Based on current trends and input from human capital leaders, we have a number of project efforts underway. Please reach out to us if you would like more information or if you have questions about these and other areas affecting human capital development.
With rapid changes in the technology used for managing human capital as well as the solutions employed to develop human capital, the digital and AI area is a key priority. While ChatGPT has caught the attention of the world and individuals are learning the tool and its capability, it will take some time for regulation and firm policy to catch up to the current state of practice. The role of the CHRO is to not only embrace this new movement, but also work with business leaders to determine the parameters and guidelines for early adoption inside the firm as well as in the industry. At the same time, HR tech is changing rapidly, and CHROs must be in the driver's seat for the new technologies shaping the future of the HR function.
Not only have the costs associated with health care for employees risen dramatically, but employers now also understand the impact of mental health in the workplace and beyond. Beyond wellness programs, more organizations are making employee health a proactive platform, and some leading firms are addressing employee health care costs head-on, finding ways to integrate health, wellness, and cost-effectiveness for their organizations and their people.
While it seems that building a great workplace culture with high levels of engagement is a flashback, current evidence suggests that most firms need to get back to basics. The pandemic changed expectations in many firms and the norms around the world. Suddenly we have navigated from the work-from-home requirement to pushing the work-from- the-office desire, while also addressing "quiet quitting” and the challenge of employee preferences for remote work. We cannot hope to transform organizations if we don’t get the basics right. Creating a great workplace with high engagement and a trusting culture is the No. 1 agenda item going forward.
At a macro level, we have witnessed several setbacks in education as the global pandemic limited the advancement of learning in many locations, especially in those locations without access to adequate technology. As a result, we have significant challenges ahead at a national level in many countries. At the same time, the challenge of developing new skills in workforces and building a digitally savvy employee base is a top priority for many firms. Yet, we are also reminded of the need to develop broad-based critical and creative capabilities that drive human contribution in the age of AI.
The issues associated with diversity, human rights, privacy and data security, labor rights, and a firm's sustainable global human capital footprint are key agenda items for the CHRO. These global issues may surface at a national level, but can quickly become a part of the global agenda. For example, the firm stance on LBGTQ individuals in locations such as Malaysia and the Philippines may create extra challenges in navigating global policies with local values and regulation. Investors and analysts increasingly scrutinize corporate governance in terms of board composition, top management team composition, and overall representation. Executive compensation, board roles, proper committee structures, and other governance mechanisms typically fall to the CEO and CHRO for compliance as well as buy-in. While this may be relatively straightforward in the United States, the proper governance for joint ventures, new ventures, global expansion, and new developing markets are worthy of additional CHRO focus.
