Welcome to this week’s edition of Strategic HR Digest, your go-to source for HR and L&D insights, expert advice, and practical tools to help you lead with impact. Stay ahead of industry trends and join the conversation—follow us on LinkedIn for more exclusive content.
Spotlight ✨
Employee retention refers to an organisation’s ability to keep its employees over a specified period. It’s not just a HR metric, it’s a strategic business imperative. While turnover indicates the rate at which employees leave, retention reflects the effectiveness of an organisation in creating an environment where people want to stay. In other words, if you’re asking “what is employee retention?” or looking for an employee retention definition, it’s about maintaining a stable, engaged workforce over time.
The Pulse of HR 🌍
WORKFORCE TRANSFORMATION
IBM now has artificial intelligence performing 94% of routine HR tasks, replacing hundreds of roles, and reporting productivity gains exceeding £3.5 billion in two years. For HR and L&D leaders, this shift clarifies which functions AI can automate and underscores the critical need to redefine their responsibilities. Those able to manage collaboration between humans and AI will retain relevance and drive measurable outcomes.
HEALTH POLICY REFORM
The House’s One Big Beautiful Act includes 14 detailed provisions, expanding flexibility and tax benefits for health savings accounts (HSAs), health reimbursement arrangements (HRAs), and related health accounts. Major changes comprise higher HSA limits, CHOICE arrangements, employer tax credits, and new spending eligibility, directly impacting employer-sponsored health benefits policy.
AI READINESS ANALYSIS
AI adoption is hindered by workforce readiness, with 70% of leaders expressing concerns, despite widespread investment, according to Kyndryl's survey. To harness AI's potential, businesses should follow Pacesetters by integrating workforce strategies, focusing on trust, change management, and continuous upskilling. Priorities include employee involvement, ethical guidelines, and transparency.
CAREER ADVANCEMENT
Career growth doesn't require management roles; many find advancement by becoming valuable specialists, mentors, or thought leaders. This approach appeals to Millennials and Gen Z, who prefer diverse skills over traditional promotion. Organisations can support this by recognising impact beyond authority.
LEGAL CONSULTATION
The Equality and Human Rights Commission is consulting on revisions to its Code of Practice following a Supreme Court decision, affecting the definition of 'legal sex' and including trans individuals under certain provisions. This update, open until 30 June 2025, is essential for legal clarity in applying the Equality Act, although potential delays in implementation are anticipated.
Strategic HR Digest is a ClickZ Media publication in the HR division