The human resources (HR) function has always been fraught with challenges. What makes the path ahead more daunting for the HR fraternity is the fact that the workplace is changing rapidly. As if there weren’t enough problems with human beings and their intelligence, there are now bots and artificial intelligence to deal with. Is the workforce ready to embrace these changes? Well, the HR needs to be ready first before the workforce can be readied, right?
There is some help at hand. Cornerstone has come with a report containing five points that the HR leaders need to give much thought to in 2025.
1. Value engineering will be the need of the hour
With employers across the globe endeavouring to make operations economical, the HR will be required to help realise cost savings and deliver measurable returns. The focus will be on maximising the effect of existing resources and investments. With value engineering, that is, by analysing in detail where expenditure can be minimised without compromising on essential features, the HR can introduce people programmes that will optimise costs and ensure long-term sustainability and value creation. It is time to think beyond KPIs and focus on streamlining HR processes and personalising employee experiences with strategic use of technology.
2. Time to reimagine work with AI
Yes, artificial intelligence is catching on real fast. While there are organsiations that are simply adding on artificial intelligence or AI to help improve existing processes, there are others that are redesigning their workflows entirely to get the maximum benefit out of AI. The latter are the organsiations that will gain the most and achieve success in 2025. It is essential to focus on redesigning processes and teams to leverage AI instead of making small improvements to existing workflows.
3. Skills inventory will be a must to identify skills gaps
One of the primary responsibilities of the HR is to align the talent in the workforce with business priorities. To do this successfully, HR leaders will have to put together a skills inventory so that any gaps in skills can be identified in time. This will impact how organisations develop the skills of their workforce. It will also help the HR to anticipate the skills needs and design their development programmes accordingly.
4. Generational diversity will become a competitive edge
There have been maximum discussions about the challenges that come with multiple generations working in the same organisation at the same time. In 2025, the HR will be required to focus their energies on capitalising the strength of each generation in the workforce to gain a competitive edge as an organisation. For this to happen, in addition to embracing diverse talent, the priority should be mentorship and shared learning experiences. Only then can the business see better outcomes.
5. Dynamic team structures & a cocktail of work models will be the way forward
Organisations worldwide have been experimenting with remote, hybrid workers and gig workers ever since the pandemic. But 2025 will see more of a blended workforce, which will have a mix of gig workers, internal mobility and project-based models. The ideal workplace will see smooth and fluid movement of employees across projects and roles. For this to happen, the HR will have to ensure a culture of talent sharing, which will require them to rethink organisational design that will support seamless integration of gig workers into the workforce. With Instagram, TikTok, Uber, Upwork and other digital platforms it has become convenient to find gig workers and freelancers.
2025 will see forward-looking organisations and their HR departments identifying skill gaps, implementing upskilling strategies, rethinking ways of working and supporting behaviour change, for successful business outcomes.
