Uncertainty as the new constant: how HR is managing change
Human Resources (HR) plays a key strategic role when it comes to the economic success of a company. AI, a shortage of skilled workers and demographic change require new skills and abilities from management and employees. The biggest challenge HR leaders expect to face in the next five years: Uncertainty. We asked management trainer Astrid Lethert how HR can guide their company through the transformation.
HR teams are facing more change, uncertainty and complex challenges than ever before. Artificial intelligence is accelerating the digitalization of workplaces and the automation of many work processes - and this means that many new jobs and digital business models are emerging and many old ones are becoming or have already become redundant.
As if that wasn't enough change, another challenge awaits HR departments: a lack of specialist staff. This is nothing new. However, the trend report "HR Budget 2025" by HeyJobs and trendence paints a pretty bleak picture of where we stand when it comes to the shortage of skilled workers: "The labor market has seen a significant increase in unfilled registered vacancies over the past decade. By 2023, this number had almost doubled and stood at a good 610,000 vacancies at the time - and the trend is rising - both in the training sector and among experienced workers. (...) Finding the right people for the future will play a key role in determining the success of companies in the future. In other words: it all comes down to HR."
The "Trend Barometer: People Management 2030" by PricewaterhouseCoopers GmbH Wirtschaftsprüfungs- und Beratungsgesellschaft (PwC) points out: " Demographic change is also now taking on a tangible form and presents companies with a variety of challenges: Immigration, an ageing workforce and the departure of large sections of the workforce, as well as a younger generation with completely new ideas."
"HR is becoming a decisive driver of change"
AI, skills shortages, demographics: in the midst of these changes, the HR department is an important linchpin for the successful implementation of transformations. HR develops strategies for recruiting and retaining skilled workers, motivating employees and overcoming resistance - in other words, it creates a framework for shaping change.
Study: HR trends - The future of HR work, page 8.
Three out of four HR leaders (78%) would like to focus on strategies and employee-oriented activities instead of administration and processes. This is the result of the study "HR Trends - The Future of HR Work", in which 1,000 HR professionals were asked about the future of HR work. The biggest challenge that managers expect to face in the next five years is uncertainty. HR planning is therefore moving to the level of change and transformation management: "By 2030, almost all people management functions will continue to gain significantly in importance. Recruiting, employee qualification and transformation and change management will be the main focus of future-oriented people management," says Till R. Lohmann, Head of People & Organization Consulting at PwC Germany.
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Interview: "An attitude is needed for successful change management"
HR will play an extremely important role in the future, management trainer Astrid Lethert is certain. We asked her how HR managers can guide employees and management through the transformation.
How long have you been working as a trainer in companies?
Astrid Lethert: I have been working as a trainer and consultant for over 20 years. I'm most frequently asked for personnel and organizational development in change processes. It's always a very exciting task.
What is your impression? Are companies prepared for the major challenges of AI, generation management and skills shortages?
The coronavirus crisis has sensitized companies because many decisions had to be made under great uncertainty at the time. In general, however, I can't say that companies are well or poorly prepared for change. There are big differences. There is an awareness of the challenges and some companies are tackling them very professionally and strategically.
Where do you see room for improvement in the companies?
Many could get a fresh perspective and expertise from outside the organization from time to time. Not just through external service providers, but through networking and exchanges with other companies. In my view, that would be something that would help organizations.
What do you see as the biggest challenge?
I think generation management is absolutely vital. Companies will only really realize in the next five to ten years what it means when the boomers retire - and with them their organizational knowledge. On the one hand, the boomers have experienced many change processes and will take this experience with them. On the other hand, they are very well networked within the company and know their colleagues and customers well. And this is where I see a risk that artificial intelligence brings with it: Because AI supposedly solves tasks for us quickly, we forget that it can never replace human contact, relationships and networks.
What skills are now important for HR to successfully manage change?
HR must be able to develop and implement change management strategies. A key task here is to coach managers accordingly and guide them through the process, even through uncertain phases. There is resistance in every change process, that is standard. This is not a surprise, nor is it a sign that this is a bad change. Managers must be able to withstand this, which is why it is important that the HR department advises and supports them well. HR initiates and the managers implement.
It is also important that HR works closely with the C-level - i.e. CEO, CFO, CTO, COO - to ensure that the change is supported strategically and "from the top".
Does this mean that HR will play a key role in the future and will be the catalyst for change?
HR will play an extremely important role in the future. That's why the next "war of talents" will be about finding capable HR strategists. Because there aren't many of them.
Keyword resilient teams. The more resilient my team is, the better prepared it is for change, right?
Yes, of course. But you don't get resilient teams overnight.
What characterizes a resilient team?
There are key factors for resilient teams. It is important that the team agrees on the coordination processes: What do we discuss? How do we make decisions? What are our routines? Resilient teams are characterized by the fact that they listen to each other empathetically and take the other team members seriously. Resilient teams have goals and values that they commit to, and at the same time they are highly adaptable when conditions change.
And then there is the issue of trust and psychological safety. A team is only resilient and resistant if the team members have psychological security. This includes a positive error culture, cohesion and team members taking active responsibility.
Sounds like a big task and as if the topics of "psychological safety" and "resilience" are not done with just one workshop.
Yes, this is an active process, and it takes about three months until the foundations are in place: This is how we want to make decisions. This is how we deal with mistakes. These are our values and goals. We keep this going by having the team conduct regular retrospectives and take stock: How is it going? Should we carry on like this or do things differently? Sooner or later, it will become second nature.
To summarize: What are the prerequisites for successful change management in the coming years?
We need an attitude. And that is that change processes are part of our professional and private lives. And that a change process is not a one-hit wonder and you say: "So, now we've completed a major change process, and now we've done it!". You need to be open to the fact that change is an ongoing process. Change is always work and requires a lot of attention and management attention. But change is a positive thing if you help shape it.
For managers who are interested in change management training at pme Familienservice : Can you give an insight into the content?
The order clarifications are always very individual. We first look at what the team needs together with the manager and the team. There is a project group with participants from the team who help shape this. And this is never just a single workshop, but a process in which we sometimes work with larger groups and then again with smaller groups. We also hold group coaching sessions in between to see which topics should be given greater focus. And during the process, we constantly check what the project group needs, what format would be good for this and who is important for this.
We advise and support HR and management on challenges such as generational change, crisis management, organizational resilience: systemic, solution-oriented and practical
More information: Change Management Consulting
Studies & sources:
HR Monitor 2024: Trends and perspectives in human resources. McKinsey & Company (2024).
Trend report: HR budget 2025, Trendence, HeyJobs (2024).
https://www.pwc.de/de/workforce-transformation/trend-barometer-people-management-2030.html
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