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Research - 05.06.2025 - 15:00 

Human resource management between AI and cultural transformation

What does the future hold for human resource management in companies in Switzerland, Germany, and Austria? Answers are provided by the new “Trend Barometer: People Management 2035” from the University of St.Gallen, a study conducted in cooperation with the consulting firm PwC.

At its core, the study paints a picture of a dual transformation: on the one hand, there are technological disruptions such as Artificial Intelligence and people analytics; on the other, there is a shift in corporate culture. “In the future, people management will have to integrate new technologies and new forms of collaboration,” says Heike Bruch, professor at HSG and technical director of the study. “Without a strategic realignment of human resources management, many companies are at risk of falling behind,” emphasizes the leadership expert from the Institute for Leadership and Human Resource Management (IFPM-HSG) at the University of St.Gallen.

The results of the study are based on a survey of 256 HR experts in 2025 and 315 HR professionals in 2022 in Switzerland, Germany, and Austria. The respondents assessed the relevance, significance, and future viability of key HR functions and competencies in the period from 2022 to 2035. The quantitative survey was supplemented by trend analyses that provide a differentiated picture of areas for development and strategic gaps in people management.

“Good people management is becoming a decisive factor in the future viability of companies.”
Prof. Dr. Heike Bruch, study director

Preparing for new functions in human resources management

Many key HR functions are strategically important in companies but are still insufficiently developed in practice. The majority of HR professionals surveyed feel inadequately prepared in these areas of development. The gaps are expected to be particularly large when looking at 2035 as it pertains to data and technology management, development and career planning, employee experience, and the integration of artificial intelligence. The authors of the study show that although the relevance of these topics will increase significantly by 2035, the concrete preparations of many organizations remain at a low level. The result is a structural gap between expectations and reality in people management – with the risk that strategic goals will not be achieved. According to the study authors, this “misjudgement” could prove costly.

Closing skills gaps in human resources management

The evaluation also shows that the strategic importance of almost all HR skills will increase significantly by 2035. However, the reality in the world of work is lagging behind. There is a need to catch up in key competencies such as the effective use of AI, the ethical use of AI, big data, and people analytics, as well as a willingness to experiment. “It's not enough to buy AI tools – you also need to know how to use them strategically within the company,” says co-author Till R. Lohmann from PwC. The authors see an urgent need for action in corporate people management: massive investment in technical skills will be necessary in the coming years. Understanding people also remains essential in human resources management. Empathy is not a “soft skill,” especially when it comes to recruiting and developing employees, but rather an important resource for putting together good teams.

Setbacks in “new work” and a good work culture

A surprising finding of this report is that the spread of new work elements such as mobile working and virtual teams will decline between 2022 and 2025. The much-vaunted “modern work culture” is also losing importance, especially with regard to a culture of trust, self-competence, and “leadership with inspiration.” This is an alarm signal that also applies to companies in Switzerland: although flexible working arrangements are widely accepted in this country, they often remain only half-heartedly embedded in the culture. According to the study, the proportion of companies with top management that truly sets an example is 16%. “Sustainable transformation can only succeed with a culture that does not see change as a threat,” says co-author Marvin Neu from the Institute for Leadership and Human Resource Management (IFPM-HSG).

The study identifies the biggest shortcomings in human resources management, thereby contributing to the current debate on the future of work. While there has been much discussion in Switzerland recently about skills shortages, four-day weeks, and home office rules, there is a lack of analysis in many places of the cultural and strategic prerequisites for solid cooperation.

Four key measures for better people management

The study identifies four key areas for action: 

  1. Firstly, digital skills need to be strengthened in a targeted manner, for example in the handling of big data, digital know-how, and the ethical use of AI.
     
  2. Secondly, the “people experience”, i.e., the experience of employees, should be understood as a strategic lever: if you want to retain talent, you have to make your company a more attractive place to work.
     
  3. Thirdly, a cultural reboot is needed – with managers who are credible role models for trust, agility, and inspiration. This is the only way to close the gap between aspiration and reality in people management by 2035.
     
  4. And finally, people management must reinvent itself and, first and foremost, increase its own attractiveness. As strategic HR tasks related to AI and cultural transformation become increasingly important, companies need to attract and retain the best talent.

Please find the report (in German) here to download: Trend-Barometer: People Management 2035


Image: Adobe Stock / Benjamin Nolte

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