Latest HR Trends: Layoff anxiety, Future of HR, Employee listening, Leaders Confidence, IT Talent, Skills-Based Organizations

?? Hello Everyone and Happy Sunday !

??Welcome back to the 92th edition of Weekly People Analytics Research — Ninth Edition 2025 and our regular weekly check-ins! ??

A heartfelt thank you to all the contributors for your incredible support! ??

? Some of you have coffee while reading this newsletter, some have lunch,... in short, enjoy reading as always!

?? In this latest edition, you will discover more about ??:

?How can adaptability in HR practices help organizations thrive in a fast-changing business landscape? 麦肯锡 researchers highlighted that only around 20% of the most strategic activities in today’s HR portfolios will endure.

?How does "layoff anxiety" affect employee performance, engagement, and overall workplace morale? Clarify Capital revealed that 17% of remote workers would return to the office full time to prevent being laid off.

?How do advanced Employee Listening programs contribute to improved business outcomes and organizational success? Perceptyx researchers identifed that the overwhelming HR workload remains the biggest obstacle to the success of employee listening programs.

? Why is IT talent retention critical to long-term business success in a competitive digital era? ISACA researchers observed that differences in attitudes and behaviors across age groups highlight the need for tailored strategies to attract and retain younger talent.

?How does a lack of confidence in leadership teams impact the overall performance of an organization? LHH researchers discovered that burnout is affecting 56% of leaders, underscoring the immense strain on executive roles.

? Why do so few organizations have a clear strategy for skills-based transformation, despite its potential? TALiNT Partners researchers uncovered that 80% report that non-HR colleagues lack understanding of skills-based initiatives, and only 15% truly recognize their potential benefits.

?? Now, let's do a recap of the week on published research:

The HR function of the future will be increasingly strategic, collaborative, adaptable, and data-driven !

?? Findings of researchers:

?? The next era of people management demands innovative approaches and new responsibilities within the HR function.

?? Only around 20% of the most strategic activities in today’s HR portfolios will endure.

?? Automation will lead to a decline in demand for lower- and medium-level-skill roles.

?? Conversely, the need for data and HR technology specialists, as well as deep subject matter experts in areas such as culture, learning, leadership, and organizational effectiveness, will surge.

?? The future of the people function will be driven by expertise and technology, with HR professionals operating in fundamentally different ways: more interconnected, fluid, project-focused, and aligned with strategy and business value.

?? This evolution will harness the best of human and technological capabilities to consistently achieve positive business outcomes.

As organizations advance towards the future of people management, they will align with one of three types: 1?? Strategists, 2?? Scalers, and 3?? Visionaries, according to a new interesting research published by 麦肯锡 using data ?? from internal McKinsey clients.

?? Recommendation of researchers:

?? Finally researchers recommend the following concrete next steps based on each organization's starting point:

?? For the strategists, who are starting the journey, first steps will include defining a North Star and making a business case for enhancing the people function by investing in new technologies (such as people analytics) and capabilities.

?? For the scalers, who are looking to capture value as technology adoption takes hold, it will be important to strive for continuous improvement of human and technological capabilities. This will mean testing and measuring and using these lessons to expand the impact of their digital offerings.

?? For the visionaries, who have been on the journey for several years and have reached maturity with technology and data, it’s probably time to flip the switch to a fully AI-powered people operating model and redefine the people management practices across the organization.

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I truly appreciate research that endeavors to forecast the future of any function by identifying concrete patterns and trends. It's particularly noteworthy that only about 20% of the most strategic activities in today’s HR portfolios are expected to endure. However, I am less enthusiastic about their prediction that the traditional HR operating model (COEs, HRBPs, and Shared Services) will entirely transform into a fluid and lean ecosystem. I believe the core issue lies not in the operating model itself but in the people who drive it. By focusing on the development and empowerment of HR professionals, we can ensure the success of any model.

???? What were the best HR expert opinions:

Dave Ulrich Thanks for sharing. It?is fun to read the McKinsey (and other) work on HR models.?I agree with the trends: Personalization, frictionless organization, GenAI and technology Their view of the evolution of the HR operating model also makes sense with technology continuing to do more of the administrative work of HR and specialists who work with generalists to provide a “lean fluid ecosystem” which has been the HR governance logic for some time. Where I hope to evolve their logic is 1.??????Stakeholder value creation?Stakeholders are all the "humans" who engage with the organization including employees but also boards, customers, investors, citizens, and others who are "human" and get value from an organization. HR is less about HR and more about deliver stakeholder value. 2.?????HR offers more than just people focus, and also insights (through ideas, research and solutions) on what I call human capability which means talent + leadership + organization + HR function to deliver value. 3.??????HR governance (operating model) is less about the design of the HR function (and their proposed design reflects what has already been said) and more about the overall governance of the HR function.

Mohammad Qais Momand HR has certainly been evolving over the years, especially when you compare it to the practices of the 1980s or earlier, where HR was primarily seen as a transactional function focused on administrative tasks. Fast forward to today, and HR is a strategic partner, deeply involved in shaping the workforce and organizational culture. While I agree that the operating model will continue to evolve, I believe that it will still serve as a foundation for any transformation, rather than being entirely replaced. In my view, the key to success lies in how we develop and empower HR professionals. As the models evolve, it's the people behind them that will drive true transformation. Ensuring that HR professionals have the right skills and mindset will be critical in adapting to whatever new model emerges. Thanks for sharing.

Ewa Priestley HR will have the biggest challenge ahead...human centricity and high judgment calls based on data, less people in the function and everyone around them feeling like they are HR experts...it will take tons of humility, curiosity and resilience to do :) but I have faith

Prof. Dr. Nicolas T. Deuschel I agree with your view on the overpromise of lean/ fluidity. 1) Who will actually get the "boring but required HR services done"? 2) With any new technology, system there are new processes that creep up. in the end the system can become so complex that the savings are outbalanced but increased work 3) Agile and Lean are huge scary words now in HR as many of the previous transformations shook many things up but did not really deliver the intended cost cutting at acceptable service. Instead of jumping to a service model and buying the expensive lean transformations) in my experience the first is to lay the blueprint at the top. What role will HR leadership (CHROs and senior HR heads) play and what service level do they agree with the C-Suite.

1 in 3 employees report experiencing "layoff anxiety" and would willingly accept a 10-20% pay cut to avoid losing their jobs !

?? Findings of researchers:

?? "Layoff anxiety" is most prevalent among remote workers, with 47% experiencing it, more than double the rate of in-office workers at 20%.

?? Nearly one in three Americans would accept a 10-20% pay cut to avoid being laid off.

?? 17% of remote workers would return to the office full time to prevent being laid off.

?? Unsurprisingly, researchers observed that the vast majority of employees prioritize job security over career growth.

?? Despite the risk of layoffs, nearly three-quarters of workers would still choose to work at a Fortune 500 company, even in the face of mass layoffs, according to a new interesting research published by Clarify Capital using data ?? from a survey of 1,000 Americans and the average age of respondents was 40, and they comprised 54% males, 45% females, and 1% nonbinary.

?? Recommendation of researchers:

Unsurprisingly, researchers observed that the vast majority of employees prioritize job security over career growth.

Additionally, over 90% believe that companies executing layoffs could provide greater support to their workforce.

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I truly value the findings of this research, as they reveal intriguing patterns regarding the indicators of mass layoffs and the anxiety they can cause. Researchers have highlighted that these signs can significantly impact employee productivity and engagement. It is essential for companies to provide support to those affected by layoffs to maintain engagement levels and support the remaining employees.

???? What were the best HR expert opinions:

Jos van Snippenberg Very interesting outcomes. Having said this, that in times of turbulence layoff anxiety always occur. It's interesting to know what the age of the respondents involved were. An important outcome organisations can take into account is the behavior that workers express. It's important to prevent that employees are taking on additional responsibilities or work. Especially the pressure already on employees is high, without regulation this might turn into absenteeism or a drop out.

Dave Ulrich Again very interesting. I am intrigued by the percent of have layoff anxiety. What is interesting is how to replace this fear with confidence. I recall a company that faced economic downturn and needed to cut cost 10-15% and were considering layoff. The management openly shared the economic challenges and asked employees for options. The employees chose a "nine day fortnight" where they worked 10 days but were paid for 9 to reduce costs. After the downturn, things returned to normal. Having trust between management and employees along with open communication may replace some of the layoff anxiety (fear) with confidence. Thanks for sharing. I had not see percentages who face layoff anxiety.

Jessie Schofer Wow.. this shows how unsafe people feel in this current market. I think a lot of what we see right now is companies taking advantage of people's fear as well which is really sad.

Organizations with advanced Employee Listening programs achieve remarkable outcomes and excel in business performance !

?? Findings of researchers:

?? Year after year, the time it takes for managers to access data following a listening program is steadily shrinking, driving quicker and more informed decision-making!

? The overwhelming HR workload remains the biggest obstacle to the success of employee listening programs.

?? Only 1 in 4 organizations have adequate internal support, with half depending significantly on external partners.

?? Organizations are broadening their approach to employee listening by adopting innovative methodologies, such as crowdsourcing and tracking behaviors like 360-degree feedback. Furthermore, the majority have either sustained or enhanced their listening efforts over the past 12 months, according to a new interesting research published by Perceptyx conducted by the Center for Workforce Transformation using data ?? from interviews of more than 750 senior human resources leaders from global organizations with 1,000+ employees, including decision-makers, influencers, and practitioners deeply involved in their organizations’ employee listening and L&D programs.

?? Recommendation of researchers:

Researchers conclude that successful organizations understand that their greatest competitive advantage lies in motivating their people to action — listening to their feedback, equipping them with the right skills and resources, and creating space for them to take intentional data-informed steps to improve their employee experience. This is the key to a high-performance culture.

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I find the findings from this new research on employee listening programs truly compelling. It highlights the increasing frequency and diversity in how organizations engage with their workforce. This research reinforces what I firmly believe: the more organizations actively listen to their employees, the more likely they are to achieve business success. For me, however, it's not just about the frequency of listening but also about the action plans that organizations implement afterward. When you ask someone for their feedback or suggestions for improvement, and no meaningful action follows, it’s bound to cause disengagement and frustration. I think it’s crucial for organizations to take visible actions after listening, involve employees in the process of positive change, and celebrate wins—no matter how small. From my perspective, listening is not just an episodic activity but a continuous strategy.

???? What were the best HR expert opinions:

Emily Killham Thanks so much for the share of our research and wonderful summary! It was really fun to explore how companies are supplementing traditional action planning by uniting employee listening with learning and development programs to ensure that managers (and employees!) get the right learning at the right time to truly impact the workplace experience!

John Borland Thank you for the terrific summary and the kind words. As my colleague Emily Killham says so wisely in the report, the most successful listening organizations "start with the end in mind." They are clear-eyed about the goals they want to achieve and then craft a listening and action plan to achieve them. This is the clearest path to high levels of trust as well as meaningful business impact.

Connor Turner Great post - the future of employee listening. It's not just about collecting data, but about truly understanding the "why" behind the feedback and using those insights to create meaningful change. Feedback is only as valuable as the action it inspires!

Dave Ulrich Again, wonderful insights to put substance behind beliefs. In almost every study of how to build more successful organizations, "communications" comes out high. This study unbundles communications with not just sharing information (top down), but listening (bottom up) as a key to success. Listening, then doing (your thoughtful comment), makes a huge difference on employee engagement. Listening is the behind the curtain work on engagement, participative management, inclusion.I see many organizations not having rigorous bottom up listening systems. Worth exploring more, "I hear you"

Fran?ois Rimey-Meillle Listening is only as powerful as the actions that follow. Accelerating data access is a step forward, but without equipping managers to act, engagement risks turning into frustration. True listening means ensuring employees see their voices shape decisions. A great study and a timely reminder that action is the real measure of effective listening. Thanks, Nicolas, for sharing these insights!

Nicole Vaughan Wetherley Solid points and thank you for sharing! Workplace communication challenges are complex, systemic, and long-term in nature. While the explosion of survey tools has made it easier than ever to gather employee feedback, many organizations are now overwhelmed with data that lacks the context needed for meaningful action. This creates a frustrating cycle, employees take the time to provide input, but without clear ways to process and prioritize the data, companies struggle to respond effectively, leading to disappointment and disengagement. We’re passionate about bridging that gap, employees want to be heard, and leaders need insights they can confidently use to drive change. Listening is only as powerful as the action that follows!

Attracting and retaining IT talent is a concern for the majority of organizations, but leaders seldom talk with their own employees about the issue!

?? Findings of researchers:

?? A Silent Struggle persists within the majority of organizations.

?? Although only 18% of respondents pursue IT careers for work-life balance, an impressive 41% cite it as the primary reason they remain with their current employer.

?? While 74% of organizations express concerns about attracting and retaining talent, only 27% consistently engage their employees in discussions about this pressing issue.

?? Differences in attitudes and behaviors across age groups highlight the need for tailored strategies to attract and retain younger talent.

?? The top motivations for pursuing a career in IT include the joy of problem-solving (45%), opportunities for continuous learning (41%), and the reassurance that IT jobs remain in high demand (38%), according to a new interesting research published by ISACA using data ?? from a survey of 7,726 technology professionals

?? Recommendation of researchers:

Researchers found that an overwhelming majority of respondents have encountered work-related stress or burnout.

Interestingly, only 21% report having escaped this challenge—leaving the rest wondering what careers those fortunate 21% hold!

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I have a deep appreciation for research that delves into specific categories of employees and uncovers fascinating patterns, and this study focusing on IT employees is a prime example. In today's fast-evolving technological landscape, driven by advancements such as AI, the demand for new and adaptable skills is growing at an unprecedented pace. IT professionals, in particular, face immense pressure to continuously adapt to this ever-changing environment.

What stands out to me is the necessity for leaders to recognize these challenges and respond with meaningful and relevant actions. Understanding the top motivations for pursuing a career in IT—such as the joy of problem-solving, opportunities for continuous learning, and job security—is crucial. Leaders must leverage these insights to create supportive structures, provide access to ongoing training, and build a workplace culture that fosters growth and resilience.

???? What were the best HR expert opinions:

George Kemish LLM MCMI MIC MIoL Insightful research. There are a number of facets that can have a positive of negative effect on the attraction and retention of IT talent (as you have shown). Allowing people space to learn, ensuring communication and collaboration (for development), encouraging them to build professional networks and ensuring that they have meaningful work and providing individual feedback are some of the requirements that I have found when talking to people working within the IT industry (especially in software companies). This requires that the leadership have a wide appreciation of the work being undertaken and that they are supportive of their staff. They need to understand the level of development already gained by individual employees and ensure that they are getting the right opportunities for learning (something that has been highlighted as a failure in other research - such as that undertaken by Forbes and others). Great post Nicolas and I have learned from the challenges that you have listed - time to look at this more closely.

Ann Forup Helmich Absolutely spot on! Too many leaders still treat talent attraction and retention like a one-off project – not a continuous process.If you only focus on attraction when you have an open role, and only think about retention when someone resigns, you’ve already lost. It’s time to build workplaces people want to stay in – not just jobs they tolerate

Dr. Bhanukumar Parmar ?? Thank you for sharing this insightful research. DATA - In India, we have approx. 4 million engineering admissions every year, with 1.29 million opting for Computer Science. From this pool, around 50k belong to top-tier institutes. Today, we have 4.5 million IT Eng. from India & counting! These individuals have truly exceptional Characteristics - I call them the shining PRISM (P: Perseverance, R: Resourceful, I: Intelligence, S: Strategic Adaptability, M: Motivated (Self)). Interestingly, solving the Great IT Talent Retention mystery doesn't require a PhD in rocket science - just a few good heart-to-heart conversations.

Namita Gopinathan,MBA Great insights! When organizations establish structured, recurring sessions where IT teams can engage directly with leadership to discuss challenges and opportunities, they break down communication silos and ensure that discussions lead to actionable strategies. Regular progress updates reinforce that every voice matters, ultimately improving retention rates and mitigating burnout.Thank you for sharing!

Within the first 12 months of stepping into a new role, one-third of executives lack confidence in their leadership team’s ability to deliver results!

?? Findings of researchers:

?? Leading an organization has never been more challenging.

?? Leadership is evolving rapidly, driven by economic pressures, workforce transformations, and the growing prevalence of leadership burnout, all of which are reshaping the executive landscape globally.

?? In the past year, 43% of leaders have faced the turnover of over half their leadership team.

?? Burnout is affecting 56% of leaders, underscoring the immense strain on executive roles.

?? Collaboration and teamwork remain critical hurdles, with 23% of CEOs identifying these as the most significant capability gaps hindering leader effectiveness.

?? When stepping into a new role, 33% of leaders lack confidence in their ability to deliver results, according to a new interesting research published by LHH using data ?? from on a survey of 2,675 C-Suite executives across industries and geographies.

?? Recommendation of researchers:

Researchers found that in the first 12 months in a new role, 33% of executives do not feel confident in their leadership team’s ability to perform. Surprisingly, many leaders share a similar sentiment about themselves, with 33.3% of new leaders reporting that they don’t feel confident in their personal ability to perform.

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I find this research particularly interesting as it shines a spotlight on the critical challenges facing today’s leadership. It masterfully addresses real and pressing issues, including the generational shift in the workforce and the confidence gap among leaders. These insights not only reflect the complexities of modern leadership but also underline the urgency of addressing them.

Confidence plays a pivotal role in effective leadership. It is deeply concerning that only a minority of leaders feel confident when stepping into a leadership role. This lack of confidence is not just a personal struggle—it has a direct correlation with their performance, their ability to inspire their teams, and their organization's capacity to achieve business outcomes. A leader's confidence—or the lack thereof—can cascade through the organization, influencing employee engagement, morale, and overall productivity.

???? What were the best HR expert opinions:

Dave Ulrich Again, wonderful research. Being a leader has to be more than an aspiration. It requires key skills that many have talked about: creating strategy, executing for results, managing people, development organization sustainability, etc. At the heart of these leadership competence domains is personal proficiency which is authenticity, empathy, etc.What I like about this research is the need for confidence without arrogance. Personal confidence means leaders are willing and able to walk into difficult challenges and make a difference. I wonder if we are helping future leaders recognize the need for this personal confidence to deal with the increasing demands. Not everyone should or can be a leader. Thanks for sharing.

Deborah Smith, Ph.D. Thanks for the share, Nicolas. When promotions are a reward for functional expertise, my hunch is those new managers lacking confidence haven't yet had the experiences to learn from or the necessary manager/leader development. With those, with their own interest, their manager's feedback/coaching, and with time, confidence (and positive outcomes) likely will increase. This, then, I would think would increase the confidence of their management.

Jos van Snippenberg Very valuable research outcomes. It emphasizes the rising difficulty to be a leader. Over the years the pressure on C-suite leaders has increased, especially those within private equity owned companies. At the same time the responsibilities of middle management has grown, they were forced to attend more meetings and were limited in time spending with their teams. The lack of time together with the changing needs of entire workforces, people dropped out. Not feeling seen by managers had an impact on peoples mental state and performance. This means that organisations should develop leadership teams to "lead themselves (Selfship) and then to lead others". With five generations in an average workforce it is required to have personalised insights of every employee. And to guide employees based on the universal generational needs at work. Every employee wants to 1) live their values and purpose 2) be significant 3) belong to something bigger than just their role 4) be safe in work, while they work and with whom they work.

Only 22% of Organizations have a clear strategy for a Skills-based transformation, and just 15% recognize the benefits!

?? Findings of researchers:

?? Skills-based organizations (SBOs) are far more than a fleeting trend—they represent a vital strategic priority for the future of work.

?? SBOs are revolutionizing how companies attract, develop, and retain talent, positioning them to stay ahead in a rapidly evolving landscape.

?? Yet, challenges persist: 80% report that non-HR colleagues lack understanding of skills-based initiatives, and only 15% truly recognize their potential benefits.

?? Barriers such as cultural inertia, undefined goals, and limited stakeholder engagement often hinder the progress of skills-based transformations, underscoring the need for purposeful action and alignment, according to a new interesting research published by TALiNT Partners supporter by 任仕达 using data ?? from internal clients.

?? Recommendation of researchers:

?? Researchers outline six essential steps to guide organizations on their journey toward a successful skills-based transformation:

1?? Define your why

2?? Build stakeholder trust

3?? Start small with pilots

4?? Leverage technology & data

5?? Integrate learning & development

6?? Build a robust skills framework

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I found this research on the skills-based approach incredibly insightful, as it sheds light on a growing trend embraced by many organizations. Yet, it’s clear that a significant number of people still don’t fully understand the business benefits of skills-based organizations. While this approach isn’t a one-size-fits-all solution, it lays a critical foundation for future readiness and adaptability in an ever-evolving marketplace.

Additionally, adopting a skills-based approach enables businesses to unlock hidden potential, foster continuous learning, and build a more agile and resilient workforce.

???? What were the best HR expert opinions:

Andrew Lang Thanks Nicolas!?Skills-based transformation is a business imperative. Without a clear strategy, companies risk falling behind in agility, productivity, and talent retention. Time to move beyond the buzz and take action!

Dave Ulrich Thanks again for sharing information on a timely topic. It would be helpful to know questions asked and who responded to understand their results. As is, this is a useful overview of building a SBO and suggests ambiguity in the concept. Few doubt that employees with more skills outperform those with fewer skills. This is the basic premise of the competency logic that has been around for 80 years where managers and HR leaders identified the competencies that lead some to be more effective in their job (starting with pilots in WW II). Turning this logic into an organization culture focused on employees having more skills makes sense. Defining a "skills based organization" (SBO) where skills replace titles, roles, and responsibilities is more ambiguous. We have called this a "work task" logic where the tasks represent that work that has to be done to deliver value to stakeholders in the future, then the skills required to deliver those tasks are identified, then ways to access those skills can be defined (e.g., through full time, part time people , and/or technology). To make this work is less about removing titles and more about delivering value to stakeholders by accomplishing work in new ways.

Dr. Masroor Hussain Shah Thanks for wonderful insights on the importance of skills. It is the need of the hour. The ongoing wave of AI based future entails the organizations to keep pace with this emerging trend. Nature of skills can vary yet focus is needed to be more on the SBOs. Formal degree is helpful in creating awareness about an arena in tech or business, creating a profile with expertise in a particular is an individual as well as organizational responsibility. Thanks once again

SUNDARRAJ. S Great sharing Nicolas! SBO have a clear strategy, But still there are politics and cultural resistance as barriers for transformation. I found it in many organization and my clients also. I have to make them realize it.

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