A people-first approach isn’t just good for employees. It’s good for business. The evidence is clear: businesses that prioritise their workforce outperform those that don’t. Companies ranking in Fortune’s ‘Top 100 to Work For’ list have significantly outperformed the market, demonstrating that HR matters to a business’s bottom line.
Yet, C-suite discussions haven’t quite caught up. Boardroom conversations are dominated by technology, finance and strategy, with people-focused initiatives often sidelined. This oversight comes at a considerable cost as the modern workforce evolves and employees assert a newfound sense of empowerment.
“The balance of power has absolutely shifted to the workforce,” says Matt Poepsel, vice-president & godfather of talent optimisation at The Predictive Index, a talent optimisation software provider and consultancy.
The balance of power has absolutely shifted to the workforce
Executives need to listen to their employees and understand the wider impact people have on the success of a business; ultimately, people form the foundation of a company.
A people-first approach is imperative and it’s on HR leaders to make their voices heard and demand recognition as a critical part of a successful business strategy.
HR leaders are uniquely positioned to advocate for the needs of employees – particularly the new generation of managers in the ‘squeezed middle’ who require support and are often overlooked.
By understanding the people-focused nature of the five most pertinent business challenges companies face today, HR leaders can step up, claim a seat at the table and implement effective solutions.
Talent shortages
The hiring landscape has become increasingly challenging thanks to changing work preferences and demographic shifts. “Generation Z is a much smaller generation than the baby boomers,” Poepsel explains. “There’s just not as many people in the workforce. At the same time, members of Gen Z are taking more roles related to the gig economy.”
As a result, businesses must fight harder for talent. HR leaders can help by focusing on two key strategies: improving the candidate experience to attract the best applicants and prioritising the retention and engagement of those they have. “In light of the indefinite talent shortage, how do we make sure we keep who we have and upskill them?” Poepsel asks.
Investing in people should be non-negotiable, but training and development initiatives are often approached as an afterthought or an additional ‘benefit’. By evaluating the cost of employee turnover, HR leaders can convey just how important people are to business success at large.
Work stoppages
A heightened awareness of people power has resulted in a surge in organised walkouts and more subtle forms of work stoppage, such as ‘quiet quitting’. HR leaders alone can tackle those issues before they become unmanageable, using their proximity to employees to understand their frustrations.
“Leaders must understand that if they don’t want to experience these types of work stoppages, they have to meet the human needs of people who are doing the work,” says Poepsel. Employee empowerment is here to stay, so HR leaders must act as an open line of communication across the business – from working with people managers to understand their frustrations to relaying leadership agendas across the business.
Post-pandemic ills
While the immediate health concerns of the pandemic may have subsided, its impact on the workforce persists. Poepsel argues that the most significant post-pandemic ill isn’t physical but psychological.
“People reprioritised. They renegotiated what role they want work to have in their life,” he says. Employees will no longer accept being treated like a cog in the machine. HR leaders can help meet changing expectations by focusing on holistic wellness, addressing not just physical and mental health but also financial, social and relational wellbeing.
In particular, ensuring people feel connected, heard and respected by fostering a culture of communication is key in a world of hybrid working. “These are all the domain of enlightened HR leaders,” says Poepsel.
AI adoption and upskilling
The arrival of AI is having a significant impact on businesses, presenting both opportunities and challenges. Although this new technology can increase productivity, it also raises concerns about job security and the changing nature of work.
“The introduction of AI is, by definition, a deep psychological transformation,” Poepsel explains. But while AI can be tempting to adopt, it’s how you manage the introduction of AI and its impact on people in the business that will offer a true measurement of success.
Empathetic HR leaders can carefully guide the implementation of AI technologies by ensuring clear communication, addressing employee concerns and overseeing reskilling initiatives where needed.
Generational friction
With up to five generations now working side by side in a workplace, managing diverse expectations and work styles can create new complications. But HR can help bridge generational divides. “Multigenerational diversity needs to be a key project for HR leaders,” says Poepsel.
Poepsel argues age diversity is just as important as other forms of inclusion and representation such as cognitive diversity. HR leaders can implement programs like mutual mentoring to bridge generational gaps and leverage the unique strengths of each cohort.
The bigger picture
As these issues demonstrate, HR’s role has never been more critical. But HR leaders are being pulled in many directions, with managers in particular needing support. This is where solutions like The Predictive Index come into play.
The reality is HR leaders often have a small team, but there’s often dozens of managers and hundreds of employees
HR teams need two things, says Poepsel. “One is they need strategic support. That comes from making an effective business case about why a people-first approach matters.” The Predictive Index helps in that way, he says, because it takes the business strategy, and translates it into people terms.
The second need is for scalable solutions. “The reality is HR leaders often have a small team, but there’s often dozens of managers and hundreds of employees,” Poepsel says. Effectively managing this requires harnessing data and analytics to provide personalised, customised experiences for managers to interact with their employees in the best way for each individual.
In particular, The Predictive Index’s new tool PI Perform helps managers across the business effectively manage meetings, using built-in behavioural data to offer personalised assistance and insights.
On technology as a whole, Poepsel shares he is cautiously optimistic about a re-humanisation of work. But this requires listening to the HR function. “Companies can’t continue to push an engineered AI-driven, dystopian technical world on people and just have it automatically succeed,” he warns. “There has to be a human approach.”
The path forward to a successful integration lies in HR leadership highlighting how to adopt new technologies while keeping the human at the heart of everything they do. The next move lies with HR leaders to claim a seat at the leadership table and change how their executive team sees the role of people leaders.
By making a convincing business case for introducing scalable, people-focused tools and meeting people’s needs for belonging, meaning, and purpose, HR leaders can ensure their organisations remain competitive in an increasingly complex business landscape.
To find out more, visit predictiveindex.com
