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12° Nicosia,
21 April, 2024
 

Deloitte reveals the top human capital trends and challenges for 2024

Breaking internal barriers for a boundaryless future

Newsroom

Deloitte’s annual ''Global Human Capital Trends'' report identifies the most pressing issues for organisations, leaders and workers. This year’s report, “Thriving Beyond Boundaries: Human Performance in a Boundaryless World,” identifies seven trends that present how a combination of business and human outcomes plays a role in organisational success, with trust and human sustainability identified as top issues.

The report is based on a survey which polled 14,000 business and human resources leaders across many industries and sectors in 95 countries, complemented by interviews with executives from some of today’s leading organisations. In addition, this year the research was enhanced with worker- and executive- specific surveys to represent the workforce perspective and uncover where there may be gaps between leader perception and worker realities.

Three key takeaways from the report

- Human performance, a mutually reinforcing cycle of business and human outcomes, indicates that instead of putting first the business issues at the expense of human outcomes, organisations should take a human sustainability approach to improve outcomes for workers, customers, and society in general.
- Most leaders understand that focusing on human performance is key to building thriving organisations, but they need to close the gap between knowing that issues should be addressed and doing enough to make meaningful progress.
- Organisations should evolve. By using different data sources and technology, they can find new ways to measure and enhance human performance, building human capabilities to take advantage of technologies like Generative AI.

Understanding human sustainability

Prioritising human sustainability, the degree to which an organisation creates value for people as human beings, leaving them with greater well-being, employability and equity, can drive better outcomes for humans and businesses. As the research showed 89% of executives say their organisation is advancing human sustainability in some capacity but only 41% of workers say the same. At the same time workers identified increasing work stress and the threat of technology taking over jobs as the top challenges to organisations embracing human sustainability.

Defining new metrics for human performance

As work grows to be more dynamic, cross-functional, and less quantifiable, traditional productivity metrics like hours worked and time on tasks may not be enough to capture performance. Technology and data collection advancements are leading to more meaningful metrics for organisations. As data increases, organisations may have to consider what information should be transparent to their workers.

From our research we see a 53% agreeing that their organisation is in the early phases of identifying better ways to measure worker performance and value, however only 8% say their organisations are leading in this area. Also, when workers are confident that their organisation is using their data responsibly, they are 35% more likely to trust the business, however only 37% say they are very confident their organisation is using data in a highly responsible way.

Bridging the gap from knowing to doing

This year’s research also includes several trends that focus on how organisations can evolve their mindsets to meet new challenges. One is the rapid advances of artificial intelligence (AI) and Generative AI, which highlight the importance of workers improving their human capabilities like curiosity and empathy to spark imagination. 73% respondents say that having human imagination keep pace with technological innovation is important, but only a 9% are making meaningful progress toward achieving this. Organisations should encourage workers explore intentionally and experiment with new technologies, through digital playgrounds.

Today’s workers also want the freedom to have microcultures that meet each team’s needs, while staying true to the company values. To support these more autonomous and diverse teams, HR will also need to train workers to have a more people-oriented approach rather than acting as a standalone function. This is clear from the 71% percent of respondents who say that focusing on individual teams and workgroups is important to cultivate culture, fluidity, agility and diversity, with 31% of C-suite respondents identifying that changing an organisation’s approach to HR is one of the three most difficult trends in this year’s report.

“In an evolving market, being able to leverage technology and tools that enhance human performance is essential to businesses, as it allows them to be more agile, adaptable, and competitive. AI, and technology in general, can greatly complement HR functions, by automating repetitive tasks, providing data-driven insights, and enhancing the overall employee experience. When employees and technology are used together effectively, they can create a powerful force that drives organisational success and empowers employees to reach their full potential”, highlights Joanna Artemis, Director, Consulting Services at Deloitte Cyprus.

To download the full report, visit 2024 Global Human Capital Trends

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Cyprus  |  business  |  Deloitte  |  technology  |  company

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