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People & Culture

Skills trends for people & culture leaders

People & Culture capabilities underpin all transformation.

The way we work is undergoing a rapid transformation. The role of people and culture leaders is evolving in parallel. The significant transformation is driven by shifting workforce expectations, regulatory changes, and technological advancements. As organisations continue to navigate the post-pandemic landscape, there is an increased focus on flexible work arrangements, employee wellbeing, psychosocial safety, and diversity, equity, and inclusion (DEI). Leaders are tasked with fostering a workplace culture that supports hybrid and remote work models while ensuring employees remain engaged and productive. This involves rethinking traditional management practices and adopting new strategies that prioritise mental health, work-life balance, and the personalised needs of a diverse workforce.

At the same time, regulatory changes, such as those related to the Fair Work Legislation Amendment (Closing Loopholes) Act 2023, are placing additional responsibilities on people and culture leaders. The Act, which includes increased penalties for workplace safety breaches, underscores the importance of compliance and proactive risk management in the workplace. Moreover, the rapid adoption of technology, including AI-driven tools, is reshaping how HR functions are carried out, from recruitment to employee development. Leaders must balance the integration of these new technologies with the need to maintain human-centered approaches that align with organisational values and foster a positive employee experience.

Trends for people and culture leaders

What trends are dominating the emerging environment in People & Culture?

Hybrid Work Revolution

The shift to hybrid work is here to stay, and leaders must adapt quickly. Balancing flexibility with productivity while maintaining a strong company culture is now a top priority. Leaders are learning the power of tapping in to employees wellbeing ahead of providing direction on tasks, through whatever channel is preferred by the team member. We call this 'tap before task'.

Wellbeing as a Strategic Focus

Employee wellbeing is no longer a 'nice-to-have', satisfied by a survey, an annual focus on R U OK? or a gym membership. Today wellbeing is a strategic necessity and a key indicator of performance and productivity. Leaders are prioritising mental health literacy, replacing words with action when it comes to work-life balance, and wrapping holistic support around teams to maintain engagement and resilience.

Technological Transformation

At our recent thought leadership event in Canberra, Technology leader Jeff Smith argued that people and culture make or break the success of every transformation project. AI and automation are revolutionising HR processes, from recruitment to performance management. Leaders must harness these tools to enhance efficiency while keeping the human touch intact.

Evolving Regulatory Environment

Maintaining ethics, integrity and compliance, when it comes to the regulatory environment is a key trending capability for people and culture leaders. With the introduction of new legislation, like the Fair Work Legislation Amendment, compliance is more complex and crucial than ever. Leaders need to stay ahead of these changes to protect their organisations and employees.

Talent Retention in a Competitive Market

While the economy seems to be tightening, critical skills gaps in Australia mean that the fight for future talent is intensifying. In turn, retention strategies are under the spotlight. In today's intergenerational workforce, there is no one-size-fits-all. Leaders must understand what motivates each and every employee and innovate to keep their best people engaged and loyal in a fiercely competitive landscape.

Diversity, Equity and Inclusion

Diversity, equity and inclusion (DEI) cannot be a box to tick box. Rather, DEI is a cornerstone of modern leadership; what better way is there to mitigate risk, innovate solutions, and serve stakeholders equally? Creating inclusive environments where everyone feels valued is critical for attracting and retaining top talent.

Emerging Skills

What Data Tells Us about Emerging Skills in People & Culture

01.

Safety Culture - 200% increase

Safety culture as a skill involves cultivating a proactive and comprehensive approach to workplace safety, ensuring that every employee feels responsible for maintaining a safe environment. This skill requires leaders to integrate safety into daily operations and foster an atmosphere where open communication about risks and safety concerns is encouraged and valued.

02.

Human Capital Management - 89% increase

Human capital management is evolving to focus on maximising employee potential through strategic talent development, data-driven insights, and personalised career paths. This emerging skill empowers P&C leaders to align workforce capabilities with organisational goals, driving growth and innovation in a rapidly changing business landscape.

03.

Complex Stakeholder Management - 71% increase

Complex stakeholder management requires P&C leaders to navigate and align the diverse interests of multiple internal and external parties, from employees to senior executives and external partners. This skill is crucial for building consensus, driving strategic initiatives, and ensuring that all voices are heard in decision-making processes.

04.

Performance Reviews - 68% increase

Performance reviews are shifting from annual, formal evaluations to continuous, feedback-driven processes that focus on real-time growth and development. This emerging skill involves creating a culture of regular, constructive conversations that empower employees to achieve their full potential and align with organisational goals.

05.

Policy Development - 61% increase

Policy development is becoming increasingly dynamic, requiring people leaders to craft adaptable, forward-thinking policies that address the evolving needs of a diverse workforce. This skill involves balancing legal compliance with proactive curiosity and flexibility, ensuring that policies are both practical and aligned with the organisation's culture and strategic roadmap.

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The leadership capabilities of tomorrow are uniquely human.

The urgency to cultivate human capabilities alongside technical skills, especially among emerging leaders, cannot be overstated.

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