With the ongoing speed of organizational transformation driven by technological advancements in Malaysia, if not the world, we explore the five key HR trends and best practices shaping HR strategies in the year 2024. With much focus on the evolving societal expectations, here are our top picks of trends taking HR by storm.

1. Integration of AI in HR Capabilities

Since Artificial Intelligence (AI) landed ashore, it has taken almost everything by storm. The revolution of AI in HR is no exception, especially in HR processes. Expectation in 2024 include AI-powered tools and platforms that will enable the increasing integration of HR functions, including but not limited to:

• Recruitment: AI-powered recruitment tools will be used to screen resumes to identify top talents. Algorithms employed will be able to conduct initial assessment of job applicants, while AI-powered video interviews may help to analyse candidate responses as a way to predict job performance.
• Employee Experience at the Workplace: AI will focus on enhancing employee experience in an organization instead of relying solely on human resources. AI chatbots or virtual assistants will be deployed to offer personalized support to employees in practically all work-related queries, including policies, benefits, and training related to their career development. The aim of this is to ultimately improve employee accessibility and the company’s responsiveness. This ties in with the already known fact that by engaging and enhancing employee experience at the workplace, morale and productivity of engaged employees will improve drastically in this era.

AI will continue to be a force in reshaping the future and nature of work. Imagine what the role of a recruiter would be if AI has taken over the job? Food for thought.

2. The Dawn of the Remote Work Model

Since the recent pandemic, HR departments have continued to refine remote work policies and practices in the workplace to support businesses and operations in placing work teams effectively and efficiently. In recent times, the remote work model has become the norm and a part of recruitment strategies, offering competitive advantages, including:

• Flexible work arrangements (FWA): as included in the first schedule of the recent Employment Act updates, FWA is encouraged. Organizations, where permitted, has started to offer flexibility in the form of remote, a hybrid or other flexible work hour arrangements to accommodate a myriad of reasons from employees. However, this is much dependent on the nature of business and industries.
• Enablers: with these arrangements in place, organizations will increasingly adopt digital collaboration tools to facilitate team communication and project management. This is particularly crucial for dispersed teams spanning geographical boundaries worldwide. Examples of such tools include, but are not limited to, Microsoft Teams or Zoom, which have become norms enabling businesses to conduct operations globally.
• Cost-effectiveness: it will not be surprising to see organizations moving towards hiring fewer people and opting for smaller offices with flexible work arrangements (FWA). There will be a tendency to hire freelance professionals and subject matter experts on contractual agreements, which will be preference in the future.

3. Corporate Social Responsibility (CSR)

While this is nothing new, heightened societal awareness and environmental consciousness have made Corporate Social Responsibility (CSR) an integral part of HR strategies in business operations. In 2024, we will see more organizations prioritizing CSR to demonstrate their commitment to social and environmental responsibility. This may include:

• Culture, Diversity and Inclusion (DI) Programs: HR strategies shall focus on promoting diversity, equity, and inclusion within the workplace. Actions to be taken shall encompass well-planned and targeted recruitment, drawing up inclusive policies, and engaging in diversity training programs. Familiarization with cultures in a multicultural country, with expatriates from all over the world, will also be an important aspect of the emphasis.
• Business environmental sustainability programs: more organizations will be drawn to implement eco-friendly practices such as reducing carbon emissions, investing in renewable energy solutions, minimizing waste, or even reducing the use of plastic bags. These are among some of the ways to mitigate the environmental impacts in the ways their businesses are conducted.

4. Digital Literacy and Workforce Analytics

Digital technologies continue to reshape the future and nature of work in 2024. As such, digital literacy and workforce analytics have emerged as critical HR priorities. HR departments shall focus on enhancing employees’ digital skills and leveraging data analytics to drive informed decision-making through:

• Skills and Knowledge: More resources and investment in training programs related to improving digital literacy will be seen this year. Emerging technologies including artificial intelligence, blockchain, and cybersecurity will elevate employees’ know-how and know-what in this digital economy, which is deemed critical for sustainability and continued organizational success.
• Workforce Planning and Optimization: HR’s emphasis on workforce analytics will see a rise as tools are used to collate insights on organizational performance, levels of employee engagement, and identification of gaps related to knowledge and skills. This will enable proactive workforce planning and development strategies.

5. People Development

The priority of continuous people development has always been and remains one of the most crucial agendas in HR strategies, amidst technological advancements and moving towards a digitalization era. At the top of the focus in 2024 in the people development agenda will be employee growth, well-being, and career advancement opportunities, including:

• Development Opportunities: Efforts to provide continuous professional development and learning, mentorship, and career coaching programs will be thriving. Organizations will begin to realize that these initiatives will be the success factors in helping to keep employees abreast of the need to stay ahead in a challenging and competitive business environment.
• Staying Ahead – Improving Employee Well-being: Yet another agenda of paramount importance. Adopting a holistic approach by implementing well-being programs will help address the physical, mental, and emotional aspects of employee health. Examples of such programs include wellness challenges among employees in the workplace, providing mindfulness sessions, and access to mental health resources for reference and periodic checks.

A glance at the HR landscape above for 2024 stresses the coming together of human-centric directions while embracing technological innovations in practice. The implementation of these trends and best practices will help navigate organizations in a foreseeable modern workforce environment, which will support employees’ growth toward purposeful organizational objectives and success.