Analysis | Evolution of the people profession

“I think the biggest challenges we were facing, and I suspect this is across most businesses, was just the relentless pace of change. And it really felt at times like the old analogy about trying to change the wheels on a racing car whilst it's still on the track... it felt like we were trying to replace the wheels, the engine, the driver, . move it to a different track and do it at half the cost and still win.” 

^{Senior HR leader}

The level and speed of technological advancement over the past decade has required organisations to become increasingly agile in their approach to implementing new systems and ways of working. Technological change not only impacts how employees fulfil their work but also the organisational norms that underpin the daily working environment.  

The increasing pace of change across organisations over the last 10 years has been widely reported. 86% of employers surveyed for the Future of Jobs report (developed by the World Economic Forum) identified “AI and information processing technologies” as likely to drive business transformation in the next five years. The CIPD’s own research also highlights that advancing technology as a key driver of change across all regions (Figure 2).  

Figure 2: Top three drivers of change  

^{SOURCE: People Profession 2023: UK and Ireland survey report, CIPD} 

How has the advanced pace of change influenced the people profession? 

The pace of transformation within organisations, particularly when it comes to organisational design, was cited repeatedly when we asked senior people professionals how the expectations and role of HR has evolved. Similarly, leaders referenced how technology has made a significant difference to how they work as HR professionals, with increasing access to high volumes of people data and metrics that can be used to drive business decisions. 

Widescale transformation within organisations can create employee uncertainty. The increasing pace of change across organisations has required the expertise of people professionals to facilitate the change required for businesses to operate and compete effectively. Robust change management and access to L&D is important to ensure adoption is successful. The profession’s role in transformation is expansive and can include providing ongoing and comprehensive support to employees going through this change on an emotional and practical level, eg encouraging adoption, reskilling, managing uncertainty, and maintaining retention through the transition. 

For HR specifically, technological improvements have enabled the automation of more basic, process driven HR work, eg basic recruitment and onboarding processes, as well as simpler access to a greater depth of workforce reporting. 

“I don't think tech is going to take over our jobs, I don't think it possibly can. But in my team, we've introduced tech that takes away the three people looking at someone's pre-employment check. Now we stick it in a screening tool and that's that done.” 

^{HR professional}

Research from the CIPD’s People Profession 2023 international survey shows how digital change has impacted the people profession globally (see Figure 3).  

Figure 3: How digital change has impacted the people profession  

^{Base: APAC (n=812); MENA (n=525); UK and Ireland (n=1,620).
SOURCE: People Profession 2023: International survey report, CIPD} 

The increase in access to employee data on performance and preferences has meant that the skillset of HR has evolved to include an understanding and engagement with people analytics. While access to data is key to taking an evidence-led approach, HR leaders highlighted that analysis needed to be focussed achieving a specific business need or goal; this is particularly important when considering the volume of data that is now available to people teams. 

Recent developments in generative AI have only increased the pace of change and increased the levels of uncertainty within organisations, as people worry about what widescale implementation of AI could mean for their roles. As with other technological advances, it is the role of the people profession to alleviate fears and encourage adoption that allow businesses to make the most of AI and provide employees with the skills they need for their future careers.

The people profession will continue to be key in ensuring the benefits of any new technology are realised. As the pace of change continues, people professionals are best placed to ensure organisations have the right transformation, L&D and recruitment strategies in place to support effective and widespread adoption of AI. People professionals also have a key role to play in the regulation of AI within organisations. You can find out more about the role of AI within the people profession in our ‘Focus on AI’ series.  

The leaders we spoke to referenced the pandemic as a turning point for both employees and the role of HR within an organisation. In several respects the response to the pandemic allowed organisations to demonstrate the ways in which good HR practice can support and empower employees to work at their best even in challenging contexts, helping to exemplify the impact that HR can have on business strategy and performance.   

There was increasing awareness around mental health prior to the pandemic with HR teams promoting employee wellbeing interventions. The national lockdowns however accelerated and exemplified the need for comprehensive wellbeing strategies alongside supportive workplace cultures that respected the varying needs of employees with different working requirements.  

Figure 4: The position of health and wellbeing in organisations 

^{SOURCE: Health and wellbeing at work 2023 report, CIPD} 

The CIPD’s Health and wellbeing at work 2023 report highlights how the wellbeing agenda has changed since the pandemic (Figure 4). The report also demonstrates the extent to which absence in the UK workforce is driven by ill health, with mental ill health being the highest driver of long-term absence (Figure 5). Inclusive wellbeing strategies delivered by people professionals are therefore key to creating an environment where individuals can perform at their best, reducing absenteeism, improving retention and contributing to sustainable business outcomes. Developing such interventions have become even more complex since the pandemic with wellbeing initiatives seeking to address hybrid working options too.  

Figure 5: The most common causes of absence 

^{SOURCE: Health and wellbeing at work 2023 report, CIPD} 

Technological advancements have enabled a significant proportion of the workforce the option to work outside of a designated office. One of the most significant changes that the pandemic brought was to accelerate the widespread adoption of home working and flexible practices, resulting in a further change to the expectations of employees when it comes to access to hybrid working and flexi hours. This trend was emerging 10 years ago but has now become common practice among many corporate workplaces. The proposed changes in the Employment Rights Bill by the UK Labour Government reflect this with the strengthening of day-one flexible working rights.  

How did the pandemic response influence the HR profession

The increased awareness around mental health, particularly since the pandemic has made it clear that there is a business case for promoting good mental health at work. The people profession has responded to this change in mental health awareness by implementing wellbeing support packages and policies that facilitate good mental health. Whilst there are examples of wellbeing ‘perks’ being adopted in a tokenistic way, evidence shows that meaningful wellbeing programmes can reduce stress and support the mental health of employees. A Health Education England report (2019) highlights the impact that poor mental health can have on businesses in different ways, demonstrating the importance of workplaces to proactively support employees with their mental wellbeing. Findings from the report suggest that the “cost of mental ill health in the NHS workforce equates to between £1,794 to £2,174 per employee per year” and that those with mental health conditions are much more likely to lose their jobs than those without. 

Providing flexible working options is one way of supporting health and wellbeing which is now an option that many employees expect to exercise. According to the CIPD’s Flexible and hybrid working 2023 report, flexible working and remote working options are both key when employees consider a new job (Figure 6). Both women and those with long-term health conditions were more likely to report that flexible working and remote working options were important. This demonstrates the influential role people professionals play in mobilising and promoting an inclusive working environment that has the potential to attract a broader pool of candidates to an organisation.  

Figure 6: Employee perspectives when considering a new job 

^{SOURCE: Flexible and hybrid working 2023 report, CIPD} 

Many HR teams are now responsible for supporting a hybrid workforce while also maintaining company culture and in-person interactions and practices for those that require it. Whilst the business case for engaging with inclusive working options is strong, it does necessarily increase the remit and complexity of HR teams.  

Organisations that engage with the wellbeing agenda  not only attract prospective candidates to their organisations but are also better placed to remove barriers to individuals performing at their best. 

Over the last 10 years employees have changed their relationship to work, as they increasingly look for interesting and rewarding careers with organisations that are socially responsible with values that align to their own. Deloitte’s 2024 Gen Z and Millennial survey (based on responses from ~23,000 employees across 44 countries) found that, “[n]early nine in 10 Gen Zs and millennials say purpose is important to their job satisfaction and they are increasingly likely to turn down work or employers that don’t align with their values”. 

This change in the pattern of employment may be a result of sustained low levels of unemployment over the last 10 years. A tight recruitment market typically provides employees with more options. As employers compete for a limited supply of labour, organisations are required to respond by offering more favourable pay, working conditions and benefits in order fill vacancies. Given this trend, HR teams have had to more carefully consider how to retain employees in a way that may not have been necessary in the past.

How did changing values influence the people profession?

It has become increasingly necessary for organisations to create a compelling employee value proposition to attract and retain the best candidates for employment. A company’s people strategy has therefore become integral for businesses to succeed, maintain competitive advantage and reduce costs. The BMA estimated that the cost of replacing the doctors and nurses that left the NHS between 2022 and 2023 would be between £1.6-£2.4bn; this demonstrates the potentially high costs associated with an inadequate recruitment and retention strategy. 

“I think then there's been an evolution in certainly the CEOs and senior people I work with around how we impact society that's meaningful for them versus what’s tokenistic or required in an ESG report. And so I feel a different responsibility which frankly drives me personally anyway to figure out what that connection in society can be.”  

^{HR leader}

While values around work may be broadly changing it is important to set this within the current economic climate. The results from the CIPD Good Work Index survey shown in Figure 7 demonstrate that in 2019 employees were generally regarding their job as more than a means to earn money with 36% (the lowest value over the last 5 years) of responses saying that a job is just for the money. From 2020 onwards however we can see that this has been increasing, which could be reflective of the ongoing cost of living crisis. Therefore, the ask from employees is nuanced with pay being more important that it was five years ago, alongside a general trend towards an increasing emphasis on workplace values, L&D culture and broader working benefits, eg flexi hours; this demonstrates the need for trained professionals to manage the complexity involved when it comes to recruiting and retaining the best talent. 

Figure 7: How respondents relate to work 

^{SOURCE: CIPD Good Work Index 2024 report}

The Equality Act of 2010 provided protection for a range of individuals with characteristics who were more likely to be subject to discrimination at work. The EU’s Pay Transparency directive (2023) also seeks to reduce discrimination in the workplace by making information on pay and progression clearer and more accessible. These acts of legislation are an example of efforts towards supporting underrepresented groups within the workplace, with compliance often being the responsibility of HR.  

More recently, there have also been social movements which, combined with legislative developments, have mobilised organisations to prioritise more inclusive workplaces. One of the outcomes of the #MeToo movement was the attention it brought to the discrimination and victimisation of women at work. Gaining worldwide media attention in 2017, the movement accelerated the efforts to achieve gender equality across different industries. It was in 2020 against the backdrop of the pandemic that the Black Lives Matter movement also gained momentum. Within the workplace context, this highlighted the lack of access and barriers to progress experienced by people of colour. 

Both these movements caused many organisations and leaders to reflect on the lack of inclusive practices in their own organisation and the need for equity at all levels of an organisation with a sense of urgency that had previously been lacking.

How did increased efforts to support equality influence the people profession?  

This has led to many organisations adopting strategies with the aim of removing barriers to those from underrepresented groups as a way of promoting equal opportunities at work. The work and dedication of the people profession has been key in enabling organisations to adopt this more proactive stance in response to changes in legislation and social discourse outlined above. Part of this discourse has also involved increased research into the impact of promoting diversity within organisations for example, this research from the LSE has found an association between diversity and improved business outcomes.  You can find more information on taking an evidence-based approach to EDI on the CIPD’s website.

This evolution has further increased the remit of people professionals, with people teams being responsible for designing and implementing new ways of engaging with existing and prospective employees that align to organisational strategy and drive performance. For example, by promoting inclusive recruitment strategies, organisations inevitably have access to a wider pool of candidates to hire from, something which is particularly important to businesses in a tight recruitment market.