The rapidly evolving workplace demands a fresh set of leadership skills. Here are the key capabilities leaders need to cultivate now in order to navigate the future of work.

With our ways of working changing rapidly, relying on traditional leadership approaches could put organisations at risk of falling behind in the future of work.

Some aspects of the traditional leadership model, such as command-and-control structures and rigid roles, are slowly losing relevance as organisations traverse the rapidly evolving technological and economic landscape, says Ravin Jesuthasan, Senior Partner and Global Leader for Transformation Services at Mercer and upcoming speaker at AHRI’s National Convention and Exhibition in August.

Below, Jesuthasan unpacks four key capabilities leaders of the future will need in order to navigate emerging disruptions and harness the opportunities presented by technological advancement.

1. Shift from hierarchical authority to empowerment and alignment 

There are several forces at play in the current business environment which make the traditional hierarchical model of leadership difficult to sustain, according to Jesuthasan.

One example is the shift towards hybrid and remote work models, which challenges traditional dynamics of control and requires a more trust-based approach to management.

Another is the emerging shift towards more agile ways of working. 

With skills shortages continuing to impact employers, many are recognising the value of a skills-based approach to work, where work is allocated to employees and non-employees based on their capabilities rather than whether it’s part of their job description. The rapid shifts in the skills landscape mean this strategy is likely to become more prevalent in the coming years.

While this approach allows employers to allocate resources more efficiently, effectively and with greater impact, the move away from rigid roles requires a significant mindset shift on the part of leaders.

“As we move towards these more agile, skills-based ways of working, leaders’ ability to empower teams and align them to a mission becomes increasingly important,”says Jesuthasan.

“All of this is a reversal of about 140 years of learned behaviour on the part of leaders. So it’s really important that they have the space to experiment, practice and fail.” – Ravin Jesuthasan, Senior Partner and Global Leader for Transformation Services, Mercer

“And leading through empowerment and alignment has one prerequisite, which the hierarchical model doesn’t. And that’s trust – trust in your people that they are motivated to accomplish the same things you are and their trust that you have their best interests at heart.”

HR should keep in mind that this transition might be uncomfortable for leaders who might be used to functioning under a command-and-control model, he says.

“All of this is a reversal of about 140 years of learned behaviour on the part of leaders. So it’s really important that they have the space to experiment, practice and fail.”

2. The ability to redesign work

With the shift away from rigid roles and towards skills-based ways of working, leaders will need to hone their ability to redesign work so talent (and AI and automation) can flow to it, says Jesuthasan.

“[Leaders need] that skill of being able to take an emerging body of work, deconstruct it into its elemental tasks, understand the skills required and the work options available, and figure out how to deploy that work,” he says. 

“For example, where should I use automation versus using the skills of an employee? Where should I use a gig worker or shared services? And then continuously reconstructing new ways of working that optimise speed, profitability and the workforce skills.” 

With work being resourced based on skills and capability rather than roles, leaders will need to adapt to having fewer dedicated teams, he adds.

“[There needs to be] a pivot from leaders who are really good at process execution to leaders who are increasingly exceptional at project guidance.”

3. Humanistic automation

With technological advancement moving at an unprecedented rate, it’s no surprise that digital literacy is projected to be a critical leadership skill of the future. To remain competitive, leaders need to constantly ask themselves if they are going far enough in understanding and leveraging emerging technologies, says Jesuthasan.

“What the past two years have taught us is that just being digitally savvy is too low a bar. We need business leaders who really understand AI in all its forms, understand the tools available and understand how it’s going to reshape their operating models.”

In the future, it will become increasingly important for leaders to strike the right balance between harnessing the capabilities of AI alongside the capabilities of their workforces.

“[Ask yourself], ‘How do I automate in a way that ensures that I’m not compromising ingenuity and innovation in my business? How do I automate in a way that makes the most of the human skills I’ve invested in for decades?’,” says Jesuthasan.

As AI takes on more and more of our repetitive, rules-based work, leaders should be placing more focus on cultivating human skills such as communication, problem-solving and critical thinking in both themselves and their people.

“What the past two years have taught us is that just being digitally savvy is such a low bar. We need business leaders who really understand generative AI.” – Ravin Jesuthasan, Senior Partner and Global Leader for Transformation Services, Mercer

According to research from the World Economic Forum, the half-life of a technical skill is currently about five years. While it remains crucial to develop technical skills to navigate emerging technologies, employers should remember that the so-called ‘soft’ skills will always be necessary for success.

4. Cultivating diversity of thought, experience and perspective

The most effective leaders in the future of work will be those who can leverage the benefits of diverse workforces, says Jesuthasan.

“A key skill is managing diversity, equity and inclusion – not episodically like we typically do when we hire someone or promote them, but continuously by opening the aperture to having different skills, different perspectives and different experiences being deployed to work,” he says. 

“Because that’s the only way any business stays ahead of the competition – that diversity of thought, experience and perspective.”

Inclusive hiring practices are essential not only to innovation, but also to business stability, he says. He offers the example of a US airline that set up its own flight school as its traditional talent pool of ex-military pilots began to dry up. 

“Because of who was accepted to fly in the military [in the past], most of their pilots, unsurprisingly, were older white men. But with their own flight school, their first class was 80 per cent female and minorities. 

“By opening the aperture and creating their own school, they know that in less than two years, they’ll have a flight crew that is exponentially more diverse than the talent that they’re going to be replacing. It’s a win-win – we secure our supply, and we ensure that the supply is more diverse than the legacy supply chain.”

This strategic approach to diversity ensures that organisations are not just keeping pace with change, but are actively shaping the future of work.

As we move into the next iteration of work, HR plays a critical role in cultivating this next phase of leadership. As the champions of human-centred ways of working, HR practitioners are in a unique position to support leaders as they develop the skills to lead through empowerment, implement humanistic automation and enhance their approach to diversity, equity and inclusion.

Ravin Jesuthasan will be speaking on the deconstruction of jobs and the reconstruction of work at AHRI’s National Convention and Exhibition in August. Sign up today to hear from Ravin and other experts, including Seth Godin, Dr Pippa Grange and more.