Chad HileyFor much of the last century, the relationship between employers and employees was defined by structure, hierarchy and predictability. Work was something you went to, jobs had clear boundaries, and human resources (HR) was largely an administrative function. According to Chad Hiley (BA ’98, MAcc ’98), Canadian Leader at WTW, that model has fundamentally shifted — and it continues to evolve at an accelerating pace.

Over the course of his career, Hiley has watched the HR function shift into something new.

“Ultimately, it’s moved from something that was really a payroll function, and in some cases a payroll and benefits function, to something that’s a strategic business partner,” he says. “It’s much more forward-looking now, focused on talent, succession and long-term human capital outcomes.”

That shift has reshaped the employer–employee relationship. Organizations used to emphasize compliance and control, but today’s employees expect autonomy, flexibility and a clear sense of purpose. Hiley notes that employees are no longer satisfied with slow decision-making or rigid hierarchies. Employees expect faster decisions from work, along with more independence and less hierarchy — a reflection of flatter organizations and the speed at which work itself is changing.

How to engage employees

At the same time, organizations are rethinking what truly keeps people engaged. While compensation remains important, Hiley argues it is often overemphasized at the expense of factors that matter more over the long term.

“Employers overestimate pay and underestimate the importance of the manager you report to, your personal growth and whether you feel like you belong,” he says. “If managers spent more time on employee experience, they would see greater retention and higher performance.”

Looking ahead, Hiley believes the most successful organizations will be those that invest heavily in helping employees stay relevant. Skills are becoming the core currency of work, not climbing the ladder.

“Things are moving so fast now. Organizations that can help their employees build future-ready skills are going to be the ones that outperform,” he says. “That builds loyalty, reduces the cycle of hire-and-fire, and creates a much stronger employee experience.”

AI brings new approaches — and tradeoffs

Artificial intelligence is a major driver of that change. Hiley describes AI not as a distant future concept, but as a tool that has already transformed how work gets done.

“AI was not something that I used in my day job two years ago,” he says. “I don’t know that I could do without it now.”

Rather than eliminating work altogether, Hiley sees AI as forcing organizations to rethink how work is designed. Tasks that are repetitive or highly standardized can be automated, while human effort is redirected toward judgment, creativity and relationship-building. This doesn’t mean people managers disappear — but their roles may evolve. Hiley argues that organizations will still need leaders who can guide, develop and support people, even as they learn to manage AI-enabled tools and agents.

The challenge for employers, he says, is navigating a series of new trade-offs: speed versus certainty, standardization versus flexibility, automation versus human connection. Making the right choices requires a longer-term view of value — and a willingness to accept some ambiguity.

“Short-term cost is easy to measure,” Hiley notes, “but investments in talent and culture play out over years, not quarters.”

Ultimately, Hiley believes the future of work will reward organizations that balance innovation with empathy. AI may reshape jobs and workflows, but trust, belonging and meaningful human connection will remain central to the employer–employee relationship.

“We’re all students of history. The work will keep changing, but the organizations that remember the human side of it will be the ones that succeed.”