What does the future hold for HR? According to Sarah Smart, it’s a lot more about tech and a lot less about traditional roles.
The future-ready CHRO “[runs] HR like a business, with a sharp focus on ROI, efficiency and measurable outcomes that align with organizational goals,” says Smart, the co-founder of Washington D.C.-based HR consulting firm HorizonHuman. “They reimagine how work gets done, viewing it not just through the lens of people, but also through the potential of technology, automation and AI.”
As much as AI promises to upend work, that future can still feel far away. Here are Smart’s key insights to prepare for changing tide, pitfalls to avoid and ways to rethink the HR role in general.
What does the HR organizational structure of the future look like?
Operating in this future state model requires a fundamental shift in how HR teams are structured and how they work together.
Key characteristics of the HR operating model of the future include flatter, more adaptive teams that are agile and responsive to change. It also means project-based work that replaces traditional, siloed alignment, allowing HR to focus on specific outcomes rather than rigid functions. Decentralized decision-making empowers teams at every level to act quickly and make decisions closer to the employee experience.
Rather than organizing work around traditional centers of excellence, the HR product model aligns work around employee experiences, which creates a more seamless, impactful and user-friendly approach to HR.
This means delivering HR as a service. Employees will experience HR in a way that feels intuitive, commercial and comfortable in our highly digital, mobile-first world. HR tech systems will be integrated HR tech systems so that data and systems will connect and communicate effortlessly, eliminating silos and enhancing the employee journey.
HR will also leverage AI strategically. AI is here, it’s now, and it’s time for HR organizations to take full advantage of the technology. We’re going to move away from the caution and skepticism and start to look at ways AI can change the way we do our work.
In the HR organization of the future, technology, structure and expertise blend seamlessly. HR teams will be outcome-oriented, technologically adept and will guide their work using design thinking and data-driven decision-making, ensuring that work is prioritized based on its impact on the employee experience.
This shift is a big, bold reimagining of HR—we think it will be a new way of working that’s designed to meet the needs of the modern workforce and create value at every level of the organization.
What experiences and skills does the “new CHRO” need to have?
The CHRO of the future is more than an HR expert or risk mitigator; they are a strategic leader who seamlessly integrates technology, business acumen and workforce innovation into their role.
This future-ready CHRO owns HR technology as a core pillar, leveraging it to drive transformation and enable smarter, faster decision-making. They run HR like a business, with a sharp focus on ROI, efficiency and measurable outcomes that align with organizational goals.
They reimagine how work gets done, viewing it not just through the lens of people, but also through the potential of technology, automation and AI. The future-ready CHRO embraces agility, remaining open to new ideas, challenges and opportunities to innovate. They act as an educated consumer of technology, understanding technology limitations and capabilities, and can make informed decisions and guide technology investments with confidence.
Interestingly, the CHRO of the future may not always come from a traditional HR background. Instead, they may have expertise from engineering, software development or other technology-driven disciplines, or they could come from a change function. In either case, they need to be able to blend technical fluency with a deep understanding of people and culture.
This evolution reflects the changing demands of the workplace and cements the CHRO’s role as a business leader, innovator and strategic partner to the C-Suite.
Where will we see the biggest impacts in the skills revolution?
The skills revolution will transform how organizations and individuals approach work, learning and career growth. Talent reviews, hiring and promotions will focus on shifts from time in role or degree type to skills, enabling more fluid career movement and broadening hiring pools.
Matching employees to projects and roles based on skills will enable internal gig work and project assignments, fostering agile teams that are project-based and cross-functional, rather than siloed structures. Adopting a skills-first approach will enable a rapid response to the need to upskill in response to dynamic market conditions.
There will be an increased emphasis on the ability to collaborate. Being collaborative is no longer a mere phrase in the preferred qualifications section of a job description. It is a must have for success. As organizations flatten and start to focus on outcome-based collaboration, successfully bringing together disparate teams under a shared vision will be critical for success.
How do talent acquisition leaders avoid the biggest pitfalls in technology implementation?
Avoid shiny object syndrome. In today’s swift-moving talent acquisition tech marketplace, it’s easy to get distracted by the sheer number of tools, platforms and solutions. There’s no shortage of shiny features, bold claims and innovative ideas vying for your attention. However, just because you can buy a tool doesn’t mean you should.
Before investing in technology, start with a clear, data-validated use case. Identify specific challenges or opportunities within your talent acquisition function that require attention. What problem are you solving? What outcomes are you trying to achieve? And most importantly, can you back this up with data?
Then, take a close look at your existing HR tech stack. Are there features you’re not utilizing to their fullest advantage? A vendor may have sold you a tool that is not functioning as expected. You could build what you want in-house before buying an external tool with all the hassle of security reviews and integration support, much less implementation and adoption.
Focusing on desired business outcomes and using evidence-based decision-making, you can ensure that the technology you build or buy aligns with your specific goals.
No tool alone can fix an undefined or poorly understood problem. So, take a step back, validate your use case and let your business needs—not the latest tech trends—guide your decisions.
