The way we work has changed dramatically in the past five years. In addition to remote work becoming the norm, there continues to be a push for sustainable practices, fair pay, and more flexible working conditions. Human Resources are using technology and science to evolve, and global talent trends in 2024 highlight how much we’re changing our approach to people management.
The 2024 Global Talent Trends from Mercer highlight the urgency of all stakeholders. Employees are concerned about the future as the business environment continues to be turbulent and seek peace of mind. Executive teams are dealing with inflation, AI, cyber concerns, labor shortages, and uncertainty in the near term during an election year.
The long term outlook from executives is not positive either. Almost two-thirds believe we’re in line for a “turbulent” or “stormy” decade. According to the study, the top strategies for economic uncertainty include “…double down on AI investment (43%), reskilling (40%), and digital transformation (39%). Only one in five said they would reduce their workforce (down from one in four in 2022). This signals a positive trend toward breaking the exhausting cycle of “churn and burn” and reflects HR’s focus on building from within this year. Nearly two-thirds (63%) of executives believe jobs, not people, should be made redundant.”
HR executives understand the need to address the employee experience to attract and retain talent. However, few are focused on sustainability accountability, “good work” standards, and DE&I goals, even though others on the executive team think these areas can drive business growth. HR leaders also understand that agility is key to success. The study notes that less than half of executives believe their company will meet customer demands with their current talent model.
What worked in the past is not going to work anymore. As the study highlights, “The cost of labor is not abating, and offshoring, near-shoring, and business process re-engineering are no longer moving the productivity needle.” Technology, including Generative AI, provides new opportunities for a competitive advantage.
Companies that are performing are capitalizing on four trends.
Drive Human-Centric Productivity
As Generative AI becomes more sophisticated, the mix of human-machine productivity will be critical. AI’s ability to augment human skills will drive efficiencies and innovation. “Leading companies are complementing emerging technologies with agile talent models and human-centric work design — both crucial in reshaping how work gets done and quantifying the value delivered by each worker. This requires deep insights into skills demand and supply and investment in upskilling. Keeping people at the heart of the productivity equation ensures that the gains delivered will be shared by all.”
Anchor to Trust & Equity
Trust is a foundational element of any good business relationship, built on transparency and equitable work practices. Trusting your employees to do their jobs is only half of the equation. Companies that are trusted can attract better talent. “Leaders, take note — employees’ trust in their organization is the strongest variable in influencing how energized they feel at work, their sense of thriving, and their intent to stay.”
Boost the Corporate Immune System
Risk is seemingly everywhere, and being prepared for the unexpected is more important than ever. From extreme weather events to deep fake misinformation tactics, “These realities impact each and every organization and weigh heavily on the minds of their people. To thrive in an uncertain and volatile environment, leaders and employees need to shore up their risk mindset and build resilience at both the individual and enterprise level.”
Cultivate a digital-first culture
This trend has been around for some time but has become critical with advancements made through Generative AI. “This new era of connected-up working also requires a reimagined HR function with the ability to iterate and align processes that fully unlock workforce capacity. Doing so maximizes the potential of both humans and technology — for the benefit of the organization and its people.”
We recommend reading the full 68-page report for additional detail on these four trends. And, visit our blog for more information on executive hiring and related human resources articles or send us a note if you want to speak with one of our HR Recruiters.