In the mid-20th century, the American workplace was built on an unspoken agreement: employees offered loyalty and long-term service, and employers provided stability, pensions, and a clear path to retirement. This "loyalty contract" thrived during the 1950s to 1970s, when defined-benefit pensions were common and job tenure often spanned decades.
But, by the 1980s, this model began to unravel. Globalization, technological disruption, and a shift toward shareholder value led to widespread layoffs, outsourcing, and the erosion of long-term job security. The workplace shifted away from relational and toward transactional, creating a world where employees merely traded their labor for compensation, and employers increasingly began to view workers as interchangeable assets. Pensions gave way to 401(k)s, and job-hopping became the norm.
Today, we're witnessing another shift in our midst. The employer-employee relationship is evolving into a more collaborative partnership, where both parties seek mutual growth, purpose, and flexibility. This transformation places HR at the forefront as organizations must adapt to meet changing employee expectations and redefine how to create company culture.
The COVID-19 pandemic accelerated the demand for flexible work arrangements. Five years later, it’s clear its impact in this area is lasting. A global survey of 4,700 workers has found that only one in five workers (20%) would prefer primarily site-based work anymore; the vast majority now expect at least some degree of autonomy over where and when they work.
Moreover, the 2024 Global Future of Work Report from jobsite Indeed found that 75% of U.S. job seekers anticipate significant changes in their roles over the next several years due to technological advancements, like automation and AI. Most workers are optimistic about their ability to evolve with their roles, but as Indeed writes in its report, “Nevertheless, it’s clear that it’s become more important than ever for workers to be as adaptable as possible — specifically with learning new ‘hard’ skills influenced by technology.”
HR responsibilities now include designing hybrid work models that balance organizational needs with employee preferences. This involves rethinking performance metrics, communication strategies, and team collaboration tools to ensure productivity and engagement in diverse work settings.
And where on-site work is still required, companies should try to compromise with employees in some way. "Balancing the desire for flexibility among employees and the return-to-office goals of senior leaders is crucial,” says John Doel, Principal, Human Capital Advisory, KPMG LLP. “It is important to evaluate the employee value proposition and highlight the benefits of in-office work to address employee concerns. Providing incentives that reward employee flexibility can help strike a balance."
People want purpose, and two-thirds of workers would leave their current employer if necessary to find it. “The intent to leave or stay in a job is only one of the things that people are questioning as part of the larger human story we are living,” says Caitlin Duffy, Research Director in Gartner’s HR practice. “You could call it the ‘Great Reflection.’ It’s critical to deliver value and purpose.”
In other words, modern employees desire more than a paycheck; they seek alignment with their employer's mission and values. This shift is particularly evident among younger generations, who prioritize meaningful work and social impact.
HR plays a crucial role in articulating and embedding organizational values into daily operations. This includes implementing corporate social responsibility initiatives, fostering inclusive workplaces, and ensuring that company actions reflect stated principles.
Opportunities for growth and advancement are top priorities for employees. Fascinatingly, research from analysts at Korn Ferry's reveals that 67% of employees would remain with a company even if they disliked their current job if they were offered opportunities for advancement and upskilling. Personal and career development is just that important to them.
The good news is that employee development is a win-win. Investing in employee growth both enhances skills — creating a higher-functioning, more flexible workforce — and gives workers something that makes them incredibly happy.
The traditional top-down communication model is obsolete. Modern employee expectations demand open, honest, and frequent communication from leadership. Nearly nine in ten job seekers say they look for transparency in a future workplace, according to a Slack survey. Employers should want the same; research has found that employees in high-trust workplaces are 76% more engaged than others.
That said, this is nevertheless an area where it’s easy to talk big but much harder to follow through. “Trust is really important to us,” Sara Armbruster, CEO of furniture company Steelcase, told advisory group Deloitte. “In many ways, transparency goes hand in hand with that. But if you are going to advocate and implement a high degree of transparency, you need to have systems in place to address any issues that arise.”
That’s where HR comes in. Businesses can’t just snap their fingers and make their employees trust them. HR must facilitate transparent communication channels, encourage feedback, and involve employees in decision-making processes. Building a culture of trust requires consistent messaging, accountability, and responsiveness to employee concerns.
Standardized benefits packages no longer suffice. Employees seek benefits that address their unique life circumstances, such as mental health support, family leave, and flexible scheduling. The 2024 Society for Human Resource Management (SHRM) Employee Benefits Survey notes that employers are offering a wider range of benefits than ever: 216 possible benefit offerings in 2024, up from 175 in 2022.
This is partially due to the fact that benefits are increasingly important to employees, and employers are competing intensely to attract their most desired workers. “It’s really about managing employees’ needs,” says Calven Engstrom, a data sourcing specialist at SHRM. “At the end of the day, it’s doing what you think would make your employees happy.”
And employees really care about benefits. "One of the most fundamental things we learned is employers need to increase their communication about benefits, starting with including benefits information in their job postings," Heather Salerno, Senior VP of Marketing at programmatic recruitment advertising company Appcast, told SHRM. "Our research found when job ads included benefits, employers saw a 22 percent higher apply rate than from job ads that did not mention benefits."
The evolving workplace dynamic positions employees as active contributors to organizational goals. As Wharton School of Business management professor Matthew Bidwell says, “The balance of power continues to shift backwards and forwards. Sometimes the employer doesn’t need to make such an effort. They need to make that effort now. If everybody is purely out for themselves and just doing the bare minimum, nothing will get done. Organizations need people who want to look out for the organization’s interests and want to do the right thing.”
Recognizing employees as co-creators necessitates a departure from viewing them as fungible commodities. HR must foster environments where employees feel empowered to contribute ideas, take initiative, and collaborate across functions. This collaborative approach enhances innovation and drives collective success. Again, HR’s responsibility here is to create a win-win scenario where both employers and employees can grow and succeed.
The modern workforce demands a reimagined employer-employee relationship, one grounded in flexibility, shared values, continuous growth, transparency, personalized support, collaborative culture, and mutual investment in success. HR responsibilities have expanded to encompass these evolving expectations, positioning HR as a strategic partner in shaping the future of work.
By embracing this collaborative era, organizations can build resilient, engaged, and high-performing teams. And at the heart of that effort lies a deeper understanding of how to create company culture — intentionally, inclusively, and in sync with what today’s employees truly value. The question for business leaders is no longer whether to adapt but how swiftly and effectively they can align with these transformative employee expectations.
CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. To learn more about our Professional HR Administration Services, contact us today.
**The information provided on this website is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and completeness of the information, we make no guarantees about its correctness, completeness, or applicability to your specific circumstances. Laws and regulations are subject to change, and you should consult a qualified legal professional before making any decisions based on the information provided here.