News Spotlight

Burnout needs systemic change, not breaks. Burnout isn't merely alleviated by short-term rest; instead, it requires organizations to overhaul workplace conditions and adopt a growth-oriented approach to personal development, addressing systemic issues contributing to chronic stress.
– MIT Sloan

AI will reshape every job — inevitably. Walmart’s CEO Doug McMillon warns that artificial intelligence is poised to fundamentally transform every role in the company — eliminating some positions, creating others, and shifting how work is done — though the total workforce count may remain stable.
– Wall Street Journal​

Corporate dysfunction stems from broken loyalty. AT&T's CEO John Stankey's candid memo acknowledging the company's shift away from loyalty-based employment reflects a broader trend in corporate America, where eroded trust and transactional relationships have led to dysfunction, and advocates for rebuilding loyalty through transparency, care, and mutual respect.
– Business Insider​

Stat of the Week

A new study finds that 63% of job seekers say it is ethical to use AI to improve resumes or applications, and 67 percent of hiring managers agree.

HR leaders should recognize that there is a growing consensus among both job seekers and hiring managers that using AI to improve resumes and applications is ethically acceptable. This signals a shift in candidate expectations and workforce norms, where leveraging AI is seen as a tool to level the playing field rather than gain an unfair advantage. HR should proactively update policies and communication around AI-assisted applications, ensuring transparency, fairness, and consistent evaluation standards. Additionally, organizations can consider providing guidance or resources on ethical AI use in job applications, fostering trust with candidates while maintaining integrity in the hiring process.

Deep Dive Article
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From Gaps to Growth: Building the AI-Enabled Workforce

Organizations in 2025 are facing a perfect storm of disruption. Rising costs, shifting market conditions, global trade volatility, and rapid advances in artificial intelligence are colliding in ways that leave little room for linear planning. Companies can no longer simply set a course and expect to follow it steadily—they must adapt in real time. In this environment, resilience, agility, and leadership capability are no longer luxuries but necessities.

Two recent reports by Heidrick & Struggles shine a spotlight on what it will take to succeed. The 2025 Skills Index , identifies the most in-demand and fastest-rising skills that organizations are seeking to navigate uncertainty. Also, Heidrick & Struggles’ new CPO focus: Leadership essentials for an AI-enabled HR function article on the evolving role of the Chief People Officer underscores how HR leaders are leaning on AI to accelerate transformation of their function and create more adaptive organizations. Together, these publications reveal the skills gaps, leadership challenges, and technology imperatives shaping the future of work.

The key insight is that leadership and skills development must now be understood as part of an AI-enabled ecosystem. Forty percent of CEOs and board members report having only some or no confidence in their organizations’ ability to deliver on strategic plans this year, while 63% of employers say skill gaps are blocking transformation. Closing these gaps will require bold leadership, investment in new capabilities, and thoughtful adoption of AI across the enterprise.

The Most In-Demand Skills for 2025

The 2025 Skills Index highlights the capabilities organizations are prioritizing to stabilize operations and pursue growth. At the top of the list are financial controls, accounting, and audit—reflecting the need for fiscal discipline in uncertain times. Organizational design and workforce planning also rank highly, signaling demand for leaders who can reshape teams and talent models for greater agility.

Other essential skills include project management, strategic planning, and technology implementation. Notably, AI and machine learning now sit firmly in the top 10 most sought-after capabilities. This indicates that companies are moving from experimentation to real deployment of AI tools, with a focus on use cases that create measurable business impact. As noted in the CPO research, HR leaders are especially focused on integrating AI into core people processes—such as recruiting, performance management, and workforce analytics—so that decisions can be faster, more data-driven, and more equitable.

The Rise of Interim Leaders and Experts

One of the biggest shifts is the surge in demand for interim leader and executives. As volatility increases, companies need access to leaders that can step in quickly, manage high-stakes initiatives, and plug critical skills gaps. This “on-demand leadership” model gives organizations flexibility while ensuring that complex transformations aren’t delayed by lengthy executive searches, or if the need within the organization requires a specific expertise for a finite period, or by augmenting existing executive teams as remits expand.

This trend also reflects a deeper reality: there is a chronic shortage of leaders with the skills needed to manage through complexity. By tapping into flexible talent pools, companies gain access to specialized expertise in areas like portfolio reshaping, supply chain redesign, and post-merger integration—skills that ranked among the fastest-rising in demand for 2025. For HR leaders, this shift underscores the importance of rethinking workforce strategies to blend full-time, interim, and project-based roles seamlessly.

Financial Resilience Meets Strategic Agility

The Skills Index makes clear that organizations are doubling down on financial resilience. Skills in financial planning, analysis, and modeling are among the most requested, as companies look to improve forecasting and strengthen decision-making. At the same time, there is rising demand for growth strategy, corporate and business unit strategy, and innovation. This mix reflects the dual imperative leaders face: tighten financial discipline while also identifying new pathways for expansion.

Heidrick & Struggles’ CPO research aligns with this theme, noting that Chief People Officers are under pressure to deliver both operational efficiency and cultural transformation. By leveraging AI-driven insights, CPOs can better allocate resources, design new workforce models, and support leaders in balancing cost control with strategic investment. This integration of AI-driven people analytics of other kinds is familiar with business strategy represents a major shift in how organizations align talent with performance.

The Technology Imperative

Technology adoption is no longer optional. The Skills Index shows rising demand for technology and systems implementation, AI and machine learning, and advanced analytics. Companies are moving past pilots and into scaled deployments, using AI not just for experimentation but for real, measurable business impact.

On the commercial side, skills in e-commerce, product launch, and innovation strategy are rapidly increasing, as AI enables new customer offerings and go-to-market models. Meanwhile, on the operational side, organizations are seeking expertise in supply chain management, sourcing, and manufacturing strategy to hedge against future disruptions. These priorities confirm that leaders must ensure their organizations are not only adopting AI but doing so responsibly, with attention to governance, ethics, and workforce readiness.

Bridging the Skills Gap

Perhaps the most pressing takeaway from both reports is the sheer scale of the skills gap. Already, nearly two-thirds of employers say these gaps are preventing business transformation. For HR leaders and CPOs, the challenge is designing systems to reskill employees quickly while ensuring that interim and external talent can be integrated seamlessly.

Heidrick & Struggles points out that this requires CPOs to evolve from administrators to strategic leaders of transformation. They must cultivate adaptability in the workforce, build ecosystems of learning, and use AI to personalize development at scale. This is not just about filling gaps—it is about building resilience into the very fabric of the organization so that it can pivot continuously in response to disruption.

The Leadership Dilemma

The publications converge on a central dilemma: leadership capability is in short supply at a moment it is needed more than ever. CEOs and boards are already expressing low confidence in their organizations’ ability to execute strategies. HR leaders, meanwhile, are grappling with cultural strain, employee disengagement, and the pressure to adopt AI responsibly.

The CPO role is now pivotal in bridging these gaps. By embedding AI into the HR function, CPOs can give leaders the data, tools, and insights needed to manage through disruption with clarity. At the same time, they must champion the human side of leadership—ensuring empathy, trust, and inclusion remain central as organizations transform.

The Path Forward

The future of work will be defined by organizations that can simultaneously embrace AI, close critical skills gaps, and cultivate resilient leadership. The 2025 Skills Index makes clear which capabilities are most in demand, while the CPO focus highlights the essential role of Chief People Officers in guiding this transformation. Together, they reveal that building the AI-enabled workforce is not simply about technology or training—it is about leadership that can balance discipline with agility, and strategy with humanity. Companies that rise to this challenge will not only navigate volatility but will also position themselves to lead in the decades ahead.

Thanks for reading — be sure to join the conversation on LinkedIn and let me know your thoughts on this topic!

Quote of the Week

“Life does not have to be perfect to be wonderful.”
​Annette Funicello