Today’s organizations face many changes. Gartner found that 85% of executives recognized this, while 48% of HR professionals acknowledged this, yet 66% of change efforts fail.
Some of the human capital changes taking place are:
- A growing multi-generational workforce, with a particularly aging workforce
- A growing multi-cultural workforce, particularly Latinos in the U.S
- A growing skills shortage
- The growth and use of Artificial Intelligence (AI)
- The changing expectations and psychology of today’s workforce of organizations and leaders
- Challenges faced by today’s leaders.
I call this what I titled in my book, “The Perfect Human Capital Storm,” to capture the essence of the above. While each one presents challenges and opportunities for organizations, collectively these changing trends make the need to adapt and change an imperative. This article will address the changing psychology of today’s workforce.
As you continue this article, I would like to begin with a question.
How would your workforce describe your organizational culture?
What words would they use to describe it?
Below is just a sample of two columns to consider. Which one would your workforce use, A or B?
A B
- Welcoming Disruptive
- Psychologically safe Toxic
- Collaborative Stressed
- Engaging Siloed
- Autonomy Bottom line focused
- Great leaders Ineffective managers
Depending on which column you pick will lead to different approaches and highlight what the leadership is focused on. Which, in turn, leads to what HR might or needs to focus on. Of course, all organizations are focused on the bottom line, but the path they take starts to crystallize the organizational culture. As I’ve read, how your workers feel Sunday night about what is coming Monday morning, tells you all you need to know about the organizational culture.
Depending on where you read or research, you will find that today’s workforce is motivated by purpose, autonomy, and mastery. They are looking for meaning and happiness at work. They are looking for appreciation and well-being over pay. They are looking for managers to care about them, to listen, to be empathetic, and compassionate. It seems that not enough managers are caring enough, as one study found that 35% of workers would give up a pay raise to see their boss fired.
In larger numbers, more workers prefer working remotely and a hybrid environment in spite of the Return to Office (RTO) push. This, while more managers see those who work remotely as less productive and promotable. Today’s workforce prefers 4-day workweeks, and more organizations and countries have implemented this practice with much success. They have evolved from wanting work-life balance to work-life integration, especially after the pandemic. In essence, they are looking for these at work, but many are not finding them and in turn not finding satisfaction at work.
While this is taking place, more leaders are feeling stressed out, and almost half have considered stepping down. This, while the younger generations are watching what is happening to their bosses and saying no to stepping into management, which has been labeled “Conscious Unbossing”. This is not only impacting managers, as work is considered the 5th cause of death due to stress, as highlighted in the book, “Dying for a Paycheck”.
It turns out that managers have a bigger impact on their workers than their doctors. And when managers engage more, their workforce is engaged. This is important because with almost 70% of workers are disengaged, costing organizations trillions in productivity. This is the opposite of what is found in Fortune’s 2025 100 Best Workplaces to work, which experiences 8.5 times greater revenue per employee.
HR needs to help their leaders recognize the changes taking place, not only globally and strategically, but also from a human workforce perspective. McLean & Company conducted a study where they found that 66% believed that HR’s role was to help in shaping organizational culture. Today’s worker will spend 90,000 hours of their adult life at work. The culture that leaders create in partnership with HR can provide an engaging workplace and in turn a competitive advantage.
In the book “The Human-Centered Workplace”, the author points out that a supportive culture leads to less sick time and greater work satisfaction. When the employees are happy, they are more productive, loyal, and engaged. While there are plenty of books and research written on the above, I’d suggest that all the reader has to consider is how they feel and perform when they are happy, treated well by their manager, and work in a healthy workplace environment.
I suggest that in the growing era of AI, HR will need to enable their leaders to create a Human Intelligent (HI) Workplace. It is the interpersonal skills that will be needed by them. Skills like critical thinking, listening, empathy, creativity, compassion, and acceptance that will not be replaced by AI. Leaders will need to model the way by minimizing things like multi-tasking, which those in the neuroscience and NeuroLeadership space have pointed out leads us to be less productive, increases mistakes, stress, and even impacts our health.
HR will need to help leaders better understand their role, which is one of being a celebrity, quasi-psychologist, quasi-sociologist, and quasi-anthropologist. Celebrity, because the spotlight is always on them. The workforce is watching if their leaders are “walking the talk” and being a positive role model through their behaviors. Quasi-psychologists, because of issues as humans they deal with, like the impostor syndrome when interacting with their workers, who also bring their human frailties and strengths to the exchange. Quasi-sociologist because of team dynamics. And lastly quasi-anthropologist because of the organizational culture that they create. Because, as has been said, organizational culture is a reflection of the organization’s leadership.
I suggest that HR help their leaders help themselves to create a more HUMAN focused environment and organization. By this I mean the following:
Happy and Healthy environment – ensure to help your leaders not only model it but create one. Where workers feel psychologically safe, are collaborative, and listened to.
Unconscious biases – to recognize that we all have these and when we exclude members from our teams it not only impacts them psychologically but reduces the chances from a team being effective and successful.
Mind – help leaders to help themselves and in turn help their workforce by working to reduce the stress that the workplace, deadlines, and multiple priorities can create.
Appreciate – help the leaders realize that a simple thank you can go a long way. It’s part of their quasi-psychologists role.
Never – underestimate the impact effective leadership behaviors can have on the leaders and their workforce leading to organizational success.
Today’s workforce has different expectations. The quicker HR positions their organization for these changing times by enabling their leaders to help themselves through education and 21st century HR practices to better it will be for them. Just remember in the growing era of AI, organizations will need more HI.
ABOUT THE AUTHOR
Edwin Mourin᷁o – Ruiz, Ph.D.
Dr. Edwin Mouriño is an Air Force veteran, author, Human Capital, and DEI practitioner and speaker. As a human capital practitioner, Dr. Mouriño’s focus has been on helping leaders and organizations help themselves. He is an experienced professional with many years of leading and/or supporting key elements of organizational change projects. Dr. Mouriño is an Air Force veteran who began his career in Diversity Equity and Inclusion (DEI) as a graduate of the DOD-Defense Equal Opportunity & Management Institute (DEOMI) and has also been a speaker.
He brings broad industry experience that includes Fortune 100 companies. He is the founder and president of Human Intelligent (HI) Workplace, an organization focused on helping leaders help themselves through leadership, team development, and executive coaching. He has been and continues to serve as a college professor. He is also a Senior Fellow with the Conference Board on the DEI and Leadership Steering Committees.
He has extensive experience and thought leadership on Human Capital issues and supported organizational change efforts through Leadership Development, DEI, Executive Coaching, Team Development, Executive Retreats, Personality Assessments, and Organizational Change. He has spoken at numerous professional venues and written numerous articles on human capital trends impacting organizations, specifically addressing DE, and is the author and co-editor of several books.
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