Why do we do this in Agency recruitment?

Do we not believe in our value?

Do we not understand the value of a skilled temporary worker?

The client loves our temp or contractor so much they want to hire them permanently. (Temp-to-Perm, Buy-out. Conversion)

Yay, but you get it, right?

We have done our job so well that they want to make it permanent!

Then, many of us give away our Temps at discount rates.

And I mean massive discounts, not a little nod of the head

Sometimes the permanent fee after a year or 18 months is – nothing!!!

FFS!

Why, I have never understood. I know the market is demanding. I appreciate a $ is still a $. I am aware some clients are screwing us where they can.

But it happens in every market, all the time. Some agencies have it embedded in their terms of business!

A Temp or Contractor on your payroll is a precious asset.

I cannot fathom why anyone in our industry would give a substantial discount on the fee when a temporary employee goes permanent.

It’s just so illogical. A temp-to-perm fee is a once-off hit, which is nice when it happens, but we seem to forget that we have lost a tried, tested, and hard-to-replace revenue-earning asset- our Temp worker.

I have heard all the arguments on this from clients, and they don’t wash

Let’s start with the classic “But you really should discount the permanent conversion fee because you have already earned so much margin on the temp”. What hogwash. The temp margin is for the temporary service rendered. The perm fee is for the acquisition of a permanent staff member. There is no leveraging one against the other.

We need to be confident with the client. It is far from a celebration for us when a temp goes perm; in fact, the perm fee is scant compensation for the lost revenue that the temp could have earned on future assignments.

Some clients will even try to use the ‘hire purchase’ argument. “But can’t you see?” they say. “It’s like me renting a TV and then buying it. It’s always cheaper to buy a previously rented TV”.

Sounds neat, but it is fallacious. A TV is a depreciating asset.

In a contract assignment, a human being is trained, absorbing the company culture, and learning the systems, which means they are an appreciating asset.

The perm fee should be more, not less.

And one more thing…

Don’t pro-rata perm fees for long-term contract assignments. That’s dumb. We lose. Keep the distinction between temp and perm crisp and clear. (I know in some countries our hands are legally tied on this, but it’s just about negotiation in many countries.)

If it is a fixed-term assignment, it’s a contract role; therefore, it’s a timesheet hourly rate with our margins on top, or it’s a fixed weekly or monthly rate. Don’t think, “Well, it’s a six-month role, so we will divide our perm fee by two because it’s half a year”.

Do the arithmetic!

A perm fee at 20% for 75,000 placement is $15,000

If a client wants to pay half the perm fee because it’s a six-month gig, then you get $7,500

But the margin you will earn on a $75k level person on a temp basis for six months at a 55% markup is approximately $19,000

$7,500 vs $19,000

You can see why the client likes the idea!

Sure, if the client wants to pay a perm fee instead of a margin for a six-month gig, for example, that’s cool. But it’s the full perm fee. The client will still pay less than the equivalent margin, i.e. $15,000 vs. $19,000.

But you get a full fee, and that’s fair and proper.

(Of course, the client will get cold feet about this when they think about it. “So if I pay the perm fee, the person is on our payroll?” YES. “Aha, but that’s a hassle”. YES. “And then if they leave after 8 months, you will replace them?” NO. “But I want that reassurance?” COOL > PUT THEM ON TIMESHEETS. Bang. The value of Temp starts to become more evident!

If you are not convinced, think about this. If you owned an investment property and rented it for five years to a lovely young couple, and then they wanted to buy it from you, would you give them a 25% discount off the sale price because of the rent they had previously paid? I don’t think so. So why do you give your temps away cheap?

Believe me on this. We have NOTHING else to sell besides our service and talent skills.

Believe in the value you bring

Don’t give away the farm.

****************************

Action Steps

Run an internal session on the cost of a Temp and our real value

Train your recruiters to push back on T2P fees

Revamp your terms of business with clear guidance on T2P

Walk away from clients who demand free or almost free conversions

Subscribe to the Savage Recruitment Academy, which has all this and much more.
...
Source - Original Article by Greg Savage

The workplace is at an inflexion point. Rapid advancements in AI, intensifying polarization, eroding employee perks and protections, and shifting employee expectations are transforming the role of HR in unprecedented ways. These trends demand bold, strategic responses from HR leaders who must balance technological adoption with human-centred leadership, global instability, and increasing demands to do more with less.

After taking last year off, I’m back to weigh in on the evolving landscape of HR and people operations in the new year. You can check out past year predictions for 2023, 2022, 2021, and 2020. (Looking back, I had more hits than misses, although I’m still haunted by that Metaverse pick. Alas, Zuckerberg.)

So, what will the HR landscape look like in 2025? From redefining job roles in the age of AI to reimagining the workplace, HR leaders are navigating uncharted territory. The future demands agility, and HR is again at the helm of this change.

Here are seven key trends reshaping the future of work.

1. AI automation will reimagine your job

Will AI take your job — or make it better? In 2025, the rise of agentic AI and automation is poised to reshape job roles, deconstructing traditional responsibilities and redistributing tasks between humans and machines. This shift is already underway: A McKinsey report notes that AI could automate up to 70% of routine tasks in sectors like finance, retail, and customer service.

The coming result is a hybrid workforce model, where AI agents handle routine tasks while humans focus on complex problem-solving. For HR leaders, this evolution means redesigning roles to reflect these synergies, updating performance metrics, and realigning recruitment strategies to prioritize creativity, emotional intelligence, adaptability, and the ability to learn.

This transformation offers opportunities and challenges. Companies leveraging AI effectively see improved productivity, yet employees often express understandable concerns about job security. By addressing these anxieties with transparent communication and robust reskilling programs, HR can ensure automation enhances — not replaces — human contributions.

2. We’ll need to get serious about AI and hiring

What happens when your next interview isn’t with a person? Companies including EY are already using AI avatars to allow candidates to practice interviews. Chipotle has partnered with Paradox to create a virtual team member called Ava Cado, and expects conversational AI tools to reduce time to hire for restaurant positions by 75%. This is just the beginning.

In 2025, AI-driven avatars will be used by more companies to conduct interviews at scale. A recent study found 70% of companies will use AI for hiring in 2025, with 24% saying they currently use “AI for the entire interview process” — a statistic surely to be appreciated by law firms, as I’ll explain in the next prediction.

Expect job seekers to match this embrace of AI.

Job applicants are already using tools like BulkApply.ai, Sonara, and LazyApply to mass apply to numerous jobs. Companies are seeing as much as a threefold increase in job applicants according to a report by recruiting software company Ashby, overwhelming recruiting teams and clogging applicant funnels.

As organizations grapple with these challenges, onsite interviews will make a comeback as a safeguard against AI-driven deception and to evaluate interpersonal skills that technology can’t measure.

Ethical implications loom large. Misuse of AI could lead to discriminatory practices or undermine trust in the hiring process. HR leaders must create protocols to verify candidate authenticity while maintaining fairness and equity.

We’re already in uncharted territory and the clone wars are just beginning.

3. AI in hiring will go under a legal microscope

Hiring decisions made by machines will come under fire this year. The rapid advancements of AI are outpacing its regulation but the policies are catching up.

Last year the European Union approved the EU AI Act, including heavy fines for employers using AI as an “emotional recognition” system. In the United States, things are even more complicated, as current AI regulations have been driven more on a state-by-state basis, with California striking down an AI safety bill that would have mandated a “kill switch” for rogue AI technologies.

This lack of overarching rules and regulations will make it increasingly difficult for HR teams to ensure compliance at the same time they are under immense pressure to adopt AI tools and realize their benefits.

The U.S. Equal Employment Opportunity Commission has declared that employers — not software vendors — bear responsibility for discriminatory AI outcomes, placing HR leaders in the spotlight.

A study by the Brookings Institution highlights the risks: Poorly designed algorithms can perpetuate biases in hiring, excluding qualified candidates based on gender, race, or socioeconomic factors. This year organizations face heightened pressure to audit their AI tools for compliance with antidiscrimination laws or risk financial penalties and reputational damage.

Proactive measures are nonnegotiable. HR teams must collaborate with legal experts to evaluate hiring technologies and ensure transparency. Equally important is educating leadership about the potential risks and ethical considerations of AI-driven recruitment.

4. DEI strategies will evolve amid backlash

As political headwinds intensify, diversity, equity, and inclusion programs are becoming both a target of controversy and a litmus test for organizational values.

While some companies scale back their efforts under societal or investor pressure, others are strategically reframing their approach to avoid backlash. Despite the political discourse, the financial argument for DEI remains robust. World Economic Forum research shows companies with above-average diversity scores drive 45% average revenue from innovation, while companies with below-average diversity scores drive only 26%.

HR leaders face a choice: Adapt and evolve these initiatives or risk losing credibility with employees and stakeholders. Strategies must be measurable, impactful, and shielded from performative tendencies. True impact requires measurable goals, transparent progress reporting, and initiatives that resonate with employees at every level.

HR leaders must navigate this complexity with both pragmatism and purpose, ensuring their strategies reflect substance over symbolism.

5. Leaders will prioritize efficiency

“Do more with less.” This mantra has become the defining ethos of corporate America heading into 2025. Inspired by Elon Musk’s high-profile DOGE (Department of Government Efficiency) cost-cutting strategies, organizations are embracing efficiency as the ultimate goal. AI and automation tools are leading this charge, promising faster workflows and reduced redundancies.

But at what cost? The relentless drive for productivity risks alienating employees, undermining morale, and increasing burnout. The pendulum has swung firmly away from the employee-first ideals of The Great Resignation, leaving HR in a precarious position.

Success will depend on creating strategies that prioritize technological integration while safeguarding the employee experience. The question is no longer whether organizations can do more with less, but whether they can do better with less — without losing their most valuable resource: their people.

6. Learning and development will take centre stage

Is your organization prepared for the generative AI revolution? In 2025, learning and development (L&D) is no longer a supplemental function but a critical driver of organizational success. As automation transforms industries, the World Economic Forum estimates that 50% of all employees will require reskilling by 2025 to remain competitive in the labour market.

Leading companies are already adapting. Walmart, for example, has pioneered skills-based training programs aligned with individual career trajectories, setting a benchmark for others to follow. This approach resonates with employees: LinkedIn’s Workplace Learning Report found that 94% of workers would remain longer at organizations that prioritize their development.

Microlearning platforms are emerging as key enablers, offering short, targeted modules designed for maximum engagement and efficiency. Yet HR leaders face the challenge of ensuring these programs align with broader organizational objectives. By embedding training into corporate strategy, companies can build a workforce that thrives amid rapid change.

7. Certain entry-level roles will face extinction

What happens when machines take over entry-level jobs? Automation is rapidly reshaping the labour market. These shifts are eliminating tasks traditionally performed by early-career professionals, such as data entry, research, administrative work, and basic analysis.

This erosion of foundational roles creates a critical challenge for organizations and job seekers alike. Without entry-level opportunities, young professionals risk missing out on the experiences that build essential skills. For HR leaders, the solution lies in innovation: rotational programs that expose employees to multiple departments, hybrid roles blending human oversight with AI, and structured mentorship initiatives.

One way to solve for this is to redesign career pathways to include mentorship programs, internships, and AI-human collaboration opportunities, ensuring that young professionals continue to build essential skills.

2025 and Beyond: HR’s role in Building the AI-enabled Future Workforce

The next chapter of work in 2025 is neither purely technological nor purely human — it’s the seamless integration of both. HR leaders who rise to the occasion will shape workplaces where innovation thrives, employees feel valued, and organizations achieve unprecedented success.

The stakes couldn’t be higher in this first year of broad AI adoption: The choices made today will define the talent landscape for a generation.

This post was originally published by Fast Company.

Lars Schmidt is the founder of Amplify Talent, a firm that connects, develops, and empowers the next generation of transformative people leaders through HR executive search and the Amplify Talent leadership development community. He has spent over 25 years advocating for progressive people practices, sharing views in his Fast Company column, the bestselling Redefining HR book, and other platforms.
...
Originally published on LinkedIn

Quick, what do you think’s the fastest-growing job in the world? If you guessed it has something to do with AI, you’re right. But what’s surprising is how many quickly growing jobs are not tech-related at all. In fact, they’re downright human. 

That’s what we learned from the Jobs on the Rise reports LinkedIn released earlier this month. These reports examined LinkedIn data from 21 countries to calculate the job titles experiencing the highest growth rates from January 1, 2022, to July 31, 2024, in countries across the Americas, Asia, Europe, and the Middle East.

Overall, we found that technology continues to be the fastest-growing industry, a trend that has remained consistent over the last few years. Every one of the countries we looked at included some kind of tech role among its top 10 fastest-growing roles. But post-Covid, people are also eager to step away from their computers and see the world again, which has resulted in a spike in both travel and hospitality jobs. And because the planet continues to grapple with climate change, there’s a growing demand for green jobs around the world.

To see the results for each country from our Jobs on the Rise reports, click on any of the links here (we’ve provided a peek at each country’s top three):

Australia

1. English as a second language teacher

2. Server

3. Travel Specialist

Brazil

1. Chief revenue officer

2. Process safety engineer

3. Neuropsychologist

Canada

1. Flight attendant

2. Partnerships manager

3. Audio visual technician

France

1. Quality inspector

2. Admissions specialist

3. Accounting analyst

Germany

1. Energy specialist

2. Business process owner

3. Employer branding specialist

India

1. Aircraft maintenance engineer

2. Robotics technician

3. Closing manager

Indonesia

1. Travel consultant

2. Cyber security engineer

3. Security operations center analyst

Ireland

1. Fundraiser

2. Learning Specialist

3. General practitioner

Israel

1. Marketing manager

2. Field application engineer

3. Artificial intelligence researcher

Italy

1. Travel consultant

2. Artificial intelligence engineer

3. Human resources administrator

Mexico

1. Key account sales manager

2. Sustainability manager

3. IT architecture specialist

Netherlands

1. Artificial intelligence engineer

2. Business director

3. Information security officer

Saudi Arabia

1. Building information modelling coordinator

2. Media Buyer

3. Human resources onboarding specialist

Singapore

1. Food and beverage assistant

2. Artificial intelligence researcher

3. Electrical and instrumentation technician

Spain

1. Travel advisor

2. Software specialist

3. Aircraft maintenance technician

Sweden

1. Treasury manager

2. Platform engineer

3. Data center technician

Switzerland

1. Treasury manager

2. Cyber security specialist

3. Accountant

Türkiye

1. Machinist

2. Contract specialist

3. Aircraft technician

United Arab Emirates

1. Media Buyer

2. Artificial intelligence engineer

3. Real estate consultant

United Kingdom

1. Artificial intelligence engineer

2. Home health aide

3. Aircraft mechanic

United States

1. Artificial intelligence engineer

2. Artificial intelligence consultant

3. Physical therapist

Engineer roles are growing quickly, with AI leading the way

It probably won’t come as a shock to anyone that the role that appeared on the most lists in our sampling is — drumroll, please — AI engineer. This role is so hot that 15 of the 21 countries listed it among its fastest-growing roles. And in the U.K., Singapore, the Netherlands, and the U.S., it topped the list. AI researcher was also a quickly growing role, appearing on three countries’ lists.

And it’s not just AI engineers that are in demand. Companies are looking for engineers, period. We found 26 different types of engineers on our lists, including cybersecurity engineer, platform engineer, machine learning engineer, and performance engineer. 

Unfortunately, there continues to be a gender gap in engineering and technology roles. In the U.S. alone, only 20% of AI engineers are women, as are 26% of AI researchers and 17% of nuclear engineers. This presents a huge opportunity for both universities, who can encourage women to study engineering and STEM subjects, and companies, who can hire them.

Reskill/upskill with LinkedIn Learning courses, unlocked through February 14, 2025:

• AI Engineering Essentials: Navigating the Tech Revolution with Jon Maeda, VP of AI and design at Microsoft
• Reimagining Skills in the Age of AI with Aneesh Raman, chief economic opportunity officer at LinkedIn
• Platform Engineering Foundations with David Swersky, customer engineer at Google
• Introduction to Prompt Engineering with Ronnie Sheer, senior AI engineer and founder and CEO of Smart Plan
• Foundations of Detection Engineering with Eric Wilson Thomas, threat detection and incident response engineer at HD Supply

Up, up, and away: Travel roles rebound after Covid

Now that the pandemic is (mostly) in the rearview mirror, people want to roam the world again, resulting in a rebound for the travel and hospitality industry. If you need proof, consider this: Travel advisors (called travel consultants or agents in some countries) appeared on the lists of 12 countries. In Spain, Italy, and Indonesia, they topped the list.

Of course, as people roam, they need to eat, so food and beverage supervisors showed up on the lists of Canada, Indonesia, India, and Germany. They also need to fly, which has led the airline industry to take off. Aircraft mechanics appeared on the lists of fastest-growing jobs in eight countries; pilots in three; and flight attendants in another three. Bon voyage!

With the threat of climate change, demand for green talent continues to grow 

In the past, Europe has been a hotbed for green jobs. And while that’s still true, the demand for green talent is spreading. 

We found 10 different environmentally focused jobs among the fastest-growing roles. These included sustainability specialist, sustainability analyst, environmental officer, and energy consultant. 

Among the countries we examined, the Netherlands leads the way, with three of its 15 fastest-growing roles being green. But the need for environmental talent has now scattered across the globe, from Saudi Arabia to Türkiye to Canada, India, and Brazil. The industry is growing so quickly that 15 of the 21 countries listed at least one green job among its fastest-growing roles.

These numbers echo what LinkedIn found in its Global Green Skills Report 2024: that demand for green talent grew twice as quickly as supply between 2023 and 2024. The report also found that the workplace will need to double the size of the green talent pool by 2050 to keep pace with projected demand.

Reskill/upskill with LinkedIn Learning courses, unlocked through February 14, 2025:

• An Introduction to AI and Sustainability with Amy Luers, global director of sustainability science at Microsoft
• Closing the Green Skills Gap to Power a Greener Economy and Drive Sustainability with Sue Duke, VP of global public policy at LinkedIn
• Introduction to ESG: Environmental, Social, and Governance with Fulya Kocak Gin, award-winning sustainability leader and advisor 
• Cert Prep: LEED Green Associate with Fulya Kocak Gin
• Lean Principles for Environmental Sustainability with Sam Yankelevitch, author,trainer, and international conference speaker

The surprising role that’s growing quickly around the world

In a sign of the times — and perhaps an indication that people could use more than a vacation — psychotherapist/psychologist was among the fastest-growing roles in five countries: Canada, Singapore, Ireland, Indonesia, and India. In Brazil, two mental health titles, neuropsychologist and pediatric psychologist, were the third- and sixth-fastest-growing roles respectively. Based on these findings, it seems that people are struggling, globally, and could use some help.

Or maybe they just need a trip to Australia, where (restaurant) server, travel specialist, and sommelier ranked as the second-, third-, and fourth-fastest-growing roles.The first? Teacher of English as a second language. 

Judging by the Australian labor market, one might guess that all you need is a good meal, a glass of wine, and a plane ticket to someplace fun. Beyond that, it's no worries, mate: There’s more to life, and the workplace, than AI.
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The Department of Labour and Employment has published a new Draft Code of Good Practice on Dismissals, which introduces a system for possible retrenchments.

The draft code was gazetted in accordance with the Labour Relations Act (LRA) on 21 January 2025 and was signed by Minister of Employment and Labour, Nomakhosazana Meth.

Cliffe Dekker Hofmeyr noted that the draft code emphasises that the purpose of a fair procedure is to foster dialogue and reflection.

This fair procedure allows an employee to respond to allegations of misconduct.

The draft code also states investigations and enquiries into misconduct can be informal, with their nature tailored to the specific context and size of the employer.

They can also look into the frequency and severity of the misconduct in question.

Cliffe Dekker Hofmeyr said that his approach is consistent with the decriminalisation of disciplinary processes.

The draft code also includes guidelines on dismissals due to operational requirements, which were previously absent from the existing Code of Good Practice on Dismissals.

It was instead found under a separate Code of Good Practice on Operational Requirements.

The Draft Code’s proposed Annexure A also states that notices given in terms of section 189 of the LRA should be given in this form.

This relates to notices of possible retrenchments.

Interested parties will have 60 days, until 22 March, to submit their proposals to the Department of Employment and Labour.

The Draft Code of Good Practice on Dismissals can be found below:

This is not the first major update from the Department of Labour this year, with the Employment Equity Amendment Act (EEAA) coming into force on 1 January 2025.

The new laws, which were signed by President Cyril Ramaphosa in April 2023, took time to be implemented amid extreme backlash.

Most of the changes in the EEAA are specific to employers with over 50 employees, called designated employers.

The most noteworthy of amendments allow the Minister Meth to set numerical targets for the 18 different sectors identified by the Minister.

The amendments are set to introduce sectoral numerical targets to ensure that there is an equitable representation of historically disadvantaged groups.

This includes race, gender and disability at all occupational levels in the workforce.

Designated employers will need to comply with sectoral targets once the laws are enforced.

Two separate draft regulations that set out the proposed sectoral targets have already been published.

However, Minister Meth is yet to issue a final version of such regulations.

Despite the regulations not being published, employers were still expected to submit their Employment Equity (EE) reports for 2024 earlier this month.

The deadline for employers to submit their 2024 Reports (EEA2 & EEA4 forms) was midnight on 15 January 2025.

That said, the Department of Employment and Labour said that employers are expected to use EE legislation that predates the latest amendments.
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Originally posted on BusinessTech

When providing temps the TES is deemed to be the employer and therefore responsible for fulfilling all obligations contained in the Basic Conditions of employment Act and any other statutory requirements.

Please note that these calculations are based on the Basic Conditions of Employment Act and do not consider any specific bargaining council agreements. The recruiter must thoroughly investigate whether any bargaining council agreements operate within a specific client’s industry sector before agreeing a rate.

To properly mark up the temp rate, the TES must consider the costs of managing the temp contract. These could include:

Payroll costs – software, pay slips, bookkeeper etc.

Bank fees – payment of the temp

Salary

Administration

Mark ups vary, depending on internal structures and cost centres. All TES agencies must comply with the same statutory requirements. In general, temp mark ups (including all costs and profits) are between 40 and 50% (including the 20.59% statutory cost as per below). For example: If you pay the temp R20 per hour then you’d likely charge the client R30 per hour.

STEP ONE: Calculate the Number of Working Days per Annum

You must accumulate a provision to pay out a benefit on each hour that the person works.

The temp can only accumulate whilst the person is working. Theoretically one should also take off days for when the temp is sick, but for simplification it has not been done in the example below.

Days in a year 365

Weekends -104

Annual leave -15

Sick leave 0

Family responsibility 0

Paid public holidays -12

234

STEP TWO: Calculation to arrive at the % for accumulation of benefits provision

Statutory benefits Benefit days Calculation Accumulation %

Annual leave 15 15/233 6.41%

Sick leave 10 10/233 4.27%

Family responsibility 3 3/233 1.28%

Paid public holidays 12 12/233 5.13%

17.09%

STEP THREE: Calculation of Statutory Costs

Unemployment Insurance Fund (UIF) 1.00%

Skills Development Levy (SDL) 1.00%

COID 1.50%

Benefits provision 17.09%

TOTAL STATUTORY COST % 20.59%
...
by Danielle Statham

Many business leaders are still struggling to engage Generation Z, the group born between the mid-1990s and 2010. Others are already agonising over the next generational cohort: generation Alpha (and 2025 officially heralds the arrival of Generation Beta). Yet the greatest opportunity lies in building engagement across generations through an intergenerational approach to workforce management.

Today’s workforce comprises up to five distinct generations, each with varied work habits, expectations and communication styles. And, for a growing number of businesses, the customer base is just as age-diverse.

For example, we know that Gen Z is driven by purpose. Gen-Z employees typically prefer to work for organisations that align with their values, which include flexibility and work/life balance. They also want to learn and develop new skills.

If you employ Zoomers or want to engage them as customers, you need to communicate your values and mission. You also have to explain how their work or brand loyalty creates a positive impact, not just for you but also for society.

To appeal to younger generations, employers should embrace hybrid working and be sure to offer training and mentorship schemes. This will also help to future-proof your organisation, as the latest studies indicate Gen Alpha’s expectations and priorities will be a more refined version of Gen Z’s.

Managing five generations of workers

An intergenerational approach, however, focuses on more than one age group of customers or employees. It takes in multiple age groups, recognising the strengths and perspectives of each and responding to their wants and needs.

• Traditionalists: Value discipline, loyalty and respect for authority
• Baby boomers: Value teamwork, stability and a strong work ethic 
• Generation X: Value autonomy, work/life balance and adaptability 
• Millennials: Value purposeful work, diversity and personal growth
• Generation Z: Value truth, communication and flexibility

While it’s easy to focus on differences, all of these groups share a desire for personal growth, professional development and the opportunity to contribute to the world around us. It’s therefore useful for employers to think beyond merely managing different age groups and instead think about building strategies to unleash the potential of these groups.

With the number of over-65s in the workplace growing, there may be a considerable age gap between the youngest and oldest employees in a typical organisation. And, it’s increasingly common for managers to be younger than those they lead. This poses both challenges and opportunities for leaders looking to shape future business strategies, workforce plans and customer engagement.

The bigger the age gap between an older manager and a younger employee, for example, the more likely it is for the younger employee to be unhappy and unproductive, according to a recent study by the London School of Economics. Yet if the situation is reversed, with an older worker reporting to a younger manager, there is no such drop in productivity, suggesting some leaders don’t make the most of the knowledge and skills of younger team members.

Getting the best from a multigenerational workforce

Ultimately, unleashing the potential of an intergenerational workforce is about listening, adapting and adopting more inclusive practices.

The big shift of the past 30 years, from work-centred ideologies to person-first mindsets, requires a more nuanced understanding of what different people need to perform at their best, and the development of work cultures that empower everyone, regardless of age. 

This will naturally mean shifting to a more merit-based approach, rather than one driven by seniority, to get the best from younger team members. It will require various forms of flexibility to accommodate all employees, including older workers as we’ll want to retain their wisdom and the cognitive diversity they bring.

It will also mean learning to communicate more effectively for what will be a more community-based exchange rather than a top-down transactional approach to leadership.

Finally, it will mean tackling age stereotypes by encouraging open and honest conversations about assumptions and misunderstandings that can prevent teams and organisations from achieving success.
...

Sairah Ashman is the global CEO at Wolff Olins, a brand consultancy.
Originally published in the Raconteur

Putting purpose first

We will continue to link our company purpose to our people strategy in 2025. Mony Group’s purpose is to help households save money, which fits in the context of our wellbeing and people strategy. We’ve been reflecting that purpose to our employees through our Big Money Workshop, where we hold seminars and focus groups on personal financial well-being.

People want to see that the company purpose is congruent with the employee experience. The cost-of-living crisis hasn’t completely gone away, so supporting employees with financial wellbeing will be important to us.

This will also play a central part in our talent-attraction strategy. I think we will see more movement in the job market in 2025 than we saw in 2024. A lot of people sat tight in their roles last year but the job market tends to be cyclical. We must continue to invest in retention and engagement to hold on to our talent.

While some companies are going back to five days a week in the office, we feel very comfortable and confident with our two days in the office and flexible work-from-anywhere programme. We’ve recently invested in our offices in London to improve our hybrid working spaces and really maximise their effectiveness. I don’t think our approach is going to change here. 

AI is obviously also going to play a big role, but I will be moving from using AI bots to AI agents and reviewing how we train our staff to work harmoniously with the technology. We’ve moved beyond the initial fear that AI could take away jobs. People are now understanding that this technology can help them in their day-to-day work.

I think the productivity benefits offered by AI will feel less conceptual and more tangible this year and getting our employees ready for that will be important.

Identifying future skills

We’re hearing more and more about advancements in AI and automation, so it will be interesting to see what happens over the next 12 months. Some AI tools have become much more accessible than they once were and organisations are starting to get to grips with them now that some of the security and data questions have been answered. 

We’re at a interesting point when it comes to the masses' adoption of AI. There has been a good level of adoption so far but I think we will start to see a greater adoption in very defined pockets of businesses. Used correctly, AI can augment roles, rather than automate or replace them, so I’m keen to see what happens there. 

The other priority is understanding our future skills needs. We did some of that work in Zurich five or six years ago. Now, it’s time for us to review this and get clarity about the skills we need to recruit for in the future. 

We will always need core insurance, underwriting, claims and risk-management skills, but I see a significant increase in demand for data-analytics skills. People must have the ability to analyse and use data effectively in almost every role moving forward. 

Lastly, many organisations are doing much better when it comes to diversity, inclusivity and belonging. Our gender pay gap has almost halved since 2017 [the median gap shrank from 27.4% in 2017 to 15.5% in 2024]. From my perspective, our company has done a good job on gender diversity but there is a lot of work for all of us to do when it comes to improving the representation of ethnic minorities and better reflecting the communities we operate in.

Getting people back together

The use of AI will continue to pick up in 2025 for a couple of reasons. Every business is being asked to do more with less and really look at free cash flow to demonstrate the health of the business. 

As an HR leader, this has made me look at what can be automated and how we can get work done more effectively and efficiently with AI. This doesn’t necessarily mean we’re going to lay off employees who are currently doing those jobs, but it may enable them to do higher-order work or be retrained in other areas. These workers have institutional knowledge and we want to keep that in the company. 

Employee engagement will also be a priority. Hybrid working has made this harder as people are scattered across the country and don’t all live close to a central office. 

It’s both a big challenge and an opportunity for HR. We’re going to have to personalise the way we communicate with our employees and manage their performance, as well as the way they provide feedback. 

We’re going to continue to be remote-first, as that has opened up the talent pool for us. But we are going to invest in some employee travel and drop-in offices for team-building, problem-solving sessions and socialising.

I hope these will encourage more of the unstructured conversations that used to happen in the office, when people chatted while making a cup of coffee. I think that can make the difference.
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Originally published on the Raconteur.net

A third of major companies in South Africa say that they plan to remove the requirement to have a degree for certain jobs to expand their talent pool and take employment in the country.

This shift, highlighted in the World Economic Forum’s (WEF) Future of Jobs Report 2025, signals a significant move toward creating more accessible pathways to emerging roles, especially as the job market evolves.

The report, which surveyed over 1,000 companies globally, including representatives from South Africa, noted that growing digital access is expected to generate 19 million new jobs by 2030 while simultaneously displacing 9 million.

In Sub-Saharan Africa, 64% of businesses identified the focus on labour and social issues as a key trend shaping their strategies through 2030.

Other factors, such as rising living costs and expanding digital access, were also flagged as critical by 59% of respondents.

In South Africa, where unemployment remains a pressing issue, these developments are particularly significant.

The unemployment rate stood at 32.1% as of November 2024, one of the highest globally, and the extended definition, which includes discouraged job seekers, puts this figure at a staggering 41.9%.

Despite these challenges, businesses are working to address perceived skills gaps—cited by more than 60% of South African companies as a major obstacle to transformation—through targeted initiatives.

To adapt to the rapid evolution of the job market, companies are increasingly prioritising upskilling and reskilling programmes.

Roles in artificial intelligence, machine learning, and robotics are gaining prominence, and the WEF projects that AI and data processing alone will create 11 million jobs while replacing 9 million.

This rapid turnover underscores the need for continuous learning, with 39% of workers’ key skills expected to change by 2030.

One of the most transformative strategies outlined in the report is that 34% of companies plan to eliminate degree requirements for certain positions.

This approach aims to broaden access to high-demand roles that do not necessarily require formal academic qualifications but instead emphasise practical skills and adaptability.

It represents a critical shift in how talent is assessed and matched to job opportunities, particularly in a country like South Africa, where access to higher education remains a barrier for many.

In addition to addressing skills gaps, South African companies are investing in diversity, equity, and inclusion (DEI) programmes.

The WEF report notes that 55% of local employers aim to target individuals from disadvantaged religious, ethnic, or racial backgrounds, and 41% plan to support those from low-income communities.

These initiatives not only help to diversify the workforce but also contribute to a more equitable job market.

This focus on creating accessible opportunities comes against a backdrop of declining hiring activity, as observed in CareerJunction’s Employment Insights Report, which recorded a 7.2% drop in hiring over the past two years.

However, the removal of degree requirements and investment in DEI initiatives offer a glimmer of hope, potentially driving more inclusive economic growth.
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Originally published on BusinessTech