Mumbai,  January 6, 2023 – As the work landscape undergoes significant shifts globally, insights from   HR specialist, ADP’s ( "Always Designing for People") report, Seeking Clarity and Confidence in a Changing World of Work: HR Trends and Priorities for 2024, reveals crucial trends set to reshape the future of human resources. The report outlines pivotal developments impacting HR functions, including Generative AI, HR technology advancements, and the evolving landscape of diversity, equity, and inclusion (DE&I).
Here are the top 6 HR trends and priorities for 2024:
Generative AI to reinforce HR's data-driven capabilities
Generative AI took centre stage last year, being extensively embraced across various sectors, and the HR industry has been no exception. The technology is revolutionizing HR functions, providing robust and efficient ways to automate tasks, and helping leaders with sourcing, screening, and selection of talent, as well as assisting with onboarding, career development, payroll, and performance management. Many companies in India are already using Generative AI for various applications like chatbots to assist employees on HR queries like leave management, mapping employee engagement, analysing resumes for hiring, and competency and skill mapping of employees. [1]
However, as Generative AI gains momentum in India, strategies for ethics and compliance will become crucial. Establishing foundational governance guidelines on managing data privacy and security and complying with legal and regulatory requirements will become essential for any organisation leveraging Generative AI.
Strong considerations for pay equity and transparency
Pay transparency is a mechanism for improving pay equity and is an ongoing compliance and workforce trend. As pay transparency laws and expectations proliferate, leaders will increasingly be unable to conceal pay from candidates and employees, so in addition to developing a compliant plan for addressing pay inquiries, leaders should consider closing existing pay gaps. According to this research, job postings with pay listed have 30% more applicants. Additionally, workers who believe their pay is unfair are 3.4 times less likely to be fully engaged. People analytics is becoming a viable option for identifying gaps in diversity and pay that might be affecting feelings of inclusion.
India is making strides in this aspect as revealed in ADP® Research Institute's People at Work 2023: A Global Workforce View report which revealed that India’s gender pay gap is below the global average. Indian men reported an average pay increase of 7.2%, while women saw their pay rise by 7% in 2022. Looking ahead to the next 12 months, Indian men and women expected their pay to increase by the same rate at 8% indicating that gender pay parity is becoming a reality in the Indian workforce.
DE&I will continue to drive change
On a positive note, the paradigm of DE&I is shifting towards an inclusion-first approach. Organizations are reassessing programs and practices to incorporate diverse perspectives, recognising the potential for more inclusive and innovative outcomes. The consideration of neurodivergence as a critical part of the employee experience is also seen as an ongoing DE&I priority. Remarkably, as per the ADP study referenced earlier, 59% of respondents in India have acknowledged substantial enhancements in DE&I initiatives over the past three years, surpassing APAC averages. Notably, Australia stands at 42%, China at 57%, and Singapore at 35%. Among the various DE&I initiatives adopted by Indian companies, staff training holds the highest popularity at 54%, closely followed by awareness events at 45%. [2]
Training employees for multifunctional roles, the solution to labour shortage
Organizations in India across industries are struggling to fill roles even as the unemployment rate has risen to a two year high of 10.05% (as of October 2023, according to the Centre for Monitoring Indian Economy (CMIE)[3]. This disconnect could stem from a mismatch of education and skills with business needs, with a tendency to buy skills rather than build them, there is a shortfall in experienced talent or an increase in roles that require skills in new technologies. To address this challenge, there are two ways by which focusing on reskilling can help employers answer the labour shortage
The first way addresses internal development by training employees for crossover and multifunctional roles, expanding the skill sets of current employees and providing more opportunities for internal mobility. The second way is through hiring people with transferable skills. This course of action requires a new approach from leaders as they evaluate candidates.
Combining skills-based talent development with strengths-based talent development, can also help employees better understand their natural gifts and tendencies and allow organisations to put them in roles where they can maximize those activities leading to greater engagement, performance, productivity and reduce turnover.
Focusing on improving employee experience
While Millennials and Gen X continue to be a part of the workforce, with approximately 20% of the global Gen Z population in India, the workforce is notably shifting towards a younger demographic. Each of these generational cohorts embodies distinct values, demanding leaders to attentively analyse and assess the evolving preferences of current and potential employees.[4]
Where Millennials leaned more towards financial incentives, Gen Z prioritises elements like culture, continual learning, and personal growth alongside a company's brand value. While Millennials valued job security and ongoing development, Gen Z places greater importance on job satisfaction and a positive work environment. Financial benefits and career advancement remain consistent expectations across both generations. Consequently, organizations must prioritise initiatives related to learning and development, revamp benefits packages, and foster adaptable workplace cultures.
Notably, over 20% of organizations globally intend to increase their investment in HR technology in 2024, emphasising the enhancement of worker engagement and satisfaction through strategic spending, particularly in areas such as rewards and recognition.
Staying ahead of regulations and compliance to enable business growth
The changing nature of work, evolving work models – including remote working, gig economy and international workforce management - and the associated legal requirements are making compliance in HR more complex than ever. Regulatory framework is tightening and impacting various functions within the organisation. Extensive deployment of digital technologies for tax computations, social security payments and filings, and the upcoming labour laws are enabling the government to enforce compliance across the board. Many organisations can take proactive steps and use this as an opportunity to drive a stronger employer brand and foster a trustworthy work environment. Young workers today are seeking employment in organizations renowned for their flawless track record and strong reputation for compliance.
Rahul Goyal, Managing Director, ADP India & Southeast Asia, said, “As HR navigates the dynamic landscape of 2024, understanding and harnessing these trends will be pivotal in fostering inclusive workplaces, embracing technological advancements, and bridging critical skill gaps. The key lies in upskilling for emerging job roles, fostering inclusivity, and personalizing the employee experience, for the future of work. This is not just about adapting; but leading the charge towards a resilient and engaged workforce.”

[1] SHRM - 5 ways AI is helping HR in India

[2] ADP research reveals India’s progress in closing gender pay gap

[3] India jobless rate rises to more than two-year high - CMIE

[4] NASSCOM - Gen Z And Millennials: Reshaping The Future Of Workforce