The CHRO of the world's largest HR association shares his insights on the new world of work and what it means for HR leaders.
/ An interview with Jim Link
The following summarizes an interview facilitated by Capterra team member Kyle Rich and Chief Human Resources Officer Jim Link. This conversation was edited for length and clarity.
What does the future of work look like? And how can forward-thinking human capital executives, particularly at small to midsize businesses, prepare their companies to succeed with the workforce of today and tomorrow?
We sat down with Jim Link, the Chief Human Resources Officer for the Society for Human Resource Management (SHRM), to get his insights on the future of work. Link sees three major trends that have emerged in the last few years:
A widening skills gap
Evolving corporate cultures
A long-overdue acknowledgement of a mental health crisis
We discussed adjustments businesses must make to navigate this changed world of work. Link’s vision offers glimpses of the future but also includes immediate advice to adapt to cultural and generational shifts in the workforce and incorporate technology to manage the increasingly complicated sphere of talent management.
Let’s look at each trend in turn, and how companies can successfully navigate these areas.
1. The skills gap is only getting worse
Business executives know that for several years there haven’t been enough people in the workforce to satisfy employer demands. Now, Link sees a new but related problem creating a double-edged sword: The people that companies can find often don’t have the right skills.
Link suggests that one of the most innovative solutions is to re-think what a skill means and to eliminate unnecessary college degree or certificate requirements. He believes that it's really competence, skill, and capability that are required to do a job, not a credential. In fact, Link sees the imminent “death of the job description.”
As employers rethink and redefine skills, Link also sees a “soft skills re-do” on the horizon.
"Certain social skill muscles that atrophied during the pandemic when work-from-home was the norm are becoming important again as workers return to the office—capabilities like how to influence, how to negotiate, and how to lead when you're not visible."
Jim Link
Chief human resource officer
Also key are broader skills such as critical thinking and analytical and numerical reasoning. Link believes that really smart, capable people who possess these core skills will be successful in any company because they have a strong foundation and can be taught whatever industry knowledge and tasks they need to know to do their jobs well.
As employers face an unprecedented worker crunch, Link sees the opportunity for a much broader, systemic, and lasting solution to the way we think about skill, competence, and capability in organizations. “The idea that we're now bringing qualified people into roles from very varied and mixed backgrounds to help drive innovation, belonging, collaboration, and learning forward in an organization –that's nirvana, " he says.
2. Younger workers are demanding a more personalized experience
Skill is not the only work element being re-examined. Acknowledging differing attitudes from younger generations in the workforce, and an overall shift in power from employer to employee, organizations realize they need to change culturally to adapt.
Providing the environment employees want to work in looks different from even a few years ago. Link sees four main elements emerging as these new corporate cultures take shape: cultures of learning, belonging, collaboration, and innovation.
Link explains that progressive organizations are also starting to throw out the one-size-fits-all approach and strive for personalization and individualization throughout the employment experience.
“The more personalized the employment experience can be for an individual—all the way from interviewing until someone leaves a company—the more successful an employer will be in getting the bright talent it needs and keeping it within the organization.”
Jim Link
There is real-world evidence that changed corporate culture strategies are working. Link notes that a “perfect soup” is possible for organizations to keep engaged, qualified people. The recipe is to provide feedback, learning, and flexibility, and to surround employees with other smart, hard-working colleagues. In such an environment, employees are more engaged, perform better, and stay longer. Employers consequently see a boost in productivity and innovation.
3. The pandemic created a mental health crisis
The third trend Link sees is that companies are finally acknowledging a mental health crisis that shows no signs of abating, and are deliberately working to erase the stigma around discussing the topic.
Link notes SHRM data[1] showing that more than a third of people surveyed say their mental health is in a worse place than it was prior to the pandemic.
And that number increases dramatically for women and people of color. Companies can no longer overlook this crisis, and Link believes that human capital managers should be leading the charge.
Link suggests that progressive companies should be “using every emotionally intelligent tool in the toolbox to ensure their people are well, and that they're able to bring their whole selves to work.”
HCM tech tools can help facilitate needed workplace changes
Digital transformation has given us AI and machine learning tools currently used in the early stages of human capital management (HCM) to guide sourcing methodologies, recruiting, and selection—all in an effort to combat the ever-present skills gap. Link notes that these tools help companies find skills and capabilities that don't necessarily come from a college degree, and they can also predict with staggering accuracy a person’s capabilities and potential, and if they will last within an organization.
New, advanced tools that are still in development would function in the middle of the employee lifecycle, where they work by creating a constant feedback loop. Link explains that they monitor and gather information, assess gaps, deploy people with the right skills to fill those gaps quickly, and, thereby, enhance performance. They also take into account feedback from colleagues, supervisors, and customers. The result is better, more competent performance.
But for these new tools to be effective, a company must have a broad HCM system in place that works across the employee lifecycle from hire to separation. This will allow trends to emerge clearly so the algorithms can work with a high degree of predictability. Link anticipates that these solutions will be released within a few years and adopted in a widespread manner within five to seven years.
Link believes the coming HCM tools will be transformative, but we have work to do to harness their full potential.
“AI and tech-enabled human capital practices will empower human capital leaders through more knowledge and insight, information, and predictive trends than ever before. We have to upskill ourselves to be able to handle that capability.”
Jim Link
What can small business employers do today?
The future is bright, but what can employers do right now to make sure every employee has a good experience and wants to stay and grow within the company? Link gives three pieces of sound advice:
Get the basics right. Be sure employee pay and total compensation are aligned with expectations and your competitors.
Ensure a personalized approach for every employee. Give them feedback and help them adapt and grow.
Think in terms of experiences. Younger workers in particular want to collect experiences, so be sure to speak their language and phrase challenges and advancements within the company in this context.
Small and midsize companies have an interesting advantage, according to Link, because their size means personalization is easier and more organic. Visibility for all employees is higher, and there is more opportunity to wear many hats and face more challenges at an earlier career stage.
How can employers prepare for the future?
Looking ahead, we asked Link to share some advice on what HCM professionals should be doing to get and stay ahead in the talent race. We’ll leave you with his top three tips:
Pursue personalization. One-size-fits-all no longer works.
Rethink how you select people to enter your organization. Focus on skill, competence, and capability instead of a degree or other credential.
De-stigmatize mental health problems in the workplace. As an HR leader, lead the charge on this important work.
For more insights into modern HR challenges and trends, check out these pieces: