The future of work is here, and HR leaders need to take action to stay ahead.
The focus is no longer just on jobs being lost or created but on a bigger shift: What will “work” mean in a world where technology moves faster than policies, sustainability is essential for businesses, and the workforce is defined by skills and adaptability rather than location?
What role does HR play in shaping this future?
This article breaks down key HR trends and strategies to help you prepare for these changes. With the right approach, these disruptions can become opportunities to create competitive advantages. Learn how to address upcoming challenges, adopt innovative solutions, and build a sustainable workplace for the future.
The urgency of change that the future of work brings
The future of work is not a simple evolution—it is a radical redefinition. While AI and automation have become synonymous with the future of work, these are not the only forces at play. The rise of green movements is pushing industries to reinvent themselves. At the same time, inequality and polarization are creating an urgent need for more inclusive economic models.
As AI and automation redefine productivity, the very nature of human work is in flux. Some regions face aging populations, while others struggle with high youth unemployment, creating a global labor market caught between crisis and opportunity.
The future of work defined
The ‘future of work’ refers to emerging shifts and dynamics caused by these forces, which are reshaping today’s and tomorrow’s workplace. While these changes offer opportunities for innovation, they also present significant challenges. In fact, 76% of HR professionals believe their organizations risk falling behind if they don’t embrace AI and emerging trends within the next 18 months.
Our HR trends research highlights the urgency of these challenges:
- By 2030, 44% of workers’ skills will be disrupted, and 6 in 10 employees will need additional training by 2027
- AI adoption is critical, yet 60% of organizations lack a clear plan for implementing it
- Only 23% of employees worldwide feel engaged at work, costing businesses $8.8 trillion annually in lost productivity.
These disruptions put businesses at risk of losing competitiveness and adaptability unless HR takes bold, decisive action. Now is the time to rethink strategies and redefine HR’s role in shaping the future of work.
Why current HR practices won’t work in the future
For HR leaders, tackling the skills gap, employee concerns about AI, and outdated HR practices are top priorities for the future of work. But the strategies that worked in the past won’t be enough to address these challenges.
Previously, organizations relied on upskilling programs, employee engagement initiatives, and isolated technology investments to respond to workforce issues. These efforts focused on filling gaps and adapting to immediate needs.
Another common response has been removing degree requirements to focus more on skills-based hiring. While this is a step in the right direction, it has only led to a small increase in skills-based hires, underscoring the need for more intentional workforce strategies.
This gap highlights a broader issue: the disconnect between HR’s potential and its perceived impact on business outcomes. While 70% of CEOs agree that HR is critical for the future, only 53% believe HR provides enough guidance to drive business results. To bridge this gap, HR must move beyond reacting to current business needs and start proactively managing the forces shaping the future of work.
Let’s explore what this shift means for HR leaders in practice.
How HR can prepare for the future of work
HR leaders need to align their strategies with business priorities while adapting to the changing forces shaping the future of work. To make a meaningful impact, HR should focus on five key areas.
1. Harnessing AI for productivity, growth and good
AI is no longer an optional tool—it’s essential for competitiveness. But integrating AI effectively means addressing risks like bias, data misuse, and employee resistance. While much of the focus has been on adopting AI tools, it’s equally important to prioritize developing human skills to harness AI, creating new jobs and adapting work design, and building trust in AI.
How HR can lead the AI agenda:
- Foster a culture of experimentation: Encourage employees to explore AI tools like generative AI (e.g., ChatGPT) with clear guidelines. For instance, BCG consultants increased their quality of work by 40% through well-integrated AI tools.
- Address fears and distrust: Offer comprehensive upskilling programs that show AI as a productivity enhancer, not a replacement. Ensure transparency in how AI is used to gather data and employee sentiment.
- Develop AI governance: Collaborate with leadership to create ethical AI policies, protect intellectual property, and ensure fairness in AI decision-making.
- Develop technical and human skills: Using AI optimally requires applying technical skills (like prompt design) and human skills (like curiosity, problem-solving, and creativity).
- Understand work design implications: AI use and application are critical adoption enablers. Ensure that jobs and work design are evolved to reflect how employees should deliver through AI.
2. Building a future-ready talent strategy beyond boundaries
Traditional talent strategies often fall short because they fail to keep up with changes in the talent market. Organizations that stick to outdated models—like static career paths, rigid work setups, and inflexible job descriptions—struggle to attract, retain, and develop the right people.
With trends like e-migration and nearshoring, talent is now more accessible across traditional boundaries. However, challenges like rising youth unemployment, an aging workforce, and skills mismatches continue to limit the availability of qualified talent.
To stay competitive, HR needs to adopt more agile, mobility-focused, and data-driven talent strategies. They also need to address pipeline challenges and invest in building sustainable talent pools for the future.
How HR can future-proof talent strategy:
- Prioritize workforce mobility internally and externally: Break away from rigid career ladders and create fluid, skills-based career pathways in a culture that rewards mobility. Consider how talent hubs can be established across traditional organizational boundaries to tap into talent pools. For example, Unilever has a flexible talent marketplace, allowing employees to move across projects based on skills rather than being confined to rigid job roles.
- Embrace new work models: Shift beyond traditional office-based models to flexible, hybrid, and project-based work structures. This not only retains talent but makes talent pools more accessible.
- Leverage data-driven workforce planning: Move beyond reactive hiring by using AI and predictive analytics to anticipate talent needs and proactively develop the talent needed.
- Bridge the growing skills mismatch: Future-ready talent pipelines are built at the grassroots. Partner with training institutions to develop technical skills required for new-collar jobs. Direct development efforts towards unemployed youth and older workers who face barriers to entry into the workforce.
3. Making organizations a place of inclusion and trust amidst tension and misinformation
Geopolitical tensions and global influence significantly affect organizations and employee experiences. With the constant flow of information, the rise of deep fakes, propaganda, and misinformation can disrupt business operations.
How HR can create a culture of inclusion and trust:
- Focus inclusion efforts beyond statutory compliance: Rethink traditional hiring criteria to widen access to opportunities. Ensure that reskilling efforts reach underrepresented groups.
- Leverage technology: Use AI and digital platforms to remove bias, increase accessibility, and personalize career development. Implement listening mechanisms that allow employees to voice their opinions and concerns.
- Implement a verification framework: Structure processes to assess and contextualize feedback, preventing misinformation.
- Transparency in organizational decision-making: Organizations must be more transparent about their actions and decisions, ensuring that employees are communicated proactively.
4. Clarifying HR’s directive and building HR leadership capacity
HR is often expected to deliver strategic results but lacks the credibility, authority, or clear role needed to succeed. This disconnect limits their impact and leads to frustration for both HR teams and leadership.
For example, we worked with a global company where HR was assigned to lead workforce transformation but was treated as an execution function rather than a strategic partner. This is a common issue. One CHRO we spoke to shared that, despite their title, they had very little decision-making power.
How HR can drive impact:
- Assess HR’s perception and credibility: Understand how HR is viewed by leadership and employees. One organization we worked with conducted an internal audit and found that HR was seen as a compliance function rather than a business partner. Identifying these gaps is the first step toward repositioning.
- Repositioning HR as a strategic function: Build a strong business case for HR’s role in decision-making.
- Strengthen HR leadership: Evaluate whether the HR leadership team has the skills and influence to drive change.
By proactively clarifying its directive, HR can move from a reactive function to a true driver of business success. Alignment, credibility, and leadership strength are key to unlocking HR’s full potential.
5. Preparing for multiple futures through the HR strategy
The world is becoming more complex, and the traditional method of planning for a single future is no longer effective. While some suggest focusing on short-term, flexible strategies, a better approach is to incorporate multiple future scenarios into HR strategy. This helps organizations prepare for different possible outcomes.
Leading companies are already doing this. For example, Accenture uses AI-powered workforce simulations to test hiring, upskilling, and reskilling strategies across various economic and technological scenarios. This ensures they stay agile in their talent planning.
How HR can embed scenario planning into the HR strategy:
- Identify key uncertainties: Focus on macro trends that could impact the workforce.
- Develop multiple scenarios: Develop at least three plausible future scenarios based on market data.
- Define HR’s strategic responses: Pre-plan HR actions tailored to each scenario, such as upskilling programs, workforce mobility initiatives, or talent acquisition strategies.
Taking the first steps toward the future
Transforming HR starts with an honest look at how it works today. Beyond buzzwords like “strategic partnerships” and “HR transformations,” it’s crucial to use data to evaluate HR’s current state. Understanding the function’s realities is the first step toward change. Recently, we helped a client audit their HR function, identifying bottlenecks and challenges holding them back. This clarity is key for progress.
Next, HR needs a focused strategy. Our research on 50 Fortune 500 companies revealed that many HR strategies lack focus and fail to translate into actionable goals. To prepare for the future of work, HR leaders must set clear priorities, take action, and build momentum—or risk stalling progress.
HR operating models also need attention. Companies must align their HR structure with the evolving needs of their business and workforce. There’s no one-size-fits-all solution, but organizations that fail to adapt will struggle to stay agile and relevant. A key priority is building the right capabilities. I often ask clients, “What do you want to be great at?” Many struggle to answer, creating long, unfocused lists of goals. Instead, identify three key capabilities with the biggest impact and focus resources there.
Lastly, continuous upskilling is vital. HR is changing fast, and HR leaders that don’t invest in developing their HR team’s skills risk falling behind. The future of work is here, and HR must act now to lead the way.
