What does the Future of HR look like? Insights on Agility, AI, and Human-Centered Leadership

26 November 2024

We asked a selection of clients to share their views on the future of HR and what shifts are required to navigate the changes that lie ahead. Here are some of their ‘headlines’…

Agility and Adaptability

Much of what lies ahead is uncertain, uncharted territory. More than ever, HR leaders will be required to demonstrate flex and adaptability.

Responding to the demands of legislation and regulation, balancing people needs with efficiencies in a hybrid world, addressing the rise of AI and changes in the digital landscape.

Future success in HR requires flexible mindsets, collaboration across stakeholder groups, partnership working and a vulnerability to accept that though we can’t know the changes ahead, the challenges will be best met with mindset of curiosity and readiness.

The Rise of AI and Technology

One client said ‘AI won’t replace humans, but it will replace humans who don’t know how to work with AI and take advantage of its integration.’ So, how can we leverage AI to make ourselves relevant rather than redundant?

How do we harness tech to automate and make efficiencies to process – in a way that feels authentic and sensitive to the ‘human’ side of our firms?

Interestingly, many respondents felt that the notion of AI adoption and the use of emerging technologies in HR was becoming a ‘trend’ or buzzword, lacking sufficient detail on how these digital tools could be applied in practice.

There was also a sense that the language around AI was at risk of feeling like a ‘threat’ to the human, empathetic side of the HR function – and that this binary thinking was not helpful and could be a barrier to effective integration of new digital tools and resources.

Collaboration & Partnership

To build future success within the HR function, working collaboratively with internal and external stakeholders will be vital.

Taking an insight-drive approach will necessitate us working across functions and disciplines to deliver change – leaning into expertise, knowledge and experience from multiple sources as an essential component for success.

Respondents cited an increased focus on delivering in-house solutions and efficiencies – but recognised the need to understand and lean into external expertise to work in partnership when it’s needed.

Partnership working, integrated design and an ability to bring in different perspectives will be an important part of the HR landscape, even as internal investment is a priority.

Developing futureproof skillsets

For our respondents – there were some key skillsets that required investment if we are to deliver future success within our firms. These include:

Psychological safety – Creating a space where it is safe to discuss, disclose, disagree.
Neurodiversity – Valuing diverse skillsets, supporting and equipping everyone for success.
Accessibility – Recognising how systems, processes & behaviours disadvantage/disable colleagues.
Class/Social Mobility – Recognising outdated practice and limiting views related to background.
Religion – How do we align personal beliefs & organisational values in a world where religious views can be polarising, and often politicised, weaponised and misrepresented in the media?
Challenging Conversations and Feedback – To continue evolving and improving we need a growth mindset and an ability to have honest conversations in which we can give and receive feedback.
Mental Health – Complexity and change have been a constant in recent years that is set to continue. How do we enable our people to look after their own mental health and be aware of mental health challenges within their colleagues and teams.
Intergenerational Working – The challenge of engaging and aligning the workforce, developing skills and awareness for better communication and collaboration across generations.
Conduct & behaviours (storytelling) – Increased scrutiny on conduct and behaviours mean that we need to consciously invest in our people and the culture we create together.
Human-centred Leadership – The skills to bring greater human connection to our work. These might include Emotional Intelligence (EQ), Psychological Safety and Inclusive leadership.

C-Suite Presence and Influence

In boardrooms motivated by performance, results and shareholder return – how do we integrate HR as an operational driver of these success measures?

Effective HR leadership during times of change and uncertainty requires a skillset and readiness to influence and challenge at senior level, execute on strategy and develop goals aligned to bottom-line measures and operational compliance.

Working in siloes or in ways that position HR as a ‘nice to have’ rather than a critical driver of business success will limit a firm’s ability to adapt to change and thrive during times of complexity.

Navigation of geopolitical/social crises

The need to navigate changes in the social and political landscape must continue to be a focus.

Not least for global firms that need to adapt and flex to cultural ‘norms’ and variances – but for all organisations – given how expectations of employers have changed through cultural shifts such as hybrid working and intergenerational nuances brought about by multigenerational workforces.

Many respondents mentioned the need to articulate a meaningful position or purpose, aligned to organisational values – and the need to develop a language and approach that takes into account polarising views but navigates these with sensitivity and self-assurance.

HR exists against a backdrop of populism, radicalization, and intolerance – and our respondents expressed deep concern about this, both in society and within companies.

Social unrest and a shift to the right jars with many organisational values and principles – and this leaves companies wondering whether they need to take a stand, and how to do this in a way that doesn’t pass judgement, but finds common ground that all colleagues can buy into.

Data and insight-driven decision-making

How do we leverage the systems & data already being measured within our firms – to drive our focus on skills development, wellbeing and effective people management? How do we use data to tell stories?

Intergenerational Working

HR Leadership in a multi-generation workforce needs intention if we are to bridge gaps and respond to the attitudinal differences, communication preferences and variances in employee expectation of our colleagues.

The current generation will be the leaders and managers tomorrow – their approach to learning is different, their access to information as digital natives is different, their leadership style is different and they have different expectations of their employer, of leadership/governance and of the colleagues they work with.

External pressures such as the pandemic and the political landscape, land differently for different generations – and in navigating the challenges of the future – we need to be consciously mindful of that dynamic.

So, in conclusion…

Our study highlighted a lot of common focus areas and themes when considering the future of HR leadership and ensuring the agility and continued success of our colleagues and teams.

Ironically, one thing that is clear, is that much of the landscape ahead is unclear, uncharted – and there are undoubtedly challenges ahead in attracting, recruiting and retaining the talent we need, for a future we don’t yet have full sight of.

And, how do we ‘simplify, simplify, simplify’ (as one respondent shared) so that we avoid decision paralysis, and counter the complexity that we are seeing now – and that which lies ahead?

One thing rings true now, as it has for much of our last 30 years in this field, change is constant.

If you’re navigating a change or looking at ways to engage colleagues, strengthen teams and invest in building a more inclusive and cohesive culture within your organisation – we’d love to talk to you!