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      The world of work is shifting rapidly under the influence of digitalization, new workforce expectations, demographic changes and increasing regulatory demands. In this environment, how you attract, engage, develop and retain talent has become a defining factor of organizational success. To stay ahead, you need HR practices that are responsive, people‑centered and strategically aligned with where your organization is heading.


      Here are the key areas to focus on as you rethink how your HR function shapes people, performance and culture.


      Rethink your HR strategy and operating model

      Your HR strategy must evolve along with your business. Start by reviewing how your HR function supports organizational goals and whether your structures, processes and capabilities enable agility. Clarifying your HR priorities, assessing the effectiveness of your current setup and defining clear job architectures will help you build a more consistent and transparent framework. Modern performance and competency models will further support employee growth and ensure expectations are communicated clearly.

      Shape a workforce that meets today’s talent expectations

      Talent is no longer attracted by one-size-fits-all approaches. You need targeted strategies to find, develop and retain the right people at the right time. Evidence‑based selection, structured talent identification, and high-impact development journeys help you build future-ready teams. Fostering team cohesion, supporting leadership capability and strengthening soft skills will further enhance engagement and performance across your organization.

      Redesign rewards and your employee value proposition

      Today’s workforce expects more than competitive pay. Employees seek purpose, flexibility, wellbeing and personalized growth. To remain attractive, you should reassess how your rewards, benefits and work experience complement each other. A modernized total rewards philosophy not only supports retention but also reinforces transparency, compliance and alignment with your organization’s values and culture.

      Make HR technology and data work for you

      HR technology is advancing rapidly, and adopting the right solutions is crucial for transforming your operations. Whether you are defining your HRIS strategy, selecting a new system, or optimizing an existing one, technology should enhance decision-making, strengthen employee experience and streamline processes. With the right tools and data, HR becomes more strategic, predictive and connected to business outcomes.

      Build culture, enable change and elevate employee experience

      Many transformation initiatives fail because people are not brought along early enough. To foster lasting change, you must understand how new processes, systems or structures affect individuals and teams. Behavior‑based approaches, strong communication, early engagement and leadership alignment are essential to building commitment and reducing resistance. At the same time, embedding values and behaviors into daily work helps cultivate a culture that supports your strategic goals.

      Rethink your HR strategy and operating model

      Your HR strategy must evolve along with your business. Start by reviewing how your HR function supports organizational goals and whether your structures, processes and capabilities enable agility. Clarifying your HR priorities, assessing the effectiveness of your current setup and defining clear job architectures will help you build a more consistent and transparent framework. Modern performance and competency models will further support employee growth and ensure expectations are communicated clearly.

      Shape a workforce that meets today’s talent expectations

      Talent is no longer attracted by one-size-fits-all approaches. You need targeted strategies to find, develop and retain the right people at the right time. Evidence‑based selection, structured talent identification, and high-impact development journeys help you build future-ready teams. Fostering team cohesion, supporting leadership capability and strengthening soft skills will further enhance engagement and performance across your organization.

      Redesign rewards and your employee value proposition

      Today’s workforce expects more than competitive pay. Employees seek purpose, flexibility, wellbeing and personalized growth. To remain attractive, you should reassess how your rewards, benefits and work experience complement each other. A modernized total rewards philosophy not only supports retention but also reinforces transparency, compliance and alignment with your organization’s values and culture.

      Make HR technology and data work for you

      HR technology is advancing rapidly, and adopting the right solutions is crucial for transforming your operations. Whether you are defining your HRIS strategy, selecting a new system, or optimizing an existing one, technology should enhance decision-making, strengthen employee experience and streamline processes. With the right tools and data, HR becomes more strategic, predictive and connected to business outcomes.

      Build culture, enable change and elevate employee experience

      Many transformation initiatives fail because people are not brought along early enough. To foster lasting change, you must understand how new processes, systems or structures affect individuals and teams. Behavior‑based approaches, strong communication, early engagement and leadership alignment are essential to building commitment and reducing resistance. At the same time, embedding values and behaviors into daily work helps cultivate a culture that supports your strategic goals.


      Here to support your HR transformation

      While these insights are designed to guide your thinking, you don’t have to navigate the journey alone. Whether you are reshaping your HR strategy, redesigning rewards, implementing new HR technology or driving cultural change, we are here to support you at every stage of your transformation.


      Our experts

      Sacha Thill

      Partner, Executive Compensation & Personal Tax

      KPMG in Luxembourg

      Sabrina Bonnet

      People & Change Director

      KPMG in Luxembourg


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