HR Strategy & Planning Excellence January 2023

JANUARY 2023 • Vol. 11 • No.
01
(ISSN 2564-1956)
THE FUTURE ROLE OF HR

What should HR focus on?
11
Six HR Trends That Will
16
HR Pitfalls To
24
How Human Capability
32
HR Teams Can Use AI To
Shape The American Avoid In 2023 Initiatives Deliver Value To Decipher And Respond To The
Workplace In 2023 - Naveen Bhateja, All Stakeholders Labor Market’s Mixed Signals
- Emily Hann, Medidata Solutions - Dave Ulrich and Norm Smallwood, - Rebecca Jones,
Leadpages Ross School of Business and The RBL Group Mosaicx
HR Strategy & Planning Excellence
INDEX JANUARY 2023 Vol.11 No.01
(ISSN 2564-1956)
07
The Future Role Of HR
Compiled by the Excellence
Publications Team
On the Cover
30 Technology And Workplace Predictions 2023

Articles 4 trends which might just defy conventional wisdom
CHRO CORNER - Jeetu Patel, Executive Vice President and General
Manager, Security and Collaboration, Cisco
14 Exclusive Interview:
Claire Essex- Crosby, Chief People 36 Flexibility At Work: The Need Of The Hour
Officer, Eagle Eye Solutions Ltd.
Measure productivity by results, not days of the week
or hours at a computer - Scott Day, Chief People
Officer, Alludo
19 A Lack Of Remote Work Options May
Be Causing Employee Turnover 39 Getting Cost Optimization Right
How HR teams can meet the demand for Tips to avoid common mistakes when implementing
remote work - Josh Millet, Founder and cost optimization strategies - Nick Shah, CEO and
CEO, Criteria Founder, Peterson Technology Partners
Top Picks INDEX
11
Shape The American
Workplace In 2023
HR professionals should incorporate
these trends into their HR strategy
- Emily Hann, Director of People and
16
Culture, Leadpages
HR Pitfalls To Avoid In
2023
HR can improve the employee
experience by prioritizing human-
centric approaches to growth
- Naveen Bhateja, Chief People
24
Officer, Medidata Solutions
How Human Capability Initiatives

Deliver Value To All Stakeholders
Governance and guidance for growth through
human capability
- Dave Ulrich, Rensis Likert Professor, Ross School
of Business and Norm Smallwood, Partner, The
RBL Group and G3HC
32
HR Teams Can Use AI
To Decipher And Respond
To The Labor Market’s
Mixed Signals
Businesses can preserve,
empower and maximize existing
resources and talent by introducing
automation - Rebecca Jones,
General Manager, Mosaicx
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EDITOR’S NOTE
Editorial Purpose Debbie Mcgrath Babitha Balakrishnan

Publisher, HR.com Editor, HR Strategy & Planning
Our mission is to promote personal and Excellence
professional development based on
constructive values, sound ethics, and The New Role of HR in the Future of Work
timeless principles.
Excellence Publications
T he Covid-19 pandemic blurred the lines
between work and life like never before.
Businesses are trying to make sense of what
Working wherever, however, and whenever
you want - this true flexibility at work is what
employees need today, according to Alludo’s
Debbie McGrath work looks like now. Employees are Chief People Officer, Scott Day. His article,
CEO, HR.com - Publisher stressed and are trying to figure out ways to Flexibility At Work: The Need Of The Hour,
prioritize their lives and work where they focuses on the importance of measuring
Sue Kelley feel most productive. And in between is HR! productivity by results, not days of the week or
Director (Product, Marketing, and Research) HR is entrusted with the core task of hours at a computer.
effectively balancing the needs of the
company with the changing needs of the Dave Ulrich (Rensis Likert Professor, Ross
Babitha Balakrishnan and
employees and making a win-win situation School of Business) and Norm Smallwood's
Deepa Damodaran
Excellence Publications Managers and Editors out of both. (Partner, The RBL Group) article, How Human
Capability Initiatives Deliver Value To All
As we look ahead to 2023, this year will Stakeholders, helps business leaders and HR
witness new trends adding value to the professionals make conscious Human Capability
recent transformation that the HR industry choices that help them be effective.
HR Strategy & Planning Excellence has experienced. And to survive in today’s
(ISSN 2564-1956) ever-evolving landscape, HR has to keep up Also included is an exclusive interview with
with the new skills and knowledge. What Claire Essex- Crosby, Chief People Officer,
Babitha Balakrishnan
Editor types of HR roles are going to be in demand Eagle Eye Solutions Ltd., where she shares
moving forward? her HR journey and offers valuable insights on
Arun Kumar R various workplace issues and building the HR
Design and Layout (Digital Magazine) According to experts, there will be a rise team of the future.
in HR roles prioritizing AI, cybersecurity,
Vibha Kini and compliance. An increase in the number
Magazine (Online Version) From managing investments in people and
of HR professionals devoted to leadership technology to building a positive workplace
development and organizational effectiveness culture, this year will also be full of challenges
can also be expected. Hiring teams will and opportunities for HR. It will be up to
Submissions & Correspondence need leaders to focus on the intersection of HR professionals to stay up-to-date on the
employer brand and candidate experience. In latest trends and find ways to implement them
Please send any correspondence, articles, letters brief, HR will continue to reinvent itself and effectively in their organizations.
to the editor, and requests to reprint, republish, find more creative and agile ways of working.
or excerpt articles to ePubEditors@hr.com.
We hope you enjoy reading all the articles and get
In this edition of HR Strategy & Planning back to us with your valuable feedback.
For customer service, or Excellence, we’ll take you through the top HR
roles of the future, HR pitfalls to avoid, trends
information on products and services, Happy Reading!
that will shape the workplace in 2023 and
call 1-877-472-6648 much more.
The cover article, The Future Role Of HR,

For Advertising Opportunities, is a compilation of thoughts shared by leaders
email: sales@hr.com on the top priorities for HR and assures that Write to the Editor at
the future of human resources management ePubEditors@hr.com
looks promising.
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COVER ARTICLE

By The Excellence Publications Team
T he past few years have been extremely challenging

for HR professionals. This year looks no different
and is shaping up to be a continuation of many of
Despite the disruptions, the future of human resources
management looks promising. And this is the moment
HR has to capitalize on in order to drive organizations
those challenges – with a few new ones added to to success.
the list. From managing investments in people and
technology to building a positive workplace culture According to the Bureau of Labor Statistics, the projected
and employee experience, this year will witness some job growth for HR from 2020 to 2030 is 10%. What types
new trends adding value to the recent transformation of HR roles are going to be in demand moving forward?
that the HR industry has experienced. Where should HR focus their efforts? We have gathered
responses from six leaders on this topic.
HR Strategy & Planning Excellence presented by HR.com January 2023 7 Submit Your Articles
Rae Shanahan, Maureen Funkhouser,

Chief Strategy Officer, VP of Operations, Entelechy and
Businessolver Former Corporate Learning and
Talent Executive
HR Must Prioritize Employee Expect a Rise in the Number of

Experience HRPs Dedicated to Leadership
"With companies shifting to permanent Development and Organizational
remote and hybrid work models, we’re seeing Effectiveness
HR teams face new challenges, impacting “In the future, we will see an increase in
how they educate, protect and support the number of HR professionals devoted to
employees. We expect to see a pivot in leadership development and organizational
HR roles prioritizing AI, cybersecurity, and effectiveness – think Chief Leadership
compliance, especially as the expectation of Effectiveness Officers and Managers/
digital experiences becomes more prevalent. Directors/VPs of Leadership/Organizational
With a tech-enabled workforce, companies Effectiveness or Organizational
will assume more responsibility for Development. As we face an impending
managing risk, ensuring that they safeguard economic recession on the heels of the
employees information without neglecting global health pandemic, we know that strong
the shift to automated, real-time solutions. leaders will make the difference between
The pervasiveness of economic uncertainty organizations that come out of it tougher
has influenced employees to hold employers and more innovative than before.
accountable to meet key needs.
In fact, leader and manager effectiveness
Moving forward, HR must prioritize employee were deemed a critical priority by Gartner’s
experience to strengthen mental health, 2023 HR Priorities Report and organizations
productivity, and workplace posture by across industries are recognizing the
building an inclusive culture, providing importance of aligning leadership
mental health benefits and resources, and development initiatives to the overall
creating an empathetic workplace. Busi- effectiveness and success metrics of the
nessolver’s State of Workplace Empathy organization. We can expect a rise in the
Report found that workplace empathy number of HR professionals dedicated to
drives employee drive: About 70% of leadership development and organizational
employees and HR professionals believe effectiveness in the same way we have
that empathetic organizations drive higher folks dedicated to talent acquisition and
employee motivation.” onboarding.”
Shaara Roman, Dave Ulrich,

Founder, and CEO, Rensis Likert Professor, Ross
The Silverene Group School of Business, Partner-
the RBL Group
HR Should Keep a Balance HR to Focus on Tasks They Have

Between Technology and Human to Accomplish
Experience Our latest research shows that HR
“The hot HR job of the future will be one professionals will be increasingly focused on
that sits at the intersection of people and tasks they have to accomplish:
technology, and uses analytics and AI
to enhance the work of the department. ●● Accelerate business by increasing
Companies will continue to be challenged value for all stakeholders inside
with attracting and retaining talent, so and out;
the employee experience will take center ●● Advance human capability through
stage with even more complexity. HR will prioritized talent + leadership +
guide global distributed teams with high organization + HR initiatives;
expectations for a great work environment
●● Mobilize information through data and
and low tolerance for anything less.
technology to improve decisions;
●● Foster collaboration to build positive
HR will need to understand how to capitalize
working relationships with HR and
on technology and AI to automate rote
with all stakeholders;
tasks and leverage these capabilities to
customize experiences for employees. Using ●● Simplify complex to make sure the
analytics to dive deep into trends and really right things get done.
understand the workforce will be key to
building organizations where diverse sets of These “tasks” (note all verbs or actions) will
employees can work and thrive. And, yet, HR occur regardless of role, whether a generalist
will also have to lean into the human element in a business or a specialist providing deep
of their role, so these jobs will require a expertise.
high level of acumen for technology, deep
leadership and people skills, and agility.”
Kermit Randa, Danielle McMahan,

CEO, Symphony Talent Chief People and Business
Operations Officer, Wiley
Hiring Teams Will Need Leaders People Will Always Be at the

to Focus on the Intersection of Center of What HR Teams Do
Employer Brand and Candidate “As we navigate a rapidly shifting landscape,
Experience one constant is that people will always
“Talent Acquisition is increasingly more be at the center of what HR teams do.
tech-driven. Hiring teams are mostly using As technology and automation become
technology to become more efficient with more integrated throughout the HR
fewer resources, regardless of employment function, we will see a growing demand
market conditions. I think hiring teams will for team members skilled at analyzing and
need leaders to focus on the intersection interpreting data to help deliver HR’s most
of the employer brand and candidate impactful, strategic efforts.
experience. Titles could include head of
candidate marketing because it requires Learning and development is another critical
using several technologies, creative services, growth area. A recent Wiley report found
and digital advertising knowledge to attract, that 69% of the HR professionals surveyed
interest, and hire the best quality candidates. said their organization has a skills gap, up
from 55% in 2021. Often the best source
Another job we see emerging is the director of talent to close that gap is from within
of talent experience to create stronger organizations, which requires high-caliber
connections between job applicants and upskilling and reskilling opportunities.
brands — a role that blends HR skills, the use Therefore, we will likely see HR teams add
of CRM technology, social media, marketing, roles focused on implementing strategic
and brand promotion. And roles like employee L&D initiatives, expanding
candidate qualification specialist, focusing workforce training, and delivering flexible
on qualifying and hiring people with the right education benefits.”
skills, or VP of talent pipeline, aligning talent
acquisition efforts and resources to directly
impact and meet the needs of the business."
Would you like to comment?
TOP PICK

Shape The American
Workplace In 2023
HR professionals should incorporate
these trends into their HR strategy
By Emily Hann, Leadpages
A s HR teams create their road maps for 2023,

they have a lot to consider. From flexible work
environments to culture initiatives, employee training,
contribution towards employee benefit plan premiums,
providing commute-to-work reimbursements,
employer-paid fitness memberships, or paid parental
and functional office space, the list can get long. The leave. For folks working from home, employers could
world of work and employee-employer relationships offer stipends for Wi-Fi and energy bills or catered
have fundamentally shifted over the last few years. lunches and lunch deliveries.
We will undoubtedly continue to see more changes
unfold as we progress through 2023. Holistic Employee Well-Being
In the wake of the pandemic and amid a possible
After the past two and a half years of uncertainty, recession, employees everywhere are expressing
most companies have entered calmer waters with work-related stress and burnout. There is no doubt a
hybrid work. They now have clarity about how their 2023 HR trend will be an increased focus on overall
employees’ expectations and needs have evolved employee well-being to ease these stressors. Outside
since pre-pandemic, but gaps remain between what of their physical health, HR teams can provide benefits
employees need and what employers can provide. that address their financial, mental, and emotional
As we look ahead to 2023, several key HR trends will well-being.
likely shape the industry’s landscape.
We will also see many HR teams adopting a more
Increased Cost-Saving Initiatives holistic approach to well-being, as simply providing
With the skyrocketing inflation, employees’ wallets traditional health benefits and paid time off are the
are feeling the pressure. To help retain staff during bare minimums. This holistic approach could include
the labor shortage, HR teams will likely implement more mental health support from employers, pro-
creative ways to support their employees in grams to help employees with financial planning, and
cost-saving measures this year. Beyond handing out social initiatives that bring colleagues together after
increased cost-of-living adjustments, some of these long periods of isolated work environments.
measures could include increasing the employer
Six HR Trends That Will Shape The American Workplace In 2023
At Leadpages, we’ve recently rolled out a perks and incentives for both remote and in-office
company-paid financial wellness program that offers employees, so one is not favored over the other when
our employees one-on-one professional financial a true hybrid culture exists.
coaching sessions. Providing financial coaching can
help ease stress and improve employees’ quality of For example, at Leadpages, we provide an at-home
life. As a bonus to investing in your team’s well-being office allowance for those who choose to be remote.
decreased financial stress will also lead to positive We also provide a commute-to-work incentive program
employee engagement and productivity. for those who prefer to come into the office. This
program supports team members who like to come
Transparent Compensation Packages into the office by lessening the associated costs
Another trend expected to continue in 2023 is the of commuting, regardless of their preferred mode
fine-tuning of public-facing compensation packages. of transportation. For companies looking to build a
With the increasing competition for top talent, strong climate-friendly culture, this is a great starting
organizations are looking for ways to attract and point to reduce and offset carbon footprints while also
retain employees through competitive compensation promoting employee satisfaction.
packages. Additionally, as more and more US states
roll out legislation surrounding pay transparency, Building Flexible Workspaces
most recently including New York and California, Speaking of flexible work, 2023 will also introduce
companies are starting to disclose salary ranges on a renewed interest in flexible workspaces. An office
their job postings. redesign may be on the horizon for hybrid companies
that still maintain physical office space. As we move
These pay transparency laws could cause headaches away from more traditional pre-pandemic layouts of
for companies and HR teams if they don’t take the cubicle rows, assigned seating, and a possible lack
time to clean up out-of-date, possibly biased, or of aesthetic and overall warmth, we will begin to see
discriminatory pay practices with existing team more open, comfortable, and flexible-use spaces that
members. As such, there’s no doubt that a significant are more similar to the comforts of working from
focus for many HR teams in the US over the next home. The thought behind this upcoming HR trend is
year will be revising their compensation programs, to take away the vast difference between an at-home
benchmarking strategies, and internal pay equity office and the traditional office, so it’s not such a
practices to remain competitive for talent and shock to the system for those who are truly hybrid,
legislatively compliant. making the in-office days more comfortable and
enticing for team members.
Mirror Your Flexible Work Perks
The hybrid work environment is here to stay, it’s Improving Leadership Training
a permanent fixture in this modern work world. Leaders have felt the growing pain over the last two
Employees everywhere have made it clear that they years as many have been forced to manage hybrid or
are unwilling to give up the work-life balance and remote teams for the first time with zero preparation.
monetary savings made possible by flexible work They had to completely shift their strategies to
arrangements. HR teams will continue to integrate engage and maintain the productivity of their teams.
changes into employee policies and initiatives that In addition to a new working environment, they also
support flexible individual preferences, as opposed faced increased retention issues, team mental health
to the traditional herd approach, when it comes to concerns, and employees wanting career development
expectations such as in-office versus remote work, support and physiological safety from their employers
work schedules, perks, and benefits, to name a few. more than ever before. At this stage, in any industry,
it’s not uncommon to see leaders and employees
One aspect of flexible work culture initiatives that HR burning out. In 2023, companies should expect to
teams will continue to focus and improve is providing allocate more resources to train leaders on the human
side of leadership.
Six HR Trends That Will Shape The American Workplace In 2023
Training topics will likely include soft skills such as Attracting and retaining top talent is still top of mind,
emotional intelligence, collaborative communication, and there is also an opportunity to develop leaders
and psychological safety, in addition to leadership through additional training.
training in navigating career development and
goal-setting discussions with employees. With planning for the year underway, HR professionals
should consider how they can incorporate and
The Future of The American Workplace implement these trends into their HR strategy.
In the coming year, it’s clear that HR professionals will Ultimately, we can add value to our employees—and
continue to face several challenges and opportunities. our business—by embracing these trends in 2023.
The uncertainty of the past three years has

underscored the importance of mental health and
Emily Hann is the Director of People
wellness, and many organizations are looking for ways and Culture at Leadpages
to support the overall well-being of their employees.
In 2023, this could include offering resources such
as mental health support, increased cost–savings
initiatives, flexible workspaces, and more.
CHRO Inspiring the
Next Generation
CORNER of HR Leaders
Where do HR leaders draw inspiration from? What are

their worst nightmares? How did they stand the test of
the changing times?
In this segment, we will trace your journey to the top.
This is your story - a story that is made of extraordinary

accomplishments, methods that helped you overcome
adversity, innovative programs that you led, and
fundamental changes that you brought in. It's your chance
to inspire the next generation of leaders.
Claire Essex-Crosby is the
Chief People Officer at Eagle
Eye. She has over 20 years
of experience in HR, having
worked in governmental,
healthcare, technology, and
financial service sectors.
Exclusive Interview With
She leads every aspect of the
employee experience from Claire Essex- Crosby, Chief
attracting, developing, and
retaining the right talent; to People Officer, Eagle Eye
Solutions Ltd.
building Eagle Eye’s purple
culture; and making Eagle Eye a
great place to work. Previously,
she held senior HR leadership
roles at Hitachi Capital and Excerpts from the interview:
Nielsen at both national and
What has your HR journey been like, and what
international levels. Q influenced you the most to positively impact your
In an exclusive interview with career?
HR.com, Claire Essex-Crosby Claire: My journey in HR has been challenging, complex, and sometimes
shares her HR journey and frustrating; but mainly – exciting and rewarding. One of my primary
offers valuable insights on reasons for getting into HR was to be able to make a difference and help
various workplace issues, business leaders navigate complex challenges.
building the HR team of the
future, and much more. I love the role of strategic business partner - being able to work with
organizational leaders to solve mission-critical problems is a real
privilege. And it’s that ability to build relationships with key stakeholders
and make a difference that has most positively impacted my career. That
and not being afraid to try new things and re-imagine HR in new ways.

CHRO Corner
What were your challenges during

Q the early days of your career
Name: Claire Essex- Crosby
compared to those of today?
Claire: Three things that come to mind are proving
HR’s place at the table and demonstrating it every
Designation: Chief People Officer
day; navigating European employment law in a
global market; and continuously looking for business
Company: Eagle Eye Solutions Ltd
process improvements in a new technology-driven
world. Total number of
240
employees:
What according to you is one of the
Q most overlooked issues facing HR When did you join the
2017
today? current company:
Claire: One of the most overlooked issues facing HR Total experience
today is the increasing volume and changing nature 20 years
in HR:
of the challenges human resources professionals
continue to face in the complex and uncertain Travelling, reading, and
post-Covid environment. Having to acquire new skills Hobbies:
history
quickly; being able to pivot as new situations emerge;
whilst not losing sight of the people who are the heart
and soul of our organizations. As businesses put What book are you The Neapolitan Novels
more of a premium on overall employee happiness reading currently? by Elena Ferrante
by creating better employee experiences, much of the
work falls on HR. We need to remain agile.
What can HR do about “Quiet Do you see any new job roles being
Q Quitting?” Q created by the transformation?
Claire: HR professionals at all levels must continue Claire: I think there will be a continued focus on data
to engage with their employees. Look for those insights and artificial intelligence (AI); diversity; and
opportunities to learn and listen, and really listen the future of the workplace.
to what your employees are saying to you. Foster a
deep sense of purpose and connection regardless Major HR trends you expect in the
of whether you are office-based, hybrid, or working Q
next 5 years
remotely.
Claire: I expect to see more AI in HR processes,
At Eagle Eye, we believe in the power of e-NPS especially in hiring and the screening process. I also
scores. This enables us to get a sense of where our see HR continuing to reinvent itself and find more
employees are and helps us to identify new ways of creative and agile ways of working. And more quiet
hearing their concerns; to ensure we are acting on the hiring – upskilling and reskilling.
things that really matter. You can pay people more or
invest in training for example, but if you don’t know What is your leadership mantra?
what your organization is thinking, how can you be
Q
Claire: Do what is right, not what is easy. And of
sure your efforts are targeted and are going to make a
course, treat others as you wish to be treated.
real difference?
TOP PICK
HR Pitfalls To
Avoid In 2023
HR can improve the employee
experience by prioritizing human-
centric approaches to growth
By Naveen Bhateja, Medidata Solutions
H uman Resources professionals

are facing some obvious
challenges heading into 2023. The
economic downturn is leading to
layoffs and hiring freezes that HR
must oversee. At the same time, HR
is facing the challenge of leading
their organizations through the
quiet quitting epidemic.
On top of this, there are a number

of less obvious issues at play in
the workplace that threaten to
dramatically affect organizational
effectiveness. These pitfalls also
require the attention of the People
function and special care should be
taken to recognize and steer clear
of them.
Prioritizing Tech Before

People
in mind, they can cause more frustrated with HR tech that they
The HR technology industry is
harm than good. would be willing to take a pay cut if
booming. In 2022, it was valued at
it meant they could work with more
nearly $24 billion. As a result, HR
A recent survey reveals an effective platforms. Leveraging
teams have more digital tools than
alarming statistic related to tech to streamline HR processes
ever before to assist them with
the pitfalls of deploying HR is valuable, but its impact on the
a wide range of tasks. However,
technology in the wrong way: employee experience must be
if these tools are not designed
67 percent of employees are so carefully considered.
and deployed with the employee
HR Pitfalls To Avoid In 2023
One way to avoid this pitfall is allow them to inform the EX

Neglecting Data-Driven
to champion human-centric HR development process (the
Analytics
strategies. It is not enough to same approach an organization
The digitalization of business has
understand what a new tech tool would use for customer
produced a wide range of new data
can do; leadership must understand experience). Communication
streams, many of which relate to
how it will add value to their is key to orchestrating and
the work that People functions
employees as well as the most managing a productive
perform. However, HR teams have
effective way to deploy it. The true employee experience.
been slow to look at these new
potential of any new tech platform
sources of data for insights. Failing
can be realized if employees Abrupt Digital
to value this data and the deep
embrace it. Transformation
understanding of workplace trends
The Covid-19 pandemic it can provide is a pitfall that HR
Generalizing the Employee prompted a rapid acceleration must avoid.
Experience in the pace of digital
Today’s workplace is made up of transformation. One survey
A recent McKinsey & Company
Boomers, Millennials, and Gen X found that organizations
study highlights the potential of
— some onsite, some remote, and progressed 20 to 25 times
using artificial intelligence (AI) to
others a hybrid of both — bringing faster than expected in
mine HR-related data. The insights
with them a diverse collection of transitioning to digital tools.
derived from AI-driven analytics
expectations when it comes to the While that pace was essential
can provide better results on a
employee experience (EX). for addressing the sudden and
wide variety of HR responsibilities,
unexpected changes required
including recruiting, performance
Organizations have come to by the pandemic, making abrupt
assessments, and employee
understand that providing a positive digital transformation to the
engagement. Reskilling HR teams
EX is critical for sustaining high norm will not produce positive
or bringing in new talent that is
levels of employee engagement results for most organizations.
adept at data analytics is one way
and performance. However, many to ensure that organizations do
in leadership positions have failed HR professionals must help not neglect the value data-driven
to understand that keeping their organizations to remember analytics can provide.
overall EX positive requires a high that digital transformation
level of personalization. involves more than deploying
Another potential pitfall to avoid
new technology — digital
in leveraging AI-driven analytics
Keeping engagement high requires transformation involves a
is that HR practitioners must be
understanding the unique needs new way of approaching
aware of any inherent biases and
and personalization of the EX in work. Leadership must give
be sure to avoid them. Bias can
order to meet them. McKinsey & employees the time and training
creep into algorithms in several
Company suggests that one way necessary to understand why
ways. AI systems learn to make
to orchestrate a better employee transformation is happening
decisions based on training data,
experience is to identify the and what it promises to
which can include biased human
various “personas” that exist in accomplish. Rushing into
decisions or reflect historical or
the workplace and design multiple transformation without the
social inequities, even if sensitive
EX approaches to meet each appropriate communication
variables such as gender, race, or
group’s unique expectations. A decreases the likelihood of
sexual orientation are removed.
critical step in this process is to widespread engagement,
actively listen to employees and which ultimately threatens
its effectiveness.
HR Pitfalls To Avoid In 2023
in 2023, with reports showing from failures. For HR, this means,
Taking An “Employee First,
that one in three employees taking the time to honestly assess
Person Second” Approach
is planning to look for a new the success of platforms and
to Management
job in 2023. One of the best systems and accept the findings of
One of the lessons learned
ways to avoid losing talent those assessments. If new HR tech
from the Great Resignation is
is to provide employees with is not being utilized as expected,
the need for human-centric HR
growth opportunities. training may need to be revamped.
models. Employees are people
If digital transformation is not being
who bring their lives with them
A recent survey revealed that embraced, the pace may need to
to work. Organizations that fail
nearly 70 percent of employees be adjusted. If burnout is common
to see their workers as people
would stay at their jobs if their among workers, employee wellness
first and employees second will
employers offered upskilling may need to be better promoted.
ultimately lose their attention, their
opportunities. The same survey
engagement, and their productivity.
revealed that 49 percent of In general, a growth mindset is
employers struggle with offering key to overcoming challenges
Providing flexibility is one of
those opportunities to their and adapting to new realities. By
the key practices HR needs to
employees. HR teams that work modeling a growth mindset, HR
consider in this area. Remote and
to integrate these opportunities can set the pace for the rest of the
hybrid work models acknowledge
into the employee experience organizations, better positioning
that balancing work and home
can provide their organizations them to succeed in 2023 and
life is important. Organizations
with a competitive edge when beyond.
that ignore that reality will
it comes to attracting and
find themselves challenged to
retaining top talent.
attract and retain talented and
committed employees.
Rejecting a Growth
Mindset
Another key practice necessary to
If the past 3 years have taught
avoiding this pitfall is prioritizing
us anything, that is the fact
employee wellness. Gallup’s
that change is inevitable and
State of the Global Workplace
the world around us is shifting Naveen Bhateja operates as the head
2022 Report found that employee
quickly. of the People Organization as EVP,
burnout costs businesses $322
Chief People Officer at Medidata
billion in turnover and lost
Managing change and avoiding Solutions, where he leads an ecosystem
productivity costs. HR should comprised of Strategic People Partners,
initiate programs that promote the pitfalls listed above require
People Operations, Talent Acquisition,
employee well-being and a willingness to develop new Diversity, Equity, and Inclusion,
proactively seek ways to improve skills, accept new ideas, and Workplace Benefits and Resources,
it. Taking steps to acknowledge a embrace new paradigms. and Corporate Social Responsibility.
To accomplish that, HR As a member of the senior leadership
worker’s struggles with empathy
professionals must value and team, Naveen operates as a business
and provide guidance on how they strategist and trusted advisor and
can be overcome communicates develop a growth mindset. The
believes that people strategies
that they are seen as a person first HR space is ever-changing, empower successful business
and an employee second. meaning those who work within outcomes.
it must also be willing to evolve.
Limiting Internal Growth Would you like to comment?
Opportunities One essential characteristic
of the growth mindset is the
Retaining talent is one of the top
willingness to try, fail, and learn
challenges businesses will face
A Lack Of Remote Work
Options May Be Causing
Employee Turnover
How HR teams can meet the
demand for remote work
By Josh Millet, Criteria
A fter a crisis as destructive and

destabilizing as the Covid-19
pandemic, the desire to “get back
remote and hybrid peers, and
this is a particularly serious
impediment in the middle of
necessity and returning to the office
was always the end goal. However,
our survey found that this plan may
to normal” is natural. But while a tight talent market when not be working out: 56 percent of
the world is returning to normal in employee retention is already a the companies that are mostly
many ways – people are traveling major issue. in-person say employee turnover
again, mask mandates have been is a major issue, a proportion that
dropped, and so on – we’ve also HR teams have to recognize drops to 50 percent for companies
witnessed a series of fundamental that employee expectations that are hybrid (a mix of remote and
and permanent changes. Nowhere about workplace flexibility physical work) and 41 percent for
is this shift more apparent than and autonomy will never companies that are mostly remote.
in how and where we work, a be the same. They should
transformation that HR teams are develop policies that take A significant majority of companies
especially focused on. these changes into account, can see that the pre-pandemic
from remote work options to status quo is likely gone forever.
Many companies are eager to get a culture built around meeting While 39 percent of our survey
back to “normal” as quickly as employees’ individual needs.
possible, and this often means respondents say their workplaces
The companies that adapt to are mostly in-person, 61 percent
ordering employees back into the
new employee demands will be
office. But according to our 2022 are either mostly remote or hybrid.
in a stronger position to attract
Hiring Benchmark Report – in These policies are meeting a clear
and retain talent than those that
which we surveyed over 500 hiring employee demand: a May 2022
continue to resist change.
professionals at companies of PwC survey found that 63 percent
all sizes and across industries – of employees whose jobs can be
Companies that Require
this policy could be putting those done remotely say they “prefer
In-Person Work are
companies at a serious competitive some mix of in-person and remote
disadvantage. Companies that
Losing Employees
working.”
are mostly in-person are seeing For many companies, the shift
higher rates of turnover than their to remote work was a reluctant
A Lack Of Remote Work Options May Be Causing Employee Turnover
It’s no surprise that the companies remote work was a historical balance. It isn’t difficult to see
that fail to meet these demands aberration rather than the how the availability of remote
and expectations are losing catalyst for a long-term change work opportunities is connected
employees. Half of the companies in how employees work. The to work-life balance for many
we surveyed answered “yes” when evidence suggests that this employees. When employees are
we asked if employee turnover belief is mistaken, and this is able to decide where they work,
is a major issue, while just 38 mainly because employees’ they will have more flexibility to
percent said “no.” It has never been attitudes toward remote work travel, see family and friends, and
more critical for companies to are expressions of more determine exactly what their work
prioritize employee retention and fundamental preferences and environments look like.
implementing the right remote work concerns.
policies is an integral part of this According to our survey, 56 percent
effort. Our survey found that there’s a of companies have implemented an
mismatch between companies’ RTO plan this year – a proportion
How Remote Work Policies perceptions of what that surges much higher in certain
Are Tied to Retention prospective employees want industries, such as transportation
Despite the fact that employees and what they actually want. and logistics, the public sector, and
are increasingly demanding remote Although hiring professionals manufacturing. As the pandemic
work options, many companies rank compensation as job recedes and companies reassess
are requiring employees to show candidates’ top priority, their policies, they shouldn’t forget
up in person. These companies candidates are more interested that the desire for remote work isn’t
appear to believe that the shift to in securing the right work-life going anywhere.
A Lack Of Remote Work Options May Be Causing Employee Turnover
at their companies, while 70 difficult few years – it’s long past

How HR Teams Can Meet
percent believe “on-site workers time to acknowledge that remote
the Demand for Remote
are more likely to be promoted work is here to stay.
Work
and paid more compared
One of the most important
to remote workers.” These
elements of employee retention in
are reminders that the mere
the coming years will be HR teams’
implementation of remote
ability to fully leverage remote work.
work policies isn’t enough – HR
This process won’t be the same for
teams also have to integrate
all companies, but there are several
remote workers with their
essential issues HR professionals
in-person colleagues, provide
should keep in mind. First, they
the resources remote workers
should have a candid, ongoing Josh Millet is the Founder + CEO of
need, and establish guidelines
conversation with employees about Criteria, a venture-backed ($64.3M)
and standards that are fair to all
their needs and concerns. Second, talent success company that helps
employees. organizations make more objective,
they should ensure that their
evidence-based talent decisions that
workplace culture is conducive to
At a time when companies are both reduce bias and drive outcomes.
remote work. And third, they should
struggling to attract and retain Prior to launching Criteria, Josh
focus on the underlying priorities co-founded an online test preparation
talent, remote work is a key
which drive the demand for remote company, Number2.com, which was
differentiator that will set them
work. acquired by Xap Corp in 2002.
apart from their competitors.
While a desire for normalcy is
Despite the prevalence of remote
understandable – especially Would you like to comment?
work, a Gartner survey found that
for HR professionals who have
less than half of employees believe
been through an extremely
remote work is “destigmatized”
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TOP PICK
How Human Capability

Initiatives Deliver Value
To All Stakeholders
Governance and guidance for growth
through human capability
By Dave Ulrich, Ross School of Business and Norm Smallwood, The RBL Group
L ike many others, we have spent our career seeking

to discover how to create value for all organization
stakeholders inside (employee fulfillment and
strategic realization) and outside (customer share,
investor confidence, and community reputation)
through people and organization practices. This
elusive, but relevant, aspiration has inspired ideas,
research, and experiments. We are closer to this holy
grail (or pot of gold at the end of the rainbow) today
because of progress on three efforts: outcomes,
frameworks, and research.
Outcomes That Matter

Because of technology, political, demographic, and
social contextual changes, about 80 percent of firms’ policies, or other initiatives and more about the impact
market value today comes from intangibles (up from on customers, investors, and communities. Simply
20 percent in the last twenty years)—intangibles stated, if an organization does not succeed in the
representing the ability to adapt to these changes. marketplace, it has no workplace.
Further, access to funding, strategic declarations, and
digital innovations are less differentiating than the This focus on outcomes more than activities makes
ability to manage people and organizations. people and organization investments more relevant,
and even material, to investors, boards, and senior
As a result of these contextual changes and executives. The recent U.S. Securities and Exchange
competitive demands, HR (broadly defined) is less Commission (SEC) requirement to disclose human
about HR and more about the outcomes of doing HR capital in regulatory reports signifies the increasing
work. For example, good people and organization interest in people and organizations. With little
work is less about the number of days of training, direction about what should be disclosed, about 7,000
CEO-to-employee pay ratio, time to hire, workforce U.S. firms reported a host of initiatives and metrics
in 2021.
How Human Capability Initiatives Deliver Value To All Stakeholders
●● HR function refers to the HR department,

Framework for Progress
practices, and people that deliver value.
Because of increased attention to people and
organization issues, a profusion of ideas and
actions—many of which do not focus on outcomes— This Human Capability framework clarifies and
have shallow or non-existent roots in previous work, evolves the HR profession (see figure 1 for the
lack research evidence to support them, and end up evolution of field).
as shiny objects and fads. To counter this quick-fix
mentality, we have been actively engaged in the last Investors, boards, and business leaders can explore
few years in three relevant and large research projects: each of the four Human Capability pathways and link
1. HR Competency & Capability Study, concluding them to stakeholder outcomes. HR professionals,
the eighth round of data in 2021 with 28,500 as architects, can diagnose performance in each
respondents (over 120,000 people surveyed pathway and offer blueprints for progress.
over the life of the study).
Innumerable innovations proliferate in each of these
2. Organization Guidance System with over
four pathways (see figure 2 for thirty-seven initiatives
1,000 companies.
across the four pathways). Having a way to integrate
3. Governance and Guidance for Growth
these innovative initiatives allows organizations to
through Human Capability (G3HC, with
progress in ways that build on each other rather than
7,000 companies).
having isolated and often repackaged initiatives.
These four pathways are like the four food groups that
From this research and our experiences, we propose lead to many diets, the GAAP principles that shape
a simple but integrated framework for the HR field: financial decisions, or the big five personality traits
Human Capability (talent + leadership + organization that offer numerous personality assessments, etc.
+ HR department).
We are encouraged by this “framing” of HR that may
●● Human refers to talent (human capital, become a foundation for the field. In any business
employee, workforce, people, competence). discussion related to people and organization,
●● Capability refers to the organization (team, these four pathways may be the basis for dialogue
workforce, capability). and investments.
●● Leadership bridges the two.
Figure 1:
Evolution of HR Field to Human Capability
Figure 2:
Thirty-Seven Initiatives in Four Human Capability Pathways
of the four pathways impacted employee, financial,

Research with Actionable Insights
and social reputation outcomes.
Most efforts to assess the four pathways and
thirty-seven initiatives come from surveys that
Our findings are remarkable (see figure 3.) Human
ask respondents to offer their views on scripted
Capability scores explain
questions. Surveys collect information but have
response bias, limited information sourcing, and ●● 44 percent of employee productivity.
multi-collinearity findings. For research to lead to ●● 26 percent of cash flow (EBITDA) (also 25
actionable insights, we access information with the percent of market value over intrinsic value or
advance of machine learning, AI, and natural language intangibles [Tobin’s Q]).
processing, which takes us beyond traditional surveys. ●● 36 percent and 48 percent of two social
responsibility indicators.
In partnership with Amazon Web Services AI
experts, we were able to use machine learning and
These results are nearly double the industry average
Natural Language Processing (NLP) to score 7,000
for the impact of Human Capability on these results
organizations on the extent to which they disclosed
as measured by surveys (figure 3). This validates
efforts in each of the four pathways. For 5,700 of
the reliability of our Human Capability framework
these firms, we were able to run predictive analytics
and the machine learning / AI methodology for
about how Human Capability overall as well as in each
explaining results.
Figure 3:
Results of Human Capability on Key Outcomes
Employee Productivity: Finance: Cash Finance: Social Social

Revenue\employee flow (EBITDA) Tobin’s Q Responsibility: Responsibility:
(value to Fraud Litigiousness
book)
Human
R2 .445 R2 .261 R2 .253 R2 .359 R2 .484
Capability
Investors, boards, senior business leaders, and (G3HC). It provides a conceptual and empirical
HR professionals who seek higher confidence in foundation to upgrade and evolve the HR profession
employee, financial, and citizenship results should by making progress on how Human Capability
oversee and make informed Human Capability initiatives deliver value to all stakeholders and by
investments. informing SEC disclosures.
Clearly, SEC human capital reports are not perfect The work also helps any organization profile their
sources of data on Human Capability. Companies current (see figure 4) and determine desired Human
differ on what they disclose because what they are Capability investments to make intentional choices for
doing and how transparent they chose to differ. improvement as well as what to disclose, drawing on
However, over time, the SEC reporting on Human thirty-seven actionable insights from our work.
Capability will likely evolve, and disclosures may
eventually more closely match the rigor of financial, Most importantly, this work helps business leaders
strategic, and risk management information. and HR professionals make conscious Human
Capability choices that help them be effective.
Implications for HR Profession, Your
Company, and You
We have called our work in this domain Governance
and Guidance for Growth through Human Capability
For further insights, Check www.g3humancapability.com
Dave Ulrich is the Rensis Likert Professor of Business at the Ross School, University of Michigan,
and the Co-Founder & Principal at the RBL Group. He has helped generate award-winning databases
that assess alignment between external business conditions, strategies, organization capabilities, HR
practices, HR competencies, and customer and investor results.
Norm Smallwood is a Partner and Co-Founder of The RBL Group. He is the co-author of eight books:
Real-Time Strategy, Results-Based Leadership, How Leaders Build Value, Change Champions Field
Guide, Leadership Brand, Leadership Code, Leadership Sustainability, and Agile Talent. Norm was a
founding partner of The Novations Group, Inc. where he led business strategy, organization capability,
and design projects for a wide variety of clients spanning multiple industries and geographies.
Technology
And Workplace
Predictions 2023
4 trends which might just
defy conventional wisdom
By Jeetu Patel, Cisco
of current threat actors (who

use modern ‘toolkits’ consisting
of modular malware). The next
evolution of security is about
sensing anomalies and behavior
patterns, which will aid in predicting
a breach. Advances in AI and
machine learning will make this
possible, and smart organizations
will get ahead of this trend.
The Next Critical

Influencer for Technology
Purchases? Human
Resources
Hybrid work has changed so many
dynamics within an organization,
including buying patterns. Human
resources (HR) has traditionally
P
focused on work-related software
redicting the unexpected is a
Beyond the Age of like Workday, but with hybrid
tricky business. Especially in
Malware: From Detection work so essential to productivity
technology and business, where
to Prediction and worker satisfaction, HR will
constant change and disruption are
In 2023, we will move beyond continue to get more involved in
a given. But that won’t stop me. So,
the age of simple malware technology software influencing.
here are four trends that I expect to
because just detecting In 2023, look for HR to expand its
play out in 2023—all of which might
malicious code won’t be enough knowledge of and influence in all
just defy conventional wisdom.
to combat the sophistication kinds of technology and software
purchases.
Technology And Workplace Predictions 2023
helpful!) tasks. We’ve already guidelines are implemented, and,

Choice Over Mandates
seen mind-blowing capabilities when appropriate, restrictions
Will Matter More Than We
from DALL-E, for example, and win out.
Think
in 2023, there’s no doubt even
Another disruption to hybrid work
more truly transformative AI use
will be the countless employees
cases will emerge. The next era
who will not want to go back to
of AI, and the use cases that
rigid, in-office work schedules.
follow, will have big implications
Many organizations may choose
in 2023 and beyond — both good
to double down on workplace
and bad. As AI continues to take
mandates in 2023, but they’ll
over important decision-making
ultimately lose. Progressive
(such as employee recruitment Jeetu Patel is Cisco’s Executive Vice
companies will create a flexible,
or deciding who gets approved President and General Manager of
secure hybrid-work experience and
for loans), bias may become Security and Collaboration. Jeetu
a great physical workspace — that combines a bold vision, steeped in
an unfortunate “side effect” of
people will want to visit, but only product design and development
utilizing such technology.
when they choose to or the work expertise, operational rigor, and innate
calls for it. Such organizations will market understanding to create
Additionally, AI will also high-growth Software as a Service
win on talent, agility, sustainability,
enable more advanced scams, (SaaS) businesses. Prior to joining
and worker satisfaction and see
incidents of identity theft, Cisco, Jeetu was the Chief Product
long-term success. Officer (CPO) and Chief Strategy Officer
convincing deep fakes, and
(CSO) at Box, a role he pioneered.
more. Despite the tremendous
An Uptick of Technological
positive impact AI can have, it’s
and Ethical Dilemmas with
more critical than ever that the
Transformative AI
industry ensures responsible
AI and machine learning have pretty and ethical use cases, Would you like to comment?
much stuck to relatively rote (but
TOP PICK
HR Teams Can Use

AI To Decipher And
Respond To The Labor
Market’s Mixed Signals
Businesses can preserve, empower and
maximize existing resources and talent
by introducing automation.
By Rebecca Jones, Mosaicx
D emand for workers is intense. As states reopened

their economies in 2021, employers drew from a
smaller pool of available workers. Wages increased,
the resulting mad dash of hiring — added to the
pressure on HR teams struggling to keep a pulse on
their current employees.
and job openings soared, remaining high in 2022.
The number of workers quitting their jobs has also Workforce planning is an essential function of HR.
remained elevated. HR professionals must understand talent supply
and demand and how it relates to the company’s
Despite the number of job openings, the goals. Achieving this perspective has been tricky
unemployment rate ticked up to 3.7% (by 306,000 in today’s market. At the same time, HR teams (like
people) in October. The new data comes amidst other departments) are strapped for talent. They’re
ongoing layoffs, as seen in the tech industry. responsible for balancing workforce planning with
fewer resources.
This “contradictory labor market” leaves business
leaders, including HR teams, scratching their heads, How AI Can Support HR Operations
potentially unsure how to move forward. AI solutions can streamline HR processes, enable
automation, and increase productivity and savings.
Examining How the Complex Labor Diverse sectors are finding that AI is an effective
Market Impacts HR solution for HR and business operations. In fact, 25%
The unprecedented number of U.S. workers leaving of companies already use AI to support recruiting,
jobs across industries in the Great Resignation — and hiring, training, performance management and other
HR-related operations.
HR Teams Can Use AI To Decipher And Respond To The Labor Market’s Mixed Signals
Below are three examples of how AI can support tools can analyze job descriptions to highlight and
HR operations. remove discriminatory language. These tools might
identify biased language such as “guru” or “ninja.”
Innovate Recruitment and Reduce Hiring They might also encourage gender-neutral pronouns.
Bias Ultimately, AI-enabled tools can suggest changes
Job seekers have been in the driver’s seat since without sacrificing the passion and impact you want
the Great Resignation. Employers can adjust their to demonstrate to potential applicants.
recruiting processes in new and innovative ways to
find talent to fill open positions. AI is one tool HR Streamline Operational Tasks Such as
teams can use to innovate the recruitment process. Scheduling
For example, AI and machine learning can filter Today’s employees want flexible schedules, and
applications and flag profiles that match the job they want to manage their schedules autonomously.
description. AI can also determine what candidate Businesses can deliver on these expectations
sources provide the best-matched workers, which can with intelligent virtual agents (IVAs). An IVA is
improve a company’s recruiting efforts. an AI-powered software that engages humans in
natural and sophisticated conversation. Let’s say
AI can also play a vital role in helping businesses an employee needs to adjust their scheduled shifts.
avoid bias in job advertisements and descriptions. The employee can easily text or call an IVA to notify
Biased language in job descriptions can discourage leaders of the change and suggest alternative staffing
capable and talented candidates from applying options. Leaders and HR teams can then use the IVA
for a position for which they are ideal. AI-enabled to share the updated schedule with other employees.
HR Teams Can Use AI To Decipher And Respond To The Labor Market’s Mixed Signals
Not only do IVAs streamline shift changes, but they The labor market has been sending mixed signals
grant the autonomy workers want. for a few years now. HR teams can decipher and
respond to these mixed signals with the help of
Answer Questions About Company AI and AI-enabled tools. Businesses can preserve,
Layoffs empower and maximize existing resources and talent
As previously mentioned, some industries are by introducing automation of everyday tasks and
experiencing large-scale layoffs. The way a company improving communications.
communicates a reduction in staff can have an impact
on its current workforce, future employees, and
reputation. AI-enabled tools can support a company’s
communications efforts about layoffs. Rebecca Jones is the general manager
of Mosaicx. In her career of 25+
years, she has held a broad range of
For example, an HR team can create an FAQ for operations executive roles focused on
employees to reference. The FAQ can answer growing businesses, people, and profit
questions about the state of the business, what led margins. Rebecca also serves as a
to the reduction in force, what actions they’re taking member of the board for the Families
to support affected employees, what remaining for Effective Autism Treatment (FEAT)
of Louisville.
employees can expect going forward, etc. Companies
can then program their IVA to answer these questions
from employees and direct them to knowledge base
articles for more information.
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HR Strategy & Planning Excellence presented by HR.com January 2023 35

Flexibility At Work:
The Need Of The Hour
Measure productivity by results, not days
of the week or hours at a computer
By Scott Day, Alludo
Y ou’ve probably been hearing a lot about

four-day work weeks recently. And it may sound
very appealing.
It’s not because I can’t make it make financial sense.
It’s not because I am a tyrant who loves to see people

glued to their office chairs.
Believe me, I get it. The pandemic blurred the lines
between work and life like never before. And as It’s because it’s not enough freedom.
businesses try to figure out what work looks like now,
knowledge workers are struggling with long hours, The four-day workweek is still an employer-prescribed,
not to mention bosses that are trying to force them top-down methodology that is too focused on input
back into the office. People are reporting more stress. (hours spent in the chair) versus output. It still fails to
They are wishing they could regain their time, prioritize see people as unique individuals and treats us all as if
their lives, work where they feel most productive, and we have the same needs, preferences, and demands.
frankly, set better boundaries. While I certainly agree that a four-day workweek
might be perfect for some people, I’m an even bigger
So, when we hear about the mandated four-day believer in freedom. I honestly don’t think the times,
work-week, many of us think: “Hum... maybe that’s it.” days, and hours you work – never mind where you
work – should be dictated by the company you work
But here’s the plot twist: As a people leader, I have for at all.
given this a lot of thought. I am not convinced we will
fix this problem by forcing knowledge workers to work So, What IS the Solution?
four days instead of five. True flexibility at work. And that means working
wherever, however, and whenever you want. The best
And it is not for the reason you think. employers focus on outcomes, not inputs. They want
to know if you are getting your job done and doing
It’s not because I think productivity will drop. it well. They couldn’t care less whether you prefer
to wake up at the crack of dawn and hit the ground
It’s not because I think employees will disengage. running, or spend the day with your family and focus
on work at night.
Flexibility At Work: The Need Of The Hour
life. And if you do, you should have the right to ask
your employer for it. But if you are considering
implementing it at your company (or already have),
please think twice before making it mandatory and
dictating the specific day people need to take off.
Don’t hop on the trend because it sounds enticing

when it is just the same old archaic work structure in
different clothing. Challenge yourself to explore what
true freedom and flexibility at work would look like.
Different roles and businesses come with a variety

of requirements, and of course, I cannot speak
universally. For many workers, set hours and locations
are absolutely necessary. (Thank you, first responders
Flexibility and freedom at work do not mean leaving and frontline workers who turn up every day when and
work early to watch your kid’s soccer game. It means where we need you!) But for knowledge work – where
that watching a soccer game in the middle of the day outputs mean so much more than time or location – I
isn’t “leaving early” at all. encourage leaders to embrace a philosophy that puts
the individual first.
Sure, there are times when the team will need to align
schedules for a meeting or a deadline. But that noon True flexibility and freedom mean treating employees
meeting might be the beginning of the day for some like whole people who should be able to make their
and the end for others. It might be a quick moment own choices. We should be measuring productivity by
of work to focus on an otherwise non-work day. And results, not days of the week or hours at a computer.
if you have a global workforce, flawless alignment on
work timing is not realistic anyway.
This is not just about making a more welcoming Scott Day is the Chief People Officer
of Alludo. He lives by a people-first
workplace for employees, though that is a big part of it.
philosophy that emphasizes freedom
It is also a smart business. and connection to build supportive
and high-performing teams. Scott has
I have found that freedom and flexibility are not only a passion for driving organizational
great for people, but also for our company. During the change, shaping culture, and delivering
pandemic, knowledge workers everywhere proved business results in fast-paced,
collaborative environments. He’s
that productivity did not require an office. And it
played a pivotal role in spearheading
goes without saying that work/life balance can be Alludo’s remote-first transformation and
dramatically improved by removing the artificial creating an environment that embraces
constraints of “industrial-era” 9-5 office work. When the employee well-being with ERGs
focus is on results instead of counting people sitting in (Employee Resource Groups), great
cubicles, employees discovered they could make more benefits, wellness days off, and more.
space not only for their lives and families but also for
their careers.
Why Wouldn’t We Want to Lean into That? Would you like to comment?
Yes, a four-day workweek might work great for
some. Maybe you think it is perfect for you and your
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Getting Cost
Optimization Right
Tips to avoid common mistakes when
implementing cost optimization strategies
By Nick Shah, Peterson Technology Partners
T here was a lot of debate on whether or not the many executive leaders expecting cost reductions to
U.S. will enter into a recession by year’s end. continue, rather than abate, in the coming 12 months.”
Two consecutive quarters with negative GDP growth (Finance Research Team, Gartner, 2022)
later, it’s seeming inevitable. The last quarter also
saw a rise in inflation, a decline in the stock market, While restructuring is the right move, the unusual
and an inverted treasury yield curve. While the job circumstances we’re all operating under could lead
market continues to stay strong the Federal Reserve to errors cropping up in executive decision-making.
has indicated that interest rates will continue to rise Spotting them in advance will help businesses make
through the year, in an attempt to combat inflation. better choices in the coming months.
These are all traditional indicators of a slowing
economy and we could enter into a recession by the Unintentional Mistakes
end of the current financial year i.e. 2022-2023. Whether you’re making time-sensitive decisions about
cutting overheads, reallocating resources, or funding
Coupled with the economic slowdown is the recent growth, leaders need to recognize common cost
pandemic, the effects of which we are still feeling and optimization errors and avoid them.
will continue to do so for some time to come. The
global economy is yet to recover fully from the COVID Using recent research by Gartner, I am recommending
crisis, though the US has fared better than most. the following strategies to avoid common mistakes
that businesses make when implementing cost
Pressure Leads to Errors in Decision- optimization strategies.
Making
In the face of looming uncertainty over recovery from Setting Unrealistic Targets
this pandemic, executives and leaders are under a
Only 43% of organizations achieve their cost savings
lot of pressure to restructure their organizations to
target in the first year of cost reduction.
reduce costs while maintaining performance and
staying competitive. According to a recent study by
A common response to economic turbulence is to
Gartner,
set unrealistic cost savings targets based on current
financial outcomes. You think, “We’re doing well
“Nine in 10 organizations resorted to cost reductions
financially now, so let’s use major cost-cutting as a
in response to the pandemic-driven recession. This is
way to save early.” This is short-sighted.
expected to continue, with more than three times as
Getting Cost Optimization Right
Across-the-board cuts penalize the more efficient cost-cutting strategies will not lead to smart spending
parts of your organization and can result in eroding decisions.
important sources of value. It can also leave you
without a buffer when your income dips during Although some costs— travel, bonus payouts, benefits,
difficult periods. Equally important is the effect it can and luxury packages—can be limited by introducing
have on your team, who might get demotivated by big changes in policy and adding restrictions, costs tend
budget changes and feel like they’re being forced into to reoccur as you fall back on old habits to maintain
unwinnable situations when meeting performance growth.
goals.
You need to accompany cost-cutting measures with
A much better approach would be to plan cuts in definite changes in operational wisdom and strategy.
tranches that can accumulate across the recession. Changing spending habits across the organization
Instead of making aggressive cutbacks right at the will keep your larger optimization efforts on track and
start of the recession, keep them pliable and agile to fruitful.
meet requirements as they develop.
Backing Away from Innovation
Optimization Built Without Behavioral
Only 9% of organizations create enough capacity to
Change
take on the growth and innovation opportunities they
Only 11% of organizations can sustain cost cuts over pursue.
three years.
Cost reductions can drain resources from high-impact
It’s not enough to slash the budget and then move innovation projects or indefinitely delay funding. This
on as if it were business as usual. You need to might seem like a good step in the short term, but
introduce behavioral changes to your organization in the long term, you will lose ground—and market
that can support the optimization effort. Short-term share—to competitors who will keep innovating.
Getting Cost Optimization Right
is to research digital alternatives that could help

you reduce overheads and optimize your current
resources.
Ignoring Data and Network Security

The vulnerability of private data is a growing concern
for organizations, as almost 60% of data privacy
failures result from organizations’ own employees.
Cybersecurity is quickly growing to be the biggest

data-related concern for organizations that are
capable of leveraging future tech. Yet only 50% of
future-ready businesses have a cybersecurity plan in
place. And, of those, about a third haven’t changed
their plan since the pandemic. The recent shift to a
remote-working environment has also compounded
the security risk.
Don’t let innovation become a casualty of your need
to save resources. A better bet would be to shift Cyberattacks will only increase in size, sophistication,
the focus of innovation, from product development and scope. If you’re planning on making organizational
to retraining. Invest the inevitable downtime in changes without giving due consideration to your
production toward helping your employees gain skills cyber vulnerabilities, you’re leaving yourself open
they will need to stay current in the industry and to cyber risks, both from malicious attackers and
improve product development once your finances are careless staff.
back on track.
Every business that isn’t operating in a rapidly
Delaying Digital Transformation expanding industry will be looking to implement cost
optimization measures over the next year to combat
Although most organizations have plans for digital
the looming recession and beat inflation.
business transformation, only 11% have achieved it
at scale.
During times of uncertainty, businesses feel cornered
into taking ad hoc cost-cutting measures. To
A primary reason is that organizations are anticipate and manage such uncertainty, business
underspending on digital transformation. More than leaders must plan cost optimization measures that
60% of CIOs are self-funding their digital business will drive short-term efficiency and effectiveness while
initiatives through cost savings from other budget sustaining long-term growth.
areas.
Being mindful of these mistakes is the first step for
However, realizing scale from digital efforts requires leaders trying to improve strategic cost optimization.
more substantial funding than what is generated
by IT budget savings; digital transformation is not a
zero-sum game.
Nick Shah is the CEO and Founder of
Organizations must plan for the cost of integrating Peterson Technology Partners.
new digital business capabilities into their business
and the impact this will have on operating costs,
otherwise, they will be left dealing with underfunded
digital initiatives that do not generate competitive
results. Another way to approach the situation
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JANUARY 2023 • Vol. 11 • No.

THE FUTURE ROLE OF HR

30 Technology And Workplace Predictions 2023

How Human Capability Initiatives

HR.com’s one-hour webcasts, in every HR specialty

Use these invaluable HR Strategy & Planning

Editorial Purpose Debbie Mcgrath Babitha Balakrishnan

The cover article, The Future Role Of HR,

HR Strategy & Planning Excellence

In a world of unparalleled challenges (global pandemic, racial injustice, politi-

Excellence publications are my ‘go-to’ resource for contemporary and action-

Julie Winkle Giulioni

I regularly read and contribute to Leadership Excellence and Talent Manage-

Dr. Beverly Kaye

We’re eager to hear your feedback

The Future Role Of HR

T he past few years have been extremely challenging

Rae Shanahan, Maureen Funkhouser,

HR Must Prioritize Employee Expect a Rise in the Number of

Shaara Roman, Dave Ulrich,

HR Should Keep a Balance HR to Focus on Tasks They Have

Kermit Randa, Danielle McMahan,

Hiring Teams Will Need Leaders People Will Always Be at the

Would you like to comment?

Six HR Trends That Will

By Emily Hann, Leadpages

A s HR teams create their road maps for 2023,

The uncertainty of the past three years has

Where do HR leaders draw inspiration from? What are

In this segment, we will trace your journey to the top.

This is your story - a story that is made of extraordinary

What were your challenges during

Would you like to comment?

By Naveen Bhateja, Medidata Solutions

H uman Resources professionals

On top of this, there are a number

Prioritizing Tech Before

One way to avoid this pitfall is allow them to inform the EX

By Josh Millet, Criteria

A fter a crisis as destructive and

at their companies, while 70 difficult few years – it’s long past

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Employee Productivity: Finance: Cash Finance: Social Social

For further insights, Check www.g3humancapability.com

Would you like to comment?

By Jeetu Patel, Cisco