Professional Documents
Culture Documents
Fall 2023 Issue of People + Strategy - Many Talent Articles
Fall 2023 Issue of People + Strategy - Many Talent Articles
Fall 2023 Issue of People + Strategy - Many Talent Articles
T H E P R O F E S S I O N A L J O U R N A L O F T H E S H R M E X E C U T I V E N E T WO R K
FEATURES
Fractional Work &
Your Talent Strategy
Generation Why
The Pixelated Workforce
WHEN YOUR CEO
TURNS TO YOU,
YOU CAN TURN TO SHRM
222776
IN YO U R WO R L D O F WO R K , CHA N GE IS IN E VITABLE .
Contents
FEATURES
16 Irreconcilable Differences
What neuroscience can tell us
about the return-to-office debate.
by David Rock
28 Leadership in a World
of Contradictions 34
A Q&A with Alexi Robichaux,
CEO and co-founder of BetterUp.
Interview by Adam Bryant, David Reimer
42 Growth Talks 48 Linking Theory + Practice
34 Fractional Work & How Siemens replaced performance Transition strategies to overcome
Your Talent Strategy reviews with a new concept built on the high cost of new-leader failure.
4 key questions for CHROs about dialogues focused on growth. by Darren Overfield, Patrick Casseday
this new skills-on-demand trend. by Judith Wiese and Brad Winn
by RJ Milnor
DEPARTMENTS 54 Directors Roundtable
38 Generation Why The boardroom perspective
The HR questions raised from having 2 Message from the President on the workforce of the future.
five generations in today’s workplace. HR must bridge the gap between Moderator: Dawn Zier
by Jacqueline M. Welch hope and fear of AI. Participants: Robin Matlock,
by Johnny C. Taylor, Jr., SHRM-SCP Sheila Talton, Kelley Steven-Waiss
2 PEOPLE + STRATEGY
S H APE YO U R WO R K P L AC E
ME N TAL H E A LT H ST R AT E GY.
1 in 3
SURVEY,
STA RT TODAY
WORKPLACEMENTALHEALTH.SHRM.ORG
/FIELD-GUIDE
222887
From the Guest Editor
O
ur job as leaders is to look This phenomenon extends even to
around corners, and all signals our own profession. Former Uber global
are pointing to a need to more head of people analytics RJ Milnor
intentionally and systemically redefine observes in his article that large num-
the relationship between workers and bers of highly skilled top performers in
organizations. New work models, new people analytics are opting out of the
business requirements and new employee traditional labor force, joining a special-
expectations are coming together at ist platform and seeking projects that
full speed, putting at risk our status quo interest them that require less time navi-
arrangements in the organization—and gating bureaucracy and provide more
even the role and scope of HR. autonomy, flexibility and agency.
As you read this issue, you’ll find these And let’s face it—the traditional
are the recurrent themes from our au- deterrents of independent work are
thors—chief people officers, chief talent fast disappearing in a digital economy.
Diane Gherson officers and CEOs of firms who are all in Platforms match supply and demand
Former CHRO of IBM and senior lecturer
at Harvard Business School the vortex of these changes. seamlessly, and the combined power
of the internet and generative AI can
New Work Models enable operations without the fixed cost
Once upon a time, full-time employment of a staff accountant, personal assistant
was the only legal way to earn a decent or research analyst. Professionals earn
living. In return for showing up 9 to 5, triple-digit incomes from their homes
five days a week, and performing well in without the hassle of driving to work,
highly defined jobs, employees received dealing with a difficult boss or taking on
job security, benefits, equitable treat- less-than-fulfilling work. Already, 30 per-
ment and opportunities to advance their cent of freelancers have health benefits,
careers. However, the predominance of and employers looking for scarce talent
this familiar structure is quickly eroding. are inching toward this change, most
As industry analyst Josh Bersin points out notably in health care.
in his article, independent workers now
make up an average of 47 percent of work- New Business Requirements
ers in U.S. organizations. And a recent The second development is a shift in
large-scale study found that more than what business needs from workers. As
two-thirds of independent workers see Bersin points out in his article, compa-
independent work as less risky and more nies are optimizing for innovation rather
secure than traditional employment. than scale, and this requires a different
“Rented” workforces are extending kind of workforce and culture, operating
to core strategic work, not just advice with more fluidity and more speed.
(consultants) and support (outsourc- Traditional ways of working, leading
ing) activities. Raphael Ouzan, CEO of and structuring decision-making—all
A.Team, describes in his article how ma- designed for a more predictable scal-
jor companies such as McGraw Hill, HCA able set of requirements—are quickly
and PepsiCo are hiring fractional teams losing their effectiveness. This has led
of highly skilled engineering talent to to the creation of new departments fo-
cused on transformation of systems and
culture—often absent the participation
We are in an unsettled and advocacy of HR, missing the critical
strategic, analytical, operational and
period of profound organizational insights our function
reassessment of the can offer.
deal at work. From a productivity perspective,
employers are also re-examining their
workforce models, shifting from pri-
4 PEOPLE + STRATEGY
There is a clear opportunity to achieve competitive PERSPECTIVES
advantage by holistically revisiting the overall deal— IN THIS EDITION
including rewards and work arrangements— What is the way forward from these
and to update the scope and responsibility trends? In this issue of People +
of our HR function in this new world of work. Strategy, our authors weigh in with
their perspectives:
• Josh Bersin describes the
marily employee workforces to a higher greater focus and accountability for importance of an integrated
portion of contingent workers, moving workplace inclusion practices, more workforce strategy and
the work overseas to captive or outsourc- flexibility in time and place of work, and governance, and how higher-
ing services, or re-blending how work increased benefits for caregivers and for performing companies have
gets done using automation and AI. wellness. already made the change.
One longstanding reason for not But is this enough? As Deb Bubb, • David Rock brings an invaluable
hiring a contractor is institutional former chief people officer of Optum, neuroscience lens to understand
knowledge. “Susie knows how to navi- points out in her article, “Many organi- how to deal with the changes in
gate an exception through accounting zations are still struggling to find the employee expectations.
and compliance.” But now generative magic combination that makes people
• Deb Bubb challenges us to
AI can capture and share institutional willing to join, stay and thrive. The
define the next world of work by
knowledge in a digital workplace, mak- result is a kind of stalemate, exacerbated
imagining a way forward that is
ing human institutional knowledge less by pressure for growth, efficiency and
more humane, creative and better
valuable than before. profitability, the scarcity of skills and a
for the planet.
rising tide of unionization.”
New Employee Expectations We are in an unsettled period of • RJ Milnor, CEO of People Analytics
The third development is a dramatic profound reassessment of the deal at Partners, makes the case for a
shift in employee expectations at work. work. One thing is certain: No profes- value proposition for independent
The pandemic, the growing mental sional discipline is better prepared to workers involving them in listening
health crisis, the tortuous return-to-the- step up and lead us into the next model programs and benefits offerings.
office saga and the wave of job cuts that than HR. Over the past decade, we have • Alexi Robichaux, CEO of BetterUp,
followed have all disrupted the employ- deepened our strategic, technical and makes the tantalizing suggestion
er-employee relationship, catalyzing this analytical skills. We’ve heightened our that work, not jobs, should define
shifting mindset among workers. capacity for creativity through employ- pay.
Increasingly, employees are asking ee-centered design. We’ve drawn from • Judith Wiese, Siemens’ chief
“Why are you asking me to do this?” adjacent domains in behavioral psychol- people and sustainability officer,
They want the specifics, they want to ogy, neuroscience and organizational describes a vehicle she put in
buy into the mission and they want to behavior. place for continuously aligning
feel that the reasons are connected to What does all this mean for our on expectations to stay ahead of
their own values. Given their greater traditional arrangements for employees missed opportunities.
array of choices, perhaps this mindset and contractors—and for HR’s scope of
• Fred Delmhorst describes how
shift can be characterized as employees services? We can’t risk sidelining HR’s
at Chubb there is a recognition
expecting a better answer to that ques- important role as the steward of our
of a more configurable
tion, a more compelling value propo- people and culture. It’s time to take
employer-employee relationship
sition in exchange for their valuable stock of the fundamental shifts in work
characterized by individual
time. And as employees experienced models, business requirements and
differences in mobility, flexibility
the benefits of more time with family employee expectations.
and fulfillment.
and in their community during the There is a clear opportunity to
pandemic, many are looking to build achieve competitive advantage by • And to address shorter tenure
their careers around the life they want holistically revisiting the overall deal— expectations and different
to lead, as opposed to the traditional including rewards and work arrange- motivations in the workplace,
reverse arrangement. ments—and to update the scope and Jacqueline Welch, CHRO of
We’re already in the midst of change, responsibility of our HR function in this The New York Times, suggests
with an emerging new deal ushered in new world of work. It’s our time, HR. revisiting compensation practices,
by advances in technology and by the succession planning time frames,
pandemic. Elements of the new deal Diane Gherson is the former CHRO of and the concept of cliff retirements
include democratization of job oppor- IBM, board director at Kraft Heinz and versus glide-path retirements.
tunities in internal talent marketplaces, senior advisor at BCG.
6 PEOPLE + STRATEGY
To Strengthen the Employer-Employee Relationship,
Focus on Mobility, Flexibility and Fulfillment
Fred Delmhorst assignments. Smart companies will facil- and heads-down work. Wise employees
is executive vice president itate this internal mobility and remain are showing up when it matters and
and chief talent officer open-minded about employees crossing reciprocating with their own flexibility.
at Chubb. boundaries, whether geographical, func- While the traditional boundaries of 9 to
tional or otherwise. 5 are unlikely to return, the upside of
T
he last few These companies will also provide flexibility is the ability to better balance
years have employees ready access to resources professional and personal time where
been a dynamic period during (e.g., cost-effective learning) to develop both employer and employee benefit.
which new generations have entered in-demand skills. Smart employees will 3. FULFILLMENT. With regard to
the workforce, the promise of artificial develop transferable skills to position fulfillment, the employer-employee rela-
intelligence has rapidly accelerated and themselves for new roles. The war for tal- tionship offers many things—from basic
a global pandemic has reconfigured ent will become the war for skills as HR needs to a sense of belonging and, in
nearly every work routine. These shock platforms and technology facilitate the some cases, a greater sense of purpose.
waves, among others, have made signif- identification, assessment and recruit- Achieving purpose at work is at the top
icant impacts on the employer-employ- ment of essential skill sets. A healthy bal- of the hierarchy of needs for a reason. It
ee relationship and what each side has ance is achieved when employers enable is not easy for any employer to provide
come to expect from the other. employees to prepare for and match employees with a sense of achieving
Over time, the employer-employee with the right role at the right time. their full potential.
relationship has gradually shifted from 2. FLEXIBILITY. The second dimen- The pandemic led many people
one-size-fits-all to become more config- sion centers on the flexibility of the to think more about purpose and the
urable, thereby providing greater oppor- employer-employee relationship. While extent to which there is alignment
tunity to achieve balance. Better balance flexible work schedules have been between personal and organizational
helps not only employees, but also em- around for some time, the demand for goals. Proactive companies are respond-
ployers, who can expect the upsides of a flexibility has historically been great- ing by clearly articulating their purpose
more engaged workforce. While this is a er than its supply. This all changed and how employees contribute to it.
sprawling topic, there are three dimen- during the COVID-19 pandemic, which This goes beyond simply promoting
sions that are likely to have the biggest swiftly introduced hybrid work sched- a universal statement of purpose and
impact on shaping the employer-em- ules to countless employer-employee requires the support of front-line man-
ployee relationship: mobility, flexibility relationships. Many companies have agers to help employees connect the
and fulfillment. These three dimen- since returned to the office to varying dots between their daily duties and the
sions each color the relationship—a degrees. What has remained is a greater company mission.
social contract—between employer and appreciation for flexibility along a broad Diligent job candidates will continue
employee. set of dimensions. to seek out employers whose missions
1. MOBILITY. Measured simply by There is and will continue to be align with their personal goals, but also
tenure, the duration of employer-em- greater flexibility around where, when find ways to fulfill purpose beyond work.
ployee relationships has somewhat and how we work. Nimble companies Balance is achieved when employees
decreased over time. However, average are empowering managers to lead their can find both professional and personal
tenure is markedly lower for younger teams in ways that balance sustaining purpose. In that sense, a more flexible
employees. As the next generations con- culture, learning, innovation, pro- employer can enable an employee to
tinue to move into the workforce, the ductivity and performance. They are find personal fulfillment outside work
frequency of moves across organizations flexible in allowing time for heads-up and thereby facilitate their commitment
is likely to continue to increase.
In addition to more frequent moves
between employers, the frequency of Over time, the employer-employee relationship has
moves within employers is also likely
to increase. As organizations trans-
gradually shifted from one-size-fits-all to become more
form, the roles required to perform configurable, thereby providing greater opportunity to
will continue to morph and provide achieve balance.
opportunity for employees to move into
new positions and challenging work
8 PEOPLE + STRATEGY
What Artists Can Teach Us transformation are accelerating, afford-
ing us an unprecedented opportunity
About Rethinking the World of Work to rethink who, what, where and why we
work. In this context, Kline’s art is chal-
lenging us to re-examine our American
Deb Bubb is an experi- place, perhaps we need a new perspec- narrative for work, to reconsider the
enced executive leader in tive to help us think about it. What can realities we’ve created, and to imagine
talent and HR. She most we learn from artists about the world of a way forward that is more humane,
recently was the chief work we are creating? creative and ultimately better for both
people officer at Optum. people and the planet.
A New American Century
Since the beginning of human history, Creative Self-Expression
P
opular media depictions of the artists have challenged our assumptions, Live to work or work to live? It’s
modern workplace range from revealed our flaws, inspired our hopes tempting to think about the modern
cutthroat and greedy to incom- and helped us imagine possibilities we workplace as a container for diametri-
petent and boring. Watching the HBO may not even have words for yet. And cally opposed interests: employer versus
series “Succession” is like driving past a what part of our lives needs reimagina- employee, or productivity, efficiency
car accident—horrifying and riveting tion more than our work? and profit pitted against safety, fair pay,
in its exploration of naked ambition, ar- At the Whitney Museum in New York belonging and purpose. But perhaps
rogance, betrayal and loss. Meanwhile, City, Josh Kline’s “Project for a New that polarized narrative is no longer
the FX/Hulu show “The Bear” brilliant- American Century” installation presents serving us.
ly captures the brutality of transfor- a powerful lens on modern work: how Instead of incrementally rene-
mation, whether it’s a small restaurant it’s valued, the dignity of the people gotiating the balance of power and
business, a dysfunctional work environ- who do it and the conditions we are profit, maybe we should be asking the
ment or a traumatic family background. creating as we automate, streamline and following:
There’s even an entire genre dedicated invent our future. He weaves together What if the world of work were designed
to workplace comedy, where fans cringe themes of isolation and the dehuman- to enable all people to unleash their full
and delight in the antics of obtuse lead- ization of people whose lives can be creativity? What conditions would need to be
ers and their inept co-workers. boxed up and thrown away in a conta- in place? What beliefs would need to change?
Maybe that’s telling us something. In gion of layoffs. What would become possible as a result?
the past several years, millions of people The installation includes provocative Considering the significant challeng-
resigned, relocated or quietly quit, re- metaphors, including unemployed work- es facing our people and our planet,
jecting their working conditions. People ers bagged for garbage collection and these seem like worthwhile questions.
are burned out, exhausted, and dealing antiseptic IV drips filled with prescrip-
with constant loneliness, disruption, tions for work and for rest, pointing to
surveillance and vitriol. They’re disap- our 21st-century obsession with phar- Some organizations are
pointed in institutions and looking to macological solutions for health, fitness already experimenting
their workplaces for something differ- and performance, almost in defiance of
ent. Something more. our bodies, much less our souls. There
with these creative
At the same time, many employers are interviews with today’s workers, directions—infusing their
see themselves as having bent over exploring their longings, dreams and learning environments
backward to create better working envi- struggles. In another room, repurposed
ronments. But despite increased wages, FEMA tents house stories from future
and leadership programs
flexible arrangements and countless climate refugees, shining a painful light with music and art,
initiatives aimed at addressing employee on the consequences of decisions we are reshaping their physical
survey feedback, many organizations are making, and not making, now.
still struggling to find the magic com- The world of work that Kline reveals
spaces and job roles with
bination that makes people willing to is at once noisy, cluttered and barren. creative self-expression
join, stay and thrive. The result is a kind As a person who’s spent the better in mind, and investing in
of stalemate, exacerbated by pressure part of her life trying to make workplac-
for growth, efficiency and profitability, es healthier and high-performing, I left
building design skills and
the scarcity of skills, and a rising tide of that exhibit moved to tears, inspired creative capacity—all with
unionization. to think and work differently. Artificial incredible results.
If we are experiencing a kind of intelligence, robotic process automation
collective disillusionment with the work- and other forms of technology-driven
We already know companies are starving inspire and teach us. And here’s the big of a commission it would take for
for creativity and innovation. For ex- thing: You may not think of yourself as me to put down my paintbrush? I am
ample, a 2019 PwC study found that 77 an artist, but creative expression—the an artist. My art is building great teams
percent of CEOs already believe creativi- ability to witness, make and be changed who, in turn, make great companies.”
ty is the most important leadership skill, by art—is an innate human capacity. Ad- I think he’s not alone. There are many
and that importance will only grow as vances in neuroscience and evolutionary people who see their work as a form of
AI continues to automate or eliminate biology reveal the many ways our brains creative self-expression, who love their
routine tasks. and bodies are structured to experi- work but struggle with their working
Since creative self-expression is the ence and make meaning of the world conditions.
domain of artists, maybe we have more through art and creative self-expression. Joshua Roman, a world-renowned
to learn from them about how to re- It’s how we’re built. It’s what makes us cellist and founder of the Immunity
think the modern world of work. Some human. In other words, we are all art- project, describes his own transforma-
organizations are already experimenting ists, because every life is a creative act. tion as an artist, a collaborator and a
with these creative directions—infus- After years of searching for new solu- leader through his experience with long
ing their learning environments and tions to employee engagement, perhaps COVID-19. “You can hire a cellist to
leadership programs with music and it’s time to return to a more ancient perform, and they might play beautiful-
art, reshaping their physical spaces and approach to healing the disconnection ly. But that cellist might still be disen-
job roles with creative self-expression and disillusionment that ails us—a ca- gaged, removed, holding back,” he says.
in mind, and investing in building pacity that already lives in every person, “It’s not only about technical skill or
design skills and creative capacity—all just waiting to be unleashed. A modern perfect execution. Art is about standing
with incredible results. Art and creative world of work designed for the artist in in our vulnerability, connecting to one
self-expression have delivered significant everyone? Does it feel like too much of another through our strength and our
positive outcomes in the education, a stretch? imperfection. Art is about our fullest
health care and mental health arenas. When my husband and I were newly expression of our humanity. And once
Science is on their side. In their bril- dating, I asked him, a serial entrepre- I began to experience the depth of that
liant exploration of the neuroscience of neur and technology company CEO, if connection, I realized that not only did
aesthetics, Your Brain on Art: How the Arts there were a financial exit he was shoot- the audience need the cello, I did.”
Transform Us (Random House, 2023), ing for that would be “enough” for him What does the artist in you need to
Susan Magsamen and Ivy Ross illumi- to retire. Deeply insulted, he said, “If I thrive? Maybe that’s the right place to
nate the power of art to heal, connect, were a painter, would you ask me how start.
10 PEOPLE + STRATEGY
WORKPLACE
CHALLENGES
CAN KEEP YOU
UP AT NIGHT.
Turn to SHRM
for Solutions.
Get started at
shrm.co/upatnight
THE
Atomic
Model
Why getting top-notch skills
is no longer an employment game.
By Raphael Ouzan
I
t’s rare to see the smallest companies and the largest companies talking about the
same thing. But whether you’re in a board meeting of a seed stage startup or a
Silicon Valley giant, the word of the day is efficiency. It means do not spend too
much ahead of revenue. You can invest in new initiatives, but you have to divest if
there’s no return.
The hard part is innovating with an efficiency-driven structure. So how do these
more compact organizations innovate? They bring in fractional teams that move fast
and add expertise and agility.
Instead of hiring full-time employees one at a time, they hire a team of contingent
workers for strategic help or an injection of niche expertise, or perhaps an entire
product team to facilitate transformation. This way, the company can flexibly scale
their hours up and down according to the needs of the initiative.
12 PEOPLE + STRATEGY
VOLUME 46 | ISSUE 1 | WINTER 2023 13
Case Study: McGraw Hill up with the pace of technological change. This is the future
McGraw Hill, the century-old textbook publisher, wanted to of work: smaller companies, prioritizing speed, relentlessly
make studying fun for the digital generation. Instead of spend- focused on creating value.
ing a year staffing in-house or going the traditional route with What does this mean for the future of work? Consider the
consultancies, McGraw Hill decided to bring a “rented” team dynamic structure of an atom: At the core of this model are
in-house. A high-performing, multidisciplinary product team full-time employees with deep institutional knowledge. Those
came on board for over two years to build an app that would are the neutrons and protons. Surrounding them are fraction-
create the kind of study experience that students crave. al teams, the electrons.
By sourcing a team with an ideal talent profile using This model has only recently become possible, enabled by
A.Team’s TeamGraph AI technology, McGraw Hill was able to the surge in independent talent—as the workforce shifts to
scale quickly and bring in top talent it would struggle to recruit remote and prioritizes flexibility—plus the ability to bring this
otherwise. talent together as teams on platforms like ours.
“Traditionally, we’d get a tiger team together from different The result for McGraw Hill? A new mobile learning app
parts of the organization, with each person spending 10 percent called Sharpen. It went viral, with hundreds of thousands of
of their time on innovation,” Justin Singh, McGraw Hill’s chief students declaring it was as if “TikTok and DuoLingo had a
transformation and strategy officer, explained at the Collision baby.” It earned coverage in outlets including Forbes, and it
2023 conference. “But we realized there was a big cost in terms gave a transformative new identity to the company as its digital
of time and distraction. And the outputs tended to be very business grew 28 percent quarter-over-quarter.
similar to what we had today. Then we tried bringing in third In a recent survey of 581 U.S. tech founders and execs,
parties. The issue was you start to lose accountability. The third 71 percent said fractional talent gives their business greater
party wasn’t leveraging what makes our company great. And so agility during times of economic uncertainty, and 73 percent
we realized we had to think about this completely differently. are already using blended teams of fractional talent and full-
“That’s when we reached out to A.Team. We told them: time employees. It’s an attractive alternative to the traditional
Don’t do a business case. All I want you to do is make a mockup hiring process, which 67 percent said is too time-consuming
that delights the student. And if you can do that, everything and expensive.
else will sort itself out. That’s how we rethought innovation,” Whether they know it or not, companies have already begun
Singh says. adopting the atomic model, for several compelling reasons:
1. Flexibility. The ability to rapidly scale up or down to meet
The Benefits of Fractional Talent project needs and deadlines allows for efficient resource
At A.Team, we’ve had a front-row seat on the unfolding future utilization. This adaptability is particularly advantageous
of work. We’ve seen small companies and Fortune 500 compa- during times of economic uncertainty.
nies deploying fractional teams of specialized expertise to keep 2. Scarce specialized expertise. Fractional teams bring
diverse, specialized skill sets on board, facilitating prob-
lem-solving and innovation.
3. Cost-effectiveness. By eliminating lengthy and expensive
hiring processes, fractional hiring saves time and reduces
financial costs.
4. Efficiency. There’s that word again. With fractional
teams, fast-tracking product development to meet market
demands or seize time-sensitive opportunities becomes
achievable.
Apprentice, the pharma manufacturing platform, is another
good example. In early 2021, it had an opportunity to play a
pivotal role in the distribution of the COVID-19 vaccine. But to
do this, Apprentice needed to launch an entirely new version
of its product within 45 days—a product that spanned multiple
technological stacks and incorporated augmented reality head-
sets. The task seemed monumental, if not impossible.
Apprentice brought in a specialized engineering team that
quickly scaled to meet the product’s evolving needs. Angelo
Stracquatanio, Apprentice’s CEO, says the rebuild would have
been “literally impossible” without fractional talent.
On-Demand Expertise
Fractional teams—the electrons—introduce a new possibility
for the future of work, one in which independent contractors
can increase their value by operating as high-impact units that
FRACTIONAL TEAMS FULL-TIME EMPLOYEES supercharge the core neutron and proton team.
14 PEOPLE + STRATEGY
We’ve seen small companies and Fortune 500 companies
deploying fractional teams of specialized expertise to keep
up with the pace of technological change. This is the
future of work: smaller companies, prioritizing speed,
relentlessly focused on creating value.
Instead of orienting work around companies as employers, people in the knowledge and creator economies, to be free-
we’re starting to see the most high-value product builders are lance but have a structure behind that freelance.”
reorienting work around teams. By forming fractional teams In a survey of top independent builders, we found that
that can come in and solve key problems for organizations, in- there are four primary drivers behind their interest in
dependent product builders can simultaneously increase their independent work:
earning power while also gaining greater stability. 1. Autonomy. The opportunity to control their work sched-
This fractional talent trend is likely to continue. Because ule and environment appeals to many tech workers’ desire
here’s the thing: The era in which hard work and perseverance for work/life balance.
guaranteed a climb up the corporate ladder is over. 2. Professional growth. Working on different projects with
For the past 15 years, giants such as Google, Apple and different teams offers an enriching professional experi-
Facebook intentionally hired more than they needed to, ence and broadens skill sets.
scooping up talent simply to prevent competitors from doing 3. Meaningful work. The ability to choose projects based on
so. This dubious strategy—talent hoarding—will be remem- personal interest leads to more fulfilling work.
bered as a ZIRP, a zero interest rate phenomenon. 4. Financial opportunities. Fractional work often comes with
The market downturn provided a reality check. Large tech competitive pay, making it an attractive option.
companies laid off 12 percent to 15 percent of their workforces, “Freelancing unlocked something big,” says Anthony
breaking the promise of employment stability that some had Spadafino, a product manager on the A.Team network and
begun to take for granted. founder of Lingostar.ai. “Now I have the ability to make my
More than 200,000 tech employees have been laid off in own schedule and shift my energy to where it’s most needed on
2023—many in callous and unceremonious fashion. In the any given day. I get both the financial cushion and increased
wake of this Great Betrayal, the attitudes and perspectives of flexibility.”
these highly skilled workers are shifting rapidly. Fractional talent presents us with a unique opportunity—to
Eighty-three percent of surveyed workers have lost trust in redefine how we think about the way companies are struc-
the stability and security of full-time employment amid lay- tured. Instead of seeing work as headcount in departments, we
offs—leading many to pursue fractional opportunities instead. begin with the desired outcomes and the ideal team composi-
Over two-thirds of independent workers say this model gives tion to achieve them.
them greater job satisfaction and work/life balance than a full- That means a workforce can plug in new expertise quickly.
time gig. Companies such as Lyft, HCA and PepsiCo have tapped our
company for this precise reason—not just executing on specific
The Impact on Hiring initiatives, but building tech capabilities in their organization
Even the way we read resumes is changing. It’s not just about so that, over time, they can experiment and iterate.
what title someone reached at which prestigious firm. Now you can start new initiatives with smaller proton and
Now hiring managers want to see the real-world results, the neutron teams that can add electrons as needed to scale based
teams a candidate has effectively worked with and the unique on the learnings on the ground and the changes in the mar-
skills they’ve applied. What matters isn’t pedigree. What ket—and do so at speed.
matters is your answer to a more relevant question: “What have This journey with A.Team has revealed to me a future where
you built?” companies are leaner and faster, focused not on the number
As Adam Grant, the bestselling author and A.Team advisor, of people, but on the collective skills, experiences and diversity
put it, “Instead of selling your soul to one company, you can they bring to the table. And where the next generation of prod-
rent your skills to the highest bidder or the highest purpose.” uct builders can choose their work with autonomy and build
The world’s top product and engineer talent doesn’t want to meaningful careers.
sit around a giant company to rest and vest. They want mean-
ingful work, with the autonomy to choose where and when it’s Raphael Ouzan is founder and CEO of A.Team, a
done, and to do it alongside the people with whom they most team formation platform that enables tech leaders to
want to collaborate. assemble and manage cloud-based teams.
“I’ve been anticipating for years that the future of work
would have more opportunities,” Grant says. “Especially for
By David Rock
18 PEOPLE + STRATEGY
Said another way, the worst outcome for organizations is
forcing people back to the office full time. The second worst:
More personalization and control
forcing people back to the office part time. That’s a death knell
for Theory X. Next is letting people work at home full time. But in products and services tends to
that’s also a death knell for Theory Y due to team productivity.
Somehow, the winner is a nuanced combination of home
and office, but doing so in a way that involves elements of both
be more engaging and efficient,
Theory X and Theory Y.
Why is this the case? Why does the variable of time in office and it often saves significant
matter so much, and how have the pandemic and other big
events changed what people want and how they see the world?
Moreover, what does all this mean for younger generations—
costs. Why wouldn’t the same be
the future leaders of our organizations—and how they want to
connect with others? To answer these questions, let’s turn to the true with our work lives?
neuroscience of motivation.
Understanding Human Motivation For example, one team member might value certainty the most,
The human brain has one key function, which is to keep us while you as a leader might value autonomy highest—and that
alive. It does this by keeping us away from things that might difference can explain many tensions at work.
harm us (like the edge of a cliff) and nudging us toward things What’s more, your SCARF profile can evolve a little over
that can be useful (like a delicious meal). This process occurs time, based on changing circumstances—say, a pandemic or
many times each second and on many different levels. It’s how major shift in how we work.
we stand upright, notice food that might be spoiled or remem-
ber a colleague who was a little aggressive with us in the past. How Smartphones Changed the Brain
When this process happens, the brain has one of two reac- Before we get to the pandemic and the return-to-office debate,
tions—go toward some kind of reward or move away from some let’s consider another big change in how we live and work.
kind of threat. An important distinction here is that the away re- Many studies show that a jump in anxiety correlates closely to
sponse is significantly stronger than the toward response. This the rise of the smartphone, and with it, constant access to social
has adaptive value: Miss a reward and you might miss lunch. But media. A well-organized smartphone is a bit like a universal
miss a threat and you might be lunch. Toward and away is the remote control for your life: It gives you access to information,
organizing principle of the brain and of all human behavior. It’s food, transportation, accommodation, social connection, enter-
also the foundation of motivation. tainment and more just by tapping a screen.
One of the biggest differences between humans and animals Having this functionality in the palm of our hands primes
is that we’re born helpless and largely stay that way for rough- the brain to expect a lot of certainty and autonomy. We get used
ly a decade. During this time, most of our survival needs are to having information as soon as we want it and feel in control.
met by other humans. While a wolf has big brain networks for Second, this technology allows people to fulfill their relatedness
helping it detect the most important threats and rewards—such needs in more immediate, selective and global ways.
as smelling and hearing at a distance in the wild—we have big Younger generations, in particular, are connected in differ-
brain networks for detecting what matters most in social-driven ent ways than previous generations to more people on more
settings. platforms. These younger employees were struggling with com-
The result is that even tiny changes in the fabric of our social plex, inefficient systems even before the pandemic. Why would
structure drive big changes in the human brain. Said another you use a cumbersome piece of software to schedule a Zoom
way, social issues create the strongest threats and rewards, which call to share an idea with colleagues when you could instead just
makes them the strongest motivators. send a quick voice note to a WhatsApp group?
In 2008, after about five years of research, I published a With this massive increase in autonomy as a backdrop (for
framework that helped me understand social motivations, syn- everyone, but especially for “digital natives” who grew up with
thesizing hundreds of different studies. I called this the SCARF smartphones), along comes a pandemic forcing millions of peo-
model, which stands for: Status, Certainty, Autonomy, Related- ple to work from home. Let’s explore what happened next.
ness and Fairness. This model helps explain what’s been playing
out in recent years in the workplace, as well as how the needs of The Pandemic and SCARF
employees of different generations may be changing over time. The pandemic created an overwhelming threat response, result-
SCARF describes why we do what we do in any social context. ing in a terrifying drop in certainty and autonomy. Yet, some-
It’s a way of thinking more granularly about motivation, but also thing unusual happened in the world of work. While people
about engagement, inclusion, psychological safety, change man- working in hospitality, health care, retail and other in-person
agement and other domains. The research highlights several industries struggled immensely, most white-collar employees
important findings. found they could work anywhere—a silver lining that unexpect-
First, everyone is impacted by all five domains. But each has edly bumped up our sense of autonomy.
variable importance to people, which we call a SCARF profile. We were now in control of when, where and how we worked,
One study showed that stress levels in the workplace in 2023 were similar to
mid-pandemic in 2021. Just like mid-pandemic, our autonomy today might
be one of the few ongoing rewards that help us offset these threats.
20 PEOPLE + STRATEGY
The next question is: How do you get people on board with organizations’ cultures didn’t implode during the pandemic.
the idea of more time in person, without reducing their motiva- If you think of culture as shared everyday habits, a lot of work
tion by forcing the issue? And how do you ensure that this time involves communicating. If the pandemic happened before
together is fruitful, which is more likely if a lot of people are we had ubiquitous video conferencing, it might have pro-
onsite at the same time? The day you commute in and get stuck duced a different outcome. Yet with video turned on, people
in a tiny phone booth all day isn’t time well spent. unconsciously pick up cues the brain needs to determine how
The Patchwork Principle. My hypothesis for getting this to interact with other humans.
right is something I call the “Patchwork Principle.” In short, you To maintain culture, we need to settle into virtual meet-
ask for something reasonable, like everyone being in the office ings for the long haul. This means training managers to run
together two days a month, perhaps at the start or end of the more efficient and effective interactions in this medium and
month. This seems fair and likely helpful. People can buy in to recognizing the upsides to well-run virtual meetings: They can
this idea easily. Because many of the benefits of being together be faster, more inclusive, less biased and more creative, which
are social, add food and drinks to the agenda. ultimately contributes to strengthening culture.
In addition to that regular cadence, you can also add a few In summary, we’ve been focused on the wrong things. It’s
extra days for end-of-quarter activities and year-end. All this not Theory X or Theory Y. While that clean divide might be
seems rational and fair and can be a productive process if used tantalizing to an overwhelmed brain that craves certainty,
to reflect and learn. Now, give certain teams a few extra days a neither approach seems to be working. No employer wants
month to be together, because they really will benefit from time their competitors to be hiring twice as fast because they are
together. But make it a target number of days per month, not more flexible. Yet those who are flexible are still struggling to
per week, and let the teams decide how to do this. maximize the benefits of being in person.
When you add in the roughly 10 percent to 20 percent of As we learn more about the brain, we have the ability to
people who want to come to the office most of the time for update our models for how humans function and work best.
their own reasons, you should see a slow increase in the num- Coming up with the right answer—an urgent need as we move
bers of people in the office—but for the right reasons and to do into this next phase of work—involves a deeper understanding
the right kind of work together. of what truly drives us.
What you are doing is creating a little certainty and fairness,
while also maintaining autonomy. Obviously, this approach David Rock is the co-founder and CEO of the
takes more planning than just “everyone back three days a NeuroLeadership Institute, a cognitive science
week,” but I believe the benefits are likely to outweigh the costs. consultancy that has advised more than half of the
Finally, how can you best maintain culture? Fortune 100. He also the author of four books,
Many meetings will still be virtual in the scenario de- including Your Brain at Work.
scribed above. Consider that, despite widespread fears, most
22 PEOPLE + STRATEGY
I
n the past few years, it seems like everything at work has around. And as people felt freer to move to new positions,
changed. We work from home, we use online tools for everything started to change.
video and document-sharing, and our relationships with Think about companies such as General Electric, IBM or
employers are weaker and more tenuous than ever. Just AT&T in the 1960s and 1970s. They had enormous competitive
last year, almost a third of workers changed employers, advantages, and their products, business processes and inno-
and nearly 45 percent of them changed industries in the vations were long-lasting and unique. But as people started to
process, according to a McKinsey & Company report. And this change companies, they took their ideas and innovations with
highlights a key insight: The relationship between worker and them. The result was a whole new economy, one in which ideas
employer has changed, leading us to a new world we call the flow quickly from company to company, key employees are re-
Pixelated Workforce. cruited away and new ideas are quickly copied by competitors.
Consider what employment was like in the 1950s and 1960s. This shift, from what we call the “industrial scale” model
Most companies hired employees for long careers. Employers of business to that of “innovation, IP and services,” forced
provided health care and insurance, training and develop- companies to move to a new model of hiring. No longer do we
ment, career growth, and retirement annuities as benefits. In look for people who want to build a long-term career. We look
exchange for these rewards, employees were loyal, they felt for skills, flexibility, agility and productivity. So employers have
committed to their employer, and job hopping was considered become more pragmatic in their hiring, now looking for “the
bad practice. right person for the project” and no longer expecting a worker
As the internet started to disrupt business models and we to stay their whole career.
suddenly had more information at our fingertips, all this start- To accelerate this process, new tools and employment mod-
ed to change. No longer was it difficult to find a new job. Tools els were created. CareerBuilder (the first major online jobs site)
such as Monster, LinkedIn and Indeed suddenly made it easy was founded in 1995, followed by Monster in 1999 and Linke-
to find and apply for positions. So employees started looking dIn in 2002. These companies democratized the job market,
giving workers (and later employers) tools, information and
transparency they never had before. Prior to these systems, it
was very difficult to even know if you were underpaid or falling
behind in your career. Suddenly, everyone could see what jobs,
careers and opportunities were trending every minute.
a team or a function,
benefits and career growth to its hourly employees. Sodexo,
Aramark and other foodservice companies created a variety
of flexible work models to enable hourly workers to swap shifts
it’s important to think and find times to work (now powered by AI). And staffing
companies Manpower and Robert Half—and later Adecco and
we hiring because of a
skills-based hiring that many of these staffing firms also got
involved in training. Hundreds of reskilling vendors—from
Coursera to Skillsoft to Pluralsight—created online education
retention problem? offerings to help job changers learn new skills and transition
from role to role.
internally [reskill]? Or
train people to work in nursing, IT, cybersecurity, accounting
and more. Institutions such as Capella, Southern New Hamp-
to a contractor?
an “employee” was breaking down. As people moved around
more, companies such as Uber (founded in 2006) realized
there were many people who wanted more flexibility and a new
arrangement. If you didn’t speak English well, you had kids or
24 PEOPLE + STRATEGY
aging parents at home, or you lacked direct business skills, you skills (through online coaching networks) without any formal
could now drive for Uber and supplement your income easily. employment relationship at all.
Uber exploded, giving rise to other “uber-work” ideas that Where does that leave us? We now live in this Pixelated
have been copied by companies such as Lyft and gig work sites Workforce, where every job, project and opportunity can be
including Upwork, Fiverr and hundreds more. filled with a wide variety of people, each working in different
And it’s getting even more complicated. In the last five employment arrangements. You as an employer have many
years, every social network has built a revenue model for “in- new choices, and our old “prehire to retire” model is just not
fluencers,” so young people who are good at video production enough to handle them all.
or entertainment can now supplement income as a TikTok, Our newest research found that the average U.S. corpo-
YouTube or other online star. And this “creator economy” now ration now has 47.5 percent of its “workers” employed in a
lets you sell your ideas, your writing and even your leadership contract, contingent or other nonemployee relationship. More
than 37 percent of U.S. workers operate in this model. And we managers, and these “contracts” are stored in vendor man-
also found that 62 percent of full-time workers also do “side agement systems, not in the company’s HR database. That
hustles” to supplement income. means there’s little to no opportunity to train and develop
It’s no longer sufficient to think about full-time employees contractors, move them to new roles easily or recruit them to
as your workforce. We live in a world where high-performing join full time.
companies operate with a “workforce ecosystem” strategy to And employers are often nervous about changing this
grow. model. Since many states penalize employers for failing to pay
benefits for contractors who work full time, companies delib-
How to Manage the Pixelated Workforce erately treat these workers with a hands-off model, often using
We’ve done research on this problem for almost five years, employment agencies as intermediaries to reduce risk. But the
and as you’d expect, we find companies at different levels of downside hurts performance and the workers. We can’t always
maturity. In general, only about a third of companies have train, move and engage these people like we want. And in a
any kind of integrated strategy for all these work arrange- world where the unemployment rate is well below 4 percent,
ments. The “contract employees” are often hired by business employers need these people more than ever.
RESKILL REDESIGN
Slow to Implement
RECRUIT RETAIN
Fast to Implement
Long-Term Need
bucks, Verizon and most retailers built long-term relation-
ships with their hourly staff, the pandemic disrupted this
model. People were laid off or furloughed, forcing them to TEMP TO FULL-TIME
find multiple jobs and other opportunities. Now employers FULL-TIME HIRE
are creating job networks where they “share hourly work- Hourly or staff Career and culture fit
ers” with other companies to give workers more flexibility.
Hire for culture Manager and team fit
They are raising wages while building AI-based scheduling
systems so workers can find a shift that meets their needs.
Uber, DoorDash and hundreds of other gig-work com-
panies have also thrived. In the first quarter of 2023, Uber
Temporary Need
T
he leadership playbook has been rewritten in the past
few years, and managers need to adapt to survive.
But the path to becoming a modern leader isn’t clear—
and in fact, the messages can be contradictory, says Alexi
Robichaux, CEO and co -founder of BetterUp, a leading
online personal and professional coaching firm. People + Strategy
executive editor David Reimer and articles editor Adam Bryant sat
down with Robichaux to explore the challenges, shifts and future
possibilities of leadership.
28 PEOPLE + STRATEGY
VOLUME 46 | ISSUE 1 | WINTER 2023 29
People++Strategy:
People Thereseems
Strategy:There seems to
to be
be an
an enduring
enduring tension
tension do
do for
for me,
me, and
and that
that may
maynot
nothave
haveany
anyactual
actualpracticality
practicalitytoto
andlack
and lackofofalignment
alignmentwith
withthe
theexpectations
expectationsofof employers
employers and
and running
running the
the firm.
firm. AAlot
lotof
ofthe
thegenuine,
genuine,authentic
authenticdisconnects
disconnects
employees. How do you think about
employees. How do you think about that? that? come
come from
from these
these types
typesof
ofsituations.
situations.
ALEXIROBICHAUX:
ALEXI ROBICHAUX:Stepping
Steppingback,
back, II think
think part
part of
of the
the P+S: That
P+S: That notion
notion of
of leadership
leadershipas
asaaphilosophical
philosophicalpractice,
practice,
tension lies in how we think about leadership.
tension lies in how we think about leadership. In the lateIn the late discreet from running the business, is certainly pervasive.
discreet from running the business, is certainly pervasive.
1970s and early ’80s, thanks to people like Peter
1970s and early ’80s, thanks to people like Peter Drucker, Drucker,
managementwas
management wasthe
the“super
“supercategory,”
category,” andand leadership
leadership was
was ROBICHAUX:
ROBICHAUX: It’s It’s as
as though
thoughleadership
leadershipisisseen
seenasasaavirtue
virtue
a subset of that. But along the way, that got flipped and we instead of as something utilitarian. Both can exist, but
a subset of that. But along the way, that got flipped and we instead of as something utilitarian. Both can exist, but
saw a leadership industry boom. And a lot of what people the measure of virtue has to be that it works. We’re seeing
saw a leadership industry boom. And a lot of what people the measure of virtue has to be that it works. We’re seeing
were talking about wasn’t really tied to the core idea that a disconnect. I hear it from young people. “I want my
were talking about wasn’t really tied to the core idea that a disconnect. I hear it from young people. “I want my
the role of a manager is to increase performance. manager to do this,” they will say. And I’ll ask why they
the role of a manager is to increase performance. manager to do this,” they will say. And I’ll ask why they
It was as if leadership, as a set of metaphysical principles, think that. “Well, I read a blog.” Then I’ll explain that the
It was as if leadership, as a set of metaphysical principles, think that. “Well, I read a blog.” Then I’ll explain that the
became a set of activities for its own means, rather than mak- author of the blog may have good intentions, but that the
became a set of activities for its own means, rather than mak- author of the blog may have good intentions, but that the
ing people better at their jobs to grow the business. The ideas suggestion may not actually work in practice. But they really
ing people better at their jobs to grow the business. The ideas suggestion may not actually work in practice. But they really
have become disconnected. That’s where some of the irrec- think that they deserve certain treatment from their boss.
have become disconnected. That’s where some of the irrec- think that they deserve certain treatment from their boss.
oncilable differences come in. If I’m reading leadership blogs And they don’t mean that in an entitled way; that’s just what
oncilable differences come in. If I’m reading leadership blogs And they don’t mean that in an entitled way; that’s just what
all day, I can have a very lofty idea of what my leader should they expect.
all day, I can have a very lofty idea of what my leader should they expect.
30 PEOPLE + STRATEGY
30 PEOPLE + STRATEGY
P+S: What is the management component that is in scarce
supply today?
and-tackle basics of
because managers have become progressively worse at these
since the start of COVID—are focus, strategic planning and
to be a place of clarity in
What we’re finding in the data is that people want that
more directive style and they want that clarity, because out-
P+S: In the past few years, managers have increasingly found more so than people may
have been comfortable with
themselves in conversations for which there is no playbook.
So, on the one hand, employees want their managers to get
in recent years.
back to basics. But there are also all these new conversa-
tions—how do you balance compassion for an employee going
through a tough patch while also driving accountability, for
example—that managers may not have the training for.
eclipse resilience as a
demonizing in the world.
So one job of a leader—because you can’t be productive
uncertainty of future
that environment, and that’s the key to civility. People have
to feel they can disagree with colleagues without being
business challenges.
ostracized.
A lot of belonging comes down to the manager/team
dynamic and individual interventions around people.
Is the front-line manager creating an environment in which
people can express their views and people on the team don’t
pounce on each other? You have to police that. If it happens,
you have to say that’s not acceptable. You have to exit those
people.
32 PEOPLE + STRATEGY
P+S: Given that leading and managing people has become ROBICHAUX: It looks more like being a leader of teams
harder, are you seeing people opt out of these roles to go that are highly situational and based on the job that has to
back to individual contributor positions? be done at the moment.
The jobs to be done are proliferating and changing at
ROBICHAUX: Anecdotally, from talking to customers and a rapid pace, but we still assume now that one manager
working with other founders, I am seeing more comfort constantly can manage that. Instead, why not ask, for
with people being coached out of (or opting out of) every emerging job that has to be done, who should be
management and leadership roles and being OK with that. in charge?
Before, people might have thought, “Oh, my career is That starts to look like punctuated situational leadership—
over.” But a lot of this is because people are burned out as and maybe you don’t even have managers. A person may have
managers. certain skills that are right for the project and they get drafted
I often coach internally that the atomic unit of manage- in to lead it. It’s like mission-based work. And maybe there
ment today is just difficult conversations. If you’re conflict- should be combat pay for that particular tour of duty.
avoidant, we can coach people on how to be less avoidant. If you’re going to lead this particular project, then your pay
But you’re going to have a harder road than if you’re should be tied to that rather than your particular level in the
someone who naturally sets boundaries. You have to be clear organization. If you’re functioning like a VP for three months
about expectations because the job is really hard. It’s pretty with a particular project, then you should be paid that way for
thankless. That’s why it’s called leadership. Some do want to three months and then go back to your base pay rate.
opt out of these roles and still stay with the company, rather That dynamicism is going to be huge. I humorously say
than feeling like they have to go somewhere else. that maybe Hollywood is smarter than we all thought because
they’ve been doing this forever with the gig economy. Maybe
P+S: Let’s fast-forward 30, 40 or even 50 years. What does Hollywood is going to be the future model of work, with some
leadership look like? AI and different pay models mixed in.
E
arlier this year, I launched a platform connecting compa-
nies with people analytics experts to do fractional work.
Within six weeks, this grew from a band of 10 people into
a marketplace of over 100 world-class experts in 14 countries. I was
astounded by the growth.
As our marketplace grew over the year, I became curious about
whether the rise of fractional work is fundamentally changing how
we need to engage with our workforce. Certainly, fractional work
changes the nature of how workers collaborate and how work gets
done. But as I engage more with our marketplace, I find that in-
dependent workers have different value propositions and needs.
We can’t continue focusing on the employee experience—while
largely ignoring the experience of the independent worker—and
expect to get the most impact from our workforce. It requires a
more holistic and inclusive approach. We must fundamentally
adjust our talent strategy to create a sense of belonging for both
groups while honoring their differences.
These are insights I’ve learned over the past year about the de-
mand for fractional work and how I see it transforming our work-
place.
by RJ Milnor
36 PEOPLE + STRATEGY
leverage your independent workforce to navigate rapid changes expect to have a transactional relationship with independent
in demand, creating a more stable organization and minimizing workers and still realize the full benefit of their contribution.
the need to lay off permanent employees. How are you building a value proposition for your indepen-
dent workers? For example, most companies exclude indepen-
2 Which roles should be “gig-ified”?
Do you have positions in your organization that you
dent workers from their employee surveys and other listening
programs. Wouldn’t you want to understand the engagement
need for a specific deliverable? Or are there skills that are crit- and well-being of your entire workforce? Also, consider includ-
ical for specific projects but not utilized throughout the entire ing your independent workers in your development and on-
year? These may be excellent candidates for independent work boarding programs. These changes help foster a better sense of
instead of permanent headcount. teams and belonging while enabling your fractional workforce
Think about your teams. What percentage of your team do to be more productive on the job.
you need to execute the core business of your organization, and But most importantly, we need to rethink how we provide
what portion is critical at different times? Could some of those benefits to this population. Access to affordable health care,
roles be moved to independent workers? health insurance and child care remain significant barriers to
well-being among independent workers. McKinsey found that
3 How does this change how you manage your FTEs?
Fractional work offers tremendous benefits to your
about half of permanent workers receive health insurance from
their employers, while only 32 percent of independent workers
organization through more immediate access to a wide array of do. As an HR community, we can bridge this gap and care for
on-demand skills at a lower total cost than a permanent employ- our entire workforce.
ee. But the increased reliance on independent workers can also In conclusion, companies have woken up to the value of
pose risks to your long-term talent strategy. As your workforce independent workers. The immediate access to skills, increased
mix shifts, if more work is being done by independent workers, agility and lower labor cost they provide can deliver a distinct
consider the implications for your organizational culture and competitive advantage. But while independent workers are a
how you retain institutional knowledge. growing share of the workforce, most leaders need an inten-
If your strategy calls for more independent and fewer perma- tional strategy for leveraging fractional work to support their
nent workers, the responsibilities and impact of your permanent business goals and integrate independent workers into their
team magnify as more workers (and their knowledge) churn organizations.
through the organization. I recommend taking immediate steps While employee experience seems to be top of mind for so
to strengthen these aspects of your organization: many leaders, we rarely measure or manage the experience
• Institutional knowledge: You can retain institutional knowl- of our independent workers, nor do we account for how their
edge through a two-pronged approach of better project work is affecting our permanent teams. We can’t continue
management hygiene and focused efforts on employee ignoring independent workers’ experiences and their input. To
retention. Two effective ways to achieve better project manage- realize the full benefit of their contributions, we must adjust
ment hygiene are improving your project documentation (i.e., our talent strategies to give our permanent employees the
ensuring that projects have a clear problem statement, desired increased support they need while caring for the unique needs
outcome, project plan, and review and approval process, and of our fractional workers.
that all milestones and changes are recorded) and leverag-
ing shared project management tools (e.g., Asana, Moovila RJ Milnor is the founder and CEO of People Analyt-
or Smartsheet). Regular and intentional lateral moves are ics Partners, a marketplace that connects companies
among the most effective ways to retain and engage employ- with experts in people analytics and workplace tech
ees. A study by Nielsen shows that a lateral move increased an for fractional assignments. He previously led the
associate’s chance of staying with a company by 48 percent.4 global people analytics and workforce planning
• Project oversight: Assign project and decision owners from functions at Uber, McKesson and Chevron.
your permanent team to ensure continuity and end-to-end
responsibility for critical work.
• Team cohesion: As the percentage of your workforce made Sources
up of permanent employees decreases, the importance of
effective collaboration among them intensifies. They must 1 Freelance, Side Hustles, and Gigs: Many More Americans
connect, establish strong team bonds and leverage collabo- Have Become Independent Workers, McKinsey & Company,
2022.
rative time efficiently. Take an intentional approach to bring 2 Artificial Intelligence Streamlines Contingent Workforce
teams together in the office—to establish trust with each Management Decision-Making, The Future of Work Ex-
other, discover new insights or to influence decisions—but change, 2023.
still allow flexibility to work remotely for heads-down tasks.5 3 The Alternative Workforce: Not So Alternative Anymore,
People + Strategy and Josh Bersin, 2019.
By Jacqueline M. Welch,
CHRO of The New York Times
38 PEOPLE + STRATEGY
VOLUME 46 | ISSUE 4 | FALL 2023 39
M any of the foundational pillars of the HR profession are grounded in the
principles of fairness and equitable treatment. These are laudable principles
that over time have become increasingly more difficult to put into action as employee
populations have become more diverse in many ways.
As a case in point, we now have five generations in the workplace. Interest in
defining the generations—and how their views about work differ—started roughly
three decades ago. There were the “radio babies” (sometimes referred to as the
Silent Generation) who were born between 1928 and 1945. That was followed by
Baby Boomers, who were born between 1946 and 1964. Then came Generation X,
born between 1965 and 1979. During roughly the same time, “personnel” was shifting
to “human resources,” a change in nomenclature meant to capture how the function
was maturing from a transactional approach to a propellant for strategy.
SHIFTING EXPECTATIONS OF WORK schools with computer labs. Unlike my dad, who worked for
The focus on generations heightened the need to broadly the same employer until he retired at 53, The New York Times is
understand employee populations by group. We learned that my seventh employer. This wasn’t by design. I simply followed
radio babies were typically motivated to work for the same my curiosities and interests and, over time, made choices that
company for their entire career, ending with a gold watch aligned with my values.
at their retirement party. If you came out of that era of the
emerging middle class, single-employer stability meant every- 5 LESSONS AND QUESTIONS
thing. From my lived experience, I’ve learned many things and have
Baby Boomers were generally more interested in upward questions about many things:
mobility and had greater expectations of growing into 1. Job hopping and career mobility. As a member of Gen-
increasingly more senior roles, with compensation to match. eration X, the statistics say I will have between seven and
Succession planning and compensation planning became eight employers over the span of my career. For the gener-
more formalized processes. ation behind me, that number rises to anywhere between
Generation X is widely regarded as the generation to bring 10 and 14 unique employers. That’s an average tenure
to the forefront the idea of the workplace aligning with per- of two to four years for each role. Those shifts, and that
sonal values, including diversity, work/life balance, flexibility greater mobility, raise profound questions for HR about
and informality. This generation was the first technology whether the assumptions that underpin our frameworks
natives, most having grown up with a personal computer and and policies are purpose-built for this moment. What does
an internet connection. And unlike prior generations, Gen- that mean for promotion tracks? For learning and develop-
eration X was the least likely to grow their careers with one ment programs? How quickly can we train an employee, or
employer over time. are we better off hiring someone from outside the compa-
Fast-forward to today: We’ve added more generational ny who is already experienced?
categories (Millennials and Generation Z) and, as a byprod- 2. Succession planning. We used to think about succession
uct, more complexity. Our world has grown more global and planning in 10-year increments. Now, we think about it
interconnected. And the social, political and legislative envi- in three- to five-year increments. With collapsing tenures,
ronments in the U.S. have become more fragmented, with the how do we choose our future leaders and develop them
overturning of Roe v. Wade and the dismantling of affirmative quickly for their next big roles?
action being just two recent examples. 3. Compensation strategy. Our compensation practices
My own story provides a case study in the shifting expecta- also have to be revisited. We have to re-examine how we
tions of generations. I am an only child of immigrant, work- think about issuing stock and vesting schedules if these
ing-class, Baby Boomer parents. And though I don’t precisely are meant to be retention levers. If people aren’t willing
map to the profile of Generation X, many of the hallmarks to work through our vesting schedules, what should be
are there. I didn’t have a personal computer or internet included in our compensation? Do we need different
connection in my home when I was growing up, but I went to mixes for different profiles, such as the mission loyalists
40 PEOPLE + STRATEGY
Maybe we need an approach that creates a kind of glide path to
retirement. Maybe at a certain age, you can qualify for part-time
status. You still get benefits. We reduce your salary. Some portion
of your work now becomes mentoring peers. People are living
longer, healthier lives, and they want to keep contributing.
42 PEOPLE + STRATEGY
I
f there’s one constant in the
world today, it is the rapid speed
of change. People and organi-
zations are facing a future that
increasingly requires them to
quickly adapt or risk becoming
irrelevant. With the rapid and disrup-
tive digital transformation happening
in the industries we support, Siemens
aims to quicken the pace of change
to become even faster, more agile and
more competitive.
In 2020, the year I joined Siemens,
we embarked on a large business
transformation, spearheaded by
major changes in our corporate and
leadership structure, including the
appointment of a new CEO, Roland
Busch, and other changes on our
managing board. We kicked off this
new chapter by identifying four strate-
gic priorities we now live by: customer
impact, technology with purpose,
empowering people and growth
mindset.
In line with these changes on the
business side, we also recognized the
need for a complementary workforce
transformation. We had to rethink
how we win, grow and bond our over
300,000 people worldwide. Working
together with my People and Orga-
nization (P&O) team, we reviewed
various overarching people-transfor-
mation initiatives, and we also took a
closer look at the legacy approach to
handling performance evaluations.
A Fundamental Shift in
People Development
Like many large, established com-
panies, we had used a classic perfor-
mance management approach for
many years. The performance review
process was relatively formal and
prescriptive, including rigid processes
focusing on the past instead of being
forward-looking. Managers scheduled
end-of-year performance review talks
with their people, provided verbal
and written feedback, and assigned
them ratings. But these dated meth-
odologies no longer supported the
growth and business transformation
that Siemens was embarking on.
I am a big believer in systemic
thinking; all measures undertaken
to drive change need to be consistent
We wanted
working through grids or matrices and regularly assess the
of performance among their teams validity and usefulness
to make an
without talking about development in a of approaches we
meaningful way. Regardless of stance, are accustomed to
iconic change,
meaningful and intense conversations using. We must keep
were prompted around the question, on learning and
underpinning
“What do we mean by calibration—is it asking the right
centered around learning and devel- questions to move
the priority of a
opment or rather around performance us forward.
distribution and pay?” The turmoil of
growth mindset
It became quickly evident that a lot the past few years
of the concern was around pay. We has thrust leaders
and learning.
openly addressed the elephant in the into learning how to
room by explaining that all our leaders lead very differently
were empowered to differentiate within and to relinquish some
their teams and allocated budget based formerly prescribed
on the contribution of individual team methods. How do you
members. We also provided market data navigate conversations to be
to help leaders make those decisions. more about outcomes rather than
Fast forward 18 months into the rollout process or presence? We saw our lead-
of the new approach, and one piece of ers shifting more into the role of a coach
feedback has been consistent: People than trying to have all the answers. could be done by continuous reskilling
had to embrace letting go of the man- Siemens’ approach to mobile work in and upskilling.
datory documentation of the conversa- the new normal provides clear guidance, Continuous and strategic learning
tions, which was no longer required in but also enough flexibility for different is essential both for innovation and for
the internal systems. roles in the company. sustainable employability. It is import-
After the first wave of implementa- In July 2020, we established our “New ant to have flexible and varied learning
tion, we conducted a dedicated learning Normal Working Model” as a perma- options—such as learning experience
review to measure how people were nent and global standard. This model platforms, augmented learning and bite-
putting this new approach into practice. gives people the option of working size learning nuggets—to match the
In addition, we are constantly monitor- remotely or in hybrid situations two to level and needs of the individual. These
ing the success of Growth Talks with the three days a week, whenever it’s rea- efforts will help people increase their
help of our companywide engagement sonable and feasible in alignment with relevance on the job market and help
surveys. It is more about promoting team needs. We allow this discretion to them lead a fulfilling life.
dialogue in teams, or with individuals, happen at a team level, valuing outcome An approach such as Growth Talks
to discuss what the four big strategic over presence. has the potential to transform the
priorities mean for their part of the There is no denying that the rap- people culture of an organization. It
business and how they can contribute id change in business also requires fosters trust, empowerment and the
to them. We believe this framework a rethinking of how to make people desire to keep learning to create inno-
and context provide people with a far resilient. An important aspect of why we vations that will make a difference. At
better structure to take decisions and be introduced Growth Talks was to help Siemens, we’ve shifted into a new era
accountable for them. This is what we people at Siemens stay relevant and, that requires us to let go of some classic
mean by empowering our people. thus, employable over a long career. Sus- performance management practices
tainable employability means ensuring and to focus on something that is much
Answering ‘Why’ and ‘How’ that people stay resilient and relevant for more effective and serves the true
In my experience, people and organiza- the labor market and encouraging them purpose of what we’re trying to achieve.
tion functions can sometimes fall into to embrace change. At the end of the day, it is all about our
the trap of rolling out a new process The current shelf life of knowledge, people. If our people grow, then so will
without providing enough context for especially in technology-related roles, our business.
the “why” or a stable framework for the is five years, with a downward trend.
“how.” For me, it was a powerful step to Someone entering the workforce today, Judith Wiese is the chief
be clear about where we stand at Sie- considering they will likely be working people and sustainability
mens within the context of our business for 45 or 50 years overall, probably officer at Siemens AG.
and the global challenges. We have an has to reinvent themselves many times
opportunity and a responsibility as a during their career. This reinvention
Fran Horowitz is the CEO of Abercrombie & Fitch Co. She previously
served as the company’s chief merchandising officer and was the former
brand president of Hollister.
As part of People + Strategy articles editor Adam Bryant’s “Art of
Leading” series on LinkedIn, he sat down with Horowitz to discuss the
lessons she has learned on leadership, management and hiring.
46 PEOPLE + STRATEGY
I’m always looking for smart, curious
and optimistic people, but they have
to be flexible and agile. If they say, in
‘The most important thing I look for in hiring is
effect, “The way we always did it is the cultural fit. They could be the smartest person in
right way to do it,” you can figure that the room. That doesn’t matter if they do not fit in
out pretty quickly.
culturally. That means being humble, being open,
P+S: What are the rules of the road being willing to listen to feedback.’
that you set for your leadership team?
Horowitz: Number one, do not ever together as a team. It doesn’t matter make up an Abercrombie associate.
surprise me. I don’t care how bad here if you have a dotted line or if you And if you don’t have those, you don’t
the news is. The sooner you tell me have a straight line. It’s about working win.
about it, the faster we can react to it. together.” So I’m looking for whether they are
And once it’s done, we’re going to going to fit in, because others have fig-
move on. P+S: Can you talk a bit more about ured out in earlier interviews whether
Another big principle here is how you hire? the person has the skills to do the job.
around influencing people rather than My focus is, what kind of person are
telling them what to do. Horowitz: The most important thing they? What have they done? What do
When I recruit people, I say to I look for in hiring is cultural fit. They they like? What don’t they like?
them, “You have to understand, people could be the smartest person in the You try to understand them through
park their egos at the door. You may room. That doesn’t matter if they do asking a lot of questions and probing
have heard that in other places. Here it not fit in culturally. That means being about their leadership, the successes
really happens. Even though A, B and humble, being open, being willing they’ve had and the challenges they’ve
C don’t report to you, you have to work to listen to feedback. All those things faced.
T
he dawn of the 21st century saw reporting that their organizations were volatile, uncertain, complex and am-
the rise of a critically important not prepared to manage it. biguous conditions. Now, at the 2023
business challenge. The world Through the next decade, dis- World Economic Forum in Davos, a
was growing increasingly complex at a ruptive technologies, political shifts new term, “polycrisis,” translates some
rate that strained organizational capa- and a change of the generational of our VUCA world’s ambiguity into
bility. In 2010, an IBM report identified guard increased the pace of complex- concrete risks that we will face in
this disruption as the greatest concern ity. Many began to adopt a military the future, such as a cost of living
of 1,500 CEOs surveyed, with most acronym—VUCA—to describe these crisis and a growing frequency and
48 PEOPLE + STRATEGY
intensity of natural disasters and ex-
treme weather events.
As a way of measuring the business A world-class leadership transition process
impact of increasing complexity and
continual churn, AlixPartners’s 2023
doesn’t just focus on a leader’s first 100 days.
Disruption Index indicates that three Rather, a holistic approach to onboarding
quarters of CEOs believe their organi- an executive includes a plan for the
zations are facing extreme disruption,
and a similar percentage say their
leader’s ongoing development based on
executive team is not agile enough to a comprehensive progress assessment.
address it.
The High Cost of a 13 percent lower attrition rate than leaders around the world. It is not a
Poor Transitions teams whose executives do not transi- one-size-fits-all solution but is adapt-
Shorter employment and position ten- tion successfully. able to the needs of each organization
ure reduces long-term, trusting work Failed transitions result in 20 and each transitioning leader.
relationships and adds to the churn percent lower employee engagement This transition process utilizes
in today’s business environment. This scores when compared with success- close coordination with HR’s talent
constant chaos increases the num- ful transition. A study conducted by development professionals and a
ber of leadership transitions that an Boston Consulting Group found that skilled advisor and sounding board
organization must manage, and each companies that successfully onboard to coach and support an executive
transition is another disruption to the new hires and retain talent had 2.5 during this period of intense change.
organization’s operating environment. times as much revenue growth and 1.9 Typically, this process lasts six to nine
CEO turnover has been rising and times higher profit margins than their months, depending on the needs of
hit a five-year high in 2022, accord- less capable competitors. the leader.
ing to a Russell Reynolds Associates’ The transition coach may be in-
analysis of 1,500 companies. Because A Practical Framework ternal to the company or an external
69 percent of new CEOs reconfigure for Executive Leadership consultant. At no time, however, is the
their leadership teams within the first Transition transition coach the leader’s manag-
two years, transitions then cascade Despite this compelling data, orga- er. This ensures that the executive
throughout the organization. nizational decision-makers routinely receives an external perspective and
Although everyone has high hopes leave transitioning executives to sink allows for the candid exchange of
when a new leader is hired or pro- or swim, assuming that smart people disruptive ideas and discomforting
moted, the reality is that about half who have been successful in the past information.
of executives fail within 18 months of will somehow figure things out in Working together, the coach and
taking on a new role, according to a a new role. As the McKinsey report leader will explore solutions that may
Corporate Executive Board estimate. noted, “leaders are typically under- lie beyond current personal, organiza-
The costs of poor management transi- prepared for—and undersupported tional and situational constraints. To
tions are unsustainable—and they can during—the transition to new roles.” allow the leader to see the situation
be devastating at the top of the orga- An effective executive transition- clearly and make the right decisions,
nization. Estimates place the cost of ing program can be a competitive the coach must offer an impartial per-
each failed transition at 10 (or more) advantage that allows organizations to spective. In this partnership, the coach
times the executive’s compensation. adapt to—and effectively manage— must adapt to minimize the effort of
At the top of the house, the stakes are change, uncertainty, complexity and the leader. And, as their discussions
even higher. An analysis of the world’s disruption. Clearly, organizations may embrace controversial topics, the
2,500 largest public companies found that can get new leaders up to speed coach must create a cone of silence to
that the struggle to replace a depart- quickly will gain an advantage over provide complete confidentiality.
ing CEO can cut shareholder value by competitors that can’t. Achieving this
an average of $1.8 billion. objective requires a leadership transi- Managing the Transition:
The investment in managing ef- tion framework that is easy to under- The HR Team and the
fective leadership transitions is only a stand, practical to implement and gets Transition Coach
fraction of these costs, and the return positive results. The HR team and the coach set the
can be substantial. For example, A practical framework has been stage by clarifying expectations for
McKinsey & Company reported that developed to help new executive the executive and their team, estab-
when leaders successfully transition leaders succeed in an ever-changing lishing priorities, defining action
to new roles, their teams have a 90 and polycrisis world. The framework items and specifying a progress review
percent greater likelihood of attain- is research-based and systematic, and cadence. To build strong, trusting
ing three-year performance goals and has been utilized by newly appointed relationships, they also work to identi-
fy—and outline steps to remedy— 7. Cultural engagement. Identify a plan to tap into their insights and
any nagging issues that could impede organizational values and norms, expectations, as well as aligning on a
collaboration. striking the appropriate balance cadence for checking in as the transi-
Working within the context created between fitting in and transforming. tion proceeds.
with the HR team, from a foundation 8. Communication. Specify what needs
of trust, the coach and leader follow a to be said, to whom and when. Step 2: Set a Plan and
three-step process: a nine-point needs 9. Relationship network. Identify the Goals for the Transition
assessment, a clear transition plan people inside and outside the orga- The needs assessment provides the
and a progress assessment to guide nization who are critical to the new foundation for a robust transition
ongoing development. leader’s success. plan. The executive and coach col-
In the box at right, you’ll find a laborate on setting specific goals to
Step 1: An Initial 9-Point series of suggested questions for each guide the leader’s transition, build
Needs Assessment of these categories to assess a transi- out a detailed plan for achieving
The leader and coach start by explor- tion. While not all questions will be them and identify ways to measure
ing nine areas identified by research applicable to every situation, the first progress.
as key to successful transitions. As not (self-awareness) is important for all Of particular importance is deter-
every issue is equally relevant in every leaders in transition. mining when and how to include the
situation, leaders can use this list as Either by refreshing an executive’s appropriate HR and talent profession-
a menu, choosing where best to focus personality assessment or by referenc- als in the process and clearly codify-
their time and energy: ing existing data, the transition coach ing this in the transition plan, so they
1. Self-awareness. Weigh the leader’s can facilitate a debrief and related ac- can effectively partner with the coach
personality-based strengths and po- tivities to help executives understand to best support the executive.
tential derailers against the require- their personality-based strengths and For example, it’s possible that
ments of the role. how to leverage them for a successful the executive’s HR business partner
2. Situation. Is it a startup or a turn- transition to their new role. Given the (HRBP) would be better suited than
around? Consider the relative priori- stressful nature of leadership transi- the coach to facilitate a new leader
ty of growth versus profitability. tions, it is important to pay particular assimilation process with the leader’s
3. Organizational change. Set expec- attention to derailing tendencies— team. Similarly, there may be other
tations for change and processes to behaviors likely to occur when the HR-sponsored programs (such as a
achieve it. executive is under pressure—and to team development workshop) that
4. Key stakeholders. Identify who identify triggers for these behaviors as would benefit the executive.
makes the decisions, where power well as strategies for managing these Once a draft of the executive’s
resides and how to build productive derailers. transition plan has been created, the
relationships. Finally, an executive’s manager (or next step is to review it with key stake-
5. Highest-priority issues. Pinpoint board chair), HR partners and other holders, especially the executive’s
the most pressing problems and key stakeholders are important sourc- manager or board chair, as well as HR
opportunities for quick wins. es of information about succeeding in and talent partners.
6. State of the leadership team. Are a new role. Part of assessing needs for These conversations guide re-
the right people in the right seats a transitioning leader is identifying finements to the transition plan,
doing the right things? key stakeholders and determining including alignment on how these
50 PEOPLE + STRATEGY
stakeholders can best support the
executive during the transition period
PLANNING EXECUTIVE TRANSITIONS: and agreement on a meeting cadence
to discuss progress.At this point, the
CRITICAL QUESTIONS TO ASK coach provides both challenge and
support to the executive as they exe-
Self-Awareness cute the steps in the transition plan,
• How do the leader’s strengths and shortcomings line up with requirements for this role? with an understanding that the docu-
• What will the leader need to stop/start/continue doing to be successful? ment will be revised as the executive
• How does the leader need to grow, develop and change? grows in their role.
Situation
Step 3: Progress Assessment
to Guide the Leader's
• Startup? Turnaround? Realignment? Accelerated growth? Sustaining success? Ongoing Development
• What strategic agenda best fits this situation? About six months into the transi-
• What leadership behaviors does this situation require? tion, key stakeholders should hold a
360-degree progress assessment to
Organizational Change calibrate current performance and ef-
• What is the mandate for change in this new role? What needs to change? fectiveness, identify necessary course
• What expectations need to be set? How do you align others with those expectations? corrections and set a plan for continu-
• What change management process would work best? ing individual and team development.
Positive feedback here can be crucial
to the new leader’s success. At a time
Aligning with Stakeholders
when the busy (often overwhelmed)
• Who are the critical stakeholders—Boss? Board? Peers? Other colleagues? External executive may be painfully aware that
constituents? How do you build trust and loyalty? some things are not working—and
• How are decisions made? Where does power reside? may even feel inadequate to their new
• How are productive working relationships built? challenges—hearing how others have
seen them shine can provide the en-
Important Operational Issues couragement that generates forward
• How can you build credibility by achieving quick wins? momentum.
• What is the priority order for pressing problems? Informed by the 360-degree feed-
• What decisions need to be made? back data, the leader and coach modi-
fy the transition plan, set longer-term
State of Leadership Team development goals, specify the next
action steps and identify additional
• Are the right people on the bus and in the right seats?
colleagues to include in the process.
• Can the wrong people be removed from the bus?
They also follow up with feedback
• Is the team focused on the right goals?
providers, thanking them for their
input, outlining a summary of the key
Engaging with the Culture
lessons learned, sharing the modi-
• What are the values, norms and assumptions in this culture? And what are the ”sacred fied development plan and asking for
cows”? ideas to refine it further.
• Where is the balance between fitting in versus transforming the culture? How much By combining assessment and
change and how fast? communication, we create a system-
• Who can serve as “cultural interpreter”? atic transition that is guided by data
rather than gut feeling.
Communications Research conducted by Marshall
• What needs to be communicated? To whom? Goldsmith confirms that “Leaders
• What is the plan and cadence for communication? who discussed their own improve-
ment priorities with their co-workers
Network and then regularly followed up with
• What are the critical relationships to establish and nurture? those co-workers showed striking
• Who are the people inside and outside the organization to depend on? Who will depend improvement. Leaders who did not
on the leader? … showed improvement that barely
• Which relationships will help with resolving problems and securing necessary resources? exceeded random chance.” Plus, by
making development a team effort,
executives help create a culture that
52 PEOPLE + STRATEGY
competence and
Elevate your
team with PMQ!
shrm.org/peoplemanagers
Directors Roundtable
54 PEOPLE + STRATEGY
ZIER: How do you see the workforce regular part of all disciplines, and we’ll aware of. I started my career in the retail
morphing over the next decade? leverage more about what makes us industry and understood the operating
human across leadership, judgment and model, specialty apparel and merchan-
SHEILA TALTON: You’ll still have strategy roles. dising. I spent time in management con-
a core group of employees, because The workforce will be more fluid. sulting and gained skills around business
holding on to the intellectual property People aren’t going to sign up for ca- development and sales. I did stints in PR,
that is created within your company that reers. They might be in one type of role advertising, corporate communications
gives you your secret sauce will remain for five years and then take a completely and HR. If someone just looked at the
critical. But teams will expand and different path. It will be very different job I was in at the time, they would have
contract based on the work that needs than when we got out of school with our no way of knowing my complete scope of
to be done. One of the reasons for the predestined career paths. capabilities. This resulted in my missing
expand-and-contract model will center Ultimately, given tight supply and out on opportunities that I was qualified
around the need for speed to market. high demand, we could eventually move for because I was not part of the consid-
Change is happening so quickly; to more agile operating models where eration set.
no one has time to build everything talent is shared across organizations We can utilize AI to catalog skills
organically. without clear boundaries in place. information and visualize a skills supply
chain to more fully understand the
ROBIN MATLOCK: Lines are blur- ZIER: The concept of moving from a talent within the organization. To create
ring—from the geography of where we jobs-based to a skills-based workforce a skills-based operating model, you
work to how we collaborate. And, as a is gaining traction. Deloitte has said need to have a single source of truth for
result, the types of talent and skills we that organizations that embed a skills and data. When we match people
need are evolving. We’re in this wave skills-based approach are 63 percent to work assignments based on skills
of transformation where there’s an more likely to achieve results than information, we have the ability to fur-
opportunity to move from jobs-based to those that do not. Do you believe this ther our DE&I outcomes because we’re
skills-based, especially given the tight approach has merit? using skills as a common denominator
labor pool. But companies may struggle to match people to opportunities, rather
with how to manage culture in such an STEVEN-WAISS: I do. Companies have than matching people based on their
environment. Teams outperform when a lot of untapped talent that has the networks.
they have shared goals and can align skill sets to do different and do more.
momentum to accomplish something Labor can be a combination of internal MATLOCK: There’s a lot of merit to a
together. The best results rarely are and external resources. If you use skills skills-based model, but it can’t be siloed.
achieved through only solo contribu- as the common denominator, you’re We need to tap into our talent beyond
tors. As the delineation between jobs, going to have better outcomes because the job description by thinking about
skills and departments starts to blur, you’re going to be able to find the right how skills can be applied to work as
there will be increased pressure on person for the right work at the right a whole versus a job in a department.
maintaining the “team” aspects of our time. Take the concept of “digital.” Years ago,
work groups. We make assumptions about people, digital would have meant a company’s
skills or knowledge based upon their website or ecommerce environment.
KELLEY STEVEN-WAISS: Man and titles. But it’s a very incomplete picture. Today, digital encompasses everything
machine working together. Some jobs Using myself as an example, I had a we do, from HR to product to engineer-
will go away; however, a lot of new jungle gym of a career that led to having ing to marketing to sales. One would
jobs will emerge. AI will become a many different skills that people weren’t be hard-pressed to find a job that does
‘Companies that will do the best are the ones that have
a culture that proactively moves their talent
around to different roles and cross-trains them.
This is how skill sets are built and people are retained.’
—Sheila Talton
not have a digital component. If you TALTON: Boards should be asking Directors need to understand the
look at a job skill in the context of one management what their plans are to use critical skill domains of the organization
department or function, you will fail to AI to broaden and enhance the skills of necessary to execute against the strategy.
leverage skills across the organization. the workforce. They also should be ask- What is the current pipeline of talent,
You will miss out on utilizing precious ing what additional steps they are taking and what is management doing to miti-
talent that could be highly relevant and to protect the work environment from gate any potential issues in either acquir-
valuable if applied to more horizontal individuals who would use technology in ing it or building it from the inside?
opportunities. the wrong way. When I was a CHRO, my CEO asked
Some people are afraid of AI and how much data science capability we had
TALTON: I do believe in a skills-based are reluctant to utilize it. But we’re not in the company, because we were about
model because technology touches and going to stop technology from being to pivot our strategy to a business model
disrupts everything. If you don’t refresh integrated and embedded into the work- that required a shift in the composition
for skills that are relevant as we shift to place. Embrace it and figure out how to of our talent. What we found is that while
more of a tech-enabled service economy, expand your skills and how to integrate 23 people had data science as part of
you can become irrelevant. Companies it into your products and services to give their title, we had over 84 people with
will reward continuous learners. Our you a competitive advantage. the skill set and identified a level of profi-
workforce tends to be underutilized Technology constantly disrupts. ciency in data science. Now the question
because we don’t have a complete unbi- Look at how Amazon disrupted retail. was, “Could we actually reimagine these
ased picture of the capabilities of each Who would’ve thought that we would people in a more focused role in data
employee. be ordering things from our home at science or not?” We did.
midnight? Consumers move faster than
ZIER: AI is accelerating the concept many retailers. Companies need to ZIER: Attracting and retaining talent
of a skills-based workforce. What key keep up. are cited by both directors and manage-
questions should directors be asking of Additionally, talent is fast gaining ment as top concerns in the current en-
management and of themselves around talk time in the boardroom, yet most vironment. The skills-based approach
these issues? boards still have not recognized the provides more sourcing opportunities
need to have talent and culture func- by tapping into freelance, rotational
MATLOCK: Boards should be asking tional experts around the table to help and gig workers. But does it actually re-
if the CEO is running the company in a provide oversight. In light of all that sult in the ability to retain the key talent
way that prepares it for the next wave of has happened on the people front over who will become future leaders of the
transformation. AI should be considered the past few years, boards should ask organization?
as massive a technological disruptor as themselves if now is the time to address
the internet was decades ago. Businesses this gap. TALTON: Companies that will do the
that didn’t embrace the internet are most best are the ones that have a culture that
likely not with us today. Boards should STEVEN-WAISS: One of the greatest proactively moves their talent around
be probing management on AI from risks companies face today, given that to different roles and cross-trains them.
multiple angles. What’s the opportunity the demand for certain skills is high This is how skill sets are built and people
around AI? What are the risks? How does and our supply is low, is securing are retained. We have a missed oppor-
it fit into the company’s strategy? How the right talent. If we are unable to do tunity because a lot of our talent base is
will it alter the competitive landscape? this, we risk falling behind in competi- underutilized, particularly our diverse
How will it impact the workforce? tiveness. talent.
56 PEOPLE + STRATEGY
‘We have road maps for products, for supply chain, for financial
models. But where is the road map for talent? Do companies
have a long-term talent strategy that upskills the team?
These are valid questions that boards should be asking.’
—Robin Matlock
When I was working in China, every how many females or people of color we portant than telling me that you went to
morning I’d walk first to Starbucks have. Instead, I want to understand how college campuses and hired 100 diverse
and then to my office. One particular many of them are getting opportunities individuals that you’re going to lose by
morning, I noticed the massive number to move around and learn new things. I the time they get to middle manager.
of people that were all going to work. I want to see the same kind of moves with
remember thinking that my country will that diverse group that I see with nondi- STEVEN-WAISS: I think employees will
never compete in numbers, and, there- verse groups. I want to see the Marys and have a lot of loyalty to companies that
fore, we cannot afford to have any of our Janes getting opportunities to develop a allow them to continue to grow and ex-
talent underutilized in the way that we cross-functional skill portfolio, because pand their skill sets and create portfolio
do today. their names can’t be on the list to career opportunities internally that are
As a director, I have worked to shift become the next CEO or division head more broadly defined than the job they
the diversity conversation in the board- if they haven’t had some of that diverse were initially assigned to do.
room from total count to total opportu- hands-on experience. The reporting People bring only about 60 percent
nity. I don’t want to manage and track around those types of stats is more im- of themselves to work, meaning engage-
ment levels are pretty low. If we give
people more choices around the type
of work they could do—based on their
broader skill set—productivity and reten-
tion levels will increase.
In my case, when we implemented
this strategy, we offered no incentive
programs or additional compensation to
those participating in the internal talent
marketplace. But people were inspired
because they could learn new skills,
which made them more marketable.
They had increased exposure across
functions and could build their corpo-
rate reputations. Additionally, we fur-
thered our DE&I outcomes by tapping
into capacity that would have otherwise
been left untouched.
TALTON:
1. Broaden your thinking around
talent—where you find it, how you
develop it and how you keep it.
2. Embrace flexibility.
3. Ask for the right metrics around di-
versity. It’s not about the percentage
of females who are persons of color.
The focus has to be on the num-
ber of people in underrepresented
groups who are being considered
for cross-functional or promotional
ZIER: If “skills are the new currency,” and the organization. Employees need opportunities.
what investment should organizations to raise their hands to learn more, and
be making in upskilling and reskilling companies need to create a learning STEVEN-WAISS:
the workforce? What do individuals culture that carves out time for people 1. Catalog the talent in your organiza-
need to do to stay relevant? to learn new things. The new generation tion beyond the job description.
is tech-advanced, and they can quickly 2. Embrace the internal gig economy;
STEVEN-WAISS: The half-life of skills is learn on the job. it’s both retentive and cost saving.
so short. The skills one learns in college Also, we have road maps for products, 3. Rethink compensation to incent
might no longer be relevant five years for supply chain, for financial models. people to make lateral moves to
down the road. So learning is becoming But where is the road map for talent? develop or utilize skills that are
more about continuous microlearning in Do companies have a long-term talent important to the company.
specific areas. strategy that upskills the team? These
The muscle that people need to are valid questions that boards should MATLOCK:
develop to be relevant in the future is the be asking. Like Kelley said, the half-life 1. You need employees who are ad-
ability to learn, unlearn and relearn in of skills is short. There’s no better solu- vocates of the culture. Glassdoor
multiple cycles. tion than to create a work environment comments matter!
The onus is on the company to create where people can continuously learn 2. In a more hybrid work environ-
a culture that allows employees to be new things. ment, you need to be even more
self-empowered learners to continue to creative and focused on fostering
develop skills. Progressive companies are TALTON: Corporations should be connectivity.
creating internal marketplace or gig op- investing in those individuals who want 3. Have a talent road map for the
portunities so employees can learn new to grow and develop. When you find company and take the time to un-
skills that create corporate value. those who don’t want to, you should try derstand and build out personalized
to trade them out, because they won’t be talent road maps for individuals.
MATLOCK: AI is going to disrupt some able to keep up with the rate of change.
jobs, especially ones that don’t require We need people who are willing to The Directors Roundtable
original thinking. This will raise the bar, stretch themselves and learn new skills was hosted by Dawn Zier, the
and people will adapt. Since they won’t and become multiskilled. former CEO of Nutrisystem
need to spend eight hours a day doing I tell my teams that it’s their job to and a current board member
something mundane, they can add value make some decisions about where the at Hain Celestial Group,
in more rewarding ways to both them gaps are in their skills and come to us Spirit Airlines and Acorns.
58 PEOPLE + STRATEGY
CHICAGO
B O U N D!
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Research + Insights
Workers regularly utilize augmented reality (AR) devices such as smart glasses or AR-enabled
Augmented smartphones to overlay digital information into their physical surroundings. In an AR work
reality work environment, employees can access real-time data, instructions and interactive elements in their
environments field of view while performing their tasks.
60 PEOPLE + STRATEGY
TECHNOLOGY’S IMPACT ON WORK MODELS
Percentage of
HR leaders who
anticipate widespread
adoption of each work
model (75 percent 14% 8% 5%
to 100 percent of
employee participation)
in their organizations
within the next 15 years:
AI/automation Virtual reality Augmented reality
collaboration spaces work environments
Flexible work schedules Task autonomy Gig work and freelancing Virtual reality collaboration spaces
Location independence Outcome-based work AI/automation Augmented reality work environments
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
TODAY ` 5 YEARS 10 YEARS 15 YEARS
62 PEOPLE + STRATEGY
Message from the Researchers
Navigating the New Abnormal: Avoiding the Clash 3 Smart Strategies
Between Future Demands and Present Perspectives While U.S. workers might show reluc-
tance in embracing emerging technol-
By Ragan Decker, Ph.D., and Daroon Jalil
ogies, these innovations could enable
I
n recent years, the world of work centered around flexibility and auton- organizations to enhance their capacity
has experienced profound trans- omy. What’s more, U.S. workers over- to provide the desired level of flexibility
formations, which has resulted in whelmingly agree that the widespread to their workers.
the emergence of novel work models. adoption of flexible work schedules The adoption of virtual reality work
The shift toward flexibility has granted (86 percent), location independence environments can facilitate more loca-
employees unprecedented autonomy (84 percent), and task autonomy (78 tion independence for employees. And
in determining when, where and how percent) would make them more like- workers can collaborate with AI/
they work. The integration of advanced ly to apply to an organization. automation to gain more autonomy in
technologies—such as AI, virtual reality their work through the automation of
and augmented reality devices has Less Interest in Engaging with certain tasks.
further catalyzed this evolution. Advanced Technology at Work To this end, we recommend imple-
While this transformation holds Conversely, employers’ adoption of work menting the following strategies:
great potential, it also brings to light models centered around technology ad- 1. Foster discussions on flexibility. To
ongoing tensions between U.S. workers vancements, like AI/automation, virtual attract top-tier talent, it’s important
and organizations over how work is reality collaboration spaces and aug- to initiate thoughtful discussions
being accomplished and how it will be mented reality environments remains centered around flexibility. By
accomplished in the future. relatively limited. And workers aren’t addressing the evolving needs and
New SHRM research surveying HR clamoring for these advancements. preferences of the workforce, orga-
leaders and U.S. workers delved into Few workers say they would like nizations can foster an environment
eight emerging work models, each most employers to implement these that appeals to the most exceptional
representing varying degrees of futur- work models immediately. And about workers.
ism. The results suggest that the future one in three employees say they would 2. Prioritize upskilling and reskilling.
success of organizations may hinge on be less likely to apply to organizations Organizations can adapt to changing
their ability to meet employees’ needs that use these tech models extensively. work requirements using their exist-
for flexibility while also pushing em- Despite this, HR leaders anticipate a ing workforce, while employees gain
ployees to adopt new technologies that rise in adoption of these work models the opportunity to cultivate essential
many are currently apprehensive about. in the next five, 10 and 15 years, with skills that ensure sustained value and
a notable 51 percentage point increase competitiveness in the job market.
Employees Seek Flexibility in the adoption of AI/automation over This may also help mitigate potential
Many organizations have already em- the next 15 years. resistance to emerging technologies
braced work models centered around Technology-based work models may among employees. In fact, 57 percent
flexibility and autonomy, though to deter employees due to job security of U.S. workers are confident their
varying degrees. For example, more concerns. Approximately 1 in 3 (35 organization could/can train them to
than half of organizations have adopted percent) U.S. workers and 43 percent use automation effectively on the job
these work models to some extent of HR leaders believe that widespread according to SHRM’s 2023 Workplace
(see chart, page 61). However, the adoption of AI/automation will result Automation Research.
widespread adoption of flexible work in a decrease in the number of jobs 3. Follow best practices in change man-
models remains limited. their organization needs to achieve or- agement. Adopting new work models
Only 23 percent of organizations ganizational objectives. On a personal requires following change man-
have implemented flexible work sched- level, 23 percent of U.S. workers are agement best practices to address
ules for a large majority of employees concerned their job will be replaced employee concerns, ensure effective
(about 75 percent or more). And fewer due to workplace automation in the communication and minimize resis-
provide location independence (18 per- next five years, according to SHRM’s tance.
cent) or task autonomy (16 percent) to 2023 Workplace Automation Research. The give-and-take dynamic between
a large majority of their workforce. While adoption of an AI/automation employers’ desire to adopt emerging
HR leaders anticipate more wide- work model may elicit valid concerns technologies and employees’ needs for
spread adoption of flexible models of job displacement, only 1 percent of flexibility plays a pivotal role in navigat-
in the future, but it is not to the level organizations currently have widespread ing the evolving landscape of work.
that U.S. workers are seeking. Many adoption of AI/automation and only 12
would prefer most employers to percent anticipate widespread adoption Ragan Decker, Ph.D., and Daroon Jalil are
immediately implement work models within 15 years. researchers at SHRM.
T
he Atlanta Braves’ roster consists of 26 demic and the insurgence of the importance of
baseball players and a dozen coaches, but wellness, I have made a full pivot to know that
the full Braves “team” is much bigger, wellness is a component of engagement and
comprising 450 full-time employees and almost is critical to our staff for their well-being. We
2,000 part-time ushers, food vendors and other created a wellness room in which employees can
game-day staff. As the leader of the Braves’ HR schedule time for any use, such as tele-med meet-
function, DeRetta Rhodes oversees hiring, training ings, relaxation, etc.
and the employee experience for all of them.
Like many HR leaders, Rhodes didn’t start her WHAT IS THE GREATEST CHALLENGE YOU SEE
career with HR in mind. She began working for FOR HR PROFESSIONALS RIGHT NOW?
PepsiCo’s restaurant division after graduating from The three biggest challenges I see right now are
the University of Georgia with a degree in hotel and the continued focus on employee health and
restaurant management. As part of a management well-being; retaining talent with a best practice of
rotational program, Rhodes worked as a recruiter employee experience (and leaning in on the
for a new restaurant concept in the Carolinas. She employee value proposition); and continuing
loved being part of the leadership team that was with diversity, equity and inclusion programs
hiring new talent. She never left HR after that. even during all the current controversy over
After 20 years of increasingly high-profile HR canceling DE&I.
roles at ADP, EY, Turner Broadcasting and the
YMCA of Metro Atlanta, Rhodes was recruited to HOW IS HR FOR A PROFESSIONAL SPORTS
join the Braves as their senior vice president for TEAM UNIQUE FROM OTHER INDUSTRIES?
HR in 2019. She has since been promoted to the In some instances, it is no different. You are
chief culture officer position, overseeing HR as still dealing with the human condition. The
well as communication and community affairs. challenges and triumphs are the same. The one
difference is how sports brings people together. I
WHAT ARE YOU ESPECIALLY PASSIONATE am in sports entertainment. It is about bringing
ABOUT IN YOUR PROFESSIONAL LIFE? joy, camaraderie and fun to an experience, and
My passion is the importance of voice. When you it makes what you do every day magical. I know
sit in the role of HR, you always must ensure that that may sound cliché. But I remember when I
you are providing perspectives that may not be was a little girl and I would watch baseball with
favorable or even liked, but you always have to my grandparents. I truly cherish those times with
have “fierce” conversations. them. That’s what makes sports unique: It brings
The challenge of having fierce conversations all people together.
is that it takes an emotional sacrifice and toll
on you. I can personally say that I’ve struggled WHAT’S THE BEST ADVICE YOU’VE EVER
with anxiety in many conversations that I’ve had BEEN GIVEN?
throughout my career. But I know that I must “Let the game come to you.” A CHRO that I
have them. There had been a time in my career worked for would tell me that all the time. I was
when I was afraid to say things that needed to be always anxious for what was my next thing. But
said. I am better for the conversations that I have he reminded me that if I focused and worked
had and the future ones I will have. hard, it would be recognized. And he was exactly
right. It is funny to me because, although that is
WHAT IS ONE INITIATIVE YOU’RE PROUD OF a sports quote, it has been important to me ever
THAT HAS IMPROVED THE BRAVES’ since I worked for non-sport organizations early
EMPLOYEE CULTURE? in my career.
64 PEOPLE + STRATEGY
22367
I
f you were asked to lead a conversation about some of the critical themes in this issue, what
would be the most effective conversation starters to generate actionable insights? Here are the
crucial questions at the core of a few key articles in this issue:
LEARN MORE
autonomy. How might your policies being?
for issues like return-to-office be 3. Given the shortening tenures of
designed to allow people to retain many employees, as they are more 3. Even if that approach doesn’t seem 221
those feelings?
S H R M . O Rwilling
G / P toS move
V I Sbetween
I O N Acompanies,
RIES like a good fit for your culture, what
This event is exclusive to SHRM Executive Network members are
how should your organization think some new approaches to align
only.
3. There are varying opinions about about its approach for developing with expectations as part of a more
whether remote work leads to re- new leaders? fluid process?
duced productivity and a less cohe-
sive culture. What efforts has your 4. Given the different profiles of 4. How does your organization signal
organization embraced to better employees, what is the right mix of to employees that it is important
separate fact from opinion? incentive compensation? Might cash for them to be continually learning
be more attractive to some groups? and developing as an individual and
4. If your company is requiring em- team?
ployees to return to the workplace 5. Many employees expect their
for part (or all) of the workweek, employers to speak out on broader 5. Whatever approach you use, is it
what rationale are you using to ex- social issues. What is your frame- focused on outcomes or does it fall
plain the policies to employees? work for deciding whether and how into a familiar HR trap of focusing
to weigh in? more on process?
5. How are you structuring work that
occurs in the office to maximize the ‘Many of the pillars of HR ‘We’ve shifted into a new
quality of employees’ face-to-face are grounded in fairness era that requires letting
time?
and equitable treatment. go of classic performance
‘The global work-from- These laudable principles management practices
home era produced a have become increasingly and focusing on
massive, unexpected difficult to put into action something that is more
jump in the level of control as employee populations effective and serves the
we felt across just about have become more true purpose of what
everything that mattered.’ diverse in many ways.’ we’re trying to achieve.’
66 PEOPLE + STRATEGY
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QUESTIONS
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