image credit: Freepik

Grumpy Stayer

As the term suggests, grumpy stayer refers to individuals who are dissatisfied with their work but unable to shift or quit. It could include highly skilled workers who feel they are either not valued at work or don’t have the potential to learn and grow. 

Quiet Cutting

This is a trend slowly gaining prevalence in workplaces. It’s a practice of shifting or reassigning employees to different departments instead of letting them go. It appears to be a stop-gap measure to layoff but in some cases, reassigning departments has also served an employee well in finding a role more suited to their skills and interests. This approach also helps organizations fulfill roles without investing in hiring or sourcing. 

Lazy Girl Jobs

Don’t be deceived by the name! Lazy girl jobs are not for lazy people but rather are roles that prioritize work-life balance. The idea is to chase an equilibrium between financial compensation, work requirements, and time for self. The term generated on TikTok, and naturally, finds more favour with Gen Z - though it holds a lesson for employees of all generations and even employers. What’s the lesson? That work-life balance can no longer be ignored. 

Career Cushioning

With the rising economic uncertainty, and the constant news about layoffs, career cushioning has become the go-to approach for employees. It’s the practice of investing time and effort in building a plan B. This could include networking within the industry, undertaking courses to upskill, or building a portfolio of personal work to showcase your skills. It all comes down to strategic career planning. 

Bottom Line - HR Operating Model Needs A Shift

Overall, emerging trends in HR for 2024 highlight the importance of shifting traditional operating models towards enhanced collaboration to drive organizational success. This means developing agile HR models that prioritize cross-functional collaboration, with HR working as a strategic partner rather than in silos. By breaking down silos and fostering collaboration, organizations can leverage diverse perspectives and expertise to drive innovation and improve overall performance.

Suggested Reads:

• HR Tips 2024 For Mastering Employee Management
• Business Acumen: What Is It & How To Develop It In Your Employees
• Transforming Hiring Landscape - Harnessing AI And ML For Talent Acquisition
• Succession Planning: A Comprehensive Guide for HR Professionals
• Gamified Recruitment For Engaging And Assessing Top Talent