HR’s new mandate in the workforce evolution

Standfirst: As workforce sustainability becomes increasingly important, HR has a critical role to play, argues Rita McGrath.

These days, long-term employment is becoming less common. Trends like "tour of duty" engagements are on the rise, where employees commit to specific roles for defined periods, typically three to five years. People are increasingly creating their own support networks that extend beyond any single organization, leading to a workforce that is more distributed and less tied to any particular employer.

Instead of the traditional career path, where someone might join a company at the age of 24 and stay there until retirement, we're moving towards a model where long-term tenure with one company is rare. While some individuals might still follow the old model, they will be the exception rather than the norm.

This shift is accompanied by reduced tenure in roles and decreased investments in employee development. For instance, GE sold its iconic Crotonville training center, signaling a pullback in internal training investments.

Changes like these raise a critical question: How can organizations maintain a loyal and engaged workforce in this new landscape?

Being intentional about connection

HR's role in fostering a sense of belonging and team spirit has never been more critical. In the past, team bonding happened naturally in shared physical spaces. But now, with more people working remotely, we need to be more deliberate in creating connections. This involves creating and implementing rituals and practices that encourage commitment and connection among team members. It's more crucial than ever because temporary teams require more deliberate orchestration to function effectively than they might have in the past.

Take companies like Novartis and Amazon, for example. They have successfully embedded cultural values and team bonding into their operations. Novartis emphasizes curiosity, inspiration and being “unbossed” through its Culture Lab. Amazon ensures every employee understands and operates with a shared set of values right from the start.

What we're seeing among the best companies is a deliberate effort by CHROs to design specific rituals that foster a sense of belonging and team cohesion. They might set aside time every couple of weeks for the team to check in with each other. This could involve activities where team members discuss their energy levels, share what's going on in their lives, and connect as people.

It's important to create space for team members to bring elements of their personal lives into the workplace. Whether it's celebrating a child's graduation, supporting someone with a family member in hospital, or simply sharing personal experiences, these moments help build a more supportive and empathetic team environment.

The importance of continuous learning

In today's fast-paced world, skills become obsolete quickly, so integrating learning into the daily rhythm of work is essential. This approach allows employees to experiment and try new things, which is essential for personal and professional growth. Fidelity Personal Investments, for instance, dedicates every Tuesday to learning activities, ranging from formal courses to customer visits. This approach ensures continuous skill development without burnout.

However, many companies still operate on the outdated principle that humans are just poorly performing robots, which clearly doesn't work. This clock-in, clock-out mindset doesn’t recognize the full potential of their employees. This outdated model treats employees like children, requiring them to adhere to rigid schedules and not trusting them to self-regulate.

The companies that will truly succeed are the ones that harness the full potential of their workforce. By treating employees as integral parts of the organization, rather than just hands for hire, businesses can unlock tremendous potential. This approach not only boosts performance but also drives significant innovation and improvement across the board.

A new mandate for HR

HR and talent departments must be advocates for a more human future of work, focusing on how to bring out the best in people by leveraging their unique, quirky, and unpredictable talents to achieve corporate goals. This means advocating for policies that treat employees as whole individuals, not just units of production.

Leadership isn't just for those at the top anymore; it's something that happens at all levels. HR has a crucial facilitating role in this new landscape, helping to nurture and develop leadership qualities throughout the organization.

I believe HR has a tremendous opportunity to develop a unique set of skills that are essential for understanding and nurturing talent within the organization. This includes identifying the strengths and potential of each individual, determining what they need to grow, and providing the necessary support. Whether it’s through coaching, peer-to-peer networks, or cross-organization communities of excellence, HR should be at the forefront of architecting these initiatives.

Lately, I've been pondering who is truly responsible for organizational design. There are countless books and materials on the subject, but when it comes down to the actual work of designing the structure and culture of an organization, it’s not always clear who takes the lead. This responsibility should lie with HR. They should be the ones designing the formal and informal structures that shape how an organization operates. By taking on this role, HR can ensure that the organizational design aligns with the company’s goals and the needs of its people.

HR has a critical role in designing structures that support a resilient, engaged, and innovative workforce, ensuring long-term success. Some considerations:

1. Intentional team building: Design specific rituals and activities that foster team bonding and a sense of belonging, especially in remote or hybrid work environments.
2. Continuous learning: Integrate dedicated time for learning and development into the workweek to ensure employees are continuously updating their skills.
3. Employee wellbeing: Create support systems that recognize employees as individuals with unique needs and circumstances, promoting a healthy work-life balance.
4. Decentralized decision-making: Empower employees at all levels to make decisions, fostering a sense of ownership and responsibility. The idea of a "permissionless organization," where decision-making is decentralized, can significantly enhance employee engagement and innovation.
5. Organizational design: Take a proactive role in designing organizational structures that support agile, resilient, and sustainable workforce models.