It’s that time of the year when trends and predictions are rife. Yet for 2024, there seems to be a level of consensus on key HR and workforce trends, perhaps because many of them are issues employers have been grappling with for a few years now.

We therefore look at the common trends highlighted by thought leaders for consideration this year.

1. Rebuilding trust

The amount of change in the last few years has created friction. According to Gartner’s Top 5 HR Trends and Priorities for 2024 report, only 26% of organisations say their employees fully comply with on-site attendance requirements, and nearly 50% of employees view their current performance as unsustainable and trust their organisation, which unfortunately works both ways. Flexibility, productivity expectations and mutual mistrust are impacting engagement and performance.

The report argues the best organisations prioritise culture connectedness by enabling employees to engage with the culture wherever they work, establishing an emotional connection and equipping teams to create vibrant and healthy microcultures. By prioritising these elements, organisations can create a strong culture that drives employee engagement, enhances productivity and fosters a sense of belonging and purpose.

From a leadership perspective, communication remains key. According to Culture Amp, which creates benchmarks based on survey results from over 600,000 customers, employees will seek the kind of leaders who share their strategic vision with the wider organisation, are transparent in their communication and deliver on promises.

2. Wage inflation pressure driving the need for efficiencies

Wage growth has been much weaker in the last ten years when compared with the previous decade, and it is forecast that this will continue, which means wages won’t keep pace with inflation in the short to medium term. While the latest ABS figures, which track to September 2023, list 4% growth for the year, this is somewhat skewed by specific areas where shortages are prevalent. Businesses will continue to focus on efficiencies in order to retain employees and remain profitable.

However, for many employers, wage pressures continue to be a challenging reality when the cost of everything is higher. According to Forbes, compensation will continue to change, with new expectations and needs around flexibility, equity, transparency, and delivery. The EU Pay Transparency Directive will also shift employers into implementation mode in 2024. The obligation to collect and report on gender pay inequity data, as well as provisioning for employees to see this addressed in cases of injustice, will strongly incentivise European employers into actions towards gender pay equality, transparency and career pathing. Many multi-nationals may opt to implement this globally, or at least in developed countries in which they operate, like Australia. While this does not reflect Australian legislation, it aligns with an increasing focus on this issue, and change may be necessary for non-European competitors to attract staff.

3. The opportunities and impact of Generative AI

Generative AI was embraced by employers in different ways during 2023, and there is no doubt some organisations that went in hard and fast got burnt. According to Forbes, companies will start to deploy and leverage it with more wisdom and discretion as a result. It is predicted most organisations, departments, teams, and individuals will be spending significant time this year trying to work out where and how Generative AI can be used to their advantage.

Generative AI is seen as both a threat and a benefit, and this complex relationship will continue to play out. From an HR perspective, it means significant change as employees learn to meet new objectives differently. Culture Amp believes this will require curiosity, experimentation and significant learning, with organisations needing to provide time and resources, as well as a psychologically safe space, in order for employees to engage. Leaders will need to set objectives around both learning and the outcomes these tools can help to deliver for their employees.

Furthermore, AI’s use in refining and streamlining many HR processes and providing support and assistance in ways that reduce friction and improve the employee experience without dehumanising it is paramount. For some industries, this includes significant conversations about the ethical and privacy implications of using AI in specific contexts that result in policy development. This is a necessity as legislation and guidelines at both the country and global governance levels have not caught up.

4. Evolving management roles

More and more Baby Boomers are retiring, while Millennials, now in their 30s and early 40s, are increasingly taking on senior roles and Gen Zs aren’t just starting to enter the workforce, some are already managing teams. According to Culture Amp, this means a significant culture shift. Gen Y and Z have different expectations around communication, leadership and culture – they are comfortable sharing vulnerabilities online and in person, question top-down power dynamics and want to be actively involved in decisions that affect their work. Furthermore, they expect to see documentation and research so they can see decisions are informed by data, not gut instinct.

Yet this is only one significant driver in the need for change. According to a Gartner report, the average manager has 51% more responsibilities than they can effectively manage. Additionally, one in five managers would prefer not to manage people, and only one in two employees say their managers treat them with empathy and fairness. A contributing factor is that 59% of managers report spending a significant amount of time not on core activities. In short, manager roles are no longer manageable!



This means a shift in roles and different pathways for progression, not all aligned with people management. The Garter Report recommends resetting role expectations, empowering managers to connect employees with others for coaching and development while rescoping roles to focus on tasks that individuals are uniquely positioned to execute.

To build the manager pipeline, encourage aspiring managers to self-discover if management is right for them by exposing them to the toughest parts of the role early and normalising opting out of management. Equipping managers to build strong people management habits through intentional cues, maintainable routines and focused reflection will also be essential, ensuring proactive talent management. However, to engage managers, removing process hurdles and eliminating low-value rules that burden managers and employees will also have significant benefits.

5. Skills – shortages, development and reskilling

While this trend seems to be rolled out each year, the reality is that a lack of skills remains a key challenge for Australian employers. Some skills shortages like those in the medical profession have remained consistent, whereas other areas shift rapidly in response to market growth or slumps.

Against a backdrop of skills shortages in Australia, organisations are going to need to invest significantly in upskilling and reskilling employees. We’ve written extensively about this particular issue here.

If you need help with workforce management or recruitment in 2024, Bayside Group’s specialist consultants are here to assist. Contact us today for a confidential discussion.