WEEKLY EDITION BY ZIHAN LYU

Welcome to your latest HRD Connect's Weekend Digest, your go-to source for the week’s top insights tailored for HR professionals.

Here’s what’s inside:

◾ Why AI adoption is outpacing skills—and what’s holding HR teams back

◾ How HR is redefining strategy by taking ownership of culture, platforms, and leadership impact—Insights from CIPD Future of Work

◾ The 4 top motivators for millennial and Gen Z (and why they matter)

NEW RESEARCH

HR Leaders Cite AI Benefits But Say Skills Gaps Are a Barrier to Effective Use, According to A New Research

HR teams are adopting AI at speed—but they’re hitting a wall. According to Capterra’s 2025 survey of over 3,000 HR leaders, 43% say their teams lack the skills to use AI effectively, and nearly half cite training as their top operational challenge this year.

Most companies now juggle four separate HR systems, yet only 42% prioritize recruiting software despite rising hiring costs. The result? Missed gains in efficiency, retention, and engagement.

Organizations that link AI adoption with skills investment are already seeing stronger employee satisfaction and better hiring outcomes—but most still aren’t there.

EXPERT INSIGHTS

HR Takes Responsibility for What Really Shapes Culture—Insights from CIPD Future of Work

Insights from the CIPD Festival of Work show HR is no longer a support function—it’s shaping strategy. Internal platforms that shape employee experience are still often owned by IT, but when HR takes the lead, adoption and trust improve.

Culture Amp data also debunks a common myth: managers aren’t the main reason people leave. Belief in leadership and career progression matter more—but many HR teams have stopped asking the right questions in surveys.

At McDonald’s, AI tools built for accessibility—not automation—are helping employees speak up. And ADP’s global data shows only 1 in 5 UK workers feel fully engaged. That number won’t improve unless HR leads with clarity and relevance.

EXPERT INSIGHTS

The 4 Top Motivators for Millennial and Gen Z Works (and Why they Matter)

More than half the workforce is now Gen Z or Millennial—and what drives them isn’t what most employers think. New research shows comfort, personal connection, challenge, and excellence top their list of motivators.

Pay, purpose, and perks? Surprisingly less important. These findings flip traditional retention strategies on their head and call for deeper investment in psychological safety, team cohesion, and meaningful growth opportunities.