63% of Employees Distrust HR + Turnover Expected to Rise (Despite Layoffs)

Today we officially kick off Season 4 of Future Work, the podcast about HR's role in a happier future of work.

For this kick-off episode, Tim Reitsma sits down with Gustavo Razzetti, a workplace culture expert and the CEO of Fearless Culture.

Gustavo is on a mission to help people do the best work of their lives. He’s the creator of the Culture Design Canvas and the best-selling author of Remote Not Distant, with +37,000 followers on Demystifying Culture.

Tim and Gustavo disuss:

• The ABCs of culture—Alignment, Belonging, and Collaboration—are crucial for building a positive and engaged workplace where employees thrive.
• HR’s role in culture has evolved, moving from sole ownership to a more advisory role. It guides and supports without full control, like the "godparents" of culture.
• Flexible hybrid work policies should be centered around the nature of the work itself, allowing adaptability rather than enforcing strict schedules.
• AI is reshaping HR processes, but leaders must ensure that the human element remains a priority in decision-making and interactions.
• Authenticity and curiosity are vital for HR leaders as they build trust with their teams and navigate difficult conversations with company leadership.

Welcome to this week’s How Hybrid Works, your go-to section for the latest updates in hybrid work, sponsored by Tactic.

Stay ahead of the trends with expert insights, case studies, and industry news designed to help HR, workplace, and people leaders thrive in the evolving work environment.

​Why Forcing RTO Could Be Holding The AI Evolution Back

Forbes highlights how AI and hybrid work models are transforming the future of work, making traditional office setups feel outdated. As AI handles repetitive tasks and boosts remote productivity, the need for commuting and navigating office politics fades. Companies that enforce return-to-office mandates risk falling into a "doom loop" of low morale and high turnover, while those embracing hybrid models enjoy greater trust, collaboration, and the ability to attract top talent.

​EY Predicts an Untethered Workforce as the Future​

With 26% of employees expressing a desire to work from anywhere, EY emphasizes that the future workforce will no longer be bound to traditional office spaces, employers should consider new work model "agile roles that benefit from skills-based planning and credentialing” (Mercer). Organizational success will rely on five dimensions, which EY refers to as the "Talent Advantage": talent health and flow, work technology and generative AI, total rewards priorities, and learning, skills, and career pathways. Can you guess the final dimension?

🔥 Quick Hits:

• ​43% of Employees Fear Losing Flexibility at Work More Than Their Romantic Partner: explaining Why RTO Mandates Are a Tough Sell for Business Leaders. In the UK, nearly half (47%) of employees said they’d consider quitting if hybrid work was taken away, and 17% would demand a pay raise to compensate for the loss of flexibility (Owl Labs).
• ​Here's How to Manage Global Hybrid Teams. WorkLife reports that communication is a major challenge—language and cultural differences can create gaps in understanding. The best HR leaders emphasize clear, jargon-free communication and formal training on cultural awareness. Respecting time zones and local customs, like holiday practices or diverse home setups, is key.
• ​Workers Spend More Than $60 Daily to Work from the Office: on commuting, parking, gas, and meals. As these costs rise, should companies rethink employee compensation, benefits, and financial well-being (Maybe Same-Day-Pay is The Answer for this) or switch to a better work model?

Besides our weekly big story, where I dive deep into something that your leadership will have looked at, I read a lot more.

I follow and summarize the news that future-forward and people-centric leaders care about, so you don't have to.

This week:

​Insights from Charter Workplace Summit 2024: Let All People Thrive​

To know what a better future of work looks like, we just have to look at the insights from the Charter Workplace Summit '24, where key themes like hybrid work, AI, and leadership transformation took center stage.

Edith Cooper (Board director of Amazon and PepsiCo) and Katy George (Microsoft's Corporate Vice President of HR Strategy, Analytics, and Workforce Planning) emphasized the need for inclusive, agile leadership that fosters success across the organization.

Hybrid work thrives with tailored flexibility and offsite meetings, while AI reshapes communication, skill measurement, and workflows. Leaders must also use "fun factors" to tackle burnout and focus on transparency to build trust.

The summit's key takeaway? To succeed, future leaders must balance adaptability, human skills, and AI-driven innovation.

Read this article​ →

​Workers want AI training from their employers, ASAP and Employers must prepare workers for AI-driven future of work:

Alarming statistics: 40% of employees said they are struggling to understand how to integrate AI into their work, 75% said they lack confidence in how to utilize AI (Wiley), 13% of workers said they’ve lost their job due to AI, and only 11% of workers were considered to be “future-ready,” or adaptable (Adecco).
​
In 2023, only 25% have completed training on how to apply AI at work and from 2023 to 2024, the number of employees who say they are very prepared to work with AI dropped by six percentage points (Gallup).
​
The implication for HR is clear: prioritize AI skill development programs. (Some courses here.)

​Whether It’s Harris or Trump, Election Season Is Stressing Out the Workplace​

SHRM reports that as election season heats up, companies are facing rising workplace tensions.
​
​Many CEOs are urged to offer paid time off for voting to promote civic engagement. Meanwhile, election-related anxiety impacts employees, with 79% reporting heightened stress, which translates into workplace challenges.
​
To mitigate this, CHROs are advised to enforce civility policies, support mental health, and remind employees of their voting rights.

​Turnover Expected to Rise in 2025 Despite Current Layoff Fears​

Layoffs are making headlines from Meta to Airbus, very uncertain, affecting everyone from tech professionals to women returning from maternity leave pregnant (again).

Yet, Eagle Hill Consulting’s latest retention index reveals an odd contrast: turnover is expected to rise in 2025, despite a Q3 dip in attrition. Millennials, male employees, and baby boomers are predicted to stay, while Generation Z and female workers are more likely to exit.

​HBR Explores Why Wellness Programs Fail Without Systemic Change​

Despite the growing investment in workplace wellness programs, mental health outcomes continue to fall short.

Why? Many initiatives focus on individual interventions like apps or therapy, missing the mark on addressing deeper issues such as heavy workloads and leadership practices.

​CIO vs CHRO: It’s Time for HR to Champion Digital Skills​

A Gartner survey reveals that only 48% of digital initiatives meet business outcomes, with "Digital Vanguard" CIOs achieving a 71% success rate through close collaboration.

While investments in AI, cybersecurity, and data analytics are growing, only 16% of CIOs plan to develop enterprise-wide digital skills.

HR leaders need to step up and promote digital literacy across all teams to ensure companies maximize returns on their digital transformations

Quick Hits:

• ​McKinsey: Develop a Leadership “Factory” for the 21st Century. Organizations need to create "leadership factories" where aspiring leaders learn on the job through mentorship, real-world experience, and coaching.
  Traits like resilience, servant leadership, and continuous learning are key to thriving in uncertainty. CEOs must act as chief talent officers, leading by example, nurturing high-potential managers and fostering a culture of accountability and innovation.
• ​According to ADP, more employers are planning to hire outside the US: driven by global growth and cost-saving opportunities. However, challenges such as local compliance, cultural differences, and compensation equality often take employers by surprise.
  ​Jean Bays (CPO at Neat) and Mandy Mekhail (CPO at ClickUp) further emphasize on Worklife that managing time zones and work arrangements can be tricky, but these challenges foster better understanding and respect among teams.
• ​Germany’s Four-Day Workweek Success: Can It Work Everywhere? Trials of work time reduction in Germany are shaping up to be a major success, with 73% of companies now eyeing a permanent shift or extending the experiment.
  While a couple of firms had to drop out due to "economic hiccups" and lack of support, the overall results show employees thriving with better work-life balance and fewer sick days. Workers love it—more time for hobbies, less burnout—and companies are noticing!