Welcome back to this week’s P | A | C | T news, your newsletter by Tech Talent North.
As AI accelerates, hybrid work persists, and economic uncertainty grows, many HR leaders are asking: what does the future of HR really look like and how do we prepare our organizations for it?
From the risk of “job hugging” to the strategic shift away from transactional HR, the challenges ahead demand clarity, adaptability, and leadership grounded in trust.
That’s why this week, we sat down with Debby Carreau, CEO & Founder of Inspired HR Ltd. A globally recognized workplace strategist, serial entrepreneur, and Hall of Fame inductee among Canada’s Most Powerful Women, Debby offers a candid look at how People & Culture leaders can navigate this turning point.
Her insights shed light on what HR must let go of, where humans remain irreplaceable, and how leaders can prepare their organizations for both disruption and opportunity.
Key takeaways:
- Automation elevates HR. With AI handling tasks, HR must step into its role as a strategic driver of business success.
- Trust, communication, and culture matter most. In uncertain times, they make or break engagement and outcomes.
- Watch for “job hugging.” Economic uncertainty keeps employees in roles they’ve outgrown, fueling disengagement.
Leadership In Uncertain Times
When the ground feels shaky, whether from economic shifts, acquisitions, or workplace transformation, Debby is clear that leadership starts with three essentials: trust, communication, and capability.
“The leader needs to be trustworthy. Without that, no matter what you do, your organization’s not going to be successful because the people are not going to believe what you say.”
She emphasizes that trust isn’t built once but rather it’s reinforced daily through transparent and consistent communication. Leaders must align messaging across teams and avoid the confusion that fuels mistrust.
“Once there’s this little undercurrent of mistrust, it tends to grow. That’s why it’s so important to nip it in the bud.”
For People & Culture leaders in tech, this reminder is especially pressing. With layoffs, restructuring, and acquisitions reshaping the industry, employees are watching closely not just what leaders say but how consistently they follow through.
Culture In Mergers & Acquisitions
In tech, acquisitions often center on the product or IP. But Debby cautions: ignore culture at your peril.
“Culture, culture, culture. One of the things we see when the acquired company doesn’t meet its targets, it often comes down to culture and the failure to integrate successfully.”
She points out that companies tend to over-invest in system integrations and under-invest in people integration. Whether it’s aligning leadership expectations, managing communication about leaks, or even navigating small operational changes like email platform shifts, culture is the factor that determines success.
And in an industry where leadership teams can be overlooked in the excitement of acquiring technology, HR’s role becomes essential: ensuring talent, trust, and communication aren’t sidelined in the process.
The Strategic Shift In HR’s Role
Perhaps the most disruptive change facing HR today is automation. As Debby explains:
“The very transactional and basic HR payroll recruitment functions are being automated… job descriptions, onboarding files, even first drafts of handbooks.”
This shift is not a threat but an opportunity.
It makes HR less transactional and more strategic but it also raises the bar on who sits in HR roles.
“You may need fewer people in your HR department, but the people you need, it’s more important than ever that they’re strategic and aligned to the business goals.”
At the same time, she warns against over-reliance on AI without oversight.
“You still need professional eyes to fact check the work… Otherwise the problems that come up are far bigger.”
For HR leaders, the message is clear: AI is a powerful enabler, but it cannot replace judgment, ethics, or alignment with business goals.
Job Hugging: A Hidden Risk In 2025
Finally, Debby calls attention to a new trend she’s seeing: “job hugging.”
“When there’s times of economic uncertainty, people hold onto their jobs for dear life, even if they’re unhappy or underperforming… they’re staying in these jobs and they’re maybe not performing well.”
On the surface, lower attrition might look like stability but beneath, disengagement is growing.
Leaders must be vigilant; tracking performance, fostering honest career conversations, and, when needed, nudging employees toward new opportunities.
In tech especially, where agility is paramount, hidden disengagement can quietly stall innovation and growth.
What This Means For People & Culture Leaders
The role of HR is undergoing a fundamental shift.
From transactional to strategic, from compliance-driven to culture-driven, from reactive to proactive.
For leaders at Tech Talent North, Debby’s insights point to three imperatives:
- Lead with trust and transparency, especially in times of change.
- Put culture at the center of acquisitions and transformations.
- Harness AI and automation thoughtfully, elevating, not replacing, the human side of HR.
As Debby reminds us, the future of HR isn’t about doing less. It’s about doing what only people can do best: building trust, driving strategy, and shaping cultures where talent and business thrive together.
