CHROs are reducing new hires and instead investing in skill-based Talent Architecture, not all are proving to be highly effective business partners!
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
?? Majority of CHROs are developing leadership teams with effective capabilities
??The trend of reduced hiring after the pandemic surge is evident across various industries, coinciding with HR leaders' efforts to optimize workforce expenses beyond mere headcount reduction.
??CHROs are navigating a delicate balance. They are tasked with optimizing costs in the present while investing in the skills required for the future. They prioritize collaboration with other leaders to achieve greater results.
?? HR leaders are revamping performance processes to maximize organizational effectiveness, focusing on enhancing workforce performance through more efficient real-time feedback, according to a new interesting research published by 普华永道 using data ?? from a survey of 673 executives and board members from Fortune 1000 and private companies (81 were CHROs) fielded May 15 to May 22, 2024.
?Not every CHRO serves as a strategic business partner to the CEO.
Researchers found that CHROs are advocating for leadership both inside and outside the boardroom, not only by leading themselves but also by cultivating a culture centered on leadership.
?? 60% of CEOs consider CHROs to be highly effective business partners in shaping company strategy.
?? Also researchers noticed that the primary focus for CHROs is the development of leadership capabilities within teams, utilizing innovative formal training methods to cultivate proficient leaders.
?Hire a few, but prioritize skills.
Researchers noticed that majority of CHROs are hiring fewer new employees.
??The trend of reduced hiring after the pandemic surge is evident across various industries, coinciding with HR leaders' efforts to optimize workforce expenses beyond mere headcount reduction.
80% of them report that their companies have intensified efforts to balance HR costs compared to the previous year.
?? Almost 90% of CHROs report having a strategy for upskilling their workforce to effectively deploy AI and Generative AI (GenAI), potentially enhancing productivity by minimizing the time dedicated to manual tasks.
?Performance management has become a top priority for (CHROs)
Researchers have observed that leaders rely on performance management to ensure they are promoting behaviors that contribute to their bottom line.
Indeed, 57% of companies are prioritizing manager training for better in-the-moment feedback.
Researchers suggest that performance management is a missed opportunity. While 57% of companies are prioritizing manager training to enhance real-time feedback, only 36% of Chief Human Resources Officers (CHROs) report the existence of a platform for upward feedback.
?? This represents a significant gap in measuring ROI for nearly two-thirds of organizations.
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Finally researchers provide six recommendations for CHROs to become strategic business partner:
?? Don’t just be a transactional player.
Adopt a business strategy perspective when leading HR as a business unit. Strive to comprehend the business objectives of your C-suite colleagues and the total cost of your workforce to uncover joint opportunities for cost optimization and to provide a more cohesive experience.
?? Invest in our future leaders.
Concentrate on developing leadership skills in individuals who could be pivotal leaders within your organization. Explore diverse methods to cultivate future leaders capable of thriving in the current dynamic landscape, including formal training programs, partnerships with external entities and academic institutions, business rotations, and providing "stretch" assignments that allow employees to tackle new challenges beyond their usual responsibilities.
?? Don’t just tighten the purse strings.
The greater the savings from cost optimization, the more funds are available for reinvestment in the business. Consider automation, rebates, and tax credits as potential sources of funding for strategic initiatives.
?? Use technology to match the right skills to the right job.
Concentrate on developing a robust job architecture that matches roles with their required skills. Consider the adoption of GenAI to optimize data analysis and role allocation, thereby hastening the decision-making process.
?? Evaluate your performance management process.
Examine your current processes critically to ascertain whether they align with the company's interests.
?? Make feedback a two-way conversation.
Ensure you have an efficient process and are aware of the time commitment it entails. Cultivate an environment that promotes immediate feedback and pay attention to employee preferences to ensure your policies and benefits reflect what your employees truly value.
?? ???? ???????????????? ????????:
This interesting study by PWC, which utilized a notable group of executives, has shed light on prevailing boardroom trends: a decrease in hiring and an increase in cost optimization. The focus on skill investment and performance management indicates that CHROs are now prioritizing the development of their existing workforce over new recruitment efforts.
Thank you ?? 普华永道 researchers team for these insightful findings:
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Workforce Transformation Partner at PwC
8 个月Nicolas BEHBAHANI thanks so much for sharing our research! I really appreciate your comments plus the additional insight from this group. I think we’ll continue to see these trends while everyone is on pause waiting for the election - huge dependency on economy. It was 2.5 short years ago every company was on a hiring frenzy - now we are still dealing with the ‘hangover’ from that: mishires, overpaying for subpar talent, etc. Super interesting to watch the pendulum swing this drastically!
HRBP | Empowering Organizational Success Through Strategic People Management | Championing Talent Growth, Engagement & Inclusive Cultures | Employee Relations | Advocate for High-Performance Workplaces | Top HR Voice
9 个月Nicolas BEHBAHANI #HR leaders are undertaking in today's dynamic business landscape.
Human Resource Professional | MBA | Coporate Recruiting Professional- ASA | Ex-Wirtgen Group,A John Deere Company
9 个月The organization must thoroughly assess the potential challenges and unintended consequences of reduced hiring and intensive upskilling strategies. With fewer new hires and a strong emphasis on upskilling current employees, there is a risk of burnout and stagnation if employees perceive limited opportunities for career advancement or feel overwhelmed by increased expectations. This situation could lead to decreased productivity and potentially higher turnover rates, which are critical factors for CHROs to effectively manage alongside their strategic objectives. To truly become strategic business partners, CHROs need to do more than oversee HR processes; they should align HR strategies with broader business goals. This entails comprehending not only the financial aspects of workforce management but also effectively utilizing human capital analytics. They should proactively identify talent gaps and develop agile strategies to meet evolving business needs, embracing emerging technologies in the process. Promoting cross-functional collaboration and rotating HR leaders across various departments or business units can also be beneficial. Thank you for sharing these valuable insights.
LinkedIn Top Voices in Company Culture USA & Canada I Executive Advisor | HR Leader (CHRO) | Leadership Coach | Talent Strategy | Change Leadership | Innovation Culture | Healthcare | Higher Education
9 个月Thank you for sharing Nicolas BEHBAHANI Lisa Highfield
HR Strategist. Lecturer and International Speaker on HRM and Value Management.
9 个月Great research from PWC - thanks for sharing Nicolas BEHBAHANI. When looking at a skills based architecture, there is a need for organisations to carry out a 'skills audit' - most business leaders do not have a realistic view of the knowledge, skills and experience already available, but not utilised, in their organisations. Secondly, there needs to be a move to enhancing capability through good management of human performance - thereby encouraging the innovation and creativity necessary to create growth (for the employee and the organisation) and value to all stakeholders. Great post Nicolas.