Developing both Leadership and workforce Capabilities, but also Organizational Culture, are the two top Human Capital priorities in 2024!
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
?? Talent, technology, and innovation are their main areas of internal focus for Global CEOs in 2024
?? CEOs and CHROs are aligned in their top-two human capital management priorities for 2024: “develop leadership and workforce capabilities” and “strengthen organizational culture.” Globally, CEOs are eyeing the economy and their own organizational talent as primary areas of attention.
?? CHROs are more enthusiastic about and have greater expectations for AI than even highly positive CEOs. CEOs see innovation as a key to driving longer-term growth; investment in technology, automation, and AI are also priorities.
Close to 90% of CEOs see AI increasing the efficiency/productivity of labor and their firms overall. CEOs also see gains in innovation and creativity. But there is work to be done to create an organizational culture and structure to maximize AI’s productivity, according to a new interesting research published by The Conference Board using data ?? from an anonymous survey conducted between October 24 and November 24, 2023 among 1,247 C-suites executives around the world, including 630 CEOs.
?Economic downturn and Talent are the top focus area for 2024
Researchers found that CEOs believed that “economic downturn/recession” and "attract and retain talent" are the top two external and internal factors they expect will have the greatest impact on their organizations in 2024.
?The main areas of internal focus in 2024 for CEOs
Researchers found that talent, technology, and innovation are their main areas of internal focus in 2024 but other C-Suite executives cite cost reduction as the top priority.
In addition to fighting the war for talent, CEOs said that their organizations will focus on accelerating digital transformation, including adopting AI (which can both grow the business and save money through streamlining processes and tasks), enhancing product and service innovation, and improving the customer experience.
?Plans to invest to ensure growth for your business over the next three to five years
?? Researchers noticed that CEOs cite four broad areas of investment to fuel growth over the next three to five years:
?? innovation and technology : innovate through people, processes, and tools; digital transformation, including AI; and automation
?? Human capital : upskill and retrain existing talent, recruit for new skills, and improve corporate culture
?? Pursuit of new opportunities : develop new lines of business, invest in other geographic locations, and engage in M&A and R&D
?? Engaging and winning new customers : marketing and promotions
?The top two priorities for human capital
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Researchers found that CEOs and CHROs agree on the top two priorities for human capital in 2024:
1?? Develop leadership/workforce capabilities
2??Strengthen organizational culture
?? CEOs continue to rate attracting and retaining talent as their number-one internal priority at 39%, with CHROs at 51%.
Consistent with previous research done by The Conference Board, organizational culture, quality of leadership, and work-life balance are the factors that most influence employee retention.
?? Researchers noticed that CEOs and CHROs differ in other priorities: “strengthen employee experience” is a human capital priority for 51% of CHROs vs. 25% of CEOs, and 24% of CHROs prioritize focusing on diversity, equity & inclusion (DEI) (ranked seventh) compared to just 10% of CEOs (ranked 14th).
While maintaining hybrid work is not a high CEO priority, bringing workers back to office is even less of one. Citing concerns over productivity, innovation, culture, and promotion, many executives have been eager to have workers return to the office.
More than 90% of CHROs believe AI will increase organizational and individual workers’ productivity, and increase innovation and creativity. Some 76% of CHROs believe it will improve employee engagement compared to 62% of CEOs. CHROs are also more aware of the challenges AI presents, with 81% believing AI will add risk (compared to 56% of CEOs), and 43% of CHROs see AI increasing their regulatory burden
?Expectations for a positive payback from using AI
Researchers also found that CEOs have high expectations for a positive payback from using AI. On the positive side, CEOs see AI increasing the efficiency/productivity of labor (91%) and the firm overall (88%). They also see increases in innovation and creativity (87%); marketing capabilities (79%); sales, revenue, and profit (68%); and employee engagement (62%).
Almost 80% of CEOs say adopting AI will require new capital expenditures, and 94% say it will require new skills and training.
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This very interesting research carried out as usual by the serious The Conference board demonstrates that there is a convergence of points of view on the priorities of CHROs and CEOs and the two major priorities for 2024 of Human Capital are identical - namely leadership capabilities and organization culture - and therefore rely on employee experience.
Thank you ?? The Conference Board researchers team for these insightful findings: Dana M Peterson Chuck Mitchell Paul Washington Lori Esposito Murray
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10 个月Leadership and workforce capabilities, as well as strengthening organizational culture, are the key priorities shared by CHROs and CEOs. Exciting times ahead! ??
Unleashing talent potential with real-time people analytics: Empowering HR & leaders to enhance employee experience, save time, and cultivate a culture of high performance and well-being through personal leadership
10 个月Nicolas BEHBAHANI Insights that fully resonate in daily practice. Growth demands CEOs to recalibrate the foundation of the organization. The cracks have become so significant that makeshift repairs are insufficient. As Dave Ulrich rightly emphasizes, it revolves around talent, leadership, and culture. Generations Y and Z are struggling immensely due to their needs not being met. The pressure on talent is high, mental resilience is weakened, resulting in decreased effectiveness. There is a need for connection, requiring transparency and authenticity. I observe that organizations find it challenging to articulate who they truly are and the positive role they want to play in the world. This creates a gap with the younger generation, who expect purpose, the ability to make an impact, and to feel part of 'something bigger.
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10 个月Impressive research findings. How can CHROs and CEOs collaborate to achieve these goals? ????
PhD, DBA- HR ?? | Aspiring CHRO/HR Director ?? | HRBP | CPHR, SHRM-SCP ?? | Ready for Strategic Leadership
10 个月Spot on analysis! The convergence of priorities between CHROs and CEOs in human capital is crucial for organizational success.
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10 个月?? Thank you for sharing this insightful research on the priorities of Global CEOs & HR leaders in 2024 Nicolas BEHBAHANI = It's fascinating to observe the alignment between CEOs & CHROs, particularly in the crucial areas of Talent, Technology, & Innovation. ?? For me the most impactful observation from the research is the convergence of priorities between CEOs & CHROs ??♂? As HR the focus areas always have been BUILDING - Commitment, Culture & Competencies with Care & infusing Collaboration. ? Capabilities - (Leadership & Workforce) - (1) Skill's gap analysis basis the Business Strategy, (2) Personalized, Skill-First Approach - Pull rather than Push, (3) 50 / 25 / 25 - Approach (Not 70, 20,10). ? Culture - (1) Business Strategy, (2) Culture Assessment (AS-IS), (3) Define (TO-BE) with people, (4) Go (5) Evaluate (6) Redo steps 2, 3, 4 & 5. Principle - As Dave Ulrich always mentions - Value creation for Business to Win in marketplace.