The Workforce Has Evolved. Have You?
Fifty years ago, workforce strategy was simple: hire smart people, put them in cubicles, and manage through meetings and memos.
But today? Work has evolved. And so has the workforce.
Today, we're orchestrating a mix of full-time staff, contractors, and now...intelligent systems. This era of the Third Workforce is characterized by people and AI-powered coworkers working side by side.
Before you roll your eyes and say, “Not another AI article,” let me be clear...this is already a reality for some companies. Take Moderna are merging their tech and HR teams to manage AI oversight or where managers at Amazon are being told AI will reduce headcount. Nearly 65% of U.S. leaders are already using AI to guide decisions around promotions, pay, and even layoffs.
However, the real story that most leaders are missing is that AI is no longer just a tool. It’s becoming a teammate. And like any teammate, it needs oversight, boundaries, and a clear role on the team.
The question isn’t “Should we use AI?” You already are. The question is, Are you leading it, or letting it lead you?
Three Workforces. One Strategy.
Let me break it down.
The First Workforce is your traditional employees, the heartbeat of your company.
The Second Workforce is your external talent, contractors, freelancers, gig workers.
The Third Workforce is AI, bots, digital agents, and intelligent ecosystems doing the work of analysts, recruiters, customer service reps, and even coaches.
What Smart CEOs and CHROs Are Doing Differently
Here’s what I’m seeing from the companies that are doing it right:
They treat AI with intentionality. As an active participant in the business.
They design blended teams. Workflows that include people and systems, with clearly defined roles.
They invest in manager readiness. Middle managers are now leading human and digital teams simultaneously.
They reframe performance metrics. Success has more outcomes than just output. It’s about trust, adoption, and collaboration across workforces.
And what have companies found when they do this well? They are able to free up capacity, not to cut headcount but to refocus on more value-added activity. As IBM’s CEO recently put it, automating HR tasks actually led to more hiring, because it unlocked time for real value creation.
This Is HR’s Moment—If We Choose to Lead It
I’ve worked through a few economic shocks in my time. But what we’re facing now is a permanent redefinition of how work gets done. And HR sits at the center of it. We can keep patching holes, or we can build something new. We can fight the change, or we can guide it.The Third Workforce isn’t a threat. It’s a chance to finally focus on what matters most—people, purpose, and performance.
So here’s my challenge to CEOs and CHROs alike: Are you building your workforce... or still just managing your
headcount?
ABOUT THE AUTHOR
Jeff Lupinacci spent the last 25 years at some of the world's best-known companies, such as Intel Corporation and Kimberly-Clark. His career spans key executive roles such as Chief Learning Officer, Chief Talent Officer, and Chief Integration Officer. After a successful corporate career, Jeff turned his focus to his true passion—serving the overworked and under-resourced HR profession.
Beyond his corporate success, Jeff is a sought-after speaker and thought leader, with his insights featured in leading publications such as CFO Europe, Nikkei Business Magazine, and Baylor Business Review. In addition to his business leadership, Jeff is an adjunct professor at Baylor University, where he teaches Human Capital Management for the Executive MBA program and leads the HR Strategy and Analytics capstone for undergraduates.
Jeff is the best-selling author of The Talent Advantage: A CEO’s Journey to Discover the Value of Talent. He lives in Dallas, Texas, with his wife and two doodles.