Co-authored by Geoff Hudson-Searle and Gimena Uhrich
HR is undergoing a significant shift with the integration of artificial intelligence (AI) technologies. This transformation is driven by the need for greater optimization and cost efficiency, as well as the desire to enhance the employee experience.
The use of generative AI, and other new technology, is enabling HR teams to work more efficiently with data, find talent with future-fit skills, and improve decision-making. To succeed in transformation, organizations need to embrace a multi-dimensional approach aligning processes, systems, skills, content, and strategy around the employee experience.
Oscar Wilde once said: “A cynic knows the cost of everything, but the value of nothing.”
Indeed, the same can be said for organisations that view their workforce as a cost, rather than an asset to be nurtured and developed over time.
Many modern-day organisations have now come to the realisation that it is the firm’s intangible assets, such as the knowledge and skill of their employees, that is fundamental to creating value and attaining a sustainable competitive advantage over rival firms.
Organisations today find themselves operating in a knowledge economy, and this raises many questions as to how firms can facilitate the creation, development and sharing of knowledge among its employees. Hence, the management and measurement of human capital (HC) has become an issue of great strategic importance.
Managing talent well has become crucial for finding opportunity in the midst of change, as leaders must shape a workforce with the skills to deliver on strategy now and in the future. Financial capital isn’t the main limiting factor in rising to today’s challenges – talent is.
The key to success is a talent-first mindset. Too many organizations go from initiative to implementation without thinking about the talent required. By putting talent first, the human resources function becomes a true driver of business value. We establish talent management as a distinct competitive advantage, matching talent to where the most value is at stake.
By delivering on dynamic talent allocation, closing skills gaps, and transforming core systems, we partner with organizations to build the talent capabilities they need to sustain and scale impact.
The most important resource in any economy or organization is its human capital—that is, the collective knowledge, attributes, skills, experience, and health of the workforce. While human capital development starts in early childhood and continues through formal education.
Human capital is much more than a macroeconomic abstraction. Each person has a unique, living, breathing set of capabilities. Those capabilities belong to the individual, who decides where to put them to work. The degree of choice is not limitless, of course.
People are the products of geography, family, and education; their starting points matter. Having career options also depends on an individual’s abilities and attributes, their networks, their family obligations, the health of the broader labour market, and societal factors.
While we recognize these constraints, career moves are nevertheless an important mechanism for expanding skills and increasing earnings. The patterns within our data set show that moving into a new role pays off—and even more so when someone lands a new position that stretches their capabilities or represents a match that better utilizes their skills.
Not all companies are equally good at developing people. Size is not the differentiator, as we find that small companies can be just as adept as their larger counterparts in this area. But companies with the strongest organizational health, those that offer more structured training for their employees, and those that provide more opportunities for internal advancement seem to stand out.
People join these companies to build knowledge and networks, understanding that their experience will provide a valuable signal to other employers for the remainder of their careers. Early career experience at these companies helps employees go on to become more upwardly mobile.
Companies can help individuals grow—and establish themselves as great learning organizations and magnets for talent in the process. Three priorities stand out:
Understand the potential in people as well as their current knowledge and skills. Most employers can benefit from challenging the status quo of how they select people for open roles. Instead of searching for “holy grail” external candidates whose prior experience precisely matches the responsibilities in an open role, leading organizations create systems for evaluating candidates based on their capacity to learn, their intrinsic capabilities, and their transferable skills.
This requires designing assessments that are fit for purpose, focusing on the few core skills that matter for success in the role. It also involves removing biases that pigeonhole people into the roles they are already performing; this point is particularly important when it comes to existing employees.
Research by McKinsey shows more than half of all role moves undertaken by individuals involved a skill distance of more than 25 percent—and this implies that people often have latent capabilities that are not recognized by their current employers. If someone’s track record shows the acquisition of new skills over time, it probably means that person is capable of learning more. Employers should be less constrained about recruiting candidates from traditional sources and backgrounds and more open to people who have taken unconventional career paths.
Embrace mobility. Global studies show more than 80 percent of all the role moves individuals made involved changing employers. Since there is no fighting the fact that talented people will move, the key for employers is becoming part of this flow.
Employers can aim to beat the odds on both sides of this 80-20 dynamic. On one end, they can attract the best candidates among the big talent pool that is always searching. On the other, they can boost the productivity and engagement of valued employees who stay.
To ensure that proven employees don’t have to go elsewhere to advance, organizations should set the expectation that part of a manager’s job is developing people who will go on to other things. Each role should have clear paths toward future roles, with skill requirements delineated at each stage. One way to do this in a large organization is to create an internal digital platform where employees can access learning modules and find their next opportunity.
Mobility is experience, not just upward progression. Lateral movement is a neglected opportunity for many organizations. When talented employees do move on, celebrate them as success stories—and don’t close the door on welcoming them back in a different capacity in the future.
Strengthen coaching, particularly early in an employee’s tenure. A great deal of skills development happens day to day on the job. Coaching and apprenticeship can maximize this effect. Our research suggests that the first few years of a career are foundational, and the same is true for the first year in any new job. Formal onboarding is not just an orientation session but a six-month to one-year period that should involve a thoughtfully created journey.
Organizations can provide the tools for a running start, including a manager committed to delivering coaching and facilitating connections. Even after hitting their stride, employees need ongoing opportunities to learn; this can pay off in the form of higher morale and reduced attrition.
In a June 2023 Gallup survey, 65 percent of US workers said that learning new skills is an extremely or very important factor in deciding whether to take a new job, and 61 percent said it was extremely or very important in deciding whether to stay at their current job. Formal learning and development programs that prepare employees for future roles are part of this, but it is difficult to make them effective. Companies that are true learning organizations build their own formulas, customized to their needs.
The evolution of technology in recruitment has significantly transformed the way companies attract, engage, and hire top talent.
Many innovative tools and platforms, from AI-powered candidate screening systems to sophisticated recruitment software, have driven this transformation.
These are designed to streamline processes, automate time-consuming tasks, enhance efficiency, and ultimately deliver better hiring outcomes.
The role of technology in recruitment has seen a significant evolution, transforming the way companies attract, engage, and hire top talent. From advanced candidate matching systems and gamified assessment tools to AI recruitment tools, chatbots and recruitment marketing platforms, technology is reshaping the recruitment landscape.
These technologies offer numerous benefits, including increased efficiency, improved candidate experience, and enhanced ability to reach a wider pool of candidates. They also provide valuable data and insights that can inform recruitment strategies and decision-making.
In this context, working with tech-savvy recruiters becomes a strategic advantage for both candidates and companies. Technology recruiters, adept at leveraging the latest recruitment technology, can streamline the hiring process, ensuring that companies find the right fit efficiently. They utilise technology in recruitment to its fullest potential, from AI recruitment tools for intelligent screening to tech for recruiters that assists with candidate engagement and onboarding.
For candidates, these recruitment agencies offer a seamless and engaging experience, often enabled by AI and other innovative technologies. They ensure that candidates are matched with roles that align with their skills, experiences, and aspirations, thereby improving job satisfaction and retention in the long run.
However, while the benefits of technology in recruitment are clear, it’s equally important to maintain a balance with traditional, human-led strategies. Technology can support and enhance the recruitment process, but it can’t replace the human touch. Personal interactions, intuitive judgement, and relationship-building are central to recruitment and still play a crucial role.
As we move forward, recruiters should embrace the opportunities that technology offers, while also recognising the value of human connection. By striking the right balance, they can leverage the best of both worlds to attract the best talent.
In the ever-evolving world of recruitment, staying abreast of the latest technologies and trends is key. It’s clear that technology will continue to play a pivotal role in shaping the recruitment industry. However, it’s the combination of technology and human insight that will truly drive success in recruitment.
As priorities pivot toward purpose and wellbeing, companies must meet candidates where they are, not rely on assumptions. They must walk the talk on social impact to earn trust and loyalty. With clear guidelines for supporting mental health, enacting diversity efforts and balancing innovation with empathy, organizations can transform hiring.
A great quote by Vern Dosch, CEO at National Information Solutions Cooperative and Author of ‘Wired Differently’:
“We can never fall short when it comes to recruiting, hiring, maintaining and growing our workforce. It is the employees who make our organization’s success a reality.”
This article is the expressed opinions and collaboration between two senior-level industry board professionals on their views and perceptions on the subject matter.
Geoff Hudson-Searle is a senior independent digital non-executive director across regulation, technology, and internet security, C-Suite executive on private and listed companies, and serial business advisor for growth-phase tech companies.
With more than 30 years of experience in international business and management he is the author of seven books: Freedom After the Sharks; Meaningful Conversations; Journeys to Success: Volume 9, GOD in Business, Purposeful Discussions, The Trust Paradigm and Scars to Stars Volume 3 and lectures at business forums, conferences, and universities. He has been the focus of radio/podcasts and TV with London Live, Talk TV, TEDx and RT Europe’s business documentary across various thought leadership topics and print media with The Executive Magazine, Headspring/FT, Huffington Post, The Sunday Times, Raconteur, AMBA, BCS, EuropeanCEO, CEOToday across his authorisms.
A member and fellow of the Institute of Directors, associate of The Business Institute of Management, a cofounder and board member of the Neustar International Security Council (NISC) and a distinguished member of the Advisory Council for The Global Cyber Academy. He holds a Master’s degree in Business.
Gimena Uhrich is a dynamic and results-oriented professional with a deep passion for seamlessly integrating HR and technology.
With a degree in Business Administration and Management, with complementary training in Human Relations, she presents a unique combination of experience in strategic management and planning, labor relations, and talent acquisition.
Throughout her career, Gimena has consistently demonstrated a deep understanding of the HR landscape. Her ability to leverage technology to improve processes has been instrumental in successfully leading clients. After accumulating experience in prestigious international companies such as Ernst and Young, Accenture, and Unilever, a decade ago she embarked on her entrepreneurial journey and founded INHAUS, a distinguished HR consultancy.
As a forward-thinking entrepreneur, Gimena’s proactive talent management and leadership have elevated INHAUS to the status of a trusted partner of industry leaders. In 2021, she co-founded MENTA, an AI integrated into her HR projects, combining efficiency with a human touch.
Today, Gimena is part of an outstanding team of partners leading INHAUS’ global expansion, in the Americas and European markets, to further consolidate INHAUS as a major player in the global HR consulting arena.
Outside work, Gimena enjoys marketing, photography, and communication, reflecting her passions inside and beyond INHAUS.
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