Dr Muhammad Laghari shares key pillars of HCM agenda driving people success

Today, HR is not just a support function; it’s a key driver of business success. As workforce dynamics change and talent priorities evolve, HR leaders have become data enthusiasts to align people strategies with organisational goals. They are both visionary and pragmatic, working as strategic partners to the C-suite for sustainable success.

Dr. Muhammad A. Laghari, former Chief Human Capital Officer at Abdul Latif Jameel International, is a passionate HR leader who embraces this approach. In an exclusive conversation with People Matters, he shares his insights on building effective Human Capital Management (HCM) strategies, focusing on diversity, data, and employee well-being to empower organisations through their people.

Read the full interview here:

Please share your HR leadership journey with us. What experiences have shaped your productive thought process, and what challenges have driven your passion for HR?

My HR journey has been deeply rooted in the belief that HR is not just a support function but a strategic partner critical to the success of any organisation. I’ve always seen HR as the backbone that enables businesses to thrive by unlocking the potential of their people. This belief has shaped my approach and fueled my passion for making HR a driver of tangible business impact.

Throughout my career, I’ve had the opportunity to lead HR initiatives across diverse industries, each with unique challenges. These experiences taught me that when HR is done right, by aligning people's strategies with organisational goals, it can create a transformative impact on both employees and the business.

Challenges such as navigating organisational restructuring, managing cross-cultural teams, and encouraging inclusion in diverse environments have deepened my conviction in HR’s role. They also reinforced my belief that HR must operate as a bridge between the workforce and leadership, ensuring mutual alignment and engagement.

Another significant influence on my thought process has been the increasing reliance on metrics and analytics in HR. Early on, I realised that data-driven decisions are key to demonstrating HR’s value and achieving meaningful outcomes. Whether tracking employee engagement or analysing the ROI of development programs, metrics have helped me make informed decisions and communicate HR’s impact to business leaders.

In every role I’ve held, I’ve prioritised building strong HR systems that emphasise employee well-being, development, and inclusion. I firmly believe that an empowered workforce drives innovation, resilience, and sustainable growth, proving that HR is not just about processes but about creating value for people and businesses alike.

My journey has been shaped by challenges, opportunities, and a constant drive to make HR a strategic enabler. The passion to see organisations flourish through their people keeps me motivated every day!

What’s your perspective on leadership building a sustainable, people-first culture that supports both HR and business goals? How crucial is leadership's involvement in talent development, and can you share some effective examples from ALJ?

Building a sustainable, people-first culture that aligns with both HR and business goals is critical for long-term success, at any organisation. I firmly believe that leadership plays a pivotal role in driving culture and ensuring an environment that values employee well-being, development, and engagement, while also maintaining a strong focus on measurable business outcomes.

In my view, one of the most effective ways to achieve this balance is by integrating analytics and metrics into HR practices. I believe data-driven insights allow leaders to value HR. As an example, they can:

• Understand and Address Workforce Needs more effectively
• Link their People Strategies to their Business Goals.
• Take more informed decisions and actually see how their decisions affect their people and business i.e. enhanced Decision-Making
• See / Measure the ROI of HR Initiatives
• Create a culture of Accountability and Continuous Improvement

Ultimately, a people-first culture is not just about creating a positive employee experience; it is about aligning this experience with business success. By leveraging analytics, leaders can ensure that their culture-building efforts are not only empathetic but also strategic and impactful, creating a win-win scenario for employees and the organisation.

ALJ is a family business, rooted in practices I describe as "thinking with the heart." This approach emphasised supporting people when they needed it most, creating a sense of genuine loyalty and connection to the brand that was truly unique. However, the organisation is now transitioning toward adopting practices more aligned with those of multinational corporations. While this shift reflects the natural evolution of a company expanding beyond borders, it represents a significant cultural change. For those of us who deeply valued the original ethos of ALJ, this transformation may feel bittersweet. Yet, as the saying goes, change is the only constant in life! 

As the Middle Eastern workplaces evolve, what common barriers have you observed across industries? What are some effective ways to overcome these challenges?

The workplace, especially in the GCC is undergoing significant transformation. The region's unique workforce mix makes HR very unique as well, and I believe it has a long journey ahead. For example, I see several common barriers across industries:

Diverse Workforce Dynamics: The region’s workforce is unique in that the majority is a mix of expatriates from different cultural backgrounds with few local talents. This diversity brings challenges in aligning cultural values, communication styles, and work expectations. I believe organisations can invest in cultural intelligence training and develop inclusive HR policies that embrace diversity while encouraging collaboration and mutual respect.

Talent Development and Retention: Many companies face high turnover rates, particularly among expatriates, as well as gaps in local talent pipelines, especially given the focus on localisation. A lack of structured career development opportunities often exacerbates these issues. In my view, implementing robust talent development programs, mentoring initiatives, and clear career progression pathways can help attract and retain top talent. Additionally, leveraging partnerships with educational institutions can build a strong local talent pool.

Rapid Technological Change: The pace of digital transformation often leaves workforces underprepared, creating skills gaps and resistance to change. If organisations prioritise reskilling and upskilling through targeted training programs, they can ensure that their employees are equipped to adapt to emerging technologies.

Evolving Employee Expectations: Younger generations entering the workforce demand greater flexibility, purpose-driven roles, and well-being initiatives. Balancing these expectations with traditional workplace norms can be challenging. I think HR leaders should focus on designing employee-centric policies, offering flexible work arrangements, and building a strong employer brand that emphasises purpose and impact.

Addressing these challenges requires HR teams to evolve beyond transactional roles and adopt strategic approaches tailored to the Middle East’s unique context. While progress has been made, a stronger focus on leveraging analytics, focusing on inclusion, and aligning HR initiatives with broader business goals will be critical in driving sustainable growth.

In your view, what are the key pillars of Human Capital Management? What areas must HR professionals never overlook when developing effective HCM strategies?

Many organisations claim that their people are their greatest asset, yet this sentiment often doesn’t align with their cultural practices. For organisations to genuinely prioritise their workforce, they must back their words with systems and processes that reflect this commitment. This involves adopting key Human Capital Management practices that prioritise the well-being and advancement of their people, creating an environment where employees truly feel valued and supported. That said, I believe some of the key pillars to look at to have a meaningful strategy would include: 

• Diversity and Representation
• Equity and Fairness
• Inclusive Leadership
• Employee Engagement and Belonging
• Continuous Learning and Development
• Flexibility and Accessibility
• Data-Driven Decision-Making
• Health, Well-being, and Psychological Safety
• Accountability and Transparency

By embedding these pillars into Human Capital Management, organisations can create an environment that values diversity, promotes fairness, and supports the personal and professional growth of all employees! 

What future trends do you believe will reshape workplaces across industries? What should be the key focus areas for HR in 2025?

I believe workplaces in 2025 will be defined by their ability to adapt to technological advances, embrace data-driven decision-making, and maintain a people-centric approach. HR’s role will be to guide this transformation, ensuring alignment between employee needs and organisational goals. 

What this means is that to succeed organisations will have to adapt, and fast. The trends I see include: 

Accelerated Digital Transformation: The integration of AI, automation, and advanced analytics will continue to redefine how work is performed across industries. Roles will evolve, requiring organisations to reskill and upskill their workforce to stay competitive.

Hybrid Work Models: Flexible work arrangements, combining remote and in-office setups, will become the norm. This shift will challenge traditional workplace cultures and necessitate new approaches to collaboration, communication, and performance management.

Data-Driven Decision-Making: HR will increasingly leverage metrics and analytics to optimise workforce strategies, predict talent trends, and demonstrate the ROI of HR initiatives.

Employee Well-Being and Mental Health: Organisations will focus on holistic employee well-being, addressing mental health, work-life balance, and financial wellness to attract and retain top talent.

Diversity, Equity, and Inclusion (DEI): DEI will remain a priority, with companies aiming to build more inclusive workplaces and addressing inequities through measurable action plans.