Tag: Innovation

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.

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:

How Senior HR Roles Are Evolving

The roles of the Chief Human Resources Officer, Chief People Officer, or even plain old HR Director, have undergone significant transformation over recent years. What once may have been seen as a more ‘junior’ position in the C-suite, is now increasingly being seen as a role that is vital to organisational success.

About a month ago I speculated on some of the upcoming priorities and challenges for HR in my newsletter ‘Prioritising Wellbeing and Retention in a Tight Job Market’ and today I want to look at some of ways that senior HR roles are themselves evolving – and even transforming – to meet strategic business demands.

Our businesses face a number of challenges. From AI integration and adoption to upskilling in the digital era, global workforce management and technology transformation, the responsibilities of senior HR operatives have expanded. So how is the senior HR leader’s role itself evolving, and what are the implications and priorities for businesses today and in the future?

Addressing People Challenges and Talent Shortages

Organisations are grappling with a number of people-related challenges. The shift to more of a hybrid/remote/flexible/asynchronous way of working has left many organisations struggling to balance flexibility with productivity. The workforce is demanding more from their employers in terms of salary, benefits, flexibility and work-life balance. They are more aware of their own wellbeing and personal priorities, which puts the emphasis on remodelling traditional employer/employee relationships into something more fluid. The role of senior HR professional is becoming more crucial than ever in navigating these complexities and competing priorities.

Ongoing talent shortages further exacerbate these challenges. On a global level, lower fertility rates and a significant portion of the workforce retiring, means that companies are and will continue to find it increasingly difficult to attract and retain talent. The more traditional “hire to grow” model is under threat, particularly in new, fast-growing tech sectors that are prone to cycles of rapid hiring and then layoffs. CHROs must find innovative ways to shift the focus towards enhancing productivity and internal mobility, fostering a culture of growth from within.

Organisational Redesign and Global Operations

The past few years have seen a growing shift in organisational structures from rigid functional hierarchies towards more dynamic and cross-functional models. Some leading businesses are pioneering a more ‘dynamic’ organisational model – emphasising agility, a faster time-to-market, and enhanced collaboration. HR leaders are at the forefront of this transformation, tasked with redesigning job architectures, pay practices, managerial roles, and performance management systems to align with new organisational paradigms.

A more globalised approach further complicates the HR role. With remote and flexible working becoming more normalised, businesses have to navigate the complexities of global labour regulations and practices, as well as understanding different regional talent markets. This gives HR leaders a chance to input into more strategic planning around where to hire and locate operations. This further requires a deeper and more nuanced understanding of diverse cultural and regulatory landscapes, giving HR leaders an opportunity to influence global business strategy.

Leadership Development, Technology and Transformation

Leadership development is also evolving. As organisational structures flatten, companies must cultivate leadership skills at all levels. HR professionals can play a leading role in identifying and nurturing leaders, and designing robust leadership development programs that can help organisational growth and resilience.

When it comes to technology, the vast array of tools and systems can be overwhelming, whilst many organisations still struggle with outdated HR systems. Senior HR leaders can find themselves overwhelmed by a multitude of tools for recruiting, training, scheduling, and compliance, whilst AI can offer promising solutions, but the implementation and integration of all these technologies require careful management.

The transformation of the HR function itself is also on the agenda with HR teams now acting as consultants, problem-solvers, and analysts. The link between employee engagement, employee experience and retention is strong with HR teams needing to foster a culture of development, recognition and meaningful experiences, to ensure skills and knowledge are retained within the business.

The Future of the Senior HR Role

The evolution of senior HR roles represents a call for action, reflecting the ongoing shifts in business and workforce dynamics. In today’s complex, technology-driven global marketplace, the HR’s responsibilities are rapidly expanding. Effective HR leaders need to be more than HR experts; they should be visionary change leaders and strategic business executives. Architects of organisational culture, catalysts of productivity, and  guardians of employee wellbeing.

In the future, I see HR’s influence continuing to grow. The role will encompass critical areas like facilities strategy, mental health and wellbeing, and innovative productivity initiatives. Organisations need to invest in cultivating the next generation HR professionals and leaders, equipping them with the training and support needed to excel in what is becoming a more multi-faceted position. As the business landscape continues to evolve, HR leaders will be pivotal in driving organisational success and resilience.

HR is becoming more important and complex than ever before. This transformation encompasses tackling talent challenges, taking a more global view, spearheading organisational design – and redesign – and shaping the future of work to build more resilient and dynamic workplaces.

How Career Experience Will Help Shape the Future of Work

The concept of Career Experience  has recently evolved as a key element in shaping organisational culture, helping improve employee engagement and retention. I first looked into the concept of Career Experience when I interviewed Nick Holmes for the HR Means Business podcast. Nick was Global Head of Career Experience at Avalere Health – a leading global commercialisation partner for the biopharmaceutical, medical technology, and wellness sectors – and is now their VP of Employee Experience.

As part of my research and writing into the factors that drive engagement and retention I was becoming convinced that, despite the best efforts of the Talent Acquisition and Human Resources teams, there was a need for organisations to look more holistically at how they can support and enable their people to help them achieve their best results – thereby creating a culture which supported engagement and achievement, and helped drive business success.

From my conversation with Nick it was apparent that Career Experience is more than just another HR role; it embodies a more holistic approach to nurturing talent, shaping culture, and facilitating growth throughout an employee’s journey within an organisation. It encompasses everything from the initial onboarding process to ongoing development, performance management, and eventual progression or transition within the organisation.

There were 5 ways in which having ‘Career Experience’ specialists can achieve this:

The Purpose of Career Experience

At its core, Career Experience is about creating an environment where employees feel valued, supported, and empowered to thrive. By focusing on the human aspect of work, organisations can enhance employee engagement, retention, and productivity. Rather than merely fulfilling job roles, employees become active participants in their own career development, which helps drive both personal development and therefore organisational success.

Addressing Organisational Challenges

Career Experience can be seen as a strategic response to various organisational challenges, primarily talent engagement and retention, succession planning, and adapting to rapid organisational growth. Proactive shaping of the employee experience can help reduce turnover, better identify and nurture talent, and maintain the culture of continuous learning and improvement that our digital talent needs.

Integration with HR Operations

While Career Experience can operate within the broader HR framework, it really represents a specialist function that is dedicated to optimising the employee journey. Collaborating closely with other parts of the HR and Talent ecosystem, Career Experience professionals can ensure alignment with organisational goals and values, and help foster a cohesive and supportive work environment.

Promoting Employee Wellbeing

One of there central tenets of Career Experience is the prioritisation of employee wellbeing. Initiatives such as mental health first aid training, as well as financial, physical and emotional wellness programmes, and offering a range of flexible and hybrid work arrangements that help support our people, all contribute to creating a culture of care and support. By valuing employee health and work-life balance, organisations will be able to enhance overall employee satisfaction and improved performance.

The Future of Career Experience

Looking ahead, Career Experience should evolve into a hyper-personalised and technology-enabled ecosystem. As organisations are increasingly able to leverage data and emerging technologies, they can tailor their employee and worker experiences to meet individual needs, enhance connectivity, and promote overall wellness. Career Experience can continue to evolve and play a crucial role in shaping the future of work, driving innovation, and fostering a culture of engagement and growth.

The emergence of Career Experience as a specialism could represent a much-needed shift in HR practices, placing emphasis on human-centric approaches to talent management and organisational development. By investing in Career Experience, organisations can create environments where their people not only thrive but can also contribute meaningfully to collective success.

You can check out my full podcast chat with Nick on this episode of HR Means Business

Find Out More in Amsterdam

If you want to know more about Career Experience and how it can help improve your organisation then I will be interviewing Nick on stage at the HR Technology Conference & Expo Europe on Friday 3rd May in a session entitled ‘The Hyper Human Workplace : How to Make Work Meaningful Again’. Hope you can join us at the RAI, Amsterdam!

And if you use my special code – MERVYN50 – you get 50% off your ticket!

Innovation, Diversity and Uncertainty at #euhrevent

 

Permission to Experiment

 

I’ve just returned from 2 days in Berlin at the European HR Directors Summit. We had a strong mix of delegates (drawn from across Western Europe) some helpful and informative sponsors (who didn’t push too much and had some interesting analysis to share) and a friendly, energetic team from WTG who kept the event running smoothly.

I was there in tweeting/blogging capacity, aided by Mark and Perry, when they weren’t engaged on their well received chairing duties.

The overall event was really enjoyable. There was a good energy about it, with inquisitive delegates. Those I spoke during the networking breaks all felt that they had learned and discovered some new ideas to take back with them.

The tone was set each day by the opening keynotes. Both Dr Nicola Millard (changing nature of work) and Liggy Webb (resilience) spoke with a passion and energy that was infectious, using humour and imagery to help make their points. The audience felt involved and identified with many of the issues that they raised. I think that the impact of the opening keynote, and the way that it sets the mood for what follows, can often be overlooked when agendas are put together. The most impressive CV or academic research may be important to establish credibility, but do not necessarily create awesome from the stage. It is the ability to captivate an audience, to entertain as well as educate, illustrate as well as inform, that often makes it a success or a disappointment, and adds weight to the points raised.

There were recurring themes across the 2 days – change, uncertainty, diversity, learning, innovation, leadership and empowerment – and here are some of my takeaways:

The Age of Uncertainty

Many presentations dealt with the rapid change we are experiencing. Whilst there may have been other similar periods in the past the current combination of technological, economic, demographic and cultural shifts are impacting heavily on our work. One session from the EU Commission looked at the increase in productivity and job creation that Europe would need by 2030 – quite frightening. The four generation workforce was also referenced many times.

The recent Deloitte report on Global HR trends had highlighted the ‘overwhelmed employee’ as a major issue facing business and the conference opener from Dr Nicola Millard looked at the factors driving changes to work – disappearance of a ‘9 to 5’ working mindset, technology enabling remote working and collaboration, the end of the tradition office space – and how the ‘always connected, always on’ mindset creates distractions (or time vampires as she called them) that could affect productivity, sleep patterns and general wellbeing. “Where in your job description does it say that you need to spend up to half the day dealing with email?” she asked.

Another session talked of the need to hire people who enjoy uncertainty as the need for change grows and of striking the balance between pragmatism and perfection – “for change to succeed, perfection needs to take a back seat to pragmatism“.

Embrace Diversity

Perhaps unsurprisingly for a European conference, diversity was an issue that also ran through a number of sessions. There was little mention of the dreaded generational classifications – “mind the generation gap but ignore the millennial hype” said Nicola Millard – with adaptability and technological competence being seen as key differentiators, irrespective of age.

Whilst in the UK we often talk of diversity in terms of age, gender and ethnicity, here the main areas discussed were around culture and personality. The need to have a culture that caters for both introverts and extroverts, and to lead in a way that brings both together, maximising their skills irrespective of their different approaches, was referenced. Not everyone is the same, we all react and contribute differently to a range of situations. To build and inspire a team of diverse characters requires leadership skills that we may not always fully assess. Praise and encouragement were seen as crucial people builders – “How hard can it be to make other people feel important?“.

We also had a powerful session on leading multicultural workforces, across countries and businesses. Production and consumption, markets and commercial relationships, are now international, whilst IT systems are global. In bringing this together the key is to not erase diversity but use it to foster different viewpoints for creativity, innovation and competencies, whilst leveraging it for insights to different markets and buying habits. Leaders need to acknowledge local cultures, accept their differences and integrate (not attempt to change) the values and perspectives they bring.

Keep the Talent

Internals First was the name of a session from Credit Suisse about their ‘Grow Your Own’ programme – a sourcing strategy that supports internal mobility and direct approaches to the internal labour market. The external focus is shifted to entry level positions and then an internal market is created, with the main benefits being:

  • Development strategy
  • Maintaining culture
  • Less performance risk
  • Qualified candidates becoming harder to find
  • Helps retention

Framing is important, hence there is no talk of internal headhunting, but the campaign does bring all internal opportunities to everyone’s attention. Employees are encouraged to keep their skills up to date and visible, whilst managers are able to get the attention of internal passives. There are challenges – employees need career coaching and their expectations managed, whilst managers can sometimes also expect too much from the internal market.

One interesting stat was that around 40% of internal employes moving roles had already been contacted by external headhunters regarding external roles. It shows the importance of making opportunities visible to keep employees happy, demonstrating the variety of an internal career, or else risk losing them.

Fostering Innovation

Keeping talent is one thing, encouraging and empowering it to help the innovation process is the next stage. “Don’t just source ideas from researchers but from all employees. Innovation is the responsibility of every employee” said Olivier Leclerc from Alcatel Lucent when introducing us to their entrepreneurial bootcamps, which produce between 30 and 40 ideas every 6 to 9 months. They foster a buccaneering spirit (from ego-centre to eco-centre was one delegate comment) and involve external parties to give a VC feel and ensure that innovative ideas are viewed on their merit and not with a company bias. Some key benefits had been:

  • Diversification of the product portfolio
  • Revenue from bootcamp projects
  • Refreshed company image
  • Culture change and greater engagement

In an earlier session, Simon Watt from Mattel had also talked of inspiring an innovation culture amongst employees. I particularly liked their ‘Permission to Experiment’ ticket – encouraging employees to to experiment fast, often and without permission – and an example from their Mumbai office. This wasn’t about product but more cultural. Most new starters had their interviews during the working day, and had taken only 20 minutes or so to travel to the site. On their first day, rush hour traffic meant that this journey could take a couple of hours or more, often leading to surprise and disappointment. The existing teams noticed this and decided that they would pick every new starter up from home, each day in their first week, and drive them to and from the office, both showing them the fastest routes and short cuts, and helping integration by spending quality time with them in the car.

Bouncebackability

What is resilience? This was the opening question from best selling author Liggy Webb as she took us through the key behaviours that can help build resilient, agile and innovative workforces. Amongst the delegate definitions we got bouncebackability, tolerance, positivity, calm. She introduced us to the Doomerangs (like boomerangs but instead of bouncing back they continually re-live negativity) and the Doom Goblins (those in the workforce whose negativity and moaning drains the lifeblood front the team) whilst conjuring up more imagery with “negative attitude spreads like germs, don’t sneeze your whining on others”

She suggested we ‘hug a problem and learn from it‘ and also urged “Change for the better. If you don’t like change, you don’t like life – don’t mourn the past, seize the opportunity“.

It proved an energetic start to the second day, and there were serious messages here. With the overall themes of change, uncertainty, innovation and corporate realignment there is a need for strong and inspiring leaders, and workforces who are resilient, adaptable and creative.

Perhaps it was one Dr Nicola Millard’s comments from the opening that stuck with me most through the two days – “No is a really dangerous answer. So lets say yes“. There is much going on in our working lives, from what we do and how we do it to the way in which we are contracted to do it. We have become distractible and overwhelmed, often in need of guidance and the type of strong leadership that lets us know someone has a plan and a vision.

Finally, one session looked at HR strategies and competencies, the importance of a CEO committed to the people agenda, and how to lead the way for greater transparency and clarity. It defined HR competencies for the new work environment as:

  • Leadership
  • Innovation
  • Leverage networks
  • Data judgement
  • Business acumen
  • Organisational acumen
  • Talent management acumen

We need to foster the right practices and and mindsets, and this often starts with recruitment and the ability to find the people who will best fit the business vision and culture.

Certain hiring for uncertain times…