In 2023, artificial intelligence, especially generative AI, has been in controversy due to developments such as ChatGPT and Google’s Bard.
Concerns have emerged about the impact of artificial intelligence on jobs.
2023 marked a significant paradigm shift, especially in the fields of leadership and technology.
High inflation pressure still poses some risks for the global economy.
With a renewed focus on cost structures in the corporate world, cracks are forming beneath the surface of the workplace, even if they are not yet fully visible.
2024 may test the durability of their organizations. Even though there is light ahead of us, we are not completely out of the darkness yet.
In 2024, companies may face difficulties as stakeholders’ demands on businesses (from employees, customers and investors) increase.
The business world is preparing for another year of radical changes.
Here are 10 business trends that could shape the new year:
- 1. Wage inflation puts pressure on corporate sustainability
- 2. “Career support” trend with employees trying to protect themselves in 2024
- 3. Expansion of skill-based recruitment
- 4. Continued return to the office
- 5. Generational changes in leadership
- 6. Increasing skill demands on leaders
- 7. Artificial intelligence skills are included in more job postings and job descriptions
- 8. Increased emphasis on environmental sustainability
- 9. Fighting burnout
- 10. The gig economy continues to grow
1. Wage inflation puts pressure on corporate sustainability
The business world will set its sights on managing operational costs in the new year.
In 2024, human resources teams will need to pay close attention to the discrepancy between the living wage and the minimum wage and how this affects workplace productivity.
Salary transparency will continue to be an important issue for organizations in 2024.
Being clear about salary in job descriptions and with current employees will help set the standard for share equity.
2. “Career support” trend with employees trying to protect themselves in 2024
Career support (career buffering) refers to the strategy where employees add security to their careers by taking proactive steps such as attending networking events, updating their resumes, LinkedIn profiles, or even applying for jobs.
Career support, which allows employees to get a quick start in case their roles change or disappear, even if they do not want to leave their current positions, actually creates backup career opportunities.
While career support is not entirely new, it has gained momentum recently with the proliferation of remote working, widespread use of platforms such as LinkedIn, and increased access to professional opportunities.
Individuals are becoming more conscious of diversifying their skills and networks, recognizing the need to navigate the current professional environment with agility.
This trend is essentially a response to the evolving nature of employment dynamics and is expected to continue into 2024.
3. Expansion of skill-based recruitment
The shortage of the right talent with the right skills remains a pressing challenge for business.
Navigating the talent market environment that constantly shows signs of contraction, we may see skill-based recruitment and in-house talent mobility for organizations to close the talent gap in 2024.
External recruitment can be prioritized according to internal talent mobility, and recruitment can focus on the skills people have.
While technology equips individuals with job-specific skills, it reveals a significant change by placing more emphasis on human-specific skills social such as resilience, creativity, communication, collaboration and originality.
Because these are skills that artificial intelligence cannot fill. We can see that people-focused skills will become more important in recruitment processes and will be key to best hiring practices.
4. Continued return to the office
We will continue to see a return to office battle over the next few years.
Companies that continue to rely on a mandatory office presence will face an even more severe talent shortage.
Employees value the flexibility and benefits of working remotely, and there will always be someone who will offer them that flexibility for the same pay.
The mandate to return to the office in 2024 will be a significant factor in drawing talent away from large companies.
Companies that cannot offer flexible working and remote work will have a hard time competing in the market as their workforce tends to be understaffed, overworked, and overstressed.
5. Generational changes in leadership
As Baby Boomers retire, leadership roles are increasingly filled by younger generations, including Generation X, Millennials and Generation Z.
This generational change brings with it different preferences and working styles. Understanding and addressing the needs of the younger workforce, especially Generation Z, will be crucial for organizations.
As I wrote in my book “The Future of Work is Now” ;
Baby Boomers, the largest demographic group the world has ever seen, will leave the workforce by 2025. With them, a great deal of knowledge will come out of the business world. It will be important to transfer knowledge through mentoring and training programs before this generation retires.
In 2024, Generation Z employees who are transparent and sensitive to social events and making their voices heard at work will represent a cultural change that companies cannot ignore.
They will constitute a rapidly growing share of the workforce. The representation of Generation Y and Z, who does things differently from their predecessors, in managerial roles will increase.
These younger generations will be more comfortable leveraging technologies like artificial intelligence and machine learning to help automate and personalize workflows.
Additionally, as more Gen Z workers enter the workforce in 2024, pay transparency will likely be a hot topic and there will be more discussions to reduce pay gaps.
6. Increasing skill demands on leaders
Leadership skills are undergoing a significant transformation. In 2024, effective leaders need to focus on building trust, deepening employee engagement, and moving away from a command-and-control approach.
How leadership will be stronger, clearer and more participatory is among the most important priorities. In 2024, the demand for leadership skills to be upgraded and upgraded quickly will increase.
7. Artificial intelligence skills are included in more job postings and job descriptions
Alongside the growing demand for technology skills, the impact of emerging technologies, particularly artificial intelligence, is expected to have a significant impact on a variety of roles.
Artificial intelligence was very popular in 2023, and this trend is unlikely to change until 2024.
We can expect to see exciting growth in the adoption of AI, from chatbots to machine learning to automation embedded in many processes and working behind the scenes.
Therefore, it will be necessary to encourage and train teams on how to use artificial intelligence.
8. Increased emphasis on environmental sustainability
Sustainability is not just a buzzword; is becoming a core value for businesses worldwide.
Although the role of human resources in sustainability is relatively new, companies will focus on adapting to the challenges of climate change and ensuring their workforce is knowledgeable and prepared for environmental disruptions.
9. Fighting burnout
Employee burnout, which has been exacerbated by global and local market disruptions, is not expected to show any signs of abating in 2024.
Therefore, it will be necessary to prioritize employee well-being by implementing healthy lifestyle programs, mental health support and flexible planning.
I expect a more prominent focus on workplace mental health initiatives in 2024.
10. The gig economy continues to grow
In the modern era, titles such as freelancer and freelancer are becoming commonplace, thanks to changing working practices shaped mainly by Covid-19.
Employees are leaving their 9-to-5 jobs for more flexible work schedules, and the gig economy is booming. The growth of the gig economy won’t stop anytime soon.
The difficulty with seeing the future is that you can’t. While yesterday’s trends can provide clues about tomorrow’s trends, there will always be things that come out of nowhere.
The global economic challenges predicted for businesses in 2024 require a cautious approach to spending and investment.
However, some technological and societal changes are expected to be too important to leave aside.