Redefining the Workplace

How businesses are adapting to changes and challenges in attracting, hiring, and retaining talent.

By Irene Maslowski, Contributing Writer On Mar 5, 2025

It’s not surprising that the role and function of human resources (HR) has undergone a profound transformation over the past few decades in attracting, hiring, and retaining top talent. What was once primarily an administrative function – handling tasks such as payroll, tracking sick days and vacation time, and managing health benefits – has now evolved into a central strategic role at the management level.

Since the onset of COVID-19, the role of HR has experienced an even greater paradigm shift. While the pandemic acted as a catalyst for change, many employment trends were already emerging beforehand, presenting both challenges and opportunities. Workplace flexibility, a focus on mental health and wellness, and the impacts of globalization and workforce diversity have continued to gain momentum.

To address these challenges and seize new opportunities, businesses are increasingly adopting advanced technologies, automation, digital communications, and now Artificial Intelligence (AI) to stay competitive. HR, in particular, has begun leveraging AI to enhance talent acquisition, streamline the hiring and onboarding processes, and ensure employee retention.

“AI is an excellent tool for saving time and identifying candidates,” says Judy Sailer, director of learning and development at Primepoint HR & Payroll, in Westampton. “It enables the recruitment of candidates from around the globe, fostering positive global relations, and a deeper understanding of diverse cultures. It also expands hiring opportunities beyond the limitations of a local talent pool.

“While AI is a great tool in saving time and finding talent, it has to be monitored. Algorithms with no oversight can eliminate a candidate who could have been a great hire,” Sailer points out. “For example, we have seen organizations where AI ‘learned’ the type of candidate it thought the organization wanted based on the candidates that were chosen. That ‘learning’ can eliminate some who may have several high-level qualifications, but did not check the box for what the AI thought the organization wanted.” 

This happens when the algorithm might be programmed to only focus on that one area, and eliminate a candidate without focusing on the other credentials. Some recruitment programs use what’s known as “knock out questions.” A skill, license, or certification that is important to the position can be defined, such as a driver’s license. If the candidate meets the criteria they go to the next step in the hiring process, if not, they are automatically rejected. “That’s where the human element becomes essential,” Sailer emphasizes. “While data and technology are invaluable in streamlining the hiring process, nothing can replace the importance of a human conversation and a one-on-one interview. It’s in these interactions that we can pick up on nuances – how a person acts, feels, and works and if they are truly qualified. AI is time efficient, but not human intelligence.”

While COVID initially forced most people to work exclusively from home, recently there have been a growing number of companies mandating a return to the office, including major organizations like JPMorgan Chase and Goldman Sachs. According to HR Executive, 33% of US companies now require employees to work in person. However, many organizations continue to offer flexible work options to balance business goals with employee needs.

While flexibility is a valuable benefit for workers, in-person connection remains crucial, notes Annette Matheney, senior HR consultant, Crothers Consulting in Randolph. “COVID disrupted the bonding that naturally occurs in many workplaces, which is hard to replicate in a remote environment. Isolation can impact mental health and lead to decreased productivity and absenteeism, which negatively impacts a company’s bottom line.”

According to Matheney, being together in person provides an opportunity to observe certain nuances from working alongside each other, such as how we manage a workload, and interact with those who manage us, and those we manage. When companies are hybrid, HR pros need to be on the ground as well, so they can feel the pulse of what is happening within the environment. 

“The challenge for any company that lacks flexibility is the risk of losing valuable employees to competitors,” she explains. “Replacing even a single employee can cost up to a year’s salary when you factor in expenses such as advertising the position, the recruiter’s time to review applications, conducting background checks and interviews, and, if hired, the onboarding process.”

While workplace flexibility is important, there are other factors that influence whether an employee decides to stay or leave. A recent analysis published by ADP Research, the research arm of Roseland-based ADP (Automatic Data Processing), a technology company that provides human capital management (HCM) solutions and business outsourcing services, highlights that employees who are motivated and committed to their jobs are less likely to leave their organizations. Data collected from an ongoing monthly survey of 2,500 US workers suggests that trust in co-workers, managers, and senior leadership plays a critical role in employee retention. 

“One of the biggest factors in employee retention today is trust,” comments Jay Caldwell, chief talent officer of ADP. “Employers need to trust their employees to make the right decisions, and employees need to trust their senior leadership.” He emphasizes that while employees want flexibility, they also require autonomy and freedom. They ideally would be given the opportunity to make decisions, assemble their teams, and develop problem-solving approaches within the organization’s boundaries.

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