In a recent survey, chief executives cited financial growth as the second highest priority for HR in 2024 after talent management. HR leaders rated this tenth, revealing a disconnect which could be limiting potential for growth. CEOs also placed “efficiency and productivity” and “technology review and investment” much higher than HR Leaders.
Here are three key areas where HR Leaders and the C-suite should be working together to strengthen the contribution and impact of HR and add greater value to their organisation.
HR need to constantly evaluate the evolving challenges and expanding responsibilities that functional business leaders are now expected to take on. A substantial three quarters of HR professionals acknowledge that leaders in their organisation feel overwhelmed by the growing scope of their responsibilities with more than half stating that their leaders bear more responsibility than they can effectively manage.
Regardless of sector or discipline, these are just a few of the day to daily challenges leaders may face on top of their specific positional duties: balancing short-term responses to crisis vs longer term visioning, cultivating fit-for-purpose behaviours, understanding and integrating fast-developing technologies, leading hybrid teams, managing multiple, sometimes competing stakeholders. On top of all that, they must oversee healthy cultures with clear EDI policies and execution and motivate workforces who may feel burned out and be seeking better work/lifestyle balances.
In order to thrive and drive productivity and efficiency, organisations require HR to step up and proactively support the path to navigate multiple priorities. This means listening and being responsive. Among the strategies HR can employ to assist are: resetting expectations; enabling effective delegation and communication training through access to coaching and training for staff; simplification of structures and tasks; identification and help integrating new technologies to improve efficiency; and ensuring directives around business culture and expectations are clear and visible.
Leaders should be made to feel confident in asking for help without being judged and have built-in time for reflection and mentoring.
In the domain of talent management and upskilling, HR has an opportunity to take centre stage in its strategic input to the rapid evolution of workplaces and business models. The integration of AI into HR functions will support the evolution of job specifications, with HR leveraging AI audits to assess skills, experience, and talent. AI applications will further empower HR to identify and cultivate individualised training programmes, aligning upskilling initiatives with the dynamic and agility needs of an organisation.
As the landscape of talent acquisition continues to transform, acquiring, retaining and optimising talent extends beyond traditional measures. In a survey conducted by Gartner, only one in four employees surveyed said they felt confident about their careers. Scope for promotion, progression and personal enrichment can be as important as income when valued employees consider factors influencing their career decisions.
This shift requires a focus on creating a holistic approach encompassing employee wellbeing, coaching, transparent career progression and more flexible work arrangements as well as a commitment to continuous learning and upskilling.
Career progression is moving further away from being a vertical ladder with clear scripts and gateways, unfolding instead as a matrix with interconnected paths. HR leaders should be ready to tailor talent strategies to these new business models which will open wider career possibilities, more diverse employee expectations and opportunities that represent finite cycles of work with dynamic possibilities for personal growth.
Surveys show C-suite buy-in to AI advantages is not being matched by enthusiasm from HR leaders. More than two thirds of executive leaders agree benefits of AI outweigh risks yet only a fifth of HR leaders are actively engaged in AI discussions across their organisations.
Most describe the application of AI as being something that will become increasingly important in the future. However, the most advanced organisations and their HR leaders are using it now to streamline processes, improve efficiency and enhance employee experiences, lifting HR’s role in the organisation.
First steps for HR are creating a framework to assess and identify appropriate AI applications and support departments to adapt existing organisational working models to assimilate and fully exploit their potential to drive progress and efficiency. Importantly, they must also be aware of the risks and create a framework to ensure their ethical, transparent and responsible use.
There are known issues around generative AI, such as bias and a built-in tendency to “hallucinate” – literally to make things up. Whether you have AI tools built for your organisational needs or integrate existing applications, ensure there are humans testing, overseeing and constantly assessing output before it reaches any audience.
While younger generations may be unphased and embrace the fast pace of technology-driven change, adoption of frontier technologies may alienate some older workers who are already feeling bewildered by the pace of change, post-Covid, and worried about being displaced by automation.
Manage their concerns with genuine, effective two-way communication. Explain any changes, why they are necessary and how they will benefit them, ensure they get proper training to co-pilot the technology effectively, open channels for feedback, listen and respond.
If you want to learn how Rialto can help your HR teams to explore and prepare for the future of work and emerging business models, contact us on +44 (0) 20 3746 2960.
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