5 of the Top Global Workforce Trends of 2024
At the World Economic Forum’s 2024 Annual Meeting in Davos, the future of workers and the workplace was high on the agenda. One of the key messages from business leaders was that investments in industry are doomed to failure without equivalent investment in people.
Work environments are changing fast. A report from the World Economic Forum suggests that 44% of workers’ core skills will be disrupted by 2027. Technology is advancing at an exponential pace, leaving companies scrambling to ramp up their training and scale up programs. The World Economic Forum report also revealed that the lack of economic opportunity over the next two years was one of the most commonly cited concerns of risk experts.
One of the biggest disruptors globally is AI. There are also a myriad of other disruptive factors, including geo-economic conditions and the green transition. Experts warn that by 2027, businesses all over the world will see a period of unprecedented disruption marked by both emerging and declining roles, culminating in a “churn” for almost a quarter of all jobs.
From prioritizing employees’ mental health to changing workplace demographics, we look at some of the biggest global workforce trends in 2024.
Prioritizing employee well-being
Despite some softening of the labor market, many companies are still struggling with their talent pipeline, highlighting the importance of employee retention and placing the onus on managers to engage with staff and ensure strong employee morale. In addition to financial stability, employee priorities in 2024 include digital enablement, psychological safety, skills growth, job security, and a sense of purpose.
The pandemic and subsequent economic downturn have laid bare long-buried workplace failings and stressors in many businesses, highlighting a need for more attention to mental health and a transition to a people-first working culture. Businesses that address factors such as work hours, employee trust, and employee well-being improve the overall employee experience. This in turn helps to drive improved business performance, making investing in employee well-being a critical priority for any forward-looking organization.
A Gallup report on the state of employee well-being highlights the dangers of organizations failing to prioritize the well-being of workers, revealing a marked correlation between increased workplace stress and high staff turnover to the detriment of the companies involved. To drive business success, leadership must improve employee well-being, reduce the risk of burnout, improve engagement, and increase company loyalty, all of which culminate in a measurable ROI.
Increased focus on AI and other technological advancements
As AI and other technological advancements transform businesses and entire industries, employers need to ensure that their workforces have the skills and tools required to leverage this technology effectively. From developing an awareness of cyberthreats to appreciating the importance of data-driven decisions, a shift in mindset is necessary. In addition, managers need to focus on developing empathy and emotional intelligence, bearing in mind that these are the areas where AI and technology fall short.
C-suite braces for uncertainty
Mercer’s 2024 Global Talent Trends report reveals that, with the turbulent business environment showing no sign of abating, business leaders are bracing for uncertainty, doubling down on reskilling, digital transformation, and AI investment. That said, Mercer’s 2024 Global Talent Trends report revealed that only 1 in 5 respondents had plans to reduce their workforce, while 63% of executives agreed that jobs rather than people should be made redundant. Although a third of respondents reported that they were “very confident” that they could make human-machine teaming a success, navigating the future of workplaces will require attention to persistent people issues.
Continued demand for flexible working practices
Although numerous companies around the world are pushing for a return to the office, in reality remote and hybrid working practices remain incredibly popular with employees. Encouragingly, a recent Gallup poll reveals that 8 out of 10 chief human resources officers from Fortune 500 companies reported having no plans to decrease remote work flexibility in the next 12 months.
With 9 out of 10 remote-capable employees showing a preference for remote work flexibility and the vast majority preferring hybrid work, continued flexibility is vital in terms of attracting talented candidates. Most studies suggest that a workweek incorporating two to three days in the office is an optimal hybrid arrangement for performance and culture. In addition, research by Deloitte reveals that 2 out of 3 hybrid workers would be prepared to leave their organization if called back to the office full-time, making flexible working policies a smart tactic for businesses in terms of both recruiting and retaining staff.
Changing workplace demographics
With populations aging and international migration increasing, organizations are becoming acutely aware of the necessity of workforce diversity and inclusion. Traditional ideas and hierarchies are being shaken up, with tolerance for inequities like the gender pay gap rapidly declining, and factors such as gender, race, age, or even education becoming less of a barrier to progression.
