As new tech continues to influence workplace strategies—and generate plenty of AI-related tension—human capital issues have risen to the “top of the C-suite and business agenda,” according to Kyle Forrest, future of HR leader at Deloitte Consulting. This elevation presents what Forrest describes as an “opportunity to turn tension into triumph.”
Forrest says this shift can’t wait. His message to HR leaders is clear: “Inaction is a choice,” and organizations must “make a choice and communicate the action you want to drive.”
Workers want alignment between values and actions
His assessment is tied to Deloitte’s 14th annual Human Capital Trends Report, which captured insights from nearly 13,000 business and HR leaders across industries about balancing short-term results versus long-term value.
The research reveals that workers seek an authentic connection between organizational values and actions. Forrest notes, “Workers really want to hear that the organization cares about both people and business outcomes.”
This sentiment is reflected in the finding that 73% of executives and 72% of workers agree organizations should create more opportunities for their workforce to build experience.
Despite executives consistently ranking talent shortages among their top concerns—and job seekers expressing frustration about employment prospects—neither employers nor workers appear ready to bridge this disconnect with practical solutions, according to Deloitte researchers. Only 6% of respondents to Deloitte’s survey report that their organizations are making strong progress in adopting human sustainability—creating value for everyone connected to the organization—as a core business strategy.
However, the disconnect is complex, and HR departments could be the key to balancing the scales, according to Forrest. He points out three of the top tension-creating topics that HR leaders should address in 2025.
Reimagining the manager’s role in an AI-enhanced workplace
To help organizations and workers navigate rapid change and increasing AI adoption, HR should take advantage of the fact that the traditional role of managers is ripe for reinvention, Forrest explains. The data supports this urgency: Nearly three-quarters of organizations recognize the importance of reimagining the manager role, but a mere 7% report making significant progress.
The current state reveals a disconnect. Managers spend nearly 40% of their time solving immediate problems and handling administrative tasks, while dedicating only 13% to developing their team members.
Forrest says employees largely report relying on their managers for motivation, making the lack of development a minefield of missed opportunity.
More troubling, over a third of managers feel insufficiently prepared for people management responsibilities, and 40% report declining mental health since assuming management roles, according to Deloitte’s findings.
Forrest sees AI as a potential solution to this imbalance. Use cases he highlights include AI assistance with performance reviews and feedback—tasks that collectively consume “millions” of hours annually. He suggests AI can “cut through the activities that take time,” freeing managers to focus on high-value people development.
Addressing experience gaps through strategic onboarding
The research identified a significant preparedness gap, with two-thirds of managers and executives reporting that most recent hires are not fully prepared for the jobs they were hired to do, primarily due to a lack of experience.
Forrest emphasizes the importance of strategic intervention at key moments in the employee lifecycle. “The first 90 days and the one-year mark are points that spark turnover,” he notes. Before these critical junctures, organizations should ensure new employees are “locked in” with enterprise technology systems, as frustration with these tools can drive talent elsewhere.
AI-powered onboarding presents another opportunity. Forrest advocates embedding AI agents upfront during onboarding to accelerate the checklist of start-up tasks, help new employees find information and prep them for the organization’s style guide for documentation.
Redefining the employee value proposition for an AI-enhanced future
As workers increasingly collaborate with AI, Forrest observes that human-AI interaction is becoming an essential component of the modern “employee value proposition.” The report finds that over 70% of managers and workers are more likely to join and stay with organizations that help them thrive in an AI-driven environment.
“Effective HR tech can be seen as a potential competitive edge,” Forrest states, particularly if time savings in the workday can be translated to mental and physical breaks for employees. He encourages HR leaders to “align the workday in a sustainable fashion” and leverage cross-functional partnerships where HR professionals are uniquely suited to lead.
HR’s opportunity to lead organizational transformation
Forrest’s rallying cry—”It’s time for HR to go on offense”—encapsulates his vision for HR’s elevated role. He challenges HR leaders to demonstrate the ROI of technology investments in more nuanced ways and to “take this exercise to break boundaries of data silos” to help redesign work patterns for the future.
Karen Pastakia, global human capital practice leader at Deloitte Canada, reinforces this perspective: “Focusing too much on short-term results can be detrimental to creating long-term value.”
She emphasizes that while organizations can harness AI advancements to enhance productivity and strengthen financial performance, the true potential lies deeper.
The most successful organizations will be those that strategically deploy AI not just for immediate gains, says Pastakia, but to address complex emerging challenges, enhance employee wellbeing and transform traditional management hierarchies.
She believes that through this comprehensive approach, organizations can create exponentially greater value that benefits everyone with a stake in their success, from employees and customers to shareholders and communities.
Personalizing workforce strategies
Simona Spelman, U.S. human capital national leader at Deloitte, emphasizes the need for more personalized workplace strategies. She explains that organizations have traditionally focused on the workforce as a whole, rather than individual employees.
However, when HR leaders take the time to understand each employee’s unique skills, responsibilities and motivations, they can create more effective incentives—encouraging employees to stay longer and contribute more creatively to the organization’s success.
Forrest concludes with a call for adaptive leadership, emphasizing that the solutions to “long-simmering” workplace tensions are not one-size-fits-all. Instead, they exist across a broad spectrum.
Leaders must be willing to continuously evolve their strategies to lessen AI-related tension, according to Forrest: “It’s all about making the choices that help move their organization forward while also supporting their workforce.”
