6 Key Trends in People Analytics: Shaping Workplaces of 2024
As 2024 swings its doors open, many professionals are eagerly anticipating the latest trends and expectations in their fields for this brand-new year.
Reflecting on 2023 and the pivotal shifts it brought to the HR Analytics domain, we can decidedly mark it as a year of Significant Transition.
Moving from operational reporting, the foundational level of the People Analytics maturity model (as detailed in my article here), many organizations progressed to a more sophisticated stage of advanced reporting — the second tier in the People Analytics Maturity Model.
Let’s say, for those previously underestimating the critical impact of data-driven HR, 2023 was an eye-opener!
The realization of its crucial influence on business outcomes and employee experiences led to a surge in investment and digitization of traditional HR processes and infrastructure. We witnessed and engaged with numerous large companies eager to establish structures for their data governance, embracing a culture valuing data, and initiating steps to synchronize their business strategies with people strategies, thus significantly enhancing their values.
2023 was also a year of awakening for many small and medium-sized companies who had previously dismissed HR analytics and People Analytics as just buzzwords exclusive to market giants. They came to understand that the power of analytics in HR could be a game-changer, offering tremendous and sometimes unforeseen value!
Therefore, if we were to encapsulate 2023 in the HR Analytics field in a single phrase, let’s call it ‘The Year of Awakening and Advancement in HR Reporting.’
For further evidence, you only need to compare the number of job openings in this field with previous years — a clear indicator of our robust progress.
But what lies ahead in 2024? What trends should we anticipate in the People Analytics market, and what strategies should we adopt this year?!
The insights I’m about to share are drawn from my own experiences in the field of people analytics. These observations are shaped by the work I’ve done for several years and the transformations I’ve witnessed, offering a personal perspective on where we’re heading in this dynamic domain in 2024.
1. HR welcomes the Generative AI
The rise of Generative-AI has been making waves across various industries and sectors, and HR is certainly not lagging behind in this tech revolution. We’ve seen a bunch of innovative startups unveiling new business models that harness the power of generative AI to streamline and enhance HR functions.
For instance, consider the emerging internal employee advisor systems, operational 24/7, powered by generative AI, ready to respond to employee inquiries anytime. Or think about performance coaches equipped with this technology, providing comprehensive 360-degree feedback to employees.
These developments are just the tip of the iceberg when it comes to integrating generative AI in HR. We will see how companies further exploit the vast potential of generative AI to revolutionize their HR processes this year. The implications are vast — from automating routine tasks to offering modern, data-driven insights into workforce dynamics.
Let’s keep an eye on this trend as it reshapes the HR landscape in 2024.
2. Predictive Analytics and ML in HR, from Luxury to Necessity
Deloitte research study, “State of AI in the Enterprise,” reveals a compelling statistic: 82% of employees believe that engaging with AI technologies will boost their work performance and job satisfaction. They foresee AI making processes more efficient, enhancing decision-making, and improving productivity.
With such a positive outlook on AI’s impact from employees who are already incorporating AI into their daily business routines, it’s clear that HR departments can’t afford to overlook this trend.
In my collaborations with large enterprises, I’ve observed a growing aspiration among HR departments to embrace predictive analytics and machine learning. They are eager to leverage the power of data and machine learning not just for present-day tasks but to strategize for the future.
Therefore, organizations that hesitate to integrate these technologies into their people-centeric strategies risk falling behind. They may soon find themselves at a competitive disadvantage in the talent market, missing out on significant opportunities to advance and innovate in HR.
3. Recommendation systems to enhance HR-decisions
Recommendation systems, powered by computer algorithms and informed by the data we feed them, are becoming invaluable assistants in the decision-making process even in HR field.
These systems have the capability to guide us in selecting the best candidates for open roles, identifying the most suitable team members for new projects, and even determining which groups of employees would benefit most from specific types of recognition, training, or benefits. amazing, isn’t it?
While recommendation systems have already proven their worth in various industries, HR is now beginning to realize their potential in streamlining and improving day-to-day processes. With the accumulation of more structured, people-related data and the growing progression along the people analytics maturity model, 2024 stands as an opportune year for HR departments to start integrating these systems into their processes. The implementation of the HR recommender systems will bring more precision and efficiency to HR decision-making.
So it’s a trend worth exploring and monitoring in 2024 as well.
4. Remote Work Analytics to understand and enhance the New Norm
The challenging COVID time taught us a lot about adapting to remote work. Today, remote work is not just an option but the norm, and companies that don’t offer this flexibility often find themselves out of favor. However, the shift to remote work demands its own set of HR-analyses and evaluations.
Employees who consistently work from home exhibit different engagement patterns, motivations, and productivity levels. Analyzing factors that affect their engagement, creativity, teamwork, and overall performance has become crucial. Companies need to establish a comprehensive approach to remote work, recognizing it as a fundamental shift in the working paradigm.
In 2024, we anticipate seeing refined remote work KPIs and analysis integrated into our dashboards and reports. These tools will help us understand the nuances of remote work and continually enhance the remote working experience for employees, ensuring productivity and satisfaction in this evolving work environment.
5. Sustainability and Social KPIs: Top Priorities of the New Work
In today’s world, companies that demonstrate their social contributions are increasingly winning over employees’ hearts!
Research indicates that particularly the younger generation, like Gen Z, are actively seeking meaningful and value-driven visions in their workplaces. Those organizations that can quantify and showcase these values through KPIs are emerging as leaders in talent attraction.
In 2024, we expect to see a heightened focus from forward-thinking companies on sustainability goals and ‘green’ KPIs, as they strive to align their business practices with broader societal and environmental concerns.
6. Diversity and Inclusion Analytics to transform aspirations into Reality!
Last but not least is the topic that holds a special place in my heart, diversity and inclusion (D&I) and its required deep analytics.
In recent years, many organizations have proclaimed themselves as diverse and inclusive. However, only those who delve deeper into these areas and substantiate their claims with tangible data and analysis truly stand out as authentic. The new workplace concept envisions a boundary-less, limitless environment. By intensifying the focus on D&I analysis in 2024, particularly in areas like leadership diversity, inclusive decision-making, and recruitment, companies can create a more varied and inclusive culture. This commitment to D&I not only fosters a better work environment but also positions companies to excel in the market. Therefore its another trend to be considered in 2024.
As we conclude the people analytics and HR trends in 2024, it’s clear that we are standing at the cusp of a transformative era. The trends highlighted in my article — from the integration of generative AI and machine learning in HR processes, to the neccary analytics required for effective remote work, the growing emphasis on sustainability and social impact, and the critical importance of diversity and inclusion analytics — all point towards a future where data-driven insights and technological advancements redefine the HR domain.
These trends are not just fleeting changes; they are indicative of a deeper shift in workplace culture and values.
They reflect a growing awareness of the need for workplaces that are not only efficient and productive but also inclusive, sustainable, and socially responsible.
In 2024, the success of organizations will increasingly depend on their ability to adapt to the new changes and leverage the power of analytics to drive meaningful and positive outcomes.
The People analytics journey ahead is exciting and full of potential. By embracing these trends, HR professionals and organizations can look forward to creating workplaces that are not only fit for the future but also conducive to the growth and well-being of their most valuable asset — their people.
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