2024 HR Trends - The Year of AI

How is the future of work evolving and are you ready for what’s next? Access a presentation of the top trends impacting HR from SAP’s HR research scientists. Learn about what’s trending in the world of AI-enabled HR and find out how organizations are preparing and adapting to thrive in the rapidly changing world of work. Download the Document

Public2024 HR Trends:The Year of AIGrowth & Insights TeamSAP SuccessFactors
2PublicMethodologyWho SAP SuccessFactors Growth & Insights TeamWhat Annual analysis of the most prevalent HR andworkforce trends and their year-over-yearevolutionHowBusiness presssources100 Individualtrends611 Meta-trends9TrendextractionAI-enabledcontent analysis
3PublicEmployee experience continues to permeate HR trends and strategy1AI upends theworld of work aswe know it2Skills become thecenter of HRpractices5Mental healthreaches abreaking point3Hybrid workreturns to theoffice6Trust in leadershipplummets tonew lows4DEI&B stalls inmomentum7HR transforms theirown skills andagility8Pay gets put in thespotlight9Sustainabilitybecomes astrategyHR Meta-Trends for 2024
4PublicWhat caught our attentionAI dominated the 2024 trends discourse, with AI increasingly being seen as a way to augment humanwork. HR use cases abound, particularly within talent acquisition, but concerns continue about dataprivacy, ethics, and regulatory compliance.What we’re thinking about HR leaders can support organization-wide AI strategies by governing the change managementrequired of the transformation and tracking important KPIs associated with the strategy’s success. Possible use cases of AI in HR are numerous, but not equally valuable. More experimentation and fieldresearch is needed to quantify the return on investment of different AI use cases. Like all data-driven tools, it’s “garbage in, garbage out” with generative AI. Companies will need toolsthat leverage their unique organizational data to ensure system outputs are relevant to their specificcontext.#1: AI upends the world of work as we know itQuestions to prepare for the future How will you prepare people managers to manage the performance of employees who useAI? What are your organization’s principles to guide decisions related to AI? What outcomes arethe highest priority for your organization to achieve with AI and how will you track its successin those outcomes?
5Public SAP SuccessFactors Employee Central: Use a central repository of accurate, up-to-datepeople data to deliver AI-powered employee experiences in HR and across other areas ofthe business. SAP SuccessFactors Opportunity Marketplace: Help employees explore growth anddevelopment opportunities by using talent intelligence to surface relevantrecommendations for short-term assignments, mentors, new roles, and others. SAP SuccessFactors Learning: Accelerate upskilling and reskilling initiativesby using talent intelligence to deliver learning recommendations based on what anindividual has to, needs to, and wants to learn. SAP SuccessFactors Recruiting: Ensure an inclusive and skills-based approach to hiring byusing generative AI to enhance job descriptions and interview questions. SAP SuccessFactors solutions with Joule copilot: Help employees and managers workfaster and smarter by using an AI copilot to make it easier to find information and completecommon HR tasks, such as updating personal data, giving feedback, and initiating apromotion.SAP SuccessFactors solutions to help#1: AI upends the world of work as we know it
6PublicWhat caught our attentionThe impact of AI on workforce planning will be significant, forcing organizations to reconsider what AIskills are needed, who possesses those skills, and how to fill skill gaps whether build, borrow, buy, orbot.What we’re thinking about Organizations can now target workforce planning efforts at specific AI skills (vs. treating skills as acatch-all), which could make these efforts more successful. Skilling initiatives must drive a stronger sense of motivation among employees while also showingtangible prioritization from the organization like incentivizing employees monetarily. High-potential programs and practices need a skills-based overhaul. Organizations should answer thequestion “potential for what?” by focusing on employees’ potential to acquire certain skills.#2: Skills become the center of HR practicesQuestions to prepare for the future Which roles in your organization will need the skills to develop, implement, and maintain AI,and which roles will need to use AI as a tool to complete their work? What is the minimum AI proficiency level expected across your workforce, and does a curatedAI learning journey exist for employees to achieve this? In what ways could your organization show they are invested in the success of reskilling andupskilling initiatives? Would you consider financially incentivizing skill acquisition?