Just 18% of HR leaders are deeply engaged in business strategy, consistently collaborating with the C-suite, and aligning talent initiatives!

?? HR leaders identified their top business priorities as recruiting better candidates, lowering turnover rates, and identifying high-performing employee

?? HR organization not aligned with the rest of the business Cost Businesses $8.9 Trillion !

?? Dysfunction and lack of alignment not only affect employees negatively but also severely impact business performance, operations, and profitability.

?? Only 53% of HR leaders report involvement from the outset in developing and executing their company’s overall business strategy.

?? 47% of HR leaders report that their HR department is absent from regular collaboration with the C-suite on long-term strategic initiatives.

?? 56% say their talent strategies do not align with the overall business objectives,

?? Despite concerns varying across the board, all HR leaders and organizations are investing in AI technology, whether they are advanced users or just piloting, according to a new interesting research published by Eightfold using data ?? from a survey taken by 500 HR leaders, VP level and above, at companies with 5000+ employees across six countries.

?HR’s Disconnects & Inefficiencies

HR is not at the table 53% of the time to help impact business strategy and course corrections. So when new challenges like remote work or AI enter the picture, and businesses attempt to master them, HR can be slow in responding or may even deploy an entirely incorrect plan of action.

Researchers listed the main current HR department challenges:

? Executive support for HR and its initiatives

? Struggle with staffing challenges (retaining and bringing in new talent) throughout the company

? The rapid changes in the company’s and employees’ HR needs are concerning

? The talent strategy is better than most companies in our industry

? Have issues getting buy-in to invest in strategic technology enhancements for HR department

?Most important factors in achieving business objectives

Researchers have discovered that the key to achieving business objectives and overall company priorities in the next 12-18 months lies in talent and skills.

In fact, the top six crucial factors include:

?? Retaining top-performers

?? Understanding skills and capabilities across the workforce

?? Building a diverse workforce

?? Hiring external candidates

?? Hiring and retaining skilled trade labor

?? Hiring and retaining talent with the right technical skills

They highlight how these disconnects begin to form. What emerges is a notable misalignment between HR’s perceived challenges, strategic priorities, and their actual implementation.

?Top Company priorities for the next 12-18 month

HR leaders identified their top business priorities as recruiting better candidates to the talent pool, lowering turnover rates, and identifying high-performing employees to promote internally.

At the same time, HR leaders said their bottom three organizational priorities were speeding up the recruiting process, analyzing workforce data, and better understanding the skills makeup.

?96% of Companies Surveyed Currently Use or Plan On Using AI

Researchers found that AI spurned improvements across the board. Approximately 78% reported improvements across the overall company, their HR department specifically, and their employees in general.

?? Finally, researchers conclude that there is a urgent need for HR leaders to focus on redefining their HR priorities to align with business objectives and strategy. This alignment can result in winning executive support, stronger coordination with the C-suite, and, most importantly, reducing friction for strategic buy-in for technologies and methods that spawn innovation and competitiveness.

Organizations should prioritize bridging the strategic gap between HR and the C-suite, particularly by recognizing HR’s integral role in business strategy discussions. This collaborative approach fosters a more holistic view of company needs and encourages HR to remain a proactive, strategic partner. HR leaders could foster such alignment through regular inter-departmental meetings and strategic planning sessions with leadership.

?? The potential benefits of investing in AI-powered skills intelligence and talent intelligence platforms are significant as these platforms pave the way for improved organizational efficiency and employee satisfaction. Skills and talent intelligence can enable leaders to map current workforce skills and anticipate future talent needs, empowering HR to upskill or reskill existing employees, thereby reducing reliance on external hiring. The role of AI in automating repetitive HR processes is a game-changer, freeing HR to focus on more strategic functions such as career development and employee engagement, leading to a more efficient and effective HR department

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This compelling research, based on a fascinating dataset, highlights the need for HR leaders to more frequently support business operations and establish a cohesive strategic framework. HR leaders must effectively execute HR functions that align with employees who drive business outcomes. Misalignment between HR and business strategies can lead to lower employee engagement and significant financial losses for companies.

??Thank you Eightfold and 3Sixty Insights researchers team for sharing these insightful findings: Dylan Teggart Ashutosh Garg Chano Fernandez Darren H Burton

Dave Ulrich

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