Human Resources trends in 2024

HR job market strong & active

2024 is in it’s infancy, but demand for Human Resources professionals is already strong. We’re seeing significant opportunities for HR people across all regions and career stages, but particularly at senior levels of the profession. 

There are promising prospects for career progression, but expect increasing competition if you are looking for a new role. According to LinkedIn, job-search activity for all professions is up 16% so far in 2024. 

Another LinkedIn survey indicated that 76% of Australian professionals are considering a job change this year. This figure is up 15% on the previous year. Heightened job search activity stems from a softening economy and a yearning for change (see ‘Use by Date’ below).

Fortunately, the HR job market is immensely resilient, particularly in an economic downturn. Our most recent HR Job Opportunities Index shows that while HR demand dropped late last year, it continues to out-perform the national job market. 

Increased ‘Use by Date’ churn

In recent years, the pace of churn in senior HR appointments slowed dramatically as HR leaders stood alongside their respective CEOs and fearlessly led the way in responding to the pandemic. At such a demanding, challenging and rewarding time many personal plans for change were put on hold. 

The average tenure for HR leaders to remain in a single role has ballooned by an extra two or three years (or even more). After an extended period in the same position, there is now a pent-up desire for change. In 2024 an increased number of senior HR professionals will reach their own ‘Use By Dates’ and seek fresh perspectives and challenges elsewhere.

Changes in leadership will have a cascade effect. Expect to see impacts on the organisation design of HR functions, extending to change at all levels of the profession. In 2024, HR will also need to grapple with increased churn rates in other parts of their organisations, if the survey data reported above, extends to its logical conclusion. 

HR is the ‘meat in the sandwich’ when it comes to ways of working

Has there ever been a larger divide in expectations of work attendance between management and staff than currently exists?

The majority of HR leaders couldn’t care less where people work, but it seems many senior leaders do. In 2023, the AFR’s workplace section was dominated by stories of leaders declaring ‘return to office’ mandates. Who’s job is it to clean after that? And what are the consequences of ignoring a mandate? 

Already, this year The Fair Work Commission has ruled that an e-commerce company unfairly dismissed a staff member after finding that working from home instead of attending the office was not a valid reason for dismissal. 

In 2024 there will be plenty of HR leaders tasked with creating an environment that entices workers back to the office, or blamed when they don’t. 

Technical roles are ‘Back in Black’ 

Specialist capabilities and technical HR skills are in demand in 2024, as the People and Culture profession is required to deal with a broad range of pay issues and legislative demands.

Industrial Relations

Is the significant and materially damaging dispute between DP World and the Maritime Union of Australia (MUA) indicative of a larger level of industrial disputation around Australia? 

Possibly not at this level but with a raft of new legislation, even in small business, Industrial Relations is one of the top 5 challenges for 2024 for 2024, As a result, IR expertise will be in strong demand. 

Remuneration

An increase in investor and public activism in an environment of lacklustre economic growth and stalled productivity will result in CEO and executive remuneration being at the forefront in 2024. 

Combined with reputational damage being inflicted by risks and events in areas such as sustainability, workplace safety, employee rationalisation and the environment mean that remuneration plans will need to balance a growing range of competing agendas. As per the IR environment, there will be no shortage of work for high quality remuneration specialists.

Payroll remediation

How many companies really set out to carry out ‘wage theft?’. A very small number. How many are guilty of having legacy systems in the past that missed tracking small changes in allowances, shift roster conditions and award changes? Who knows? But it’s a lot. 

Organisations that have self-reported to date can be described as consciously incompetent. There is a raft that could be still described as unconsciously incompetent with demand for project people to jump in through 2024.

AI creates disruption & opportunity for HR

The media is keen to speculate about the impacts of Artificial Intelligence (AI) on the workforce with headlines such as “Is AI coming for your job?”. Time will tell whether they are creating a storm in a tea cup, or actually reading the tea leaves accurately. Either way, expect to see unabated speculation to continue. 

The International Monetary Fund’s CEO Kristalina Georgieva noted that “in advanced economies, about 60 per cent of jobs may be impacted by AI” but that 50% of these would benefit from enhanced productivity. The UK Financial Times ran a survey of global companies and indicated that admin heavy sectors such as Banking and Insurance will of course be at the forefront of AI-related changes. Media, logistics and other sectors were also mentioned as sectors likely to be impacted.

So what is the likely impact/benefit for Human Resources roles? Time will tell but AI is already being used in areas such as Talent Acquisition where it can assist in scanning candidate data and shortlisting the most relevant candidates for a role. Potential AI applications in L&D, IR, remuneration and payroll remediation are also obvious. 

In 2024 HR professionals will occupy a unique dual role, evaluating productivity improvements for the broader workforce, as well as their own functions. They must build awareness of AI’s impacts on roles within the organisation and potential transitional needs. This applies to their own function too, regardless of whether the impacts are adverse or positive.

In summary

Human Resources functions are primed for some timely changes in 2024. Between some ‘Use By Dates’ expiring and creating churn, the increased impact of AI and technology, the challenges of balancing workplace cultures whilst improving productivity and balancing technical requirements and capabilities, there will be significant demand in many HR categories in 2024. 

How can we help?

2024 will no doubt be an interesting year for the HR function. Expected changes are likely to affect capability and employment requirements.

If you are looking to hire a Human Resources professional or are searching for a new HR role please reach out to Craig, your Next Step consultant, or contact us and one of the team will be in touch for a further discussion.

Craig Mason is the founder of The Next Step. Craig is one of Australia's most experienced recruitment consultants and talent resourcers.