Organizations must fundamentally transform their people management strategies to adapt to new technologies, hybrid work models, multigenerational workforces, and global uncertainties.
The way organizations manage their people is on the cusp of a major shift. New technologies, the rise of hybrid work, multigenerational workforces, and global uncertainties are pushing leaders to rethink how they attract, develop, and retain employees. It's time for a fundamental transformation in people management.
Why a New Approach is Needed
In today's rapidly evolving world, old HR practices simply don't cut it anymore. Employees have new expectations, and organizations need to boost productivity and build resilience. Many companies are realizing that traditional HR operating models need a serious upgrade.
A Vision for the Future
The future of people management is all about harnessing the power of technology to reshape organizations. Emerging technologies will enable companies to:
- Deliver personalized employee experiences: Tailoring coaching, training, and development to individual needs and preferences.
- Redefine work: Creating a symbiotic relationship between humans and machines.
- Continuously measure organizational health: Identifying and solving problems before they escalate.
- Free up managers' time: Automating tasks to allow managers to focus on providing individualized attention, guidance, and coaching.
Organizations that excel in both people development and financial performance are four times more likely to outperform financially.
Key Elements of the New People Operating System
- Hyper-Personalization:
- Employees now expect the same level of customization at work that they experience in their personal lives.
- Technology is making it easier and more affordable to collect data and create personalized experiences based on individual preferences, roles, and cultural backgrounds.
- Imagine tailored compensation and benefits packages based on local market conditions, or customized career roadmaps that consider existing skills, skill gaps, and career goals.
- AI-based coaching can provide personalized feedback and training suggestions, leading to higher engagement, satisfaction, and productivity.
- Example: A telecommunications operator uses a gen AI–enabled coaching engine for its sales team. The engine analyzes call center transcripts to identify learning gaps and provides employees with personalized training suggestions.
- Creating a Frictionless Organization:
- Organizations need to move away from rigid roles and hierarchies that hinder progress.
- Emphasize internal mobility and skill development over traditional promotions.
- Use data to proactively plan for succession and provide real-time feedback to leaders.
- AI-powered online marketplaces can connect employees with internal job opportunities and even external talent exchanges.
- This allows organizations to react quickly to changing skill needs and tap into freelance or gig workers for short-term projects.
- Example: An opportunity marketplace identifies an assistant whose role may be reduced in the future. The system then helps the assistant develop skills for a new role within the organization.
- Elevating Humanness:
- As machines take on more tasks, humans need to focus on being more human.
- Leaders need to understand the potential of technology and use it ethically and responsibly.
- Managers should prioritize empathy, compassion, and inspiration.
- The HR function should equip managers with the tools and insights they need to connect with employees on a human level.
- Example: The people function can act as an ethical sounding board for senior leadership on technology usage, and provide skill-building opportunities for leaders and employees.
Transforming the People Operating Model
The next era of people management requires a new approach to how the HR function operates.
- Strategic Triumvirate: The HR function will be led by a strategic triumvirate of:
- People Strategists: Senior coaches who collaborate with business leaders to enhance organizational effectiveness.
- People Scientists: Subject matter experts who use data and research to develop and implement HR programs.
- HR Technologists: Experts in HR technology who can design and implement technology solutions.
- Streamlined Operations: Automate routine tasks to free up HR professionals to focus on strategic initiatives.
- Technology Mastery: HR professionals need to be able to use technology to manage complexity and drive business value.
The Bottom Line
The future of people management is about creating a more personal, tech-enabled, and human-centric workplace. By embracing these changes, organizations can unlock the full potential of their employees and achieve greater success.
Bibliography
1 “A New Operating Model for People Management: More Personal, More Tech, More Human,” accessed February 14, 2025.
2 “A New Operating Model for People Management: More Personal, More Tech, More Human,” accessed February 14, 2025.
