FlexOS | Future Work

HR Struggles with AI Adoption: 40% Still Hesitant

February 14, 2025
Issue
#
125
HR Struggles with AI Adoption: 40% Still Hesitant

Your Weekly Must-Read Insights about the Role of HR in the Future of Work

The world of work is changing faster than the time we have to understand it.
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THE FUTURE OF HR ROUNDUP

Your Weekly Must-Read Insights about the Role of HR in the Future of Work

The world of work is changing faster than the time we have to understand it.
Sign up for my weekly newsletter for an easy-to-digest breakdown of the biggest stories.

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FlexOS | Future Work

HR Struggles with AI Adoption: 40% Still Hesitant

February 14, 2025
Issue
#
125
HR Struggles with AI Adoption: 40% Still Hesitant

This week's edition is quite diverse in news, and I would love to hear your thoughts, so I’ve left some questions below each story. If you have any ideas or insights, please share them with me!

We are excited to launch our new research: "HR Sentiments on Technology in the AI Era." There are some numbers that keep me awake, such as 40% of HR leaders still avoiding generative AI, despite its growing presence, 35% of HR leaders identifying adapting to AI and automation as their biggest challenge, and 36.5% of HR leaders highlighting the AI skills gap as a key concern. The gap between potential and adoption is fascinating, and I’d love to hear your take on what’s truly holding HR back from embracing AI in our upcoming event: AI vs Humans in HR: How Much of HR’s Future Will Be Powered by AI?

Now, let's dive in! 👇

Your Weekly Must-Read Insights about the Role of HR in the Future of Work

The world of work is changing faster than the time we have to understand it.
Sign up for my weekly newsletter for an easy-to-digest breakdown of the biggest stories.

Join over 42,000 people-centric, future-forward senior leaders at companies like Apple, Amazon, Gallup, HBR, Atlassian, Microsoft, Google, and more.

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NEW RESEARCH: HR TECH IN THE AI ERA 🤖

HR Struggles to Embrace Generative AI Amid Adoption Hurdles

🔍 FlexOS released a report, “HR Sentiments on Technology in the AI Era,” revealing that 40% of HR leaders are still avoiding generative AI, despite its growing presence in HR departments.

Key challenges include skepticism about AI’s effectiveness, concerns over data privacy, and the AI skills gap. While AI proficiency tops the list of critical competencies for HR leaders, emotional intelligence (EQ) remains equally essential, underlining the need for human-centric leadership.

Despite these challenges, 74.5% of HR professionals believe companies are investing in the future of work, though 1 in 4 HR leaders feel organizations aren’t prioritizing these efforts enough.

Additionally, many HR departments struggle with silos and communication barriers, limiting their ability to fully align with broader business objectives and capitalize on AI’s potential.

🗨️ Thought for the community: What’s really holding HR back from fully embracing AI, and how can organizations overcome these challenges? Join the conversation with Dr. Rebecca Hinds and Anthony Onesto at AI vs Humans in HR: How Much of HR’s Future Will Be Powered by AI?—don’t miss the chance to share your thoughts and engage with others!

Future Work Alumni: What Matters Now? 🚀

This week, we dive into the biggest conversations shaping the future of work—straight from our Future Work Alumni. What’s top of mind for workplace leaders right now? What trends, challenges, and innovations are sparking debate?

WFH Really Ending? Not So Fast.

📊 Nick Bloom reflects on Pilita Clark’s FT article about the hidden "Work From Home dark matter"—the gap between media narratives and data. Despite headlines declaring the end of WFH, big data (from surveys, swipe cards, and cell-phone mobility) tells a different story: WFH has been stable since early 2023. Why the disconnect?

  • Coverage bias: Bad news sells; stories about RTO mandates dominate.
  • Cohort effects: Younger, WFH-friendly companies are expanding.
  • Lack of enforcement: RTO policies often fade after a month or two.

The takeaway: Trust the data, not the headlines. WFH isn’t vanishing—it’s evolving.

Office Spaces Are Products—Not Mandates

🏢 Annie Dean of Atlassian shares how they’re redesigning office spaces based on employee needs. Their research shows that open floor plans often hinder productivity, making it harder for employees to focus compared to working from home.

The solution? Treat the office like a product and continuously iterate:

  • Library-style zones for quiet, focused work
  • Casual spaces with plants and grouped seating for relaxed collaboration (yes, most collaboration is still virtual—even in person!)

The goal: Create spaces employees want to work from, not feel forced into.

"Transformation" Is Dead. Progress Is Perpetual.

🔄 Jess von Bank recounts her experience at SAP SuccessFactors, launching a record-breaking recruiting technology project—where the real challenge wasn’t just going live, but thriving after go-live. That’s where the work begins.

Gone are the days of tightly scoped tech projects and milestone-driven success. Adoption alone isn’t enough. Real success is about driving outcomes, often requiring a fundamental shift in how we work—something most implementation plans overlook.

With HR learning to embrace digital, the focus now is on perpetual transformation, where change is continuous and driven by four key phases:

  1. Strategy: Define vision, models, and investments.
  2. Activation: Redesign experiences and prepare for change.
  3. Deployment: Integrate systems and deliver insights.
  4. Betterment: Focus on continuous improvement and adapting to evolving needs.

This new mindset calls for a digital approach that’s not just about technology, but reimagining how work is done.

Magnets, Not Mandates: Airbnb’s Hybrid Success

🏢 Brian Elliott shares how Airbnb’s once-a-month gathering weeks became a magnet—not a mandate—for employees to reconnect. Centered on product launch rhythms, this approach created “FOMO, not RTO,” drawing employees back to the office naturally.

Airbnb’s “Live Anywhere, Work Anywhere” philosophy helped them attract top talent from companies like Apple, Google, and IDEO, while flexibility fueled stronger performance and increasingly ambitious product launches.

The key? Aligning in-person time with important milestones: kickoff meetings, major reviews, and product releases, with plenty of advance notice to keep it practical and meaningful. As Brian Chesky says, there’s a sweet spot: “When you don’t see someone often, it feels special. If you see them every day, it can get transactional.”

The Core Need of Followers: Hope

🔍 Jim Harter highlights key insights from Gallup’s updated global study on the needs of followers. As leadership challenges increase—driven by workplace stress, AI advancements, and evolving expectations—hope stands out as the most foundational need for employees, especially during tough times. 56% of desired leadership attributes focus on hope, the primary need of followers worldwide. 64% of followers emphasize the need to see hope from their organizational leaders.

Beyond hope, three other critical needs build the foundation of strong leadership: trust, stability, and compassion. Leaders who meet these needs will be best positioned to provide clarity and direction in this new world of work.

🗨️ Question for the community: As a leader, how are you fostering hope and trust within your team during these challenging times?

Congratulations! 🎉

Anthony Onesto is proud to be part of Culture Amp’s 2025 Emerging Culture Creators—a group of 25 trailblazers recognized for their role in redefining workplace culture. These leaders are making waves in five key areas: Diversity, Equity, and Inclusion, In-House People and Culture, Future of Work, Data and Analytics, Learning and Development.

⁉️ So, what did you take away this week to build your future work?

NEVER MISS ANOTHER PAYROLL TASK WITH BAMBOOHR ✅

If you’re new to running payroll, use this free checklist to help you formalize your process and set your company up for smooth, error-free payroll runs.

82% of Americans say they would have difficulty paying bills if more than $500 were missing from their check.

Dealing with payroll errors is a costly affair, and nothing squashes employee morale like a botched payday.

That’s why we’ve wrangled all the important payroll to-dos you need to ensure accurate, on-time payroll runs for your company!

THE FUTURE OF HR ROUNDUP ✨

I follow and summarize the news that future-forward and people-centric leaders care about, so you don't have to.

This week:

New Research: Secrets of the High Performing CHRO

🚀 Josh Bersin unveils groundbreaking research on the evolving CHRO role, emphasizing its shift from HR head to organizational strategist. As CHRO pay skyrockets, with 13% now among the highest-paid executives, the role is increasingly focused on driving business transformation. The study reveals that Business CHROs, those rotated from non-HR functions, are the most impactful, while CHROs with backgrounds in psychology and economics perform best, highlighting the complexity of today’s HR challenges.

Key takeaway: The future of HR leadership is about continuous transformation and business alignment.

High C-Suite Turnover Expected

Gartner’s survey reveals that 56% of CxOs are likely to leave their roles in the next two years, with 27% planning to leave within the next six months. This trend is driven by increased workloads, stress, and higher expectations.

CHROs can help mitigate this by serving as executive career coaches, building trust with CEOs, and supporting mental health and work-life balance initiatives to reduce turnover and strengthen C-suite cohesion.


The Hidden Truth Affecting Productivity

🔍 New research shows that 47% of employees withhold honest feedback in engagement surveys, skewing data and harming productivity.

Common concerns include lack of anonymity and belief that feedback won’t lead to change.

To improve, organizations should combine traditional surveys with AI-powered analytics for deeper, actionable insights into employee sentiment and performance.

The Hidden Toll of Meeting Hangovers

📉 New research from Brent N. Reed, Steven G. Rogelberg, Rebecca Hinds (Our Future Work Alumnus), and Jon Gray highlights the long-lasting effects of bad meetings—known as "meeting hangovers." Over 25% of emploees report diminished engagement and lower productivity for hours after frustrating meetings. Common causes include irrelevant topics, lack of clear agendas, poor time management, and unequal participation.

To prevent these hangovers, meeting leaders should focus on active facilitation, keep meetings small, create actionable outcomes, respect time, and ensure accountability. For those experiencing a bad meeting, mental breaks, physical breaks, and discussions with colleagues can aid in recovery.

🗨️ Thought for the community: What steps do you take to ensure meetings are effective and prevent a "hangover"? How does your team recover when meetings go off track?

✅ Quick Hits:

  • RTO Battle Isn’t Over Yet: Despite major companies like JPMorgan and Amazon pushing for Return-to-Office (RTO), office visit rates remain 34.3% below pre-pandemic levels. Commuting patterns also show weekday rush hour is still down 47.5% from 2019. Gradual recovery is expected, but don’t expect a major RTO shift anytime soon.
  • Financial Stress Crushing Worker Productivity: 47% of employees withhold honest feedback in employee engagement surveys, distorting data and impacting productivity. As financial stress rises, companies must expand their financial wellness programs to offer employees the support they need, beyond just salary increases, to boost engagement and retention.
  • HR Leaders Struggling with Anxiety: Nearly half of HR professionals feel anxious at least once a week, with HR leaders increasingly overwhelmed by their responsibilities. Experts recommend peer support networks, executive coaching, and mental health resources to support HR professionals and sustain their well-being while managing employee needs.
  • 93% of Workers Looking for a New Job: 93% of employees are planning to look for a new job in 2025, with salary no longer being the top motivator. Workers are prioritizing career growth, flexibility, and a healthier work environment over pay. Companies must adapt to these changing priorities to retain talent in an evolving job market.

🔥 Interested in reaching 25,000 work and workplace innovators? Let's connect!

Your Weekly Must-Read Insights about the Role of HR in the Future of Work

The world of work is changing faster than the time we have to understand it.
Sign up for my weekly newsletter for an easy-to-digest breakdown of the biggest stories.

Join over 42,000 people-centric, future-forward senior leaders at companies like Apple, Amazon, Gallup, HBR, Atlassian, Microsoft, Google, and more.

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