The way we manage people is fundamentally changing—and that’s a good thing.
As organisations face rapid disruption from generative AI, hybrid work models, multigenerational teams, and geopolitical uncertainty, one truth has become clear: traditional HR models can no longer keep up. To unlock real value from their people, businesses need to rethink the very foundation of how they manage talent.
The future? A new people operating model that is more personal, more tech-enabled, and more human.
Why Now?
In just the past year, we’ve seen more innovation in people operations—particularly through gen AI—than in the previous decade. But it’s not just about technology. Employee expectations have shifted. People want more flexibility, more purpose, and more personalisation in their work lives.
Forward-thinking organisations are responding with a new kind of people strategy: fluid, collaborative, data-driven, and centred on human experience.
What the Future Looks Like
We spoke with over 100 HR leaders, tech innovators, and academics to shape a vision of what’s next. The consensus? High-performing organisations will be those that personalise experiences, build adaptable structures, and embed human-centric leadership into everything they do.
Here are the key shifts to watch:
1. Hyper-Personalised Employee Experiences
From Spotify playlists to fitness apps, personalisation is everywhere—so why not at work? Emerging HR technologies now allow companies to tailor everything from compensation to career development based on individual preferences, roles, and locations.
Imagine AI-driven tools that offer:
- Personalised onboarding journeys
- Tailored learning and development plans
- Localised compensation packages
- Individual coaching agents for growth and wellbeing
The result: higher satisfaction, deeper engagement, and improved productivity.
2. Frictionless, Fluid Organisations
Rigid org charts and static job roles are losing relevance. The future of work is dynamic. Roles evolve. Skills matter more than titles. And people move across teams and projects fluidly.
With the right tech, organisations can:
- Use predictive data for real-time workforce planning
- Identify internal talent for new projects or challenges
- Leverage external gig and freelance marketplaces seamlessly
- Build agile, cross-functional teams that adapt quickly to change
Think of this as internal mobility on steroids—where talent goes where it’s needed, fast.
3. More Human Leadership
As machines become better at being machines, leaders must become better at being human. That means managers need to focus less on process and more on empathy, coaching, and connection.
Freed from admin by automation, tomorrow’s leaders will:
- Guide teams through change with clarity and compassion
- Provide real-time feedback and coaching
- Support wellbeing and purpose in the workplace
- Use data to understand and improve team dynamics
Technology won’t replace the human element—it will amplify it.
The Backbone: A New People Operating Model
These shifts require more than new tools—they demand a reimagined HR function. Here’s how it’s evolving:
The Strategic Triumvirate
The people function will pivot from admin-heavy to strategy-led, powered by three key roles:
- People Strategists: Business-savvy coaches who align workforce strategy with organisational goals
- People Scientists: Data experts who design interventions for culture, learning, and leadership
- People Technologists: The tech brains building and managing the digital infrastructure behind it all
From Silos to Squads
The old Ulrich HR model—with its COEs, business partners, and shared services—is giving way to leaner, more agile squads. These cross-functional teams focus on priority initiatives, dissolve when goals are met, and regroup as needs shift.
Admin tasks? Automated. Shared services? Driven by AI. The focus is on value creation, not bureaucracy.
Tech as the Engine
All of this is powered by a more integrated, intelligent tech stack. Companies must move from scattered point solutions to a cloud-based, AI-powered system built around a unified data lake.
With the right digital infrastructure, organisations can:
- Analyse trends and predict talent needs
- Offer personalised tools to managers and employees
- Track and improve organisational health in real time
In short, everyone becomes a technologist—not just IT.
Final Thoughts: Human at the Core
This isn’t about replacing people with tech. It’s about using tech to bring out the best in people.
By blending AI-powered systems with deeply human leadership, companies can build workforces that are more resilient, more engaged, and more capable of adapting to whatever the future holds.
More personal. More tech. More human. That’s the new face of people management.
Click to read more: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/a-new-operating-model-for-people-management-more-personal-more-tech-more-human
