Author: Mervyn Dinnen

Thoughts on Talent, HR and WorkTech trends from an analyst, researcher, writer, podcaster and Top 100 Global HR Tech influencer

Does Gen Z Have It Harder? The Case for Supporting All Employees

Every generation probably believes that they’ve had the hardest path to success in their careers. However, when it comes to Gen Z, there is evidence to suggest that they might genuinely face greater challenges in building careers and achieving financial independence. Today’s emerging workforce are facing a perfect storm of economic instability, housing unaffordability, and job precarity – all of which are reshaping how they approach life and work.

I’ve been looking into some Financial Times research pulled from diverse sources such as the ONS, Resolution Foundation & King’s College London to try and make sense of the Gen Z prospects.

A Tougher Climb to Financial Independence

For Gen Z, the cost of living is comparatively higher than ever, whilst wage growth has been lagging behind for a time. Home ownership, once a key milestone of adulthood, is increasingly out of reach, unless you’re able to bank at The Bank of Mum & Dad (or The Bank of Family)  – with research indicating that only 10% of under-25s own homes, compared to 24% two decades ago.

Even renting has become a struggle with many Gen Z spending nearly half their income on housing. In the UK this has led to around a third of 25-27 year olds continuing to live with parents/family – a stark contrast to the independence most previous generations were able to enjoy at the same age.

Job Market Challenges

The employment landscape is no less daunting. Gen Z has entered the workforce after over a decade of weak wage growth, whilst the rising number of jobs in the gig/freelance economy offer minimal security. Recent increases in the minimum wage have helped in a small way but does little to address systemic issues like underemployment and job instability. These economic realities make it harder for young adults to envision stable, long-term, satisfying careers, making the variety and range of freelance opportunities more attractive.

The Mental Health Toll

Economic struggles don’t just hit wallets  – they take a toll on mental health too. Benefit claims for mental health disorders among 16- to 27-year-olds have more than doubled in three years, driven by a mix of financial insecurity, housing challenges, and the lingering effects of the pandemic. It’s no wonder that two-thirds of older adults believe young people’s mental health is worse than when they were younger.

Changing Social and Lifestyle Norms

Financial instability is also reshaping Gen Z’s social and lifestyle choices. Insecure work and stagnating salaries leave many unable to build their lives around the traditional milestones like home ownership, marriage and starting families. Up to two-thirds have also reported declining social plans due to economic constraints. These shifts underline how deeply economic factors influence not just individual lives but societal trends.

Why Supporting All Employees Matters

While Gen Z’s challenges are unique, they highlight some of the broader issues affecting workers across all generations. Rising housing costs, job insecurity, and mental health struggles don’t respect generational boundaries – they impact everyone, albeit in different ways.

Organisations have a critical role to play in helping to address these challenges. By fostering a culture of understanding and inclusivity, they can create workplaces where all employees, regardless of age or circumstances, feel supported. There are an increasing number of initiatives around areas such as fair compensation, mental health resources, and flexible work arrangements which are not just perks of the job – but are necessities for thriving in today’s economy.

So Gen Z do indeed face steeper obstacles than their more recent predecessors, for whom work was the key to structuring their lives – acquiring a home, settled relationship, personal and family stability, and opportunities for travel, new experiences, and new roles. Without the ability to build that structure it’s no surprise they look for experience, development, variety and independence.

Leaders and managers should start acknowledging the obstacles and constraints to building skills, knowledge and careers and work towards alleviating systemic barriers.

Empowering Gen Z will help build stronger, more equitable workplaces for everyone. Supporting employees isn’t just about addressing generational differences – it’s about recognising and addressing shared human challenges.

What the Latest Research Tells Us About Remote, Flexible and Hybrid Working

In an ever-evolving business landscape shaped by emerging technology, changing personal and generational preferences, and an increased focus on personal wellbeing, flexibility has emerged as a cornerstone of employee satisfaction and retention, and increasingly of organisational success.

Certainly since the Covid-19 pandemic, the structure of work has transformed, with flexibility continually emerging as a non-negotiable expectation among workers, especially younger generations. This shift has revealed generational differences about how, when and why we work, and also led to growing demands for a different approach to work-life balance.

When it comes to trying to make sense of the latest trends and innovations, one of my go to people is experienced HR Leader, author, researcher, lecturer – and friend – Gemma Dale. We recorded a podcast chat almost 2 years ago about the then emerging trends, and I recently invited Gemma back to the HR Means Business podcast so that we could talk through some of the latest research and thinking.

The Rise of Flexibility as a Workforce Demand

Recent surveys have found that nearly half of graduates will dismiss job offers that lacking a hybrid or flexible structure. This trend is particularly strong among Gen Z, who increasingly prioritise flexibility and autonomy over traditional workplace values. Unlike previous generations, they are unwilling to subscribe to the classic “9-to-5” mindset, with its promise of advancement through sheer time, effort and presence in the office. They are motivated not just by career progression but by achieving an acceptable work-life balance and sense of autonomy in their roles. This change marks a clear departure from past norms, challenging senior leaders to rethink what engagement, productivity, and presence look like in the modern workplace.

During my chat with Gemma we talked about the increasing use of the expression “organisational nostalgia” which has grown as a way to describe some leaders’ longing for the traditional, fixed location work model. This nostalgic view is often rooted in comfort with established routines and the in-person culture.

However, attempts to return to these traditional models clash with the evolving preferences of younger generations, which means leaders must try to align with these shifting dynamics to remain relevant – and retain talent.

Historical Perspective: Old Concepts, New Realities

The idea of remote and flexible work isn’t new. Back in 1975, NASA scientist Jack Nilles coined the concept of “teleworking” as a solution to the American oil crisis. He envisioned smaller, localised work hubs to save on commute costs and time. By the 1990s, the concept had evolved, though it continued to face cultural resistance from managers and leaders who preferred physical attendance as a way to manage workflows.

Scepticism and bias seem to have long plagued our attitudes to remote work, mainly through managers fearing reduced productivity and accountability when workers aren’t physically present. Despite all the technological advancements the workplace has seen over the last 20 years or more that make remote and flexible work highly feasible, these biases remain.

This scepticism manifests in what many commentators call “flex shaming,” where remote workers are sometimes viewed as less committed or hardworking. Such perceptions are counterproductive, especially as the data shows flexible work boosts morale, mental health, and retention rates. Today’s employers need to address these biases directly to foster a healthy, trusting workplace culture.

Flexibility as a Retention Strategy

Research also consistently demonstrates that employees prioritse flexible working conditions, to the point of considering it nearly as valuable as an 8% salary increase. The competition for top talent has intensified, with 72% of UK hiring managers reporting that they’ve lost employees to firms offering more flexible options. This trend isn’t limited to specific industries; it’s a universal preference, spanning generations and career stages – flexibility isn’t just about physical location.

Increasingly, many organisations are beginning to recognise that offering flexibility isn’t just about meeting employee demands – it’s a strategic decision that can enhance recruitment and retention. By supporting remote and hybrid work, businesses show respect for workers’ autonomy and trust, fostering loyalty and long-term engagement.

On the other hand, companies that resist flexibility – like Amazon’s recent high-profile mandating a five day in-office policy – risk alienating employees and facing a talent drain.

Mental Health and WellBeing Benefits

Research tells us that flexible working arrangements also provide profound mental health benefits. Remote work allows people to reclaim commuting time for personal pursuits, like exercising, cooking, or spending time with loved ones. The cumulative effects of these small shifts can have a significant positive impact on mental health and wellbeing.

Employees report reduced stress and improved satisfaction when they have more control over their schedules, enabling them to balance personal responsibilities more effectively.

However, these benefits depend on supportive organisational policies. Companies that offer flexibility in name only, while imposing a more rigid – and distrustful – oversight, risk creating a negative environment that undermines employee wellbeing. Encouraging open dialogue and supporting flexible work policies are key to cultivating a healthy, productive culture.

The New Workplace? : Coffee Squatting and Four-Day Weeks

The nature of the modern workplace is still evolving to meet the increased demands for remote, flexible, hybrid and asynchronous working patterns. Concepts like the four-day workweek are gaining traction, with a growing movement advocating for shorter weeks without reducing pay. While this model is still under research, some early trials have shown promise, suggesting that reduced hours may improve employee satisfaction and productivity.

One of the many new trends that the research found was that of “coffee squatting” – where remote workers spend extended hours working from coffee shops. While this arrangement provides a casual and enjoyable workspace, particularly for those who have little – or no – dedicated space at home, it has led to challenges for local businesses that rely on customer turnover, leading to some coffee shops implementing policies to address the strain.

Embracing Change for Future Success

The conversation around remote, flexible and hybrid work is far from over. Leaders who lean into this shift and adopt a mindset of openness and adaptability will be better equipped to navigate the challenges and opportunities of the modern workplace and increasing demands for flexibility from the emerging workforce.

Flexibility isn’t just a trend; it’s a fundamental change in how people work and live. As businesses continue to adapt, the organisations that embrace these dynamics are likely to attract the most engaged, productive, and innovative talent, setting themselves apart in a rapidly evolving world.

You can listen to my full conversation with Gemma Dale here – https://www.hrhappyhour.net/episodes/the-evolution-of-remote-flexible-working-practices/ – or by clicking on the image below

Why High Performers Leave Organisations and What You Can do to Retain Them

Top performers are often the backbone of organisations. Whilst everyone within the business has an important role to play in delivering on the organisational promise and outcomes, it’s often the top performers who are looked to for driving innovation, productivity, and growth.

However, retaining them increasingly needs more than competitive salaries, perks and recognition; it demands a more intentional approach to leadership that contributes to an environment in which high performers feel valued and motivated, that they matter, and are committed to staying.

I’ve looked at some recent research from author, researcher and professor Zach Mercurio, Ph.D., whose book ‘The Power of Mattering’ is published next year. I see 4 ways in which leaders can achieve this:

Notice and Acknowledge Top Performers

Top performers often operate under the radar because they can consistently deliver results without creating problems – which can lead to feelings of invisibility, especially if they’re not being recognised for their efforts.

Leaders should actively notice all the people within the organisation – for high performers they need top make time for regular, meaningful check-ins that go beyond transactional updates. Questions around workload, and the offering of support, will often be noticed. Zach suggests something called “stoplight check-ins”-  where employees share their current energy levels (green, yellow, or red), which can provide real insights into how they feel about their wellbeing.

Provide Specific and Meaningful Feedback

Generic feedback – think back to old school reports with advice like “good work” or “keep it up” which offered encouragement to many but not might seem genuine for top performers. Leaders should be able to offer more detailed affirmation that highlights their specific contributions and impact. This means that feedback should be precise:

  • Describe the context: Highlighting a specific project or situation where their contributions stood out
  • Name the behaviours: Specify what they did that made a difference
  • Explain the impact: Share how their actions have positively affected and impacted the team, organisation, or clients.

Meaningful feedback doesn’t just motivate high performers but can also reinforce their sense of purpose and belonging to the business.

Show Them They’re Needed

High performers often operate at their best levels when they know their work is indispensable. Leaders should try to help them understand their value by linking their efforts to measurable outcomes. For example, data  van be used to demonstrate how their contributions have driven results – eg. higher customer satisfaction scores or increased revenue.

Find simple yet powerful phrases that acknowledge how their skills and perspectives are critical to their teams’ success.

Strengthen Personal Connections

The relationship our people have with their managers and leaders often play a pivotal role in employee retention. High performers want to feel understood and supported by their managers and leaders. Ways to engage with them on a more personal level to help improve this are:

  • Prioritising wellbeing: Showing genuine concern for their mental and emotional health
  • Sharing your own experiences: Open up about your own challenges or anxieties can create an important bond
  • Being accessible: Let them know they can approach you with concerns or ideas anytime

Retaining top performers – in fact, retaining all your people – is not about grand gestures but about consistent, intentional actions that make them feel noticed, affirmed, and needed.

By investing in these relationships, and reinforcing their importance to the business, you can create an environment where your best talent chooses to stay and thrive.

HR Challenges and Opportunities for 2025

Organisations are facing growing challenges, all of which are making the role of an HR professional increasingly complex and multi-faceted. As business navigates economic uncertainty, whilst supporting their employees’ mental health and wellbeing, we see almost daily debates online about evolving work models and working arrangements, and how to manage the emerging Gen Z workforce. That’s before we mention the role of AI and how it might impact – positively – the HR workload.

I’ve been looking at some recent research from the team at McKinsey & Company that identified five key areas that are contributing to this workload, but which also present opportunities for a better way of working. With stress on the rise, and some workforces complaining of ‘change fatigue’ it’s time to build trust within our teams and offer real support and enablement for our people.

Increasing Workload and Demands

The responsibilities on HR teams have escalated with modern HR departments not only tasked with traditional hiring, onboarding and compliance but also with addressing the more complicated areas that I outlined in the introduction – mental health and wellbeing support, remote/flexible/hybrid work policies, and a general dissatisfaction with the overall employee experience.

This increase in workload creates a dual tension, with HR teams managing a broader spectrum of demands while ensuring the wellbeing and retention of their people. The need for effective and supportive people management is stronger than ever, but with limited resources and growing tasks many HR teams find themselves stretched thinly.

Pressure of Strategic Involvement Without Necessary Authority

Whilst HR has historically, and wrongly, often been seen as more of a ‘support’ role, today’s organisations increasingly need their HR teams to be strategic partners. However, while they are called upon to influence company culture and policy more strongly, the main question is – do they have the authority to drive real change?

This can leave HR teams in a frustrating position – advisors on transformative strategies but lacking the decision-making authority to oversee their strategies fully realised for real change. HR needs to be part of the strategic conversation from the start, with the authority to influence and make impactful strategic decisions.

Battling ‘Change Fatigue’

Organisations are in a constant state of adaptation be it addressing remote & flexible work transitions, engaging and retaining the Gen Z workforce, building meaningful experiences and implementing AI effectively.

Change is necessary for most organisations, but can also create “change fatigue” among employees and managers if not implemented effectively. For HR teams, who are responsible for implementing and explaining these shifts, it could feel like an endless cycle of implementation without the time to let one change settle before the next is introduced.

Building resilience and carefully pacing transformations are crucial for preventing burnout within HR teams.

Potential Trust Deficits Between HR, Employees, and Leadership

There is often a ‘trust gap’ in organisations between employees, HR, and leadership, with HR teams finding themselves in a delicate balance – representing the company’s priorities whilst advocating for employees. This balancing act could lead to a perception that HR is not genuinely aligned with employees’ needs – thereby damaging trust – or too aligned with senior management.

For HR to be effective mediators between employees and leadership, it is essential that organisations to prioritise transparent, honest communication and to help HR clearly demonstrate the organisational commitment to employee welfare.

Technology’s Role in HR: Efficiency or Extra Burden?

While technology has the potential to streamline HR processes, it sometimes adds additional layers of responsibility. Generative AI, for instance, holds promise for enhancing recruitment, data analysis, and even employee engagement, though has the potential to detract from some of the more creative tasks that our people enjoy doing. Without proper implementation, these technologies can also impose more administrative duties, detracting from the human-centred support HR is meant to provide.

For technology to be effective, it should ease, support and provide smoother experiences for our people, not increase the workload, allowing HR teams to focus more fully on strategic support and enablement to our people.

Turning Challenges into Opportunities

Despite these mounting pressures, HR professionals can take steps to mitigate them and foster a more supportive organisational climate. Prioritising authentic communication and trust-building practices can help bridge any gaps between HR, leadership, and employees. In the long run, enabling HR to work as a full strategic partner – and not be seen as a support or adjunct function – will help to empower the whole organisation to be more adaptive, resilient, and people-focused.

Today’s HR professionals are dealing with some of the most challenging dynamics the workforce has seen. Yet, with the right support and authority they have the potential to transform these into positive experiences, fostering a workplace where employees thrive, organisations adapt smoothly and successfully, and the true value of HR can be recognised and rewarded.

What HR Leaders Need to Know About AI, Employee Experience, and Burnout

As AI becomes more integrated into every area of our working lives, it is important that HR leaders understand how this technology will not just impact productivity, but also influence the overall employee experience. I recently had a podcast chat with Gabriela (Gabby) Burlacu, senior manager at the Upwork Research Institute, about their research in to how AI is reshaping work, and the resulting implications for productivity, job satisfaction, burnout, and skill development.

The Productivity Paradox: Why AI Alone Isn’t Enough

One of the key points we discussed was why, despite the increasing use of AI, organisations have not seen the expected leaps in productivity. This could be because AI has been layered onto existing work models without rethinking workflows, organisational structures, or roles, creating a “productivity paradox” – essentially where AI increases the speed of certain tasks but doesn’t translate into overall gains because companies are still operating with outdated processes.

For HR leaders, this highlights the need to think beyond simply adopting AI tools and shifting focus towards how work is organised. Introducing AI requires a holistic shift in how teams collaborate, how workflows are designed, and how outcomes are measured. Simply adding AI to existing frameworks risks overwhelming employees, leading to burnout rather than increased efficiency.

AI and Job Satisfaction: Balancing Automation with Meaningful Work

Another concern raised is the potential for AI to reduce job satisfaction. Many of the tasks that AI can now automate are those that employees find fulfilling. Whether it’s drafting a report, organising data, or managing small projects, these tasks often give workers a sense of accomplishment. Removing these elements could unintentionally strip away the aspects of work that keep employees engaged and motivated.

HR leaders should consider how to balance automation with opportunities for meaningful work. While AI can take over more repetitive tasks, it’s crucial to ensure that employees still feel a sense of purpose and contribution. Finding ways to engage employees in more strategic, creative, or interpersonal tasks can mitigate the potential downsides of automation.

The Double-Edged Sword of AI: Boosting Some Employees While Undermining Others

AI also has a unique impact on employee performance. Gabby Burlacu talks about how AI tends to boost the productivity of lower-performing employees, helping them match the output of higher performers. While this can be seen as a positive outcome for overall team performance, it can raise concerns for high performers who may feel their contributions are being diluted.

For organisations that have historically relied on developing high performers to drive success, this could lead to disengagement. HR leaders should begin to rethink how performance is measured and rewarded in an AI-enabled workplace. A high performer in an AI-driven environment may look very different from a high performer in the past. Performance metrics need to evolve to reflect creativity, strategic thinking, and leadership skills rather than just raw output.

AI and Skill Development: Are We Sacrificing Learning for Efficiency?

One of the more concerning impacts of AI could be on skill development. Many tasks that AI can now perform, such as basic data analysis or drafting reports, are traditionally entry-level tasks that help employees build fundamental skills. If these tasks are automated, early-career workers may miss out on critical learning experiences that help them build skills in how to prioritise, communicate, and problem-solve.

HR leaders need to address this skills gap by rethinking how learning and development (L&D) is structured. Rather than focusing solely on efficiency, organisations should ensure that employees are gaining the hands-on experiences they need to grow. This could involve creating new opportunities for skill development, maybe shifting focus toward more complex problem-solving tasks.

Leveraging Freelancers and Non-Traditional Talent

As AI reshapes the workforce, another trend we see gaining traction is the use of freelancers and non-traditional talent to fill skill gaps. Freelancers often come equipped with up-to-date AI skills, providing organisations with the agility to implement AI without waiting for internal training programs to catch up. For HR leaders, this presents an opportunity to think creatively about workforce composition, leveraging a mix of full-time employees and freelancers to meet evolving business needs – an approach I often refer to as Total talent Thinking.

Co-Creating Metrics to Avoid Burnout

Finally, one of the most actionable insights from our conversation is the importance of including employees in discussions around productivity metrics. Gabby Burlacu points out that employees who have a say in how their performance is measured tend to feel less overwhelmed and more engaged. In an AI-driven workplace, where productivity expectations may shift rapidly, co-creating metrics with employees ensures that they understand what is expected and feel part of the process.

For HR leaders, this co-creation process is key to managing burnout. Instead of top-down mandates that employees may find unrealistic or unclear, HR can work with teams to develop productivity measures that reflect the realities of using AI. Using a more inclusive approach could help reduce stress and ensure that employees feel supported during the transition to AI-enhanced work environments.

Rethinking Work in the Age of AI

AI is undoubtedly a powerful tool, but its success depends on how effectively organisations can adapt their structures, workflows, and cultures to integrate it. For HR leaders, the key challenges lie in balancing the efficiency gains with the need to offer meaningful work, skill development, and employee wellbeing.

By rethinking performance metrics, fostering skill development, and engaging employees in co-creating the future of work, organisations can harness AI’s potential without sacrificing employee experience or burning out their workforce.

You can listen to the full conversation at https://www.hrhappyhour.net/episodes/will-ai-help-to-reduce-employee-burnout-or-to-increase-it/

Thoughts and Conversations From HR Technology Conference & Expo 2024

I thoroughly enjoyed the recent HR Technology Conference & Exposition. For me it was certainly the best of the 3 post-covid events and had a real energy and dynamism with lots of conversation and interaction. The Expo floor was full, and whilst certain topics (I’m looking at you AI!) seemed to dominate many of the chats there was – for me – a clear liveliness around making better workplaces, using data to gain real insights to help and support, and a focus on the role of leadership to guide during uncertain business – and political – times.

Five things stood out for me:

Retention as the New Recruitment

I see a noticeable shift toward focusing on employee retention rather than solely recruitment. Investment in employee experience, engagement, and well-being is now a major priority for organisations. I have been talking about this trend quite a bit this year and certainly those I spoke to at HR Tech agreed that their focus had shifted towards retention.

Upskilling and Enablement

Organisations are increasingly focused on supporting their employees’ development by providing opportunities for upskilling and enabling them to be their best selves at work, especially in a time of global uncertainty. People want access to what they need to know, as and when they ned to know it, and organisations are investing in this.

Impact of AI on Engagement

While AI can offer significant productivity and efficiency gains, I am concerned that it could diminish employee engagement by taking over tasks that people enjoy, potentially leaving them with less fulfilling work. We do need to be careful about how we use AI to replace creative and more human tasks.

AI’s Role in Sentiment Analysis

I see AI being increasingly used for sentiment analysis and gaining insights into how employees feel, which helps leaders and managers better understand the workforce’s mood and engagement. There is a definite shift towards gaining better understanding of who our people are thinking and feeling and the positive impact of tools such as recognition.

Putting the Humanity into Human Resources

This is something I’ve been speaking about this year and it was good to talk with attendees and vendors who see the need for a more personal, human approach to how we hire, engage and retain our people. I think that while we are still exploring ways in which AI can help us understand things like mood and sentiment, we need to be able to trust it, though I do remain a bit sceptical about potential over-reliance on AI for decision making without ensuring depth and understanding behind its recommendations.

During the event I was able to record a podcast episode on HR Happy Hour with my friends from H3 HR Advisors Trish (McFarlane) Steed and Steve Boese about what we had seen at HR Tech that had impressed us and what we thought the future might hold.

You can listen to our full conversation here:

Engaging and Retaining Gen Z: What Organisations Need to Know

If you enter the words Gen Z or Generation Z into an online search, a number of words will come back to you. Not all of them necessarily complimentary. Not all employers are tolerating laid back language and attitudes. Words like difficult in the workplace come up. If you do the search, they are demanding and they want culture change. I don’t think there’s ever been as much written about an emerging generation in the workforce as there is now, but in the digital era, Gen Z are under the microscope.

Certainly, if you go back through books and magazines on the history of work, I doubt you’ll find articles entitled ‘How to Hire a Hippie’ or ‘Why the punk rock generation will change your business forever’. But in the digital era, Generation Z are up for being put under the microscope.

The fact is, baby boomers are gradually and steadily retiring – although at slower rates than before – so for organisations hoping to remain competitive in a rapidly evolving market, knowing how to engage and retain Gen Z employees is crucial. However, the expectations of this digitally savvy, highly educated generation differ from their predecessors. Understanding their needs can make a significant impact on a company’s success.

I recently had an insightful podcast chat with Gen Z and Future of Work Influencer Danielle Farage, who is a Harvard Business Review and Forbes featured editor, and also helps organisations to bring neurodivergent thinking into the organisations. We talked about the six key factors that organisations should focus on:

1. The Workforce is Changing: A Need for Fresh Talent

For organisations looking to replenish and up skills their workforce, the focus is naturally on how to attract and retain the emrging generation – Gen Z. However this cohort is different in terms of its expectations and needs.

They are entering the workforce with high levels of education and technological know-how, but then often find themselves faced with outdated workplace practices that don’t align with their skills, beliefs and aspirations. Organisations that fail to adapt risk losing out on the fresh talent they need to sustain growth.

2. Embracing Technology and Modern Work Tools

Gen Z is the first generation to grow up entirely in the digital age, having had smartphones and high-speed internet for most of their lives. As Danielle Farage points out during our conversation, this exposure has conditioned them to expect a workplace that is both technologically advanced and flexible. They are not interested in working with outdated systems or for organisations that resist change.

Companies looking to attract and retain Gen Z talent need to ensure they have current, intuitive technology, and be open culturally to digital transformation, and an environment of innovation. This approach helps to improve efficiency and performance, and also caters to the tech-driven mindset of the emerging workforce.

3. Focus on Guidance, Not Micromanagement

While Gen Z wants to grow and develop within their roles, they resist the notion of being micromanaged. They desire autonomy in how they approach their work and appreciate leadership that guides rather than controls.

I often write and speak about how traditional management styles that centred on direction and control, are giving way to a more supportive model focused on superior and enablement. Gen Z expects their leaders to act as mentors who can facilitate their growth through advice, access to resources, and opportunities to learn. Employers who offer this type of support are more likely to foster loyalty and retention among Gen Z employees.

4. Redefining the Employer-Employee Relationship

Unlike previous generations, who may have expected to work for the same company for decades, Gen Z views employment as a two-way relationship. This generation is much more likely to ask: “What can your company do for me?” while also offering their skills and talents.

Danielle Farage highlights that this change reflects a broader shift in the employer-employee dynamic. Gen Z wants meaningful work that aligns with their values, and they expect opportunities for both personal and professional development. Companies that understand and respond to this desire will stand out as employer of choice amongst emerging talent.

5. Career Flexibility is Key

Gen Z doesn’t envision a singular, linear career path. Instead, they anticipate having multiple careers across different industries over their lifetime. This means they are likely to prioritise roles that allow them to develop transferable skills and explore their various interests.

Businesses should be open to providing diverse learning opportunities and career progression paths. Encouraging employees to explore new roles within the company not only retains talent but also strengthens internal mobility and innovation. Gen Z will look for opportunities and support for up-skilling and re-skilling, so providing these will help engage and retain what has become a flexible and career-fluid workforce generation.

6. Prioritise Mental Health and Work-Life Balance

Gen Z are highly aware of the importance of mental health and of the need to maintain a healthy work-life balance. Unlike previous generations that may have embraced more of a ‘hustle culture’, many of the Gen Z workforce will actively push back against the notion that they need to sacrifice personal well-being for career success.

This generation advocates for mental health support, flexible working hours, and the right to disconnect outside of office hours. Companies that provide these benefits are more likely to retain young workers who value balance and wellbeing.

There’s no two ways about it, organisations are going to have to adapt much of their culture and purpose to attract, engage, retain and adapt to the evolving expectations of the emerging workforce.

Embracing new technologies, offering flexible career paths, and focusing on mental health and wellbeing and creating an environment that fosters growth, autonomy, and respect for work-life boundaries, means that organisations will not only engage Gen Z talent but also secure their loyalty in the long run. The future of work might depend on adapting to the needs of this emerging generation!

You can check out our full conversation here:

Creating the Future of Talent Acquisition and Hiring

In the rapidly evolving landscape of talent acquisition and hiring, there are a number of key trends emerging that will re-shape how we attract, hire and develop our future talent. Some of these trends could be game-changers for business leaders and HR professionals, as they represent a shift in workforce dynamics, whilst shaping the future of work and potentially leading to a rethink of traditional HR practices.

My close friend, co-author and co-collaborator Matt Alder has been writing and documenting these shifts through our co-authored books, and his research for podcast interviews and online courses, and I recently had a conversation with him on my HR Means Business podcast to better understand how some of these emerging trends will impact the future of hiring and retention.

We identified and discussed five main trends.

1. Skills-Based Hiring

Hardly a brand new development, but skills-based hiring is definitely a growing trend amongst Talent Acquisition and HR teams as organisations increasingly recognise the limitations of traditional hiring practices that prioritise previous experience over potential. Skills-Based hiring focuses on hiring individuals based on their current skills, and on their ability to develop new ones, rather than rely on their past job titles or educational background. There are 3 key benefits to this approach:

  • Broader Talent Pools: By focusing on skills, organisations can tap into a more diverse talent pool, including candidates from different industries and backgrounds
  • Enhanced Diversity: Skills-based hiring promotes diversity by reducing biases associated with traditional hiring criteria
  • Future-Proofing Workforce: This approach aligns closely with the evolving nature of work, which we see as increasingly valuing skills and competencies over specific experiences

2. Total Talent Thinking

Total talent thinking is about breaking down the silos within HR departments and approaching talent management holistically. It involves integrating talent acquisition, talent management, and learning and development, to create a cohesive strategy that comprehensively addresses an organisation’s skills needs. There are certain key components that you need for a Total Talent Thinking approach:

  • Collaborative HR Functions: This approach relies on different HR functions working together seamlessly
  • Strategic Workforce Planning: Identifying and planning for the skills that will be needed across the organisation to achieve commercial goals
  • Flexibility and Adaptability: Building a workforce that can adapt to changing business needs and technologies

3. Impact of Generative AI

Whatever you think about Generative AI there is little doubt that it’s transforming Talent Acquisition by both automating various aspects of the hiring process, and also providing new tools for both employers and job-seekers. Generative AI’s full potential is still developing and unfolding, but its current applications are already making significant impacts:

  • Increased Efficiency: AI can streamline the recruitment process by automating routine tasks such as CV screening and initial candidate assessments
  • Enhanced Decision-Making: AI-powered tools can provide insights and analytics to help HR professionals and hiring managers to make better hiring decisions
  • Job Seeker Empowerment: Candidates are using AI to craft tailored CVs and applications, which can increase their chances of getting noticed, provided they use it as a tool to help support their job applications, rather than rely on it to be the application

4. Future-Casting and Strategic Foresight

Matt and I have been talking about Future-casting for a few years. Basically it involves anticipating and planning for future trends and disruptions in the workforce. It requires HR and Talent professionals to adopt more strategic foresight tools and methodologies to try and predict – and so be prepared for – changes that might shape their organisation’s future talent strategies. There are 3 component parts:

  • Trend Analysis: Identifying and analysing the macro and the micro forces that are driving change in the workforce
  • Scenario Planning: This calls for HR and Talent professionals to develop – and prepare for – multiple future scenarios so they can remain agile and responsive
  • Embracing Uncertainty: Recognising and planning for unknowns and uncertainties, such as technological disruptions, economic shifts or – as in the case of Covid – factoring unforeseen epidemics

5. Smart Automation

Automation, powered by AI and other technologies, is set to redefine many aspects of work – not least in the attraction, hiring and onboarding of talent. Smart automation goes beyond simple task automation and includes more complex processes and decision-making functions:

  • Redefining Job Roles: Automation will change the nature of many jobs, requiring employees to adapt and develop new skills, and HR to develop enhanced role profiles
  • Efficiency Gains: Automated processes can lead to significant efficiency improvements and cost savings
  • A Focus on Higher-Value Work: As routine tasks are automated, employees can focus on more strategic, creative, and value-added activities and processes.

You can find out more about how we see the future of Talent Acquisition – and our approach to Total Talent Thinking – on this episode off the HR Means Business podcast –

The Impact of Remote and Hybrid Work on Innovation and Creativity

The increasing adoption of remote, flexible and hybrid working arrangements has reshaped the way many organisations operate. They are able to offer flexibility and improved work-life balance to their employees – which brings significant advantages to them.However it also raises concerns around innovation, creativity and co-operation. Many organisations are now concerned that working from home and hybrid models may negatively impact their ability to foster creative thinking, collaboration, and new ideas.

I’ve seen recent research from the University of Chicago that looked at how these different work arrangements are affecting innovation – and the results are both complex and insightful – so I’m sharing my thoughts on some of the key themes.

1. Innovation in the Age of Remote Work

One key concern amongst businesses is that innovation could suffer under remote and hybrid work arrangements. Innovation thrives on collaboration, spontaneity, and the exchange of diverse ideas – all elements that can be harder to achieve in a virtual environment.

Whilst tools like Zoom and Teams facilitate communication, and some potential collaboration, they are no substitute for the natural, spontaneous, human interactions that occur in a traditional office.

Random coffee machine conversations, or impromptu brainstorming sessions, are often a valuable source of breakthrough ideas, but are nearly impossible to replicate online or virtually.

Research indicates that virtual communication methods tend to inhibit the generation of creative ideas. This is particularly problematic for fostering the kind of weak ties – valuable connections with people that are outside of one’s immediate circle – that are critical for innovation. Strong ties within teams can often lead to homogeneous thinking, whilst weak ties are more likely to introduce fresh perspectives and novel information.

With remote work, these weak ties tend to diminish, weakening the spread of diverse ideas and limiting opportunities for creative exploration.

2. Focus Time and Idea Quality

One of the few benefits of working from home is the ability to carve out uninterrupted focus time. Without the constant barrage of in-office distractions – water cooler chats, random or surprise meetings and catch-ups, and casual interruptions – employees can dedicate more time to deep, focused work. Which, in theory, can lead to higher-quality ideas, as workers have time and space to think more critically and creatively without distraction.

However, the research shows a more nuanced picture. While employees working remotely do continue to suggest ideas at a similar rate, the quality of these ideas often declines. It seems that although individuals may find it easier to focus, the lack of collaboration and feedback during the idea development process limits the refinement of those ideas.

Hybrid work, where employees split time between the office and home, presents a similar challenge. Although the quantity of ideas might decrease slightly with this arrangement, the expected increase in quality doesn’t materialise, suggesting that physical presence in the office remains a key factor in driving idea quality.

3. The Importance of Network Ties for Innovation

Innovation doesn’t happen in a vacuum – it thrives on networks of diverse ideas and information. Research has historically highlighted the importance of weak ties in fostering creativity. These connections – often with people outside of one’s immediate team – can provide access to different perspectives, expertise, and knowledge, which can ultimately lead to innovative breakthroughs. In contrast, it has been shown that strong ties within teams or closed networks may limit creativity by encouraging conformity and group think, stifling new approaches.

Unfortunately, remote, flexible and hybrid working models tend to weaken these ties. When employees work remotely, they are less likely to engage with colleagues outside of their immediate circle, reducing opportunities for the cross-pollination of ideas. There is evidence that remote work can lead to a significant reduction in network ties, with hybrid work only partially regenerating them. Without these diverse interactions, innovation may become more challenging, as teams lose access to fresh perspectives and the ideas that can drive creative breakthroughs.

4. Challenges in Co-ordination and Productivity

One of the major drawbacks of remote work is the increase in co-ordination costs. While employees may have more focus time, they often also spend more time in meetings and co-ordinating tasks across virtual platforms. This can reduce productivity and slow down the innovation process. In a hybrid work setting, these co-ordination challenges can be even more pronounced, as employees may not always know when their colleagues are either in the office, commuting, or working from home.

This uncertainty around colleagues’ availability can make collaboration more difficult, shifting communication to less effective methods like email or asynchronous messaging, which not only might reduce the immediacy of feedback, but can also lead to missed opportunities for creative problem-solving and idea generation.

For employees working on time-sensitive projects, the lack of real-time collaboration can hinder progress and ultimately affect the quality of work produced.

5. Gender Differences in Innovation

Interestingly, the research also highlighted a gender disparity in how remote and hybrid work affects innovation. Male employees tended to experience less of a decline in idea generation compared to their female counterparts. The reasons for this difference were not entirely clear from the research.

One possible suggestion was that women may face additional demands when working from home (eg family responsibilities) which could reduce their ability to engage fully in creative tasks, whilst another was that women may have different work patterns under hybrid schemes. Although these points were raised, it’s fair to say that there was little, if any, overall evidence in the research that supported either theory.

Conclusion

We have a lot of evidence – factual, analytical and circumstantial – that remote, flexible and hybrid work models offer clear benefits in terms of flexibility and work-life balance. However they may also pose significant challenges to innovation and creativity. The reduction in spontaneous collaboration, the weakening of weak ties, and the coordination challenges inherent in virtual work environments all contribute to a more difficult landscape for fostering new ideas.

As businesses continue to adapt to new ways of working, they need to find strategies to mitigate these challenges. This should include creating opportunities for in-person collaboration, fostering diverse networks, and rethinking how innovation can thrive in flexible work environments.

Whilst the way in which we embrace and implement remote, flexible, hybrid and asynchronous working continues to evolve, organisations need to be mindful of how this might impact one of their most important assets – the ability to innovate.

Improving Hiring Through Better Interviewing

How reliable is a job interview for predicting fit and future potential in a candidate? Over the years HR and Talent leaders have embraced and adopted a wide variety of different approaches to try and ascertain if job candidates can do the role they are being considered for – from a skills and experience angle – or if they have the potential to acquire the necessary skills. Even in the current AI-driven digital age job interviews are still the benchmark.

Yet how reliable are they? There has been much research over the years both in support of traditional interviewing, and looking at alternative approaches, yet little consensus on what could replace the interview to ascertain future performance. I came across a recently published meta-analytic review on the validity of interview-based assessments in establishing how reliably future performance and potential can be predicted in a current edition of Psychology Today and wanted to share some of the insights.

They started with a thought experiment, imagining an experienced chef being asked to judge a cooking competition not by tasting the dishes they were judging, but instead interviewing the contestants on the recipes they used. Initially this would seem ridiculous, but their point was that this is how most interviews are approached – with the research showing that traditionally constructed job interviews do not reliably predict future performance in the role.

There are four main reasons why:

The Illusion of Accuracy

One of the fundamental issues with traditional interviews is the illusion of accuracy. Many hiring managers believe they can gauge a candidate’s potential based on a 60-minute conversation. However, interviews account for only about 9% of the variance in future job performance. This highlights that 91% of what determines job success is missed during interviews. An over-reliance on interviews might be leading to misjudgments and costly hiring mistakes.

Does the Perfect Interview Question Really Exist?

A common misconception is that asking the right questions can uncover the truth about a candidate’s potential. While behavioural questions, situational judgment scenarios, and technical assessments are used to reveal insights, in reality they are falling short. Both structured and unstructured interviews show low levels of accuracy in predicting future performance. Interviews are equally ineffective in assessing task-specific skills and broader, more nuanced contextual behaviours. making them too blunt an instrument for diverse job requirements.

The Bias Problem

Interviews are susceptible to unconscious biases, which can significantly skew hiring decisions. Even with structured formats, factors like a candidate’s appearance, speaking style, or perceived familiarity can influence judgments. The halo effect, where one positive attribute colours the entire impression of a candidate, can further complicate this.

A strong response early in an interview can overshadow subsequent weak answers, while an awkward moment or silence can unfairly impact perceptions. This bias often leads to hiring individuals who are good at being interviewed but not necessarily good for the fundamentals of the job they are being considered for.

The “Fit” Fallacy

Modern interviews are very focussed on establishing ‘cultural fit’ with the team and organisation. It’s quite logical to try and hire someone who aligns with company values and team dynamics but that can lead to uniformity of thinking rather than diversity, resulting in teams that think, act and even look alike, negatively impacting creativity and innovation. It also risks prioritising ‘fit’ over establishing potential and performance.

Taking a Different Approach to Interviewing

So, if traditional job interviews are limited in their ability to predict future performance and potential, how can we improve hiring. The research suggests a different approach to interviewing:

1. Focus on job-related tasks

Incorporating a wide array of job simulations, work sample tests, and skills assessments mean that candidates can be evaluated on job-related tasks, which should provide a more accurate measure of their capabilities. Examples that businesses already use include asking sales candidates to make a mock sales call, and getting software engineers to undertake a coding challenge.

2. Focus on Past Performance

Examine a candidate’s concrete accomplishments and especially how they achieved them. Past performance is usually a strong indicator of future success, so to get a clearer insight into their potential try and understand how they have handled challenges in previous roles, led projects, or achieved their goals.

3. Structured Interviews with Flexibility

While completely unstructured interviews are problematic, overly rigid ones – especially those tied to a ‘script’ – can also miss important nuances. Semi-structured interviews, that allow for flexibility in the questioning, can strike a balance, and maintain consistency across candidates, who tend not to feel comfortable with scripted interviews.

4. Leverage Technology

AI-driven assessments can help reduce human bias and provide data-driven insights into a candidate’s potential. Tools that analyse language patterns, facial expressions, and other non-verbal cues can offer additional layers of evaluation, making the process more objective.

5. Look for Cultural Contribution Over Fit

Don’t look for candidates who fit the culture – look for those who can contribute to and enhance it. This can encourage diversity of thought and help foster an environment where new ideas and perspectives can thrive. Evaluate how a candidate’s unique experiences and skills can add value to the organisation as a whole.

The next game-changing employee might not be the one who interviews best, nor has the ‘perfect’ CV, but is likely to be the one whose true potential is waiting to be discovered. Diverse assessment approaches, flexible interviews, technology and a focus on culture can help HR and Talent leaders make more informed and effective hiring decisions.