It's time to unlock your business's ultimate superpower: your people. Discover how a people-centric strategy, internal talent development, and a culture of trust can drive growth, innovation, and resilience in the age of AI.
Technology. Productivity. Innovation. These are the levers leaders pull to drive growth. But behind each one sits a more fundamental force: people.
The latest PwC CEO Survey underlines this undeniable truth. A remarkable 66% of UK CEOs are actively developing new business capabilities or operating models to pursue growth, with 32% acknowledging that their entire organisation must evolve. And at the heart of this evolution lies a focus on talent: 70% are investing in retaining key talent, and 52% are prioritising upskilling their workforce.
"This new reality fundamentally reshapes the role of the people function. AI, rather than diminishing HR, provides the tools for it to evolve from operational support to a strategic force."
This is a clear signal to business leaders: your people strategy isn't just a supporting function; it is your growth strategy. And with the accelerating pace of change, particularly driven by generative AI, this alignment has never been more critical or urgent.
The traditional approach of "hiring our way out of skills shortages" is no longer viable. Our own Global State of Skills Report confirms that proficiency in software and AI are among the most in-demand skills globally, yet the supply of these specialised talents is severely limited. Attempting to bridge this gap solely through external recruitment is a slow, costly, and ultimately unsustainable strategy.
Instead, the path to long-term resilience and sustained growth lies in building talent from within. Investing in your existing workforce is not only faster and more cost-effective but also cultivates a deeper sense of loyalty and commitment. It transforms your employees into adaptable, future-ready contributors, equipped to navigate the evolving demands of the market.
So, what does successful internal talent development look like in practice?
Consider the pioneering approach at Rolls-Royce, where they’ve implemented an innovative internal gig model designed to empower employees to take ownership of their development. Managers list stimulating "stretch projects" on an internal marketplace, allowing employees to choose opportunities that genuinely motivate them and align with their aspirations. The results speak volumes: 40% of employees opted in, leading to over 1,000 additional work hours surfaced. This didn’t come from longer workdays, but from employees completing their core tasks more efficiently, driven by the desire to make space for exciting new development opportunities. It’s a powerful testament to intrinsic motivation and the untapped potential of an engaged workforce.
The rapid ascent of generative AI might seem daunting, yet its successful integration hinges on a surprisingly human factor: trust. At Workday, we've witnessed firsthand how psychological safety dramatically accelerates AI adoption. When employees are encouraged to explore, experiment, and even learn from "failures" without fear of reprisal, usage skyrockets. A recent Fortune article highlighted that 79% of Workday employees already leverage AI tools in their daily work.
This environment of trust and experimentation has not only led to widespread adoption but also sparked unexpected innovation. Eighteen months ago, AI Agent Management wasn't even on our product roadmap. Yet, motivated teams, empowered to push boundaries, drove this forward, demonstrating how a culture of psychological safety can unlock unforeseen breakthroughs.
This new reality fundamentally reshapes the role of the people function. AI, rather than diminishing HR, provides the tools for it to evolve from operational support to a strategic force. HR leaders can now leverage data and insights to proactively identify skill gaps, seamlessly enable internal mobility, and build critical capabilities at unprecedented speed.
However, this transformative shift can only succeed if the underlying culture supports it. Employees need clear visibility into internal opportunities, transparent pathways for growth, and the autonomy to act on these insights. A culture that champions continuous learning, embraces internal movement, and provides clarity on career progression is paramount.
The message is clear: innovation falters when people disengage. Productivity plummets when skills stagnate. Technology underdelivers when adoption lags.
Your workforce is not just a resource; it is your ultimate superpower. But like any superpower, its potential remains dormant until the right environment unlocks it. By prioritising a people-centric strategy, fostering internal growth, and cultivating a culture of trust and empowerment, you’re not just investing in your employees – you’re investing in the unstoppable force that will drive your business forward.
Stay ahead of the skills gap: gain insights to inform your strategy for long-term skills-based success in Workday's Global State of Skills Report. Read to discover key steps for reshaping your organisation around skills.
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