"If my top talent walked out tomorrow, or AI shook things up overnight, would I still know how to win with people ?"

This is the question Kate and I discuss - the urgent need to rewire work and change the way we view talent, skills and the workplace. One of the shifts is moving from viewing individuals as mere “employees” to recognising them as “contributors.” This change fosters a sense of agency within any organizational system.

The topic of agency highlights a crucial shift: workers have agency to choose and the long time loyalty contracts are gone. People, particularly the younger generations now prioritize health benefits, time off, and flexible working over pay raises. This signifies a deeper desire for lifestyle integration and genuine care from employers. It’s about feeling valued for one’s skills from day one, having a voice, and ensuring long-term employability, especially with AI on the horizon. If our identity is tied to what we know, how do we adapt when AI “knows more”?

Historically, the more people got used to new tech, the less anxious they became. But with AI, it’s the opposite! The closer people get, the more nervous they feel. This isn’t just about understanding the tech; it’s about our identity and status tied to what we know versus what we’re willing to learn. This paradox calls for a fundamental shift: from being “know-it-alls” to “learn-it-alls.” Leaders must foster environments where learning and adaptability are paramount, rather than relying solely on existing expertise.

If you had the opportunity to redesign work in this department how would you do it differently ?

The insights you'll get from this episode are :

-      It is people, not technology, who breathe life into businesses and keep them competitive; the pressure businesses are under puts a premium on talent and GenAI is increasing the gap between average and high-performing employees.

-      Hiring, development and promotion must be right for a business to unlock opportunities, but workers have more options than ever before - Gen Z feel work is broken and the lift provided by augmented AI does not fix what is broken.

-      The proximity paradox, i.e. the nearer people get to AI, the more nervous they are about it, is the opposite of past experiences with tech – if people are worried about losing their jobs and using AI, they will not innovate and look forward.

-      This paradox is also a human paradox – GenAI provides no reassurance as it is always changing and learning, which is at odds with a system that values knowing over learning: know-it-all v learn-it-all is a threat to identity and status.

-      Companies must care about guiding employees so that they stay relevant, and managers must have honest conversations with employees about how AI will change their jobs – this may well involve not having all the answers.

-      The employee turnover rate is driven by the labour market and HR must know what the company’s reputation is externally to prevent the top talent from leaving in a flexible and fluid talent supply – motivation is key here.

-      More agility in the workforce requires intentional work redesign - fixed v flex v fully flow roles - to solve real human problems and supply gaps through e.g. offshoring, right-shoring, making use of global capacity centres.

-      Leaders must be able to work across temporal, digital, cultural and behavioural boundaries, and across generations, i.e. manage paradox, sense markets and people, have a global mindset, and embrace DE&I.

-      Upskilling is crucial, as skills are the real currency in the AI era; businesses must make clear what opportunities they offer but it is difficult to move to skills-powered talents practices if we don’t know what skills we need in future.

-      Leaders must hire based on skills and relocate skills internally, which means less cohesive teams, but the benefit must be demonstrated and governed - the transferability of skills becomes essential for both employees and employers.

-      Change is easier under the right leader, who must understand what really creates value and what human skills will become premium – a commitment to breeding great leaders is urgently required.

-      Leaders need to be empathetic; inspire a team; understand what the impact of AI is going to be; and build sustainable businesses with a healthy workforce to drive up productivity.

Find out more about Kate and her work here :

https://www.linkedin.com/in/kate-bravery/?originalSubdomain=uk

https://www.mercer.com/en-gb/insights/people-strategy/future-of-work/podcast-new-shape-of-work/the-skills-powered-organization/

https://www.amazon.co.uk/Sustainable-People-Strategies-Organizations-Employees/dp/1394181299