Podcast Summary: Architects of Transformation—Unlocking the Real Value of People

Podcast: Work For Humans
Host: Dart Lindsley
Guest: Michael Smith, CEO of Randstad Enterprise
Date: September 23, 2025

Episode Overview

This episode explores the evolving role of HR as a driver of business transformation rather than just an administrative or cost-saving function. Dart Lindsley interviews Michael Smith, CEO of Randstad Enterprise, about people-centric leadership, balancing company and employee needs, HR’s role in value creation, the impacts of AI, and the future of work. Key insights are drawn from Michael’s 20+ years at Randstad and his global vantage point over HR trends and organizational challenges.

Key Topics & Insights

Leadership: Doing Well by Doing Good

• Michael underscores the philosophy that great leadership creates enduring value and environments where people are enabled.
  • Quote: "Good leadership is about building something that prospers beyond your presence... Individuals have been willing to go above and beyond the usual call of duties, which has created a winning atmosphere." (00:04–01:04)
• People-centric and inclusive approaches not only achieve commercial aims but benefit all stakeholders—employees, clients, hiring managers, communities.
  • Quote: "It wasn't just about lining the pockets of shareholders, but that it had a broader impact on all stakeholders." (00:54–01:04, 09:06–11:31)

The Breadth and Approach of Randstad

• Randstad is the world’s largest HR services company:
  • €24B+ revenue, 38,000 employees, 250,000+ customers, and 600,000+ contingent workers daily. (04:10–05:52)
• Their services span coaching, talent acquisition, outsourcing, and innovation—including a venture fund for HR tech startups. (05:52–07:32)
• Randstad’s innovation fund invests in disruptive HR technology, gaining early insights into grassroots changes, shaping client solutions, and supporting startups' growth. (06:02–07:32)

Michael Smith's Personal Leadership Ethos

• Smith’s career grew from university recruitment in Australia to a global executive role—characterized by regular promotions and geographic mobility. (07:32–08:06)
• He positions himself as someone who does well by doing good—focusing on building inclusive, purpose-driven work environments and nurturing reciprocal professional generosity. (09:06–11:31)

The Business of HR: From Cost-Center to Value Enabler

When HR is at Its Best

• The best HR leaders are “architects of transformation,” enabling agility, purpose, equity, and performance.
  • They have deep business understanding and align HR strategy directly to value creation.
  • Quote: "I think about them enabling things for the organization. I think about them being architects of transformation." (12:04–13:28)

When HR is at Its Least Effective

• HR dangerously defaults to compliance, reactivity, and cost-savings under budget pressures.
  • Fear of cuts and a persistent underappreciation of HR’s value are recurring challenges.
  • Quote: "The focus is often on delivering cost savings... HR and talent are viewed as a cost center rather than a growth enabler." (15:00–17:15)

The CEO's and CFO's Role

• CEOs and CFOs must shift perspective and see HR as central to strategy and growth, not just a cost. (20:23–24:04)
  • Quote: "Most of the world's most valuable companies today are still where they are based on people and the work that people have done to create that value." (20:23–22:34)
  • CFOs should look at HR investment as fueling overall company effectiveness, not just departmental savings. (23:12–25:01)
  • There are ample data points to correlate HR investments with company performance. (25:01–27:31)

Puzzling Economic Trends & the Impact of AI

Current Labor Market Paradox

• For the first time, companies are simultaneously hiring and laying off—making both processes more surgical and targeted.
  • Quote: "People are hiring and firing at the same time." (32:10–32:54)
  • Companies focus now on internally reskilling workers and doubling down on value-creating roles, while outsourcing less strategic hiring. (28:10–33:05)
• Organizations are rethinking work location and contract models in response to candidate preferences and global talent data.

Accidental Exclusion Through Efficiency

• Systems designed for efficiency can unintentionally exclude talented candidates, especially the neurodiverse and those not fitting standard filters.
  • Quote: "An efficiency and cost reductive thought process... would show up in a wonderful way for organizations and you'd have a significant amount of untapped talent that you previously didn't think existed." (34:06–36:20)
  • Smith advocates a “choose your own adventure” approach to candidate evaluation—measuring only what matters for the job rather than rigid processes. (36:41–39:44)

Generational and Structural Challenges

• There’s an emerging mismatch between early career talent supply and cautious enterprise demand.
  • Up to 15–20% of emerging/graduate talent may face unemployment by 2025/26.
  • Companies may be overestimating short-term efficiency gains from AI and underestimating the need for human-centric talent strategy. (41:47–45:53)

Practical Examples: AI in HR

• AI is mainly improving efficiency in specific tasks (e.g., screening, scheduling), not replacing whole jobs.
  • Freed-up time allows recruiters to take on more impactful, relationship-driven work, e.g., conducting first/second interviews, giving hiring managers hours back.
  • Quote: "We gave almost between 70 and 100 hours back to hiring managers... The time to offer went through the roof." (45:53–47:06)
• Automation can unintentionally remove entry-level learning experiences.
  • Smith makes the analogy to his own AI overdependence: “Every now and then, write your own board report. Don't lose sight of those skills...” (51:00–52:18)

The Future of HR: Roles, Data, and Moral Leadership

HR 2030: Evolving Roles

• Smith highlights new roles from Randstad’s Talent Trends report:
  • Architects of adaptive organizations
  • Guardians of ethical AI and culture
  • Curators of the human-AI workforce
  • Data visionaries
  • Sustainability champions, etc. (54:13–56:05)

Ethical AI & Culture

• Smith discusses complexity in applying AI, balancing predictive power and commercial gain with ethics and human values.
  • Use of AI must pass both organizational values and the "public scrutiny" test. (56:05–60:13)
  • Leadership must build intentional governance and regular moral inquiry into decision-making.
  • Quote: "You need to come back to, how would I feel as an individual if I was asked to undertake work in that context? Does that align with the values we’ve espoused as an organization?" (56:05–60:13)
  • Governance should be multidisciplinary and empowered to handle trade-offs. (60:34–61:28)

Data Visionaries

• True data-driven decision-making is rare and difficult in HR; organizations need robust real-time internal and external data.
  • Example: Talent intelligence services helped a client realize a new office location was impractical due to unseen local traffic issues. (62:35–65:37)
  • Leadership requires both technical infrastructure and business communication skills to turn data into action. (65:54–66:11)

Personal Reflections & Closing

What Michael Smith Gets from His Job

• Intellectual challenge, lifelong learning, global exposure, fulfillment from developing others, and workplace identity. (66:43–68:16)
• He recognizes his strong competitive drive, but over time, values “winning the right way,” in alignment with stakeholder values. (68:16–69:56)
• Major personal cost is excessive travel and less time with his family, a trade-off he’s candid about. (69:59–71:34)

Notable Quotes & Moments

• On Leadership: “Good leadership is about building something that prospers beyond your presence.” (00:04)
• On HR’s Role: “I think about them being architects of transformation.” (12:04)
• On HR Measurement: “You need to measure the impact of that investment on overall company performance...” (24:42)
• On AI & Ethics: “How would I feel as an individual if I was asked to undertake work in that context?... Would you be comfortable standing in front of 100 CEOs and explaining?” (56:05–60:13)
• On Data: “A lot of the services that we provide customers today are based on talent intelligence services... If you didn’t have access to that data, it would have been a disaster.” (62:35–65:37)
• Personal Reflection: “I am addicted to winning... As I've taken on a more senior role, winning the right way is more important.” (68:55)
• On Work-Life Tradeoff: “I don't believe in the saying there's quality time over quantity time. Any time with your children is quality." (69:59)

Timestamps for Important Segments

• [00:04] Leadership Philosophy: Doing Well by Doing Good
• [04:10] Randstad’s Breadth and Services
• [06:02] Randstad Innovation Fund and HR Tech
• [09:06] Emphasis on Inclusive, People-Centric Leadership
• [12:04] HR as Transformation Architects—When HR is at Its Best
• [15:00] HR as Cost Center—When HR is at Its Least
• [20:23] Changing CEO Perspectives on HR
• [23:12] Reframing for CFOs—HR as Investment Not Cost
• [28:10] Unusual Trends: Concurrent Hiring and Layoffs
• [34:06] Efficiency and Unintentional Exclusion in Hiring
• [41:47] Early Career Talent Dislocation & AI Overestimations
• [45:53] AI Case Study: Recruiters and Hiring Manager Productivity
• [56:05] Guardians of Ethical AI & Culture
• [62:35] Data Visionaries: Practical Examples
• [66:43] Personal Reflections on Fulfillment and Cost of Work

Final Thoughts

This episode provides a rich, candid, and forward-looking discussion about designing work for humans, the critical transformational role of HR, ethical use of AI, and the enduring value—personal and business—of investing in people. Michael Smith’s “do well by doing good” approach and insistence on actionable data, inclusive processes, and leadership humility give listeners both inspiration and pragmatic advice for navigating the future of work.

For more: Find Michael Smith on LinkedIn or visit Randstad (R-A-N-D-S-T-A-D) online.