The Dutch Bros Approach: 5 Things CHROs Can Do to Stay One Step Ahead of Change

Human Resources is not a zero sum game. Rather, it’s an infinite, no-rules contest where the goal is to stay in the game, and continue to innovate and grow, assured Jess Elmquist, Chief People Officer at Dutch Bros Coffee, in opening remarks designed to set the pace for IAMPHENOM 2025.

It was no surprise to see Elmquist on the main stage as the first non-Phenom speaker of the conference. He has spoken at this very gathering for years in prior roles as the CHRO of Phenom and Life Time. So if it’s anyone who knows what HR executives are going through right now, he most definitely does. His words carry weight.

550,000 applicants for 14,000 vacancies

Elmquist is now the people leader for the third largest coffee chain in the country. Dutch Bros is headquartered in Oregon, has more than 1,000 drive-through outlets, and is aggressively looking to expand to 2,000 stores by 2029. The culture is such that there were 550,000 applicants for just 14,000 jobs last year.

Doubling its workforce to match huge growth will require the kind of holistic, ‘grow with you’ technology Elmquist has been evangelizing to his peers for years.

“I know that you came here with goals to make sure that you're utilizing the Phenom investment the way you need to,” he told customers in the audience.

With the HR space facing the most disruption and change in the 30 years he’s been working in talent, Elmquist offered five tips to help navigate choppy waters.

1. Predict the future by creating it

By 2030, 85 million jobs may go unfilled due to a lack of skills, he pointed out. Forty percent of those jobs in the next 36 months are going to be changed by artificial intelligence alone. If HR leaders look the other way and pretend that those millions of unfilled roles are somebody else’s problem, they aren’t being proactive.

“As we think about our strategies in the future, the opportunity for us is to say ‘No, these are my 85 million jobs that may go unfilled,” he said. “The best way to predict the future is to create it.”

2. Shape how work gets done

CHROs aren’t just managing talent; they are shaping the future of work.  Change management has never been more important as a cultural imperative in every organization. Constant and continuous change is impacting all areas of Dutch Bros, Elmquist said.

“When we think about employee satisfaction and engagement, it’s not only taking the incredible task on and the hard work and labor to pull someone in to work with our company, but it's then to actually say ‘I see you. What you do matters, and you're important here.’”

3. Lead your own skills revolution

Skills are becoming more important since not everyone takes the traditional education route. Ninety percent of companies say they have skills gaps, but only 20% feel they can close them. Organizations are increasingly focusing talent to fit their needs since they have specific roles and certain ways of doing things. 

“It could be that you have a highly proprietary and technical need that you'll have to train people, regardless of where they went to school,” he said. 

At Dutch Bros, for example, talent is first hired based on attitude and aptitude, then trained for three weeks on making coffee a certain way. Passing a test then leads to certification as a “broista” (bro-eesta).

“We do that because the way that we actually make our finely-crafted coffee, which is espresso-based only, no drip coffee, we want you to get that quality across the thousand shops,” Elmquist said. “We are absolutely relentless at perfecting a great coffee drink for you while providing a mind-blowing experience.”

4. Empower talent through choice and growth

Let employees choose their own career adventure by undertaking an AI-empowered ontology that allows people to combine skills and connections, and allows organizations to help people find jobs they never knew existed.

“And now they get to choose their own adventure,” Elmquist said, reminding people that the future of work isn't just about linear career paths. “It's about possibility. It's choice. It's growth powered by AI.”

Since 70% of the variance between engagement and non-engagement is leader-oriented, managers ought to embrace the opportunity to sit face-to-face with their direct reports — no phones, no laptops, no distractions — and understand their motivations.

5. Embrace innovation to lead the future of work

Elmquist flashed a slide up on the giant main stage screen. It was a quote from Steve Jobs: “The people who are crazy enough to think they can change the world are the ones who do.” 

In the same vein, Elmquist reminded them, CHROs in a changing world are predictors and shapers who empower and lead. He encouraged them to take all of the applied AI wisdom obtained from IAMPHENOM sessions and get active. 

“When you're an innovator and you're with other innovators, that's where you get challenged to take that one nugget home and do something with it,” he said.