2024: Priorities for CHROs and Their Executive Teams in Europe

13 February 2024 / Report

To help CHRO get ahead of disruptive change, we provide a look at the likely human capital trends in 2024, based on our work with many of Europe’s leading multinationals, as well as writings of thought leaders in the field. We identify the following actions that CHROs and their teams should prioritize in 2024.

Trusted Insights for What’s Ahead™

Elevating the role of CHRO to demonstrate influence and impact in the executive team and on the business as a whole. CEOs, boards, investors, and regulators will scrutinize the impact and outcomes of human capital strategy and investment. CHROs must communicate how their people strategy drives business performance and growth. The rising environment, social, and governance (ESG) agenda in Europe will ensure a larger role for the people function in overseeing social impact and embedding a purpose led, sustainable culture.
Driving improvements in people-based productivity is a priority, but it requires CHROs to balance short-term savings while investing in longer-term business growth. Business costs are a major concern for CEOs in Europe, giving urgency to cost cutting during 2024. As labor is typically one of the largest costs, CHROs must deliver short term savings and efficiencies.However, CHROs must also focus their strategies on the drivers of improved people-based productivity (such as training and development, and employee well-being). Compensation is a likely source of tension as tight labor markets in Europe and inflation improve the bargaining power of workers. CHROs can avoid unsustainable pay increases and engage talent by offering highly tailored benefits—for example rental deposit loans or flexible savings schemes—and financial wellbeing offerings such as personalized financial coaching.
Implement AI for workplace-based transformation. 2024 is the year organizations must commit to and invest in game-changing technologies, such as Generative AI. CEOs have high expectations of AI’s potential to enhance labor productivity. CHROs must lead work transformation and capability building. This commitment will demand hard decisions about how AI can replace or augment jobs and training and development to help employees adapt and maximize AI’s impact.
Mature talent strategies for competitive advantage—especially to retain workers in tight labor markets. CHROs are broadening their talent segments, viewing every employee as having growth potential. This more diverse “talent ecosystem” extends to contingent workers. CHROs will urgently seek the support of C-Suite stakeholders to develop customized solutions aligned with business and employee needs. Such solutions will necessitate enhancing people managers' abilities to adeptly manage talent. Increasing talent management maturity will depend on creating integrated talent approaches (workforce planning, talent acquisition, and talent marketplaces), adopting new technologies, and leveraging data to engage specific talent segments.