By Samuel Joy, CEO – Huntr
As we stand at the cusp of 2024, the dynamic human resources landscape opens doors to a transformative era of significant shifts in how organisations approach HR technology. The global HR Tech market, valued at USD 2389.0 million in 2021, is poised to expand at a significant CAGR of 7.18%, reaching USD 3621.0 million by 2027. This unprecedented growth underscores the pivotal role HR technology plays in shaping the future workplace. As businesses adapt to a rapidly changing world, HR leaders are turning to innovative solutions to enhance the employee experience, promote diversity and inclusion, and stay ahead in the competitive talent market. This article explores the key trends that will shape HR technology in 2024 and beyond.
Elevating the employee experience
In the upcoming year, the spotlight will focus on improving the entire employee experience. According to a recent Gallup survey, organisations with highly engaged employees achieve 21% higher profitability. Today employers recognise that engaged and satisfied employees are more productive and contribute to a positive workplace culture. HR technology will play a crucial role in this by facilitating seamless onboarding processes, personalised learning and development initiatives, and real-time feedback mechanisms. Expect a surge in tools that prioritise the holistic well-being of employees, from mental health support to work-life balance management.
Employee retention through learning and development
Employee retention remains a top priority for organisations and HR technology is poised to address this challenge head-on. A study by the University of Phoenix Career Institute’s 2022 Career Optimism Index states that 68% of respondents would stay longer at a company if it invested in their career development. In 2024, anticipate a surge in platforms and tools that focus on upskilling, reskilling, and continuous learning. Companies will invest heavily in programs that enable employees to acquire new skills, ensuring they stay relevant in a rapidly changing job market. From AI-driven learning paths to personalised development plans, technology will be the linchpin in fostering a culture of growth and adaptability.
Supporting flexible work models
Remote and hybrid work models have become integral facets of the modern workplace. The COVID-19 pandemic accelerated this shift, and in 2024, HR technology will continue to support diverse work structures. A McKinsey report suggests that 20-25% of the workforce could work remotely between 4-5 days a week without a decline in productivity. In 2024, advancements in collaboration tools, project management platforms, and communication software tailored to the needs of dispersed teams can be expected. HR tech will focus on creating a cohesive virtual workplace, fostering team connectivity, and addressing the unique challenges of remote and hybrid work arrangements.
Championing diversity, equity, and inclusion
2024 marks an era where organisations move beyond rhetoric to demonstrate a genuine commitment to diversity, equity, and inclusion (DEI). In their latest Diversity Matters Report (2020), McKinsey analysed datasets spanning various industries in Canada, Latin America, the US, and the UK. The study revealed that companies located in the top quartile for racial and ethnic diversity are now 36% more likely to surpass their national industry medians in terms of financial returns, marking an increase from 33% in 2017. HR technology will be at the forefront, leveraging AI-powered tools to eliminate biases in recruitment processes, track pay equity, and foster an inclusive workplace culture. This not only aligns with ethical imperatives but also strengthens organisational resilience.
Strategic use of artificial intelligence
Artificial Intelligence (AI) has been a transformative force in HR, and its strategic use is set to expand in 2024. According to a PwC survey, 51% of Indians believe that Artificial Intelligence (AI) will help them improve productivity at work. We can expect to see AI-powered solutions that enhance recruitment processes, automate routine HR tasks, and provide predictive analytics for workforce planning. From chatbots handling initial candidate queries to algorithms identifying high-potential employees, AI will be leveraged strategically to streamline HR operations and make data-driven decisions.
Embracing data-driven decision-making
The ability to harness data for informed decision-making will be a distinguishing characteristic of progressive HR practices next year. As per Deloitte’s survey findings, organisations led by CEOs who make data-driven decisions are 77% more likely to achieve success. HR technology will increasingly integrate robust analytics tools that offer insights into employee engagement, performance, and overall organisational health. This shift towards data-driven decision-making will empower HR professionals to proactively address challenges, identify trends, and align strategies with the evolving needs of the workforce.
Adoption of cloud-based HR systems
The adoption of cloud-based HR systems is not just a trend; it’s the future of organisational scalability. Gartner’s 2019 forecast anticipated that by 2025, a staggering 80% of enterprises would close down their conventional data centers. In 2024, the adoption of cloud-based HR systems will continue to rise, enabling organisations to streamline processes, enhance collaboration, and adapt to changing business landscapes seamlessly. It shall also offer more comprehensive and integrated cloud solutions that encompass the entire employee lifecycle, from recruitment to retirement.
Conclusion
The future of HR technology in 2024 is undeniably dynamic. As organisations strive to create workplaces that prioritise employee satisfaction, foster continuous learning, and champion diversity and inclusion, HR technology stands at the forefront of this evolution. From the strategic use of AI to the widespread adoption of cloud-based systems, the upcoming year promises a landscape where HR technology plays a pivotal role in shaping a workplace that is not just responsive to change but anticipates and embraces it. The journey into 2024 is an exciting one, where the integration of HR and technology will undoubtedly redefine the way organisations work and engage with their most valuable asset- the people.