10 HR compliance trends to watch

Navigating the ever-evolving landscape of HR compliance is no small feat, especially for businesses with limited resources. Staying ahead of compliance trends is crucial to avoid legal pitfalls and create a fair, engaging workplace. As we step into 2024, several key trends are emerging that every HR professional should keep an eye on. These trends will not only shape the way we manage human resources but also ensure we are fostering environments that are inclusive, compliant, and forward-thinking.

Human resources (HR) has always been a dynamic field, constantly adapting to new regulations, societal shifts, and technological advancements. However, the pace of change in recent years has been unprecedented, driven by global events, evolving workplace norms, and rapid technological innovations. For small to medium-sized businesses (SMBs) with 5 to 100 employees, keeping up with these changes is more than just a matter of compliance—it's about staying competitive, attracting and retaining top talent, and fostering a positive organisational culture.

The coming year promises significant shifts in how HR departments operate, particularly concerning compliance. These shifts are not just about adhering to new laws but also about anticipating changes and being proactive in implementing best practices. With increased scrutiny on data privacy, a heightened focus on mental health, and the ongoing challenges of managing a hybrid workforce, HR professionals must stay ahead of the curve.

Moreover, as the gig economy continues to grow and AI becomes more integrated into HR processes, the ethical and practical implications of these developments cannot be ignored. Ensuring fair treatment of gig workers, maintaining transparency in AI-driven decisions, and upholding data privacy are all critical components of a modern HR strategy.

In this article, we'll delve into ten HR compliance trends to watch in 2024, providing insights and actionable strategies for SMBs to navigate these changes effectively. From enhanced data privacy regulations and the focus on mental health to the ethical use of AI in HR, we will explore each trend in detail. By understanding these trends and preparing for their impact, your business can not only ensure compliance but also build a more resilient and forward-thinking organisation.

1. Enhanced data privacy regulations

In 2024, data privacy remains a top priority, with stricter regulations coming into play worldwide. The General Data Protection Regulation (GDPR) in Europe has set a high standard, and other regions are following suit. New laws are expected to mandate even more rigorous data handling and protection protocols.

For SMBs, this means investing in robust data protection strategies. According to a study by Cisco, 84% of consumers care about data privacy and expect companies to protect their information. Implementing comprehensive data privacy measures not only ensures compliance but also builds trust with employees and customers alike.

2. Focus on mental health and well-being

Mental health has been a growing concern in the workplace, and 2024 is set to see even greater emphasis on mental well-being. Companies are now required to take proactive steps to support the mental health of their employees, driven by both regulatory pressures and a genuine recognition of its importance.

Investing in mental health resources, providing access to counselling, and fostering a supportive work environment can significantly reduce employee stress and improve productivity. According to the World Health Organization, for every $1 invested in mental health, businesses see a $4 return in improved health and productivity.

3. Inclusive workplace policies

Diversity and inclusion are no longer just buzzwords but essential components of modern HR strategies. 2024 will see more stringent regulations ensuring that workplaces are inclusive and equitable. This includes not only hiring practices but also everyday workplace policies and culture.

A diverse and inclusive workplace fosters innovation and growth. McKinsey's research indicates that companies in the top quartile for gender diversity are 25% more likely to have above-average profitability. Reviewing and updating your inclusion policies regularly will be crucial to staying compliant and competitive.

4. Remote work compliance

Remote work is here to stay, and with it comes a host of compliance challenges. From ensuring data security to managing employee well-being, companies must adapt their policies to support a distributed workforce.

In 2024, expect to see more regulations around remote work, particularly in terms of labour laws and employee rights. A survey by Buffer shows that 98% of remote workers would like to continue working remotely at least some of the time. Ensuring your policies are up-to-date and compliant with these new regulations is essential for maintaining a happy and productive remote workforce.

5. Pay transparency laws

Transparency in pay is becoming increasingly important, with new laws aimed at closing the gender pay gap and ensuring fair compensation. In 2024, more regions will introduce regulations requiring companies to disclose pay scales and provide justifications for salary differences.

Implementing transparent pay practices can enhance trust and reduce turnover. A study by Payscale found that pay transparency can increase employee retention by up to 30%. Regular pay audits and clear communication about compensation policies will help in staying compliant and fostering a fair workplace.

6. Increased focus on gig economy workers

The gig economy continues to grow, and with it, the need for clearer regulations around gig workers' rights. 2024 will see more laws aimed at protecting these workers, ensuring they receive fair compensation and benefits.

For SMBs that rely on gig workers, staying compliant means re-evaluating how these workers are classified and treated. The International Labour Organization reports that nearly 30% of the global workforce is now engaged in gig work. Ensuring fair treatment and compliance with new regulations will be critical in leveraging this growing workforce segment effectively.

7. Enhanced cybersecurity measures

As cyber threats become more sophisticated, the need for robust cybersecurity measures in HR processes has never been greater. 2024 will see stricter regulations around protecting employee data from cyber-attacks.

Investing in advanced cybersecurity solutions and training employees on best practices can mitigate risks. According to IBM, the average cost of a data breach in 2021 was $4.24 million. Implementing strong cybersecurity measures not only ensures compliance but also protects your business from significant financial losses.

8. Emphasis on continuous learning and development

With the rapid pace of technological advancements, continuous learning and development have become essential. 2024 will see more regulations requiring companies to provide ongoing training and development opportunities for their employees.

Investing in employee development not only ensures compliance but also boosts employee engagement and retention. LinkedIn's Workplace Learning Report found that 94% of employees would stay longer at a company that invested in their career development. Creating robust training programs can keep your workforce skilled and compliant with industry standards.

9. Stricter workplace safety regulations

Workplace safety remains a critical concern, with new regulations expected to enforce stricter safety protocols. This includes not only physical safety but also ergonomic and psychological safety in the workplace.

Implementing comprehensive safety programs and regularly reviewing safety practices can ensure compliance and reduce workplace accidents. The National Safety Council reports that workplace injuries cost businesses over $171 billion annually. Ensuring a safe workplace is both a regulatory requirement and a smart financial strategy.

10. Ethical AI use in HR

The use of artificial intelligence (AI) in HR is growing, but with it comes ethical and compliance challenges. 2024 will see more regulations governing the ethical use of AI, particularly in recruitment and performance management.

Ensuring that AI systems are transparent, fair, and free from bias is crucial. A study by PwC found that 72% of business leaders believe AI will be fundamental to the future success of their companies. However, implementing AI ethically and responsibly will be key to gaining the benefits while remaining compliant.

By staying informed about these HR compliance trends, SMBs can proactively adapt their practices to not only meet regulatory requirements but also create a more inclusive, fair, and productive workplace. Embracing these trends will help you stay ahead of the curve and build a resilient and compliant organisation.