The role of human resources professionals has changed dramatically. Once tasked primarily with processing payroll and benefits, hiring, and enforcing workplace policies, HR departments now play a central role in shaping company culture, attracting and retaining top talent, and helping organizations navigate profound changes in how we work. As the former head of human resources at BGI and BlackRock, Jeff Smith has seen the evolution of the HR profession firsthand.
“For years, I think it was easy to just have administrative HR departments because I don’t think people saw a need for anything else. There was no real imagination about it because there was no perceived issue or need,” he says.
“But the increase in knowledge work required more evolved practices and that helped develop HR departments. Now the talent pool is much stronger and talented people in HR are well paid. HR, done right, ends up involved in so many talent decisions, and they end up shaping culture and doing things that support CEOs and leadership teams in meeting their goals.”
The skills needed to excel in the HR field today go far beyond what was required even 10 years ago. With remote and hybrid work arrangements proliferating, a renewed focus on diversity and inclusion, and ever-increasing competition for the best employees, those entering the HR profession need to continually adapt to stay ahead of the curve.
For those looking to build a rewarding career in this dynamic profession, the good news is that the traditional path of pursuing an inflexible industry focus is no longer seen as a firm prerequisite. In today’s workplace, the most valuable HR professionals often tend to have diverse educational and business backgrounds and a genuine curiosity about people and how organizations work, says Smith.
“I think people can learn industries. If you bring in people with the right skills and personality and culture fit it’s much easier to have those things and learn an industry than to have industry knowledge and change your skills, personality and fit for the culture.”
So what does it take to thrive in HR today? Let’s dive into just a few of the core competencies professionals need to cultivate.
The Art of Interviewing and Hiring
Finding the right people for open roles has always been a key responsibility for HR teams. But the talent marketplace has radically changed in recent years. Skilled candidates have more options than ever before, often juggling multiple job offers. At the same time, making bad hires has become costlier as competition ramps up and the stakes get higher.
Successful HR leaders must become masters at selling candidates on their company’s mission, culture, and employee value proposition. They need top-notch communication skills to build rapport, ask probing questions to assess fit, and create a positive, insightful experience for people interviewing.
“I always point out that this is a conversation and we are looking for fit in both directions,” says Jeff Smith. “In other words, I care as much that the candidate is evaluating me and my team and organization as we are evaluating them. For it to work, it needs to work both ways.”
As more companies shift to remote interviewing and hiring, expertise with video platforms and virtual interactions is also crucial.
And perhaps most critically in a tight labor market, having a keen understanding of current compensation dynamics, flexible work policies, and what candidates value most in potential employers can give organizations a vital competitive edge.
Attracting and Retaining Stars
Once you’ve hired exceptional people, keeping them engaged and productive over the long haul is equally vital. With job-hopping on the rise, retention efforts must go beyond standard perks and annual reviews.
Modern HR leaders cultivate cultures of feedback, recognition, and continuous development to keep employees motivated and growing. They understand how to design thoughtful career paths, mentorship programs, and stretch opportunities tailored to top performers’ goals.
“I think it’s a huge advantage to have the best talent motivated and incentivized to make decisions for the company in a way they would about themselves,” says Smith.
But there’s no one-size-fits-all approach when it comes to talent retention. Taking the time to understand individuals’ unique motivations and implementing tailored programs and flexibility options can nurture loyalty and discourage attrition of your best people over time. Deploying tools like stay interviews, pulse surveys, and active listening to gather regular employee input is key.
Navigating the Future of Remote Work
The COVID-19 pandemic served as a catalyst that reshaped many employees’ expectations for where and how work gets done. While many companies instituted mandatory return-to-office policies, a majority of workers have made it clear they prefer some level of remote flexibility moving forward, and the modern HR professional needs to be aware of demands for a balance between in-office and remote work.
Crafting effective hybrid workforce models aligned with company needs and culture is one of HR’s biggest modern challenges. Jeff Smith explained that top HR professionals need to gather qualitative and quantitative data to understand employees’ wants and productivity patterns. With stakeholder input, they can create fair remote work policies, communications protocols, and technologies to seamlessly integrate in-office and remote contingents.
“I am a believer in hybrid,” says Smith. “In the end it comes down to the job and the company and what needs to get done. The hard part is if you let every group and manager decide you will have uneven and likely biased processes and policies, so you need to balance that with some sort of central policy and have flexibility and exceptions. In the end, it is whatever will drive the best performance for the company.”
Building Cultures That Work for Your Business
Leading companies increasingly realize the intrinsic link between healthy organizational cultures and sustainable high performance. Toxic environments marked by silos, political maneuvering, and fear of open dialogue invariably hamper innovation, engagement, and results over time.
In a knowledge economy where an organization’s people are its most valuable resource, promoting transparency and psychological safety has become perhaps HR’s most vital charge. Creating forums and rituals that encourage employees at all levels to share ideas, concerns, and feedback without fear of retribution is paramount.
Progressive HR teams implement mechanisms like anonymous surveys, skip-level meetings, and open Q&As to solicit candid input. They get regular pulse checks on organizational health and potential cultural friction points through active listening tours and focus groups. Most essentially, they hold leadership accountable for acknowledging issues, sharing information freely, admitting mistakes, and modeling the candid communication they expect from others.
The Modern HR Role
For those willing to embrace new ways of working, HR has developed into one of the most dynamic and future-focused fields today. By embodying versatility, anticipating emerging business needs, and developing new skill sets, HR professionals can shape organizations where people thrive and drive sustainable performance.
“It’s important to build a foundation,” says Smith. “Pay people right, have great hiring practices, develop your leaders, have a culture of feedback, ensure leaders know their expectations. Then innovate on top of that.”
