Norbert Monfort is Academic Assistant in the Department of People Management and Organization at Esade.
In a business environment marked by fast-paced change, the human resources area faces an inexorable challenge: Traversing the present while designing the future. This “bifocal approach” implies managing day-to-day reality without losing sight of the trends that will shape .
The future of work demands mindset, skillset, and toolset. These three dimensions underscore the urgent issues that organizations need to address in order to improve their professionals’ upskilling and reskilling. The World Economic Forum expects that more than 50% of employees will need to significantly refresh their skills by 2025 due to the technological transformation currently underway.
The solutions we offer today, both in terms of technology and leadership training, have to evolve quickly to provide other types of solutions which enable, on the one hand, making the most of the new tools available and, on the other, developing talent appropriately in order to prepare professionals for the constant challenges as they arise.
A people-centric talent management strategy focuses on improving the employee experience. This encompasses various facets, including their wellbeing, commitment, and satisfaction. These three factors drive productivity and generate better results. It is a win-win game: Healthier workers who are committed and satisfied connect better with clients and consumers, generating synergies and spreading that positivity. If we aim to grow based on having more satisfied clients and consumers, the first step is achieving that satisfaction within.
The challenge of hybrid work
Many wanted to call it home office—as if giving it a name would make things easier—but such a change required strategy, culture, infrastructure, policies, and leadership. The question we ask ourselves now is: What does this hybrid work model imply? How many days should workers ideally come to the office and how many should they work remotely? And, how can we enhance productivity and, at the same time, promote our business culture and innovation? The difficulty in managing this reality continues to grow, especially given the generally incompatible demands between managers (who want employees to work more in person and are concerned about productivity) and those of employees (who want greater freedom to choose when to go to the office and when not to), as well as the inclusion of deskless workers in offices. The key is thinking much more holistically about the reasons why employees should go to the office and how to evolve from the cultural “control” model (for employees to be in front of their computers, at their desks, for 8 or 9 hours) towards one based on “trust” (employees are evaluated on their productivity, and employers trust that their employees are truly committed). A McKinsey study highlights that companies that successfully balance flexibility and structure see significant improvements in terms of employee productivity and satisfaction.
We have to move progressively towards a smart hybrid paradigm that incorporates the best of both models, one that is much more cost-effective and has a greater impact on everyone. It should be a model -as yet to be defined- capable of doing away with the controversy surrounding the flexibility issue and improving efficiencies without sacrificing human connections.
Leaders will have to continue improving their skills when managing remote teams and find innovative ways to motivate their teams and ensure these are cohesive while also promoting a focus on achieving results. They will also have to develop their own skills in emerging new technologies and know how these can improve the way they manage remote teams and promote efficiency and innovation within those teams.
Human teams and AI: A key alliance
The key to forming teams of humans and Artificial Intelligence (AI) in order to ensure top performance, eliminate biases and maximize the value of predictive Big Data for improving decision-making will lie in identifying in which specific moments only human teams should intervene, where they add more value, and how virtual and augmented reality can help us create incomparable and aspirational (physical and digital) experiences for our employees.
AI is transforming leadership and business management by automating repetitive tasks and improving operational efficiency. Leaders can make use of these tools to not only optimize processes and projects but also make faster, more informed decisions. According to a report by Gartner, by 2025, more than 50% of key business decisions will be supported on AI-powered data analyses. The growing importance of data management and AI for leadership will not only enable leaders to make more informed decisions but also allow for greater flexibility in a dynamic and highly technological business setting. In addition, tools such as agile methodologies will remain indispensable: these flexible and collaborative approaches, focused on constant adaptation and continuous value-creation will complement the role of technology in creating more efficient teams and organizations.
Business culture: The cornerstone of change
If one thing distinguishes companies that consistently achieve the best results over time, it is their culture. According to a study published by Deloitte, companies with inclusive, supportive cultures are 22% more profitable and have 27% greater capacity to lead change. However, we cannot simply buy or copy this culture; nor can we implement it one day to the next. Culture develops over time and is what enables creating mechanisms to promote cohesion and the ability to respond to challenging contexts. This is patently clear in terms of how decisions are made, how companies communicate, who they hire, and who they promote.
If we consider that change is and will become increasingly common, leaders will need to develop the necessary capabilities to anticipate and manage it appropriately. While some used to say that “culture eats strategy for breakfast,” today we can rightly argue that culture is the strategy in and of itself (breakfast, lunch, and dinner). When changes in our surroundings occur faster than within the organization itself, the end is near. Thus, without a strategy, we are dead. Without a sincere, honest, and daring culture that puts people at the center, there will be no results in the medium term,
Opportunities in the cultural realm are enormous: Culture serves to fulfill the mission of enhancing commitment and creating psychologically safe spaces, spaces in which we constantly nourish mutual trust and innovate across the board. This is where integral health -not just physical but also emotional and mental health- should have a prominent role on the agenda and when allocating resources.
It is and will be critical for everyone to understand the translation of the purpose, mission, values, and expected behaviors in day-to-day routines. This is essential to transform every member of the organization -from the CEO down to the latest recruit- into a true internal and external ambassador for the company.
Sustainable and responsible leadership
Developing sustainable and socially responsible leadership is and will be fundamental in today’s business and organizational context and it will continue to grow in importance in 2025. It is a focus which, in addition to thinking about results, also has to think about managing the organization’s resources both equitable and consciously, as well as having a positive impact on society.
Leading companies will incorporate sustainability into their core strategies. This implies taking environmental, social, and ethical impacts into account in every single business decision, from design and supply-chain related choices to production and marketing decisions. Organizations that adopt this approach will not only be better positioned to meet their consumers’ ever-changing expectations and new regulations but also contribute significantly to societal wellbeing and that of the planet as a whole.
Diversity in teams will become increasingly critical. Leaders will have to promote inclusion and equity within their organizations to take advantage of the variety of perspectives and talents that diverse teams offer. At the same time, collaborative efforts at the global level will become commonplace, and leaders will manage increasingly diverse teams in terms of both geographical location and skills. Managing cultural diversity will become a key skill.
In conclusion, 2025 will bring new challenges and opportunities. Companies that know how to balance technology, talent, and culture will be the ones leading the way towards a more resilient, inclusive, and humane future.