How Can HR Professionals Support Organizational Change In The Digital Age?

The Human Resources field has undergone significant evolution to adapt to the changing needs of the workplace. A pertinent example of this evolution is illustrated by Elon Musk’s recent initiative to recruit skilled software engineers for his ‘everything app.’

He requested applicants to submit portfolios of their best code, explicitly stating that traditional qualifications, such as educational background or professional affiliations, would not be prioritized. This approach signals a cultural shift in recruitment practices, wherein employers increasingly value skills and talent over conventional credentials.

This trend was further accelerated by the COVID-19 pandemic, which provided numerous job seekers with the opportunity to enhance their skills through online learning platforms. Consequently, the contemporary workforce has begun to prioritize alignment with personal values and goals over traditional role classifications, whether in blue-collar or white-collar sectors. Many individuals in this generation seek stable career paths that emphasize practical experience and continuous learning, as well as opportunities to work within environments committed to sustainability and corporate social responsibility (CSR).

The Top Employer Institute characterizes this transformation as the rise of “new-collar” jobs, which blend technical expertise typically associated with blue-collar occupations with the adaptability and digital skills demanded in today’s job market. Historically, Human Resources has categorized positions into distinct groups: white-collar roles, which encompass clerical, administrative, managerial, and executive positions, and blue-collar jobs found in agriculture, manufacturing, construction, and similar industries. 

However, these classifications are undergoing substantial change, particularly in light of the considerable market shifts prompted by the rise of hybrid work models and advanced technologies such as artificial intelligence (AI). This necessitates a reassessment of traditional perspectives within the Human Resources domain. 

The Top Employer Institute has noted an increased global demand for skilled trades and manual labor, coupled with an emphasis on achieving a careful equilibrium between formal qualifications and requisite skills. Human Resources is actively adapting to these shifts, with companies evolving alongside these trends to maintain their competitive edge. 

Absa Bank Kenya serves as an example of this adaptive approach, having been recognized as a top employer for four consecutive years. The institution encourages its employees to enhance their digital capabilities and embrace flexible work arrangements. This strategy has resulted in high levels of employee retention, especially in the post-pandemic period. The bank’s Hybrid working model allows for departments to tailor implementation to meet the needs of customers, the business cycles and specific needs of employees, supported by substantial investments in advanced digital technologies. 

As of 2023, approximately 50 percent of employees at Absa Kenya were able to work remotely. Such flexible work arrangements have proven particularly beneficial for working mothers and caregivers contributing to a higher level of employees’ motivation.  They have also enhanced the focus on employee wellness. 

Increasingly, employee well-being has emerged as a focal point, with the potential to enhance overall performance and responsiveness. In the context of digital transformation, it is critical to achieve a balance between work, life, and well-being, as research indicates that greater flexibility within the workplace can significantly reduce the risk of burnout.

 According to a study conducted by the World Health Organization (WHO), lost productivity due to anxiety and depression costs the global economy approximately $1 trillion annually, equivalent to around 50 million years of work or an astonishing 12 billion working days. Therefore, human resource professionals must take a proactive role in ensuring that organizations invest in preventive measures to protect employees from mental health challenges.

Organizations can promote employee well-being through a variety of initiatives, such as implementing mental health and stress management programs. These programs can empower employees with essential coping mechanisms to address the anxiety and stress that accompany change. Organizations such as Absa Bank continue to find innovative ways to drive employee wellness.  A good example is the creation of employee peer support groups and appointment of mental health champions in the various teams and departments.

 Looking ahead, digital transformations will continue to be commonplace in organizations.  Human Capital functions will be required to build capability to support employees to navigate these transformations.  Renowned researcher, Peter Senge, once said, “People don’t resist change. They resist being changed!”. This quote underscores the importance of involving employees in the change process to foster a sense of ownership and acceptance. 

Consequently, it is essential for human resource professionals to recalibrate their focus to adapt to new work modalities and to incorporate technology and new skill sets into their practices.

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Mumbi Kahindo is the Chief People Officer, Absa Bank Kenya PLC