Rethinking. Rebuilding. Reinventing HR.

The future of HR is nimble, bespoke, and strategic

Over the last few months at Impact, we’ve worked with lots of organizations that are retooling their talent teams. Shifting the structure and strategy of how they approach talent. Looking at innovative ways to tackle the newest challenges facing their organizations.

There’re lots of reasons why.

Leadership teams have changed

With new organizational strategies in hand, new C-suite teams are approaching talent differently. While the talent market has opened since 2024, there’re still lots of roles that are niche and hard to fill. And these teams need to address these gaps quickly to help drive their new strategies forward.

There’s a movement away from programmatic HR

Leadership teams are recognizing that one-size-fits-all talent programs don’t work. They focus on compliance, rather than facilitating true growth. Instead, leaders are exploring more bespoke ways to address talent needs.

The “grey tsunami” continues to be a pressing concern

There’s greater interest among senior leaders to plan for the future because we’re going to lose some of our most experienced people in the next few years. Leaders realize it takes a long time to build a strong, high-performance team. And they’re looking to get all the help they can.

“Back to the office” is still a challenge

The shift to work from home during the pandemic had lasting impacts on the way people think about work. Organizations tried different methods to get people back to the office – and many still struggle to find the right balance. Rethinking talent strategies and office environments to reflect this new reality is helping organizations find a way forward.

Gens Y and Z are our new workforce

They’re driving our organizations into the future and shifting the way companies look at talent. How to attract, retain, develop, and manage our people. And leaders are looking for new ways to be more productive and innovative with these generations. 

Creating more flexible, tailored approaches to talent

We’re hearing from clients that the enterprise model of HR isn’t nimble enough in today’s constantly changing business climate.

Rolling out the same leadership or sales programs every year without considering the needs of each individual won’t deliver the value organizations need. Or the growth and development our people are looking for.

In response, leading organizations are creating more flexible, tailored approaches to talent. Ones that focus on the strategic needs of the team or department, and the individual needs of each employee. And we’re seeing greater interest in building deep relationships with trusted external advisors to help deliver these custom programs. Saving organizations the effort and expense of doing it themselves.

Using data analytics and AI to increase HR’s efficiency and strategic focus

Ensuring we access the right talent insights is more crucial now than ever before. So we can address our people’s individual talent needs without overspending. So we have a deeper understanding of who’s in our talent pipeline and how they want to grow their careers. Whether they’re high potential employees, part-timers, gig workers, or even people at other companies. We have to think about talent not just from a current organizational perspective. We need to think about talent in a much more flexible, fluid way.

This is where technology can help. Accessing data and analytics, and using innovative tools, like AI, will be crucial for the future of talent.

Data and analytics can give us the understanding we need to make more strategic talent decisions. And it can help us create environments that appeal to younger generations, while also empowering creativity, innovation, and productivity.

AI can help make talent programs more cost-effective and nimble. We’re seeing AI built into assessment tools that not only provide bespoke insights, but can also answer questions to help strengthen team relationships. So our employees can interact with assessment tools in real time in the same way they can with Chat-GPT.

The CHRO needs to be a true advisor to the C-suite

All these changes require a different kind of HR department. One that provides strategic, customized services to internal clients. An HR that nimbly responds to changes in the work environment, the needs of the company, and the needs of our people.

To lead this evolution, the Chief HR Officer needs to be a true advisor to the C-suite. To navigate boundaries well as a trusted confidant to the CEO, HR Committee, and Board. To be open with people and create safe spaces for them to raise issues – while also serving their governance obligations to the organization.

The CHRO also needs to understand that to be invited to the leadership table, they need to be an executive of the organization.

They need to think much more broadly about the company. How they can help the organization enhance performance and meet strategic objectives. And leave the responsibilities of the HR department to the rest of their team.

And HR functions, such as recruiting, compensation, training and development, performance management, and employee relations will change as well. AI will take over many of their repetitive, non-strategic offerings. And they’ll partner with external advisors to deliver many of their programs.

These future focused changes will help HR departments optimize resources and save costs. They’ll allow HR to respond more quickly to the needs of the organization and its people. And they’ll transform HR into the strategic advisor their organizations want and need them to be.