The global workforce is changing rapidly. Flexible working, international hiring, skills shortages and advances in technology and AI are reshaping how organisations attract, manage and support their people, creating both opportunities and new challenges for HR and payroll teams. To explore what these changes mean for the future of work, we spoke to our HR Business Partner, Sam Horn, about changing employee expectations, global talent, technology and AI, and the importance of investing in people and skills.
One of the most significant workforce trends is the continued shift towards more flexible ways of working. Alongside this, organisations are navigating ongoing skills shortages and the growing use of technology and AI in the workplace.
Employee expectations are also evolving. As younger generations enter the workforce, there is an increasing focus on wellbeing, inclusion and creating a positive employee experience. Employees have more choice than ever about how and where they work, meaning organisations need to think about retention as much as attraction.
HR and payroll teams can have some of the most visible and personally important interactions employees have with their employer, particularly when it comes to pay, support and access to information.
For international employees, this can be particularly important. While employees may have different local needs and expectations, Sam believes everyone fundamentally wants the same level of support and consistency, regardless of where they are based.
As a result, organisations are placing greater emphasis on creating processes and experiences that are simple, reliable and employee-centred, while still recognising local requirements.
Remote working, international hiring and distributed teams have fundamentally changed how organisations think about talent.
Geography is no longer the same limitation it once was, giving organisations access to a much wider pool of potential employees. Rather than focusing solely on local recruitment, businesses are increasingly considering global talent pools and remote hiring opportunities.
At activpayroll, Sam says the company's global footprint has enabled it to attract talent from a range of markets and backgrounds.
However, accessing talent in different locations also brings new considerations for HR teams. Organisations need to think carefully about how they communicate, maintain culture, support development and keep people connected when teams are not working together in the same location every day.
“Organisations need to be more deliberate about communication, engagement and culture,” says Sam.
Managing performance and supporting development can also require different and sometimes more imaginative approaches in a distributed workforce.
A more distributed workforce also creates additional complexity for HR, payroll and compliance teams.
Employment laws, tax regulations and ways of working vary between countries, creating a constant need to understand and manage local requirements. At the same time, organisations often want to provide a consistent experience across their workforce.
For Sam, one of the biggest challenges is finding the right balance between consistency in approach and service delivery and the requirements of local legislation.
Ensuring employees are paid accurately and on time remains critical, but payroll, HR and compliance teams must also make sure local requirements are being met while maintaining a consistent employee and customer experience across the business.
This balance becomes increasingly important as organisations expand into new markets or employ people across multiple jurisdictions. Global teams therefore need to maintain a consistent approach where possible while recognising that requirements will differ from one country to another.
Accessing talent globally is only one part of the workforce challenge. Organisations also need to consider how they develop the skills they will need in the future.
Sam highlights the importance of looking beyond external recruitment and investing in existing employees through upskilling and internal mobility programmes. This can help organisations develop the skills they need while giving employees opportunities to grow within the business.
At activpayroll, this approach works alongside the company's global footprint, allowing it to attract people from different markets and backgrounds while continuing to develop its existing teams.
This is particularly important as technology and AI change the nature of work. The impact will not be the same for every organisation. Different industries, business models and roles will adopt and benefit from technology in different ways, meaning the skills required will also vary from business to business. As roles evolve, organisations need to consider not only which skills they need to recruit, but how they can develop those skills among their existing employees.
Sam also believes skills development will be essential as people increasingly work alongside new technologies. Employees will need support to understand how to use AI and automation effectively and, where appropriate, safely. For employers, this means understanding where technology can add the most value within their particular business and developing their people with the skills and confidence to work effectively in that environment.
The focus, therefore, should not simply be on finding the right people, but on building the right capabilities within the workforce for the organisation's specific needs and continuing to develop those capabilities as the world of work changes.
Technology is helping HR and payroll teams work more efficiently and focus more time on strategic priorities.
Routine administrative activities can increasingly be automated, freeing teams to focus on work that requires greater judgement and adds more value to the organisation. Better workforce data and reporting can also support more informed decisions around talent, skills and future workforce planning.
Technology has also raised employee expectations. People increasingly expect easy access to information, self-service tools and a seamless experience when interacting with their employer.
For HR and payroll teams, the opportunity is therefore not simply to automate existing processes. Technology can improve efficiency, provide better workforce information and support more informed decisions about people and the organisation's future needs.
Sam sees the biggest opportunities for AI and automation in areas involving repetitive processes, large volumes of data and administrative work.
Reporting, data analytics and elements of recruitment can all benefit from automation and AI, helping teams work more efficiently and make better use of their time.
However, Sam emphasises that human expertise remains essential when it comes to the people side of the business.
Employee relations, leadership, coaching, change management and complex decision-making all rely on judgement, empathy and an understanding of context. Technology can support these activities, but it cannot replace the emotional intelligence needed in these situations.
As organisations adopt AI, the focus should therefore be on how technology can complement human expertise rather than simply replace tasks. This allows organisations to benefit from greater efficiency while retaining the judgement and understanding needed when dealing with complex people matters.
Looking ahead, Sam expects AI and automation to have a significant impact on productivity and the way work is organised. But one of the biggest workforce challenges for organisations will be recognising that there is no universal blueprint for the future of work.
Technology will affect businesses in different ways depending on their sector, operating model, clients and workforce. The skills that become critical for one organisation may be very different from those needed by another. At the same time, changing workforce expectations around flexibility, inclusion and career development will continue to influence how organisations attract, develop and retain people.
The challenge for employers is to understand what these changes mean for their business and translate that into a clear people and skills strategy. That may involve developing new technical capabilities and ensuring employees can use AI and automation effectively and safely, but it could equally mean strengthening skills such as judgement, leadership, problem-solving and client relationships.
Rather than reacting to skills gaps as they emerge, organisations should be continually assessing the capabilities they are likely to need and creating opportunities for existing employees to develop alongside the business.
Ultimately, organisations need to understand where technology can genuinely add value, what it means for their workforce and how their people need to develop as the business evolves. Investing in both technology and people will be an important part of responding to changing ways of working while creating environments where employees can thrive.