As HR leaders start participating in discussions about the labor strategy for 2025 and beyond, we would like you to keep the following ten pointers in mind.

1. Multi-Generational Workforce:  Companies today manage a workforce spanning five generations, encompassing both frontline and knowledge workers, each with varying levels of digital fluency. No single system effectively addresses the diverse digital needs of these generations. As a result, organizational performance will hinge on how thoroughly we research and understand these generational differences.
2. Predictable Schedules and Flexibility:  Predictable schedules and flexibility remain top priorities for talent. A review of job descriptions from global companies highlights an increasing focus on these aspects as essential strategies for attracting and retaining employees.
3. Frontline Work is still Physical, and safety is paramount: Despite advancements in automation, frontline work remains physically demanding, keeping workers’ safety a top priority. Emerging AI systems increasingly address this critical area, offering innovative solutions to enhance labor safety.
4. Your internal data may fall short in identifying emerging skills:  Relying solely on internal data may be insufficient for mapping emerging skills. A big data approach is essential, leveraging research, patents, and cutting-edge organizational job descriptions to gain comprehensive insights.
5. Root Skills:  Even with an extensive skills library, anchoring the organization on a few foundational or Root skills can significantly accelerate the skills development journey.
6. Framing skills from behavioral economics can aid recruiters and workforce planners:  I learned this at a recent conference where Merck leaders shared an example. Instead of simply stating, “The Hiring Difficulty Index (HDI) is 60%,” could we frame it as “It’s 40% easier to hire”? Would this framing inspire more action?  Something to ponder here.
7. Gen AI in Taxonomy Harmonization:  Generative AI is highly effective in harmonizing taxonomies across company systems. Establishing a dedicated cross-functional team of workforce planning and people analytics experts for this project would greatly benefit the enterprise.
8. Demand Planning Requires Deeper Business Understanding:  My conversations with companies like Jaguar highlighted that workforce planning and recruitment demand assumptions stem from a deep understanding of the business. This often requires spending more time with business operations—for example, Toyota’s workforce planning leaders work directly from production plants—to ensure assumptions are well-informed and accurate.
9. Skills Interrelationships and Sequencing:  Platforms like Draup assist in sequencing skills, simplifying the process of sourcing talent from the external market. For instance, in a scenario requiring Python, Flask, and FastAPI, mastering Python and Flask first makes it easier to learn FastAPI.
10. Consulting Skills for HR to get the budgets: Consulting skills, combined with storytelling, are essential for HR leaders to effectively convey the labor market story, talent challenges, and market dynamics. Storytelling is an absolute must, helping to present data-driven insights in a compelling way that secures the right budget and aligns organizational priorities with workforce needs.

Summary:  Draup has created a cheat sheet to guide effective labor strategy conversations for 2025 and beyond.