HR’s Next Chapter: AI, Gig Economy, Gen Z, & More – A Conversation with Sayeed Anjum

The workforce is no longer just full-time employees—soon, businesses will be managing a mix of gig workers, contract roles, and even AI agents.

Workforce dynamics are constantly evolving. As various shifts, led by technology at the forefront, reshape the workplace, HR leaders face the challenge of adapting to them: AI-driven analytics, the Gen Z workforce, the gig economy, upskilling needs, and shifting employee expectations being some of them.

We sat down with Sayeed Anjum, Co-founder and CTO at greytHR, to explore the most pressing trends in HR, the role of AI, and the future of HR management systems (HRMS). With years of experience at the intersection of technology and HR, Sayeed shares actionable insights on leveraging AI, retaining talent, and redefining HR’s strategic role.

AI and Data Analytics in HR

Q: With AI-driven data analytics gaining momentum in HR, what are the key areas where HR leaders can best leverage this trend?

Sayeed Anjum: I think it’s the usual suspects, there are two key areas HR leaders need to focus on: one is employee engagement, and the other is understanding what’s happening within the organization—things like attrition, hiring trends, and other employee analytics.

1. Employee Engagement: From an engagement perspective, it all starts with sentiment analysis and engagement surveys. Where are the gaps? What challenges is the organization facing in meeting employee expectations? Addressing these areas can help improve overall engagement. The good news is that we can now manage this with much more detail than before. Previously, the biggest challenge was simply having access to the right data. Even today, many organizations struggle with this, but with the right systems and tools, the data problem can be largely solved.
   
2. Organizational Analytics: The second challenge HR teams have faced isn’t just making sense of data—it’s the time and effort it takes to analyze it properly. Unless you were a data analyst or had expertise in the field, HR teams could only do basic analysis. But with AI, we can now get much deeper insights. The analysis can be more refined, even personalized. It can break down into various cohorts—departments, age groups, or other segments—rather than just providing a broad, aggregated view, which often lacks real insights.

Now, coming to traditional HR analytics—things like hiring, recruitment, and attrition analytics—there’s a lot of potential for proactive strategies. We can predict attrition, performance, and other key trends using AI-driven tools. The latest technology enables us to go beyond just reporting numbers and actually take meaningful action based on data-driven insights.

Adapting to Gen Z in the Workforce

Q: With the influx of Gen Z employees who prioritize flexibility, work-life balance, and company values, how can HR leaders adapt to meet these evolving expectations? For example, some companies are implementing more purpose-driven initiatives that resonate with Gen Z values. What other strategies have you found effective in aligning with these new workforce expectations?

Sayeed Anjum: So, I think Gen Z is the future of work. As we’re now in 2025, it’s natural that more and more Gen Z professionals are entering the workforce in larger numbers. Those already in the workplace are maturing within organizations, which means companies need to adapt and evolve to keep up.

This shift requires a fundamental organizational transformation. It’s not just about attracting the right talent but also about ensuring long-term success. Without the right talent, organizations will struggle to adapt and thrive. To attract and retain Gen Z talent, companies need to go beyond just benefits and perks—they must create an environment where Gen Z can thrive and feel fulfilled.

This kind of deep transformation isn’t easy for all companies. Some will successfully make the shift, while others will struggle—and those that fail may be overtaken by newer, more adaptable companies that resonate with Gen Z values. The business model and workplace culture must make sense to Gen Z and future generations.

If a company is solely profit-driven and operates in the traditional, top-down, transactional way, where employees are just “paid laborers,” that model won’t work. Organizations need to co-create a culture with their employees and clearly articulate why they are a great place to work. People today have more choices than ever, and if they don’t connect with a company’s values and purpose, they won’t stay engaged.

Of course, there may still be a small segment of the workforce that is fine with the old model—where you just show up, do the job, and go home. But as Gen Z continues to dominate the workforce, organizations that want to attract the best talent will need to be purpose-driven, values-led, and employee-centric.

It’s all interconnected—it’s not just about values, but also about job content, flexibility, and work style. Companies that fail to adapt to these new expectations will struggle to retain talent. And if they can’t, a more agile competitor will step in and take their place.

The Gig Economy and Contract Roles

Q: As gig and contract roles become increasingly common, what strategies can HR implement to ensure engagement and long-term retention in this evolving workforce?

Sayeed Anjum: Personally, I believe the gig economy works well for certain industries and businesses, but it’s not a universal approach to work. It doesn’t fit every organization, especially those that rely on cohesive teams, deep ownership, and a strong company culture. In traditional work models, where companies aim to build long-term commitment and foster a purpose-driven organization, the gig economy operates very differently.

There’s an interesting model that categorizes different types of employees based on their motivations for joining an organization. In the gig economy, workers are more like contractors or independent professionals. They may not work full-time or for extended periods, and their relationship with the company tends to be more transactional.

That said, even though gig workers aren’t traditional employees, organizations still need to engage with them effectively. Many companies even refer to them as partners rather than employees. And like any strong partnership, trust is critical. Organizations must ensure:

• Fair treatment of gig workers
• Protection of their interests
• A foundation of fairness in all interactions

This cannot turn into a system of exploitation, where companies hire and fire at will just because gig workers are subject to fewer labor laws. The gig economy shouldn’t become a loophole for unfair treatment.

However, because there’s significant competition for skilled gig workers, many of these concerns may self-correct over time. Companies that want access to top-tier gig talent will have to offer competitive conditions.

Q: How do you think the rise of gig and contract roles will impact employers?

Sayeed Anjum: Employers benefit significantly from the gig economy as it reduces liabilities and provides greater flexibility. Many businesses are demand-driven, with fluctuating needs—peak seasons require more workers, while slower periods call for cost optimization. This model helps companies scale efficiently while keeping costs in check.

This happens even in retail sectors, where during peak seasons, there are a lot of temp workers who join the economy, and then they taper off when the demand goes away. The gig economy follows a similar pattern, making it attractive to employers. However, most companies don’t rely on just one type of worker. They often have a mix of gig workers, full-time employees, temp staff, and contract workers.

Looking ahead, AI agents will also become part of the workforce, either as contractors or directly integrated. The ideal workforce mix will vary by company—some may rely on full-time and contract employees, while others may blend full-time, temp, and gig workers depending on what works best for their industry.

Addressing the Skills Gap and Upskilling Needs

Q: With skill demands evolving rapidly, what key skills should HR prioritize for upskilling their workforce?

Sayeed Anjum: This isn’t a new challenge—for the longest time, industry leaders and HR professionals have complained that colleges and universities aren’t equipping graduates with job-ready skills. Many essential workplace skills aren’t taught in formal education, which is why learning and development (L&D) programs exist—to take raw talent and prepare them for corporate environments.

In the past, companies focused on training new hires in basic workplace skills like communication and professional etiquette. However, the job market is shifting. Traditionally, hiring was based on degrees and certifications—you hired an engineer or accountant based on their education. But today, the trend is moving towards hiring based on skills, not just education.

This shift is becoming even more critical in the AI age. AI is automating mundane, repetitive tasks, just as software and automation transformed industries in the past. Now, AI is pushing even further, taking over more complex tasks. As a result, what matters most today is:

• Digital literacy—knowing how to work with AI
• AI fluency—understanding how to prompt, leverage, and optimize AI for productivity
• Higher-order cognitive skills—critical thinking, problem-solving, and creativity

As AI automates more functions, human-centric skills will become even more valuable—collaboration, emotional intelligence, and interpersonal skills will be crucial for success. These skills were always important, but in a world increasingly shaped by AI, they will be in sharper focus than ever before.

AI Anxiety and Job Displacement

Q: There’s increasing anxiety about AI replacing jobs. How can HR support employees through this transition?

Sayeed Anjum:  AI will excel in some areas but won’t be the answer to everything. The key is collaboration between AI and humans. The fear of technology replacing jobs isn’t new—for decades, people worried that software would take over. But what we’ve seen is that software alone is ineffective unless it is properly harnessed by skilled people who can extract value from it.

The same applies to AI. Without active human involvement, AI tools could end up feeling like a wasted investment—just like past software that failed to deliver impact. 

AI will enhance productivity, but only a small fraction of jobs will be fully automated. AI is a reality, and organizations must prepare for the AI revolution. It will impact every department, from engineering to HR. HR’s role will be crucial in:

• Upskilling programs to ensure employees can harness AI effectively
• Training on AI-driven tools to improve productivity across functions
• Support for workforce transition, so employees aren’t caught off guard

As AI takes over basic tasks, employees will need to focus on higher-order skills, such as critical thinking, problem-solving, and strategic decision-making. HR’s key responsibility will be to prepare the workforce for this shift, ensuring a smooth transition into an AI-powered future.

But rest assured—employment isn’t going away. AI is a tool, not a competitor. The future of work will be about leveraging AI, not fearing it.

📖 Related Read:
Top 15 AI-Powered Tools for HR Professionals in 2025

On Learning & Development

Q: What Learning & Development initiatives do you recommend for effective upskilling?

Sayeed Anjum: My advice is that new tools and technologies will always emerge, but the real challenge isn’t just adopting them—it’s building a culture of learning. In many organizations, learning only happens when it’s mandated—when employees are required to complete a certain number of training hours. But that’s not the right approach.

Learning isn’t just about attending a course or watching a video. While these are useful for acquiring knowledge, they don’t necessarily build skills. True skill development requires on-the-job training, mentorship, and manager involvement. Apprenticeships, internships, and real-world application remain essential for making learning truly effective.

New AI-powered learning tools are making personalized education more accessible, particularly in areas like AI coaching. These tools tailor learning to individual needs, addressing the long-standing challenge of one-size-fits-all training. In the past, bandwidth constraints limited personalized learning, but AI-driven solutions are now bridging that gap.

However, at the end of the day, learning is a personal responsibility—no tool or system can force someone to learn. The real focus should be on fostering a learning mindset, with managers playing a key role in creating an environment where learning is encouraged, valued, and ingrained in the company’s culture. That will be the harder but more crucial challenge to solve.

The Four-Day Workweek Debate!

Q:  What is your opinion on the four-day workweek trend? Do you see it being adopted by more companies and do you think it is an effective work model?

Sayeed Anjum: I think it would be shocking for many business leaders if the four-day work week were to become the norm. There are several factors to consider. First, this model won’t work universally for all types of organizations. For knowledge industries like IT or service sectors where a lot of effort is based on knowledge work, a four-day week could actually be very advantageous.

However, many people’s conception of a four-day week is that you just compress five days’ work into four. This can often mean working longer hours—perhaps 10 hours a day instead of 8, to compensate for the missing day. But studies show that in knowledge industries, 32 hours is ideal because humans can’t focus for more than a few hours of deep work each day. Three to four hours of focused work is often the max productivity you can expect. The rest of the day is often filled with meetings and other non-core activities.

There have been successful experiments in countries like New Zealand and parts of Europe, where productivity increased by 20% or more with the four-day work week. However, to make this a reality, we need proper legislation and labor laws to support it. While the Code on Wages does mention the idea of a four-day week with reduced working hours, the laws don’t yet fully support it.

So, while it’s a promising model, very few organizations in India are currently considering it. It’s not yet a mainstream trend here.

The Shift in Employee Benefits

Q: As new and innovative perks become popular, how are organizations rethinking traditional employee benefits to stay competitive and meet evolving employee expectations?

Sayeed Anjum: Attracting and retaining the right talent is all about understanding what employees value and what truly matters to them. 

Not all benefits are monetary. In fact, many people, especially Gen Z, prefer flexibility and a better work-life balance over a higher salary. Studies have shown that employees would rather take a pay cut than give up benefits like hybrid work and health and well-being support from their organizations.

This is also influenced by market trends. When certain benefits become mainstream, organizations often have to adopt them due to peer pressure. If several companies are offering something, it becomes a norm, and others are forced to follow suit to attract and retain talent.

There’s also a growing pressure to move to a five-day work week in many industries, particularly in knowledge-based sectors like IT. However, this isn’t true for all industries—non-knowledge sectors, such as manufacturing or brick-and-mortar businesses, may have different expectations.

The benefits employees value are increasingly industry-specific and aligned with modern work expectations. These benefits include:

• Hybrid or remote work
• Flexibility
• Better leave policies, including paternity leave
• Learning and development support, such as learning budgets
• Well-being resources, including mental health support

Mental health, once a taboo topic, is now openly discussed, especially among Gen Z, who actively seek mental health support, such as coaching or consultation. Similarly, health insurance has become a critical benefit, with many organizations offering group medical insurance.

The trend is toward offering a combination of relevant, non-monetary benefits—a shift from traditional compensation-focused perks to a broader range of well-being and support.

📖 Related Reads:

• What Really Drives Employee Engagement? A Journey Through TSOW Community Insights
• “Variable Rewards”: A Look Into the Role of Gamification in Employee Engagement
• Unlocking Workplace Engagement: What Employees Really Want (Backed by TSOW Community Insights)

HRMS in 2025: What’s Next?

Q: As we move into 2025, what emerging trends will shape HRMS, and how can organizations maximize their impact?

Sayeed Anjum: HR tech has always evolved, and AI is now a major driver of that evolution. HRMS and HR tech are rapidly integrating AI, with strong use cases across learning management systems, engagement, performance management, and recruitment. AI enables personalized learning paths, streamlining processes, and improving decision-making in every area of HR.

Bridging the Tech Gap
Despite advancements, many organizations—especially small and mid-sized businesses—still rely on Excel sheets or legacy in-house systems, preventing them from leveraging the latest technological advancements. To fully leverage AI, companies must transition to modern, cloud-based HR tech. 

Key benefits of Cloud-Based HRMS:

• Employee Self-Service – Employees can access information and complete transactions independently.
• Real-Time Engagement – Improved transparency and communication between employees and employers.
• AI-Driven Automation – Enhanced efficiency in HR processes.

What’s Next for HR Tech?
Looking ahead to 2025-26, AI adoption will accelerate, becoming embedded in most HR tools. Organizations that move to cloud-based HRMS will unlock AI-driven capabilities in:

• Engagement & Retention
• Performance Tracking
• Recruitment & Talent Analytics

HR tech companies are already upgrading their platforms, and AI integration will soon be the norm. The future of HR tech is AI-powered, and companies that embrace this shift early will gain a significant competitive edge.