HR challenges in a polycrisis world

Disruption is no longer an occasional storm. It’s the climate we live in. 

Companies everywhere are navigating overlapping crises, from economic instability to war in Eastern Europe and the Middle East. They also have to contend with accelerating climate shocks and the disruptive force of AI.

According to the World Economic Forum’s Global Risks Report 2024, extreme weather, economic pressure, and social cohesion are among the most pressing challenges of the coming decade.

When these risks collide and feed off one another, experts call it a polycrisis. The question isn’t whether disruption will strike—it’s whether your people strategy can flex alongside change. 

Businesses are looking squarely at HR to guide the way, and it’s a real chance to turn challenge into clarity and cement HR’s criticality to the business. 

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What is a polycrisis, and why does it matter to HR?

A polycrisis isn’t just a string of disruptions. 

It’s when multiple large-scale risks converge, interact, and worsen each other, creating systemic instability that no single playbook can solve. 

It’s a chain reaction where one event sets off the next.

Consider geopolitical conflict. It can disrupt supply chains. That disruption pushes up prices and fuels inflation. Inflation brings layoffs and wage freezes. And before long, those pressures affect people directly, impacting wellbeing and retention.

Climate shocks and natural disasters add another layer of disruption, threatening safety, continuity, and stability.

AI disruption reshapes skills demand almost overnight. Each pressure feeds into the next, complicating and intensifying the challenge. It can feel overwhelming.

But for HR, this matters.

People are the most exposed and the most adaptive element of the business. When systems falter, it’s culture, workforce agility, and leadership that determine whether a company weathers the storm or stalls.

HR leaders have to contend with:

• Workforce planning. Shift talent models and planning to withstand economic and geopolitical shocks.
• Building resilient cultures. Build cultures strong enough to absorb social and environmental turbulence without burning people out.
• Organizational design. Redesign structures for speed and agility, making it easier for teams to pivot when conditions change.

It’s a tall order, but it also positions HR at the heart of business strategy—exactly where they belong.

Key polycrisis pressures impacting HR today

Each pressure in this climate hits HR from a different angle, but they all share a common thread. They converge, amplify one another, and demand people-first responses. 

Here’s a closer look at the biggest forces shaping HR’s reality right now:

Geopolitical instability and economic uncertainty

Conflict, supply chain disruption, and inflation aren’t abstract. They directly impact people’s daily lives affecting their wellbeing, mobility, and engagement.

HR Dive recently warned that global HR leaders face a polycrisis that will significantly strain retention, pay, and trust. 

What HR can do: 

• Scenario-based planning. Run workforce planning exercises that map best- and worst-case economic and labor conditions, so you’re always prepared for multiple outcomes.
• Rapid response playbooks. Build guides that allow managers to act decisively and consistently instead of scrambling reactively.
• HR–Finance collaboration. Partner with Finance to test cost and mobility assumptions, keeping decisions people-first and financially sound.

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AI transformation and skills disruption

AI is accelerating faster than companies can absorb. 

The WEF ranks “AI-derived misinformation and disinformation” as a top near-term risk, alongside talent disruption, as skills needs shift dramatically. Traditional role-based workforce models simply can’t keep up.

What HR can do:

• Skills-first modeling. Focus less on rigid job titles and more on upskilling and transferrable skills. That shift keeps the workforce flexible as business needs change.
• Reskilling and redeployment. Instead of cutting teams, retrain them. A customer service rep, for example, might shift into an AI supervisor role or develop into a CX analyst.
• Talent mobility. Build pathways for people to move fluidly across functions so the business can flex resources when disruption strikes.

<<Upskilling keeps your best people close and brings new talent in. Download the guide to see how.>>

Climate change and environmental shocks

Floods. Wildfires. Earthquakes. Heatwaves. These are no longer rare, once-in-a-lifetime events. 

In fact, they now occur often enough to be treated as real operational risks—threats to continuity, productivity, and safety. The numbers are staggering. 

The WEF estimates that natural disasters already cost the global economy hundreds of billions each year. 

Behind those numbers are people. 

For professionals, the fallout is very close to home: displacement, health risks, and uncertainty.

What HR can do:

• Flexible policies. Create adaptable work and leave policies that account for emergencies like extreme weather or natural disasters.
• Wellbeing support. Build programs that provide people with health, safety, and mental health resources during climate or environmental shocks.
• Continuity planning. Fold disaster recovery and business continuity into the HR strategy itself. That way, you protect your people and your operations.

<<Crises test resilience, but support makes the difference. Learn how HR can lead with care.>>

Cultural fragmentation and workforce polarization

Economic disparity, political polarization, and constant change erode workplace cohesion. This shows up as conflict, stress, and declining trust.

What HR can do:

• Inclusive leadership. Launch training that equips leaders to foster fairness, respect, and belonging across polarized teams.
• Stronger communication. Build clear, consistent internal communication channels that keep professionals connected and aligned during turbulence.
• Civility programs. Introduce initiatives that reinforce respectful communication and constructive conflict management.

<<Turn workplace tensions into opportunities for a stronger culture that builds confidence, civility, and collaboration. Download the guide now.>>

How HR can lead in a polycrisis

In the midst of all this turbulence, here’s some good news: HR already has all the right tools in hand. By combining foresight with adaptability, HR leaders can help organizations find clarity amidst the chaos. 

Scenario planning and agile organizational design

McKinsey’s Organizing for the Age of Urgency makes it clear: Adapt or fall behind. 

High-performing organizations build adaptive, fast-moving structures. Decisions happen close to the edges, not just at the top.

For HR, that shift means stress-testing workforce models against different futures—AI acceleration, downturns, mobility restrictions, and whatever else may come our way. It also means working hand in hand with Finance. This shift moves HR from input-taker to true strategic co-pilot.

Designing for adaptability, not perfection

Rigid hierarchies slow response times. Modular org structures and networked teams unlock speed, autonomy, and accountability. 

As McKinsey argues, agility is the new imperative: Moving from a chain of command to a living network. HR can lead this shift by piloting networked team models in priority areas, proving their value before scaling.

Building a change-ready culture

Resilience is cultural, not just structural. HR leaders can normalize experimentation, empower managers to adapt quickly, and keep decision-making values-driven. 

That creates a shared compass when conditions are unpredictable.

In practice, this looks like:

• Inclusive leadership. Reinforce leadership behaviors that foster fairness, respect, and belonging across teams.
• Reward adaptability. Recognize and celebrate individuals and teams that pivot effectively when circumstances change.
• Psychological safety. Build team dynamics where employees feel safe to speak up, experiment, and learn from failure.

These cultural foundations prepare organizations to flex without fracturing.

<<Equip your people to embrace change with clarity and confidence. Download the guide today.>>

Practical first steps HR teams can take

Theory is one thing. But where should HR leaders start?

Small, focused actions build the muscle memory for bigger disruptions:

• Run quarterly scenario workshops. Bring HR and Finance together to map talent risks across two or three plausible futures. Go further: Rehearse responses in advance so agility becomes routine, not a last-minute scramble.
• Audit skills, not just roles. Map your workforce by capabilities instead of job titles. This reveals transferable strengths. For example, marketing teams with strong analytical skills could pivot into AI data monitoring roles.
• Pilot networked team structures. Start in high-priority areas where agility really counts, such as product development and customer experience. Prove the value of decentralizing decisions in these areas first, then expand more widely.
• Launch inclusive leadership and civility programs. Managers need the tools to maintain trust and cohesion, especially when outside pressures spill inside. Training that mixes communication skills, wellbeing awareness, and conflict resolution can make that possible.

Each of these steps mitigates risk and helps to actively strengthen the workforce. The more often organizations flex in controlled ways, the more prepared they are to flex under pressure.

HR challenges in the polycrisis era

The Global Risks Report stresses that persistent instability will define the coming decade. For HR, that translates into four pressing challenges:

1. Talent planning under uncertainty. Balance costs, skills, and mobility as external conditions keep shifting.
2. Keeping pace with AI disruption. Drive reskilling and redeployment at scale.
3. Safeguarding people in a climate-risk world. Embed safety, wellbeing, and continuity into policy.
4. Protecting cohesion in polarized times. Invest in culture, communication, and inclusion to keep workplaces unified.

Meeting these challenges isn’t optional. It’s central to business survival.

Stay strong through the storm

In a polycrisis world, long-term strength comes from short-term adaptability.

Scenario planning, flexible design, and resilient workforce models are the tools that can give HR leaders clarity in chaos—and the ability to guide people and businesses through whatever comes next.

This is HR’s moment of truth. Step into it, and the payoff is twofold: surviving today while building the capacity to thrive tomorrow.

<<HR’s role is evolving in the modern workplace, and it’s evolving. It’s even more vital than ever. Download the guide to see why.>>

Key takeaways for HR leaders in a polycrisis

• Polycrisis pressures are reshaping work. From geopolitical instability and economic uncertainty to climate risks, AI disruption, and cultural fragmentation, HR is on the front line of global volatility.
• Scenario planning is essential. To build agility into HR strategy, stress test workforce models against multiple futures, such as economic shifts, skills disruption, or mobility constraints.
• Agility beats perfection. Replace rigid hierarchies with flexible, networked teams that can adapt quickly to change while keeping decision-making close to the front line.
• Culture is key to resilience. Inclusive leadership, psychological safety, and civility programs help organizations flex without fracturing under constant disruption.
• Upskilling and redeployment retain talent. AI-powered workforce modeling and reskilling initiatives support talent mobility, keep pace with shifting skills needs, and strengthen retention.
• HR challenges in a polycrisis era. Talent planning under uncertainty, keeping pace with AI, protecting people in climate-risk environments, and safeguarding cohesion across polarized workplaces.
• Practical first steps. Run quarterly scenario workshops with Finance, audit workforce skills (not just roles), pilot networked team structures, and launch inclusive leadership programs.