The Evolving Role of HR in a Changing Business Landscape
The business environment in 2025 is evolving faster than ever. While the rapid adoption of artificial intelligence (AI) and automation has prompted many organizations to prioritize productivity, relying on technology alone is not enough to drive true performance. A human-centered approach is now recognized as the key to long-term success.
In fact, 53% of companies expect AI to improve productivity by 10โ30%. But to realize these gains, itโs essential to support employees as they adapt to new ways of working.
"Technology is just a tool. It's the people who make a difference." โ Steve Jobs
Why Human-Centered Work Redesign Is Necessary
Many companies expect greater efficiency from AI and automation, but these technologies alone wonโt deliver results unless they are meaningfully integrated into employees' daily work. According to a recent HR report, 67% of companies do not change how people work when introducing new technology, which can significantly limit the ROI of digital investments.
Currently, 46% of HR leaders are planning to redesign work to support productivity gains. This strategy goes hand-in-hand with learning programs that help employees adapt to new tools and workflows, creating a positive synergy between technology and people.
Flexible work arrangements also play a critical role in human-centered redesign. According to Mercer, 64% of employees report being more productive when working remotely, showing that flexibility is just as important as technology in enhancing productivity.
HR leaders must help employees integrate AI naturally into their daily work. This includes creating AI-powered workflows and training programs that build confidence and competence in using new technologies.
Strategies for Balancing Technology and People
One of the most effective ways to align technology with employee needs is through work redesign. Rather than simply implementing AI, organizations must create environments where employees feel empowered and find meaning in their work.
Creating a culture of trust is also essential. For example, only 38% of employees trust their companyโs pay transparency, highlighting the need for fair compensation systems and open communication.
A digital-first culture can help employees feel psychologically safe in rapidly changing environments. HR leaders must foster this culture to support adaptability and minimize organizational risk.
Company Success Stories
Shell
Shell, operating in over 70 countries with 82,000+ employees, recognized the need to overhaul internal communications to foster collaboration and improve productivity. Partnering with Unily, they launched โThe Hub,โ a centralized intranet platform.
The Hub provided employees with seamless access to essential tools, resources, and information, resulting in a productivity gain worth over $42 million annually. This case demonstrates the powerful impact of a well-executed employee experience (EX) strategy.
In 2012, Google launched Project Aristotle, a research initiative to determine what makes a team successful. The study found that the single most important factor was psychological safetyโthe belief that team members can speak up without fear of embarrassment or punishment.
Teams with high psychological safety were more innovative, better at solving problems, and stronger in collaboration and trust. As a result, Google implemented various strategies to build this safety, such as encouraging all team members to speak in meetings and reframing mistakes as learning opportunities.
More info: rework.withgoogle.com
Watch the full case study below.
Gard
Norwegian global insurance company Gard proactively develops scenario plans to manage potential risks, including workforce-related ones. By working with cross-functional teams, Gard creates internal strategies to ensure psychological safety, helping employees navigate change with greater confidence.
Practical Tips for HR Leaders
1.
Implement and Support Flexible Work Models
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Set Clear Policies: Formalize hybrid work, flextime, or remote work policies with clearly defined guidelines.
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Invest in IT Infrastructure: Provide VPN access, collaboration tools, and security solutions to support remote productivity.
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Shift to Outcome-Based Evaluation: Focus on performance and deliverables rather than hours worked.
2.
Redesign Work with Employee Input
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Host Workshops & Brainstorming Sessions: Collect feedback directly from employees through regular engagement.
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Pilot New Workflows: Test redesigned processes with small teams before scaling organization-wide.
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Establish Ongoing Feedback Loops: Use surveys and 1-on-1 interviews to continually refine work processes.
3.
Build a Transparent and Fair Compensation Framework
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Enhance Pay Transparency: Clearly define and communicate compensation criteria by level and role.
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Link Pay to Performance: Use objective performance metrics to drive bonuses and incentives.
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Regularly Review Market Data: Benchmark against industry standards to ensure competitive compensation.
This article was written by TalentSeeker.
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