The Happiness Squad Podcast with Ashish Kothari

Unlocking Human Potential By Rethinking Talent Development for a Flourishing Future of Work with Stacey Dietsch

Sep 9, 2025

In this engaging discussion, Stacey Dietsch, Executive Vice President of Talent Pipeline at Liberty Mutual and former McKinsey partner, dives into innovative talent development strategies. She advocates for a shift from traditional hiring practices to skills-based assessments, using AI to enhance the recruitment process while promoting equity. Stacey emphasizes the importance of empowering leaders at all levels and developing inclusive team cultures. She also discusses the future of work, urging organizations to embrace agility and resilience amid rapid changes, especially with AI.

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ANECDOTE

Dad Shaped A People-First View

Stacey credits her dad for teaching that everyone matters and deserves to be heard, shaping her people-first view.
That upbringing drove her focus on uncovering each person's unique contribution at work.

INSIGHT

Empowerment Drives Performance

Empowerment is core to people flourishing because ownership and trust let people perform at their cognitive best.
Bureaucracy and constant justification of work drain energy and reduce productivity.

ADVICE

Align Talent To Business Skills

Start talent strategy by defining business performance drivers and the skills needed to deliver them.
Then screen, develop, and promote people based on those critical skills to drive clarity and equity.

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For years, companies have relied on credentials and rigid job structures that filter out talent instead of developing it. But in a world where roles are shifting fast, especially with AI, those old models are holding organizations back and leaving employees frustrated. It’s time for organizations to unlock human potential by rethinking talent development for the future of work.

In this episode of the Happiness Squad Podcast, Ashish Kothari sits down with Stacey Dietsch—former McKinsey partner and senior executive at Liberty Mutual— to explore how skills-based practices, leadership investment, and responsible AI adoption can help organizations empower people and close the talent gap.

Stacey Dietsch is Executive Vice President of Talent Pipeline at Liberty Mutual Insurance, where she leads the end-to-end talent lifecycle—including strategic workforce planning, talent attraction, onboarding, learning and development, performance management, and career growth across 45,000 employees globally.

Before joining Liberty Mutual in January 2024, Stacey spent nearly two decades as a Partner in McKinsey & Company’s People & Organizational Performance Practice, helping organizations align their talent, culture, and operating models to drive sustainable performance and meaningful work.

Stacey emphasizes that building thriving organizations requires deliberate choices—simplifying structures, developing leaders at every level, and giving people ownership of their growth and impact. Tune in now and learn what unlocks your team’s real potential.

Things you will learn in this episode:

• Why empowered workplaces outperform bureaucratic ones

• The role of purpose, autonomy, and trust in employee flourishing

• The shift from credential-based to skills-based hiring and promotion

• The promise of STARS (Skilled Through Alternative Routes) in widening talent pipelines

• Using AI responsibly: not just for cost savings, but for growth and workplace transformation

✅Resources:

• Liberty Mutual Insurance: https://www.linkedin.com/company/liberty-mutual-insurance/

• STARS (Skilled Through Alternative Routes) framework: https://www.opportunityatwork.org/stars

• Positive Organizational Scholarship: https://positiveorgs.bus.umich.edu/an-introduction/

✅Books:

• Multipliers, Revised and Updated: How the Best Leaders Make Everyone Smarter by Liz Wiseman: https://a.co/d/cgjo5ij

• The Win-Win Workplace: How Thriving Employees Drive Bottom-Line Success by Angela Jackson: https://a.co/d/awtKbEP

• Hardwired for Happiness by Ashish Kothari: https://a.co/d/fpmucOP