The world of work is undergoing a profound transformation and the role of Human Resources has never been more critical. In Cyprus, HR is evolving from a traditional support function into a strategic driver of business transformation, shaping everything from digital adoption and workforce planning to culture, leadership and sustainability.
Maria Georgiou, President of the Cyprus Human Resource Management Association (CyHRMA), talks about how HR leaders can navigate this shifting landscape by balancing efficiency with culture, embracing AI and ensuring that companies remain competitive so as to attract and retain top talent.
The HR function is increasingly expected not simply to support business strategy but to drive it. How do you see the role of HR evolving in Cypriot organisations over the next five years?
The HR function is increasingly recognised as pivotal in shaping business strategy within Cypriot organisations. In recent years, HR has progressed from its traditional support function to become a strategic partner, maintaining its essential human focus while driving organisational transformation.
Five years ago, the pandemic presented unprecedented challenges, positioning HR at the forefront of organisational survival and adaptation. Since then, the pace of change has accelerated, with organisations embarking on transformation through the following drivers:
(1) AI Integration: Businesses are transitioning from experimental AI adoption toward full-scale implementation, including emerging agentic AI technologies;
(2) Holistic Transformation: Organisational change is not limited to digital advancements but involves rethinking operations, developing new revenue streams and alternative value delivery models and fostering an adaptive and enabling culture;
(3) Workforce Scarcity: With low unemployment levels and evolving organisational needs, there exists an ongoing mismatch between available skills and demand;
(4) Evolving Talent Strategies: Modern workforce planning requires prioritisation of purpose, flexibility, wellbeing and continuous learning opportunities; and finally,
(5) Sustainability: ESG strategies are central to transformation efforts, with operations increasingly aligned to sustainability objectives.
Amid these developments, effective leadership, a well-defined purpose-led culture and targeted talent acquisition and retention are essential for organisational success. HR is entrusted with guiding both business and digital transformation initiatives.
In Cyprus, unique factors such as competition from multinational firms, strong family business traditions and reactive change adoption further shape HR’s responsibilities. The HR function must ensure that organisational leadership employs a strategic, proactive approach to decision-making, while also inspiring confidence, remaining accessible and leading employees through periods of change.
How can HR leaders reconcile the pursuit of operational efficiency with the equally vital responsibility of cultivating and preserving a strong organisational culture?
HR should align strategies with business objectives by establishing strong partnerships with leadership and integrating HR initiatives into daily operations.
While technological innovation can increase efficiency, HR must maintain meaningful human connections, especially in onboarding and performance management. HR shapes organisational culture by aligning recruitment practices with company values, implementing strategic compensation schemes and conducting cultural assessments.
These measures integrate cultural priorities into operational processes. Collaboration between HR leaders and management is crucial in evaluating current culture, identifying gaps and developing strategies that synchronise cultural direction with organisational values and long-term goals.
Recruitment should not only focus on individuals aligned with the organisation’s values but should also seek those who bring diverse perspectives, new skills, expertise and a growth mindset, enriching the talent pool. Strategic compensation is equally significant, as rewards are a powerful tool for fostering a recognition-driven culture; beyond base salary, targeted benefits and reward initiatives can encourage behaviours aligned with company values.
Furthermore, HR professionals are instrumental in ensuring that culture remains integral to executive decision-making, bridging the gap between leadership actions, employee sentiment and shared values.
As technological change accelerates, promoting learning and development becomes essential, with HR responsible for cultivating an agile, innovative and continuously learning workforce by embedding professional growth and advancement opportunities at every level of the organisation.
As AI tools become increasingly embedded in HR processes, how do you foresee their impact on the profession?
In Cyprus and globally, AI and Data Analytics are key to HR strategy. To leverage their power, HR must redesign its processes for AI, introducing automation for routine queries, onboarding, payroll, workforce planning and training and development while, at the same time, prioritising high-volume, repetitive tasks with strategic impact and scalability.
Furthermore, a data-driven culture should be fostered by ensuring that data is clean and accessible and equipping HR professionals with data science and problem-solving skills as well as leveraging AI Agents for recruitment, onboarding, policy communication and career development throughout the employee lifecycle. Finally, HR operations could be enhanced by the adoption of self-service portals, chatbots and robotic process automation on HR platforms.
In an era of remote work and heightened mobility among skilled professionals, how can Cypriot employers sustain their competitive edge in attracting and retaining top talent?
The nature of work, both globally and in Cyprus, has evolved significantly. This shift, precipitated by the pandemic and the rapid influx of local and international talent, necessitates robust organisational infrastructure and a supportive culture. Infrastructure encompasses operational structures and technology systems designed for productivity and flexibility.
It is vital to rethink processes and routes to value creation, maintaining a client-centric approach. Culture is established through leadership – embedding strong values and purpose into the organisation’s core, establishing trust-based relationships, cultivating psychological safety, transparency and balanced HR policies that consider both business and employee needs. Robust leadership development, coaching and mentoring programmes and ongoing employee feedback are also important in this respect.
This interview first appeared in the September edition of GOLD magazine. Click here to view it.
