As the year comes to a close, various organizations release predictions for trends in the coming year, and the HR field is no exception.

With global economic conditions and various uncertainties, next year’s trends are attracting significant attention. Let’s explore the HR trends that HR professionals should keep an eye on and prepare for 2024 by examining global HR trends.

The rebranding of HR departments is accelerating. Over the past few years, HR teams have been rebranded as ‘People & Culture’ teams, a paradigm shift expected to continue and intensify in 2024. This structural change reflects a systematic transformation in how HR functions operate and play their roles within organizations. HR has evolved from ‘personnel’ to ‘human resources,’ and now the rebranding towards ‘people and culture’ represents the next step.

According to People and Culture Director Lindsey Gartio, more organizations are rebranding as ‘People & Culture’ to emphasize the value of their most important assets—employees and culture. These two elements are crucial to business success; when both thrive, so does the business. Conversely, if either faces challenges, it impacts company performance. As HR remains a core management function, this rebranding will play a significant role in shifting the focus from traditional paperwork and transactional tasks to ‘employees and organizational culture.’

Alongside this shift, there is a growing trend from work-life balance (maintaining a clear separation between work and personal life) to work-life integration (a seamless blending of work and personal life in a harmonious way). The rise of remote work, flexible work arrangements, and advancements in digital technology are major factors driving this change.

Additionally, as the MZ generation (Millennials and Generation Z) become central members of organizations, their pursuit of a life where work fuels a more meaningful existence significantly influences organizational culture. Therefore, HR professionals need to prepare for this shift toward a ‘people and culture’ focus, which can enhance productivity, satisfaction, and overall success.

While 2023 saw organizations and individuals embracing digital innovation and automation for optimal performance, 2024 is expected to see the widespread adoption of digital work environments as the norm. Specifically, HR departments are likely to implement software and solutions to automate repetitive and complex tasks, such as attendance tracking, workforce management, work schedule management, clock-in/out tracking, payroll calculation, and leave management. This automation will enhance the efficiency of HR operations.

According to the global market research firm Verified Market Research, the global HR solutions system market is projected to grow from $15.6 billion in 2020 to $33.5 billion by 2028. The pandemic led to significant changes in work and life patterns, notably in how people work, with the rise of flexible work arrangements, remote work, and telecommuting.

To adapt efficiently to these changes and maintain competitiveness, some companies have already implemented solutions or software to automate HR tasks. This trend towards digital automation in HR is expected to accelerate further in 2024.

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The effort to secure talent will continue in 2024. In particular, the post-pandemic economic uncertainty has led to a decrease in mass hiring, shifting towards a focus on recruiting a few highly skilled individuals. To succeed in this era of fierce competition, companies must invest considerable effort into attracting and retaining talented individuals with the necessary expertise and knowledge.

Investing in these skilled individuals is essential. Through ‘corporate education,’ companies must meet the demands of talented employees to strategically navigate the ‘war for talent.’ Therefore, companies can motivate employees to stay longer and unlock their potential by offering diverse experiences and educational opportunities. For example, providing internal lectures or training on new concepts and tools, such as AI-based Chat GPT and RPA (Robotic Process Automation), can help employees build ‘competitiveness’ and serve as a strong motivator. Building a culture and infrastructure that offers such opportunities will be a crucial factor in enhancing your company’s organizational competitiveness by responding to internal and external changes and fulfilling employee needs.

The HR field has lagged in adopting AI technology compared to other industries. However, a recurring theme in HR-related seminars, conferences, and workshops is the application of AI in HR. Moving forward, it is anticipated that generative AI, ATS (Applicant Tracking Systems), big data, and other advanced technologies will be increasingly utilized in various aspects of HR, including recruitment, performance management, training, and retirement, fundamentally altering how HR is managed.

As a result, various companies, both domestic and international, are witnessing positive outcomes from applying AI technology and are expected to actively leverage AI to enhance HR management efficiency, accuracy, and overall organizational productivity. In particular, the recruitment process has already seen benefits from AI, including evaluating resumes, conducting interviews and personality tests, scheduling recruitment activities, and matching candidates with jobs. Going forward, AI technology is expected to extend beyond recruitment processes to improve efficiency in HR-intensive and specialized areas, such as employee communication, optimal workforce reallocation within sites and workplaces, and work scheduling, by automating predictable tasks.

Along with HR trends, why not also pay close attention to trends emerging in various industries, consider the anticipated social issues, and reflect on how HR can play a role in maximizing organizational performance based on these insights?

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