Hot Topics in HR

From post-election regulatory shifts to the adoption of AI to the drive to upskill and reskill employees for the future of work, the need for the right people doing the right job in the ideal organizational structure is front of mind for organizations determined to thrive amid uncertainty.

“In my experience, HR has never been more important, and that’s not just a platitude,” said Professor Scott Snell, who teaches throughout Darden’s degree and non-degree programs and serves on the board of directors for the Society of Human Resource Management. “CEOs are engaging their CHROs saying, ‘We’ve got to work together through these issues.’ There’s opportunity here, but there’s also risk to the business if they don’t get it right.”

With its track record of leadership development, general management orientation and close connection to the world of practice, Darden experts offer a unique perspective on current workforce talent and human resources issues.

We recently asked a trio of Darden thinkers in Executive Education & Lifelong Learning, the MBA program and Alumni Career Services a simple question:

What Are You Watching Most Closely in HR and Talent Management Right Now?

1. AI and Technology

 Scott Snell, Eleanor F. and Phillip G. Rust Professor of Business Administration; Board Member, Society for Human Resource Management: AI and technology are especially good at certain analytical and operational tasks, improving efficiencies and enhancing productivity. But the creative, interpersonal and relational aspects of work are still pretty well the domain of people. Elements of work that are uniquely human will be the last to be taken over by AI. Ideally, technology is a complement to human capacity, not a substitute. There’s a concerted effort to upskill and transform the workplace along those lines.

 Mike Thompson (MBA ’85) Former HR Executive; Independent Coach and Facilitator; Darden Alumni Career Services Career Coach: Organizations are experimenting with using AI in a variety of HR applications, including recruitment, selection, performance management, and training and development. Although AI shows great promise in these areas, organizations need to also understand — and manage — the risks.

Anne Trumbore, Chief Digital Learning Officer, Darden Sands Institute for Lifelong Learning: As demographic shifts accelerate and technology continues to redefine the workplace, talent management is entering a new era. For companies to remain competitive, investing in strategic human-capital management is no longer optional — it’s imperative. This evolution will require many organizations to rethink their current HR capabilities. Some will need to build new capacity in learning and development, including leveraging cutting-edge learning technologies and forging partnerships with traditional and emerging education providers. Others may turn to their existing HR teams, tasking them with responsibilities they may not yet be equipped to handle.

2. The War for Talent

Anne Trumbore, Chief Digital Learning Officer, Darden Sands Institute for Lifelong Learning.

Trumbore: The U.S. is approaching “peak high school graduate” in 2025, after which the pool of new college-educated workers will begin to shrink. While the short-term labor market may appear favorable, forward-looking companies are already preparing by creating learning pathways that deliver value to both employees and the bottom line. We’re on the brink of a fundamental disruption in how businesses attract, develop and retain talent. The educational systems that once supported workforce readiness are no longer sufficient. Smart companies will rise to the challenge by building robust, ROI-focused human capital strategies that integrate education and advancement as core components of their employee value proposition.

Thompson: Organizations are vying for a limited pool of talent. Although talent can now be considered national due to remote work arrangements, organizations still struggle attracting the best talent. More critically, organizations find it difficult to retain their top talent, particularly when that top talent is being passively recruited by other firms.

3. Hybrid Work

Scott Snell, Eleanor F. and Phillip G. Rust Professor of Business Administration; Board Member, Society for Human Resource Management.

Snell: During the pandemic, when nearly everyone was remote, we got used to that arrangement. Many organizations found that, perhaps surprisingly, people were productive, even though they weren’t in an office. Now, a preponderance of people want to retain some element of hybrid work, and research suggests that many graduating students now say they would turn down a job offer that didn’t have some hybrid component. The focus for some time was on whether it was possible to incorporate hybrid and still be productive. Fewer organizations paid enough attention to what it began to do to their culture. Do you dilute the employment brand when you’re not together? When so much onboarding has been taking place remotely, are there limits to how quickly you can develop people in their new roles? These questions are perplexing to many executives.

4. Employee Reskilling and Upskilling

Thompson: The rapidly changing business landscape is requiring organizations to increase their investments in training to help equip their employees with the skills necessary to compete in the marketplace.

Trumbore: Not every company needs to establish a corporate university, but every business must design education pathways that foster internal advancement. Doing so isn’t just good for employees, it’s a smart way to drive retention and control recruiting costs.

5. Blending Talent

Snell: There has been a rapid change in organizations backing away from DEI commitments. One question many executives struggle with is how to pursue the substantive benefits of a diverse and inclusive workforce while still adhering to some of the recent executive orders around DEI.

Taken together, these trends in talent management increase my interest in the evolving dynamics of workforce ecosystems.

Organizations today are increasingly interdependent with others, and the way they create value in the marketplace is by collaborating with other organizations. Very few of us work on our own anymore. We have collaborators, partners, joint ventures and alliances. The resulting network of talent creates scenarios where you end up employing people you don’t manage and managing people you don’t employ. HR has not been great at looking outside of its own boundaries in this way. Some exciting research is exploring how organizations are shifting the paradigm on this issue

Mike Thompson (MBA ’85) Former HR Executive; Independent Coach and Facilitator; Darden Alumni Career Services Career Coach.

Thompson: There are now five generations in the workplace — from Gen Z (born after 2001) to “Traditionalists” (born before 1945). Each generation brings different styles, values, attitudes, expectations and experiences to the workplace. Managers need to understand the unique qualities that each of these generational employees bring to the workplace and how to leverage those qualities in ways that maximize performance.

6. Employee Engagement

Thompson: According to the Gallup organization, the percentage of engaged employees in the U.S. fell to 31% in 2024, the lowest level in a decade. These low levels of engagement impact many organizational metrics, including retention, productivity, quality, customer service and, ultimately, bottom-line revenue.

7. Changes to Health Care and Employee Benefits Programs

Thompson: Organizations are struggling to bear the brunt of rising health care costs, and they are gradually reducing their contributions to employee benefits packages, passing more of the burden onto employees.

8. Specialized Expertise to Lead Strategic Learning

Trumbore: The next generation of talent development leaders must understand AI, emerging learning platforms, adult learning theory and effective instructional design. While today’s HR teams have strengths, most lack the specialized expertise needed to lead the next era of talent development. To succeed, companies must proactively invest in new capabilities — bringing in talent with the skills to build and scale modern, strategic learning initiatives.

With its mission to support learners by providing transformational learning experiences in business education at all stages of their career, Darden’s Sands Institute for Lifelong Learning conducts research, delivers programs and convenes thought leaders to explore talent development in the age of AI. Learn more at www.darden.virginia.edu/sands-institute.