The skills-first, AI-powered future work is HR’s to define, says Randstad

2024 was potentially the most difficult year for HR since the pandemic.

That’s according to new research by HR tech giant Randstad, which surveyed 1,060 C-Suite leaders from across the world.

HR teams are grappling with budget constraints, business demand for more value and ongoing economic uncertainty.

For Randstad, the answer is for HR and talent leaders to become more innovative and agile – as the report tells HR leaders: “The future is yours to define”.

The good news is that they’re ready for the challenge; 90% of talent leaders surveyed believe the work they do is really preparing their organizations for the future.

This helps explain why 82% positively regard the proliferation of AI, automation and robots in the HR space, and why 79% are excited about the digitalization of HR.

Interestingly, while AI, machine learning and robots have a huge role to play in reducing mundane tasks (84%), Randstad’s report finds that AI can actually go beyond doing busy work, and become a “thought partner for talent”.

As Mike Smith, CEO of Randstad Enterprise, exclusively tells UNLEASH: “It’s encouraging to see that 82% of talent leaders are already using AI to develop strong cognitive skills among their workforce.”

“People’s concerns about AI’s impact on jobs may never go away, but their comfort level with it appears to be rising,” stated the Randstad 2025 Talent Trends report.

“Being able to do meaningful work better is a powerful value proposition poised to help create more joy and satisfaction in the workplace.”

Skills-first approaches are a ‘necessity of survival’

In order to get the most out of AI, Randstad’s data called on HR leaders to truly step into the skills-first era, and really embrace the idea that skills are the new currency of careers.

The report stated: “The AI revolution has made it abundantly clear that a skills-first approach to workforce management is no longer an option; it’s a necessity of survival”

83% of leaders are transitioning to, or have already adopted, a skills-first model for talent acquisition, and 81% of talent leaders are really leaning into internal mobility over external hiring because of the talent shortage.

93% of leaders expect to have the same or a greater focus on retention this year, with 53% planning to increase their investments in L&D.

The challenge is getting the entire organization on board – only 5% have experienced no barriers to adoption of skills-first model, and 30% agree that while HR teams may be on board, there is still work to be done with functional managers.

This is despite the view that skills-based models are good for workplace equity (41%), organizational preparedness for the future (39%), better hiring outcomes (39%) and stronger talent development success (37%).

Ultimately, “moving forward, organizations that embrace a skills-first approach while fostering equitable, flexible environments will be best positioned to attract and retain top talent in this rapidly evolving landscape,” concludes Smith.