Latest HR Trends: Talent Stewards, Talent Scarcity, Generative AI initiatives, CEO Turnover, Gender Bias, CHRO Succession planning
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
?? Hello Everyone and Happy Sunday !
?? Welcome back to the 47th edition of ?? Weekly People Research! ??
?? Fascinating learning week with your inspiring feedback and support! We talked a lot about talent with three interesting topics but also the long-term impact of remote work, succession planning and finally AI.
As usual, I also wanted to thank all those who just read me and share these ideas!
?? In this new edition,?you will learn more about ??:
??Why do men at the start of their career spend more time in the office than women? American Management Association researchers found that the more senior the employee, the greater the struggle in building rapport with remote workers, with 65% of executives citing it as an issue.
??Why has internal succession for the CHRO/CPO role regained popularity today? The Talent Strategy Group researchers also found that the CHRO/CPO role continues to be predominantly represented by women.
??Why is talent scarcity the top concern for Talent Acquisition Leaders? The Josh Bersin Company found while most organizations aim for a hiring timeline of 30 to 45 days, it’s evident that completing this within a month may be more of an aspiration than a reality for many.
??How can organizations take steps to maximize the return on their talent and build a strategic talent system? 麦肯锡 researchers found that leaders should address the root causes of lost productivity and adopt a data- and financials-driven approach to talent management that monitors and reduces productivity loss.
??Why did global CEO turnover increase in the first quarter of 2024? Russell Reynolds Associates found that women CEOs are more than twice as likely to leave their roles within two years of appointment, and are four times more likely to last less than 12 months in the CEO role than men.
??Why would none of GenAI’s initiatives be considered an ambitious project or a fundamentally disruptive new business model? 贝恩公司 researchers found that about 85% of large enterprises’ generative AI applications target more incremental improvements in products, services, and efficiency.
These insights continue to evolve as we all learn more - as Dave Ulrich and we must now classify these ideas in the Taxonomy of Human Capability.
???Now, let's do a recap of the week on published research:
?? Findings of researchers:
?? Only 15% of Gen AI initiatives pursuing more transformative changes such as expert task automation, AI agent-led customer interactions, and hyper personalization of offerings at scale!
??None of the initiatives would be considered a moonshot or a fundamentally disruptive new business model.
?? The top three key areas where GenAI is used in human capital are:
Talent Development, Productivity and Change Management.
So far, about 85% of large enterprises’ generative AI applications target more incremental improvements in products, services, and efficiency, according to a new interesting research published by Bain & Company using data from about 33% of Fortune Global 500 companies (235 of them) which had publicly announced generative AI initiatives as of the end of February 2023.
?? Recommendation of researchers:
Finally researchers provide four key actions can improve the odds of success for a company’s bold AI bets:
1?? Use early wins to gain conviction.
2?? Quickly determine which proprietary assets will deliver sustained competitive advantage.
3?? Find the right balance between buying, building, and partnering.
??My personal View:
Businesses across industries have invested enormous amounts of time and resources since end of 2022 developing their initial use cases and as researchers highlighted in this wonderful research, it’s still too early in the technology’s journey to fathom all the ways AI could transform industries and what its full potential will be. But this research proves it, we are at the beginning of this new technology and the reality is that it is a little slow for executives...
???? What were the HR expert opinions:
Dave Ulrich There will be more on GenAI as we move up the s-curve on its application. I would agree that for now, it is more about providing information to improve existing operations, but more will come with informed and augmented information. In this post, see a host of talent, leadership, organization, and HR applications. The future will likely build on this efficiency focus to become more effective at information for decision making.
Jos van Snippenberg Fascinating how history repeats. The same as we have seen when disruptive innovations entered the market like the mobile phone and internet. We see in the upcoming Gen AI also similarities. The main question is for me “are we using Gen AI to keep the old standards in place, or are we using it to breakthrough paradigms. I see a huge advantage for HR if they start first to design a renewed “nostalgia for the future”. What is the value we need to create for all the stakeholders? Create a new foundation for HR how to add value to talent, leadership and the organization as a whole. Only then will Gen AI facilitate to make people grow, perform and matter.
Dr. Guna Seelan R. Thank you for summarizing the ground reality of Gen AI. I believe true traction will grow with awareness and availability of right tools.
Layla Halabi The emphasis on incremental improvements in GenAI applications raises an interesting point about the pace of technological adoption and innovation within large enterprises. It might be valuable to explore how smaller, more agile companies are using GenAI to leapfrog traditional business models. Are there lessons that larger corporations can learn from these smaller entities about embracing more radical uses of AI?
?? Findings of researchers:
?? 68 CEOs were appointed and 52 CEOs departed the role, the highest Q1 totals since 2018 and 2020 respectively.
?? Failed CEO appointments - those lasting less than two years - accounted for 15.1% of outgoing CEOs.
?? Women remain largely underrepresented in the CEO role across the world and in 2023, 88% of 180 CEO appointments were first-time CEOs.
? Women CEOs are more than twice as likely (24.1%) to leave their roles within two years of appointment, and are four times more likely to last less than 12 months in the CEO role than men, according to a new interesting research published by Russell Reynolds Associates using data ?? from companies in S&P500, ASX200, FTSE 100,....
?? Recommendation of researchers:
?? Finally researchers provide some ways to achieve true gender balance at the top, and reduce CEO Turnover with:
?? Create systemic changes to how succession is planned, managed, and executed.
?? Boards will need to double down on their succession planning, focusing not just on the CEO role but their entire C-suite.
?? Boards can't ignore their accountability for a new CEO’s success, and many are clearly not doing enough to set women candidates up to succeed.
??My personal View:
This insightful research by this renowned recruitment firm shows that the turnover of CEOs continues to be high in 2024 and this shows that it is crucial that the replacement of executives takes place in the best possible conditions so as not to put the viability of the company at risk for business and organizations. When we see the impact and cost of replacing a simple employee, we can imagine the challenge for replacing a CEO!
???? What were the HR expert opinions:
Dave Ulrich Very interesting data, thanks for sharing. I am struck by the pattern of internal vs. external hires which is relatively consistent except with the onset of COVID, a major disruptor that increased external hires, but then the same 70 (internal)/30 (external) pattern emerged and has held rather steady. We see firms going external to create more of a change in strategic direction. The gender gap also seems to be a relatively consistent pattern. It is interesting to figure out why this gap persists. I agree with you that increasing the pool of qualified CEO successors needs more attention, which I would suggest is not just the c-suite (agree with this), but also leaders at all levels. This is interesting because I see more gender equity in MBA students who bare likely to be the early pipeline for executive leadership:" According to a new report from Forté Foundation, women's enrollment in full-time MBA programs across the country is higher than ever. Fall 2023 enrollment is 42%, up from 41% last year. A decade ago, women's overall enrollment was 34%"So, why the fall off from those entering the pipeline to the CEO pool to CEO selection? Interesting question and probably a complex answer.
Marcela Azevedo As an HR , I emphasize the need for a behaviorally informed approach to succession planning. This involves identifying and mitigating unconscious biases that impact selection and promotion decisions. Biases such as confirmation bias and the halo effect often lead to homogeneous and less effective choices, undermining diversity and organizational sustainability. For example, the overvaluation of traditionally masculine leadership traits can significantly contribute to the gender disparity at top positions. To induce a real and effective behavioral change, it is crucial to integrate gender diversity goals into performance metrics and corporate bonus systems. By doing so, we not only encourage the development and promotion of female leaders but also signal a shift in priorities that genuinely values diversity and inclusion at the highest level of management
John White, MBA Turnover of CEOs is always a critical topic to address for organizations striving towards gender parity and stable leadership.
Layla Halabi This research highlights a critical gap in leadership sustainability and gender parity and frankly, it’s concerning. It seems that broadening the scope of CEO candidacy and preparing more women for these roles are pivotal.
Ahlam Bakkal Indeed, a change at CEO level comes at a high cost for businesses. So it's essential to provide the right conditions for the newly appointed CEOs to succeed.
?? Findings of researchers:
In a higher-return talent system, HR becomes a strategic partner with the C-suite, ensuring that talent is a company-wide priority.
?? Organizations can take five actions to maximize their return on talent: build a skills-based strategic workforce planning capability, create a hiring engine that brings in the right talent to fill critical roles, invest in learning and development, establish a stellar performance-oriented culture, and elevate HR’s operating model to become a true talent steward.
?? Also five factors (Lack of skills, lack of engagement, Inefficiency, Attrition and vacancies, well-being) that drag down employee and organizational productivity could cost a median-size S&P 500 company roughly $480 million a year.
HR transitions from a cost center to a true value creation center. HR can take several steps to transform its own operating model and turn into the Talent Steward, according to a new interesting research published by McKinsey & Company using data ?? from US Bureau of Labor Statistics.
?? Recommendation of researchers:
??Researchers conclude that HR can take several steps to transform its own operating model:
?? Establish a more agile operating model to deliver on the increasingly strategic role required of it.
?? Further strengthen its data- and people-analytics capabilities so it can rapidly share the insights that matter most to business unit and function leaders. People analytics can help HR identify and reduce time inefficiencies by empowering staff particularly middle managers, who are often plagued by meeting overload to pare back the number of meetings they are involved in.
?? Connecting the talent strategy to the organization’s overall business strategy.
??My personal View:
This magnificent research which studies the real causes of loss of employee productivity and its recommendations for HR are very interesting and give realistic solutions based on People Analytics insights for Talent leaders to transform into a High-performing Talent System and upgrade to a real Talent Steward.
???? What were the HR expert opinions:
Dave Ulrich It is always a delight to see thoughtful research on how to invest in human capability (talent + leadership + organization + HR) to deliver stakeholder value. I so agree that HR professionals should partner with business leaders to deliver value to all stakeholders. Our research starts with stakeholder value for employee, strategy, customer, investor, and community (the dependent variable). We then try to determine which of 10 talent initiatives most deliver value to these five stakeholders in what we call the organization guidance system. Our talent domain examines 10 talent initiatives and their impact on five stakeholder outcomes. This research confirms much of what we found around the importance of acquiring the right talent, although we also found that employee engagement and experienced had high overall impact. Fascinating to explore these ideas!
Danuta Yefimchyk In my experience, this should be excellent interaction between Leaders and HR. Yes, you can immediately find the "diamond" when recruiting a new employee, but this is rare (Create a hiring engine to compete for Talent). In order for the incumbent to turn into a "diamond", it must be polished,?rinsed, etc. The interaction HR, team leader, business leaders will give a notion of which employees need to win (Identify who need to win). Understand what we want from this employee and how to achieve it (Focus learning and development programs on the highest-return journeys Make people and performance your organizational mantra).
Jose Santiago A key component of this transformation is the acceptance of an opened internal talent market where talent flows freely within the organization. This also requires a cultural shift in many organizations especially when siloed.
Lourdes G. I agree 100% with point number 3 where employees lose astounding amounts of productivity levels with gray work (e.g., chasing information from colleagues, entry of same data in multiple platforms, endless approvals, re-work after feedback from excessive stakeholder input, etc). Also, spans of control for middle management may be too large where managers do not have the necessary resources to support individual team members’ effective performance. HR is well-positioned to prioritize Org Design and Org Effectiveness practices in partnership with Technology teams to streamline jobs, work inputs/outputs and decrease spans of control while elevating productivity.
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?? Findings of researchers:
Only 32% of TA leaders feel they act as strategic partners to their organization.
?? Skills scarcity currently stands out as the predominant challenge for Talent Acquisition Leaders before Downsizing and cost-cutting.
? 42% of TA leaders believe their company does not have a workforce plan, and 46% say that business priorities change so fast they are “running around” to keep up.
?? There is 2 real Paradoxes: The first one is that organizations are cutting their talent acquisition spending at the same time CEOs feel that skills shortages are getting worse.
?? And the second one is that of all the HR technology markets, recruiting is the most innovative of all, but none of this technology works if the Talent Acquisition team is left on an island.
? While most organizations aim for a hiring timeline of 30 to 45 days, it’s evident that completing this within a month may be more of an aspiration than a reality for many
While most talent acquisition (TA) leaders identify skills shortages as their top issue (60%), they are also under tremendous pressure to improve the efficiency of their recruiting processes (58%), according to a new interesting research published by The Josh Bersin Company in collaboration with AMS using data ?? from a survey of 130+ HR executives of more than 13 industries in a wide variety of countries around the globe.
?? Recommendation of researchers:
??Finally, researcher provide below five recommendation to TA leaders as Talent acquisition is at a crossroads:
1?? Optimize talent visibility and mobility.
2?? Harness technology and data for strategic Talent Acquisition
3?? Cultivate an ecosystem of diverse talent.
4?? Foster agile adaptation to talent trends.
5?? Take a systemic approach.
??My personal View:
This interesting research which is based on interviews with HR executives, Josh gives us the latest challenges of TA leaders including the Skills Scarcity. Also the five recommendations given to organizations are very interesting and can thus face the two paradoxes cited in this magnificent research. By adopting a more strategic approach to talent acquisition and embedding that strategy from the top down, organizations can effectively confront these workforce challenges that are likely to define the next decade.
???? What were the HR expert opinions:
Dave Ulrich Wonderful insights on how to gain a talent advantage. We have identified the 6 "B's" of talent: 1. Buy: acquire new 2.Build: develop current 3. Boost: promote right 4. bind: keep best 5: Borrow: access without ownership 6. Bounce: remove thoughtfully. When these competence-building actions link to external customers, investors, and communities, a talent advantage follows.
Jos van Snippenberg Beautiful insight. It's clear that companies will need to change their perspective. Where HR should have a more outward-focused perspective to deliver value for all stakeholders. When it comes to acquiring the right people with the right skills, the perspective should be more inward. Practice shows that companies that facilitate employees to develop within the organization based on their DNA tend to be quite successful.
Ahlam Bakkal Recruitment seems one of the HR areas where there is technology innovations the most. But I observed that very few companies adopt those tech tools. If HR leaders could adopt some of those technologies, it would free up some space for TA teams to introduce efficiencies in other areas of the hiring process.
Sara Junio The challenge with the scarcity of skills is the chasm will continue to widen every year when new technology is introduced. Industrial revolutions used to take 100 years, now they are under five years. That is a lot of change for the workforce.
Namita Gopinathan,MBA It's clear that leaders in talent acquisition are confronted with the dual task of tackling skill shortages while also improving recruitment efficiency. TA leaders could enhance efficiency by implementing strategies such as cross-training current employees, investing in upskilling programs, and utilizing technology for focused recruitment, all aimed at tackling the challenge of skills scarcity.
Dara Bidwell, SHRM-CP This research really resonates with my experience at my former company. Often there was no set workforce plan and priorities changed weekly. It is a frustrating way to work because of the reactive nature. I tapped the brakes a lot to slow down the process to ensure we were making good decisions. Hiring managers did not always agree with me but it’s bad for the employee experience if your hiring process becomes a runaway freight train
Jelena Joksovic Talent has a life cycle the same as other areas of business and that’s important to know, as the Strategy should be built on it. Organizations also need talent leaders who have a real “knack for it” - what needs strengthening and what needs refreshing. A cycle of a successful team lasts about 2-3 years and then, some change is needed. So, goal should be to evolve, moving people in based on their skills, because that’s what makes the talent pool diverse and makes hiring more effective. Harnessing technology and data fully for both: Finding talent - skills based approach. Talent development - rebuilding and strengthening. Finally, having Talent Leaders who have a keen sense of talent’s life cycles- knowing how much value people are bringing at any point in time. This will affect the talent acquisition process inevitably.
?? Findings of researchers:
?? Only 22 new CHROs/CPOs were appointed during the year 2023!
?? 91% of 2023 appointed CHROs/CPOs had prior experience in the Human Resources function prior to appointment of the top HR job.
?? 86% of the 2023 appointed CHROs/CPOs were new to the top HR job, having not previously served in a CHRO/CPO capacity prior to their appointment
?? 73% of 2023 newly appointed CHROs/CPOs came to the role via internal succession, a rate of internal succession not seen since 2017.
?? Also internally promoted CHROs/CPOs had a tenure of 15 years with the company prior to their appointment,
?? Consistent with prior years, the CHRO/CPO role continues to be predominantly represented by women, according to a new interesting research published by The Talent Strategy Group using data ?? from Chief Human Resources Officer (CHRO) and Chief People Officer (CPO) role of Fortune 200 companies and publicly available.
?? Recommendation of researchers:
?? The vast majority of the 2023 CHRO/CPO appointments consisted of individuals that served in a HRBP role prior to their CHRO/CPO appointment.
?? Researchers noticed that there were the fewest appointments of Fortune 200 CHROs/CPOs in 2023 since this report’s 2017 inception. These 22 new appointments imply an 11.5% annual turnover rate.
??My personal View:
Even if this interesting study only concerns the Fortune 500 companies, it is interesting to see the recruitment trends of CHROs as well as their profiles. Above all, this study once again highlights the importance of good management of succession planning for CHROs who are no longer just former HRBPs...
???? What were the HR expert opinions:
Dave Ulrich Patrick Wright and his colleagues at South Carolina have studied the background, role, and characteristics of CHRO's since 2009. In their latest (2023) study with 171 CHROs (The C.H.R.O. Role in 2023: Findings from the HR Moore Survey of Chief Human Resource Officers (sc.edu )) they build on this reported study of demographics to discover that CHROs play the role of "driving business outcomes are the Board’s Leader of Human Capital, Driver of Culture and Purpose, Trusted Advisor and Coach, and Enterprise Change Leader." In our latest round of HR Competency with 28,500 respondents (also with Pat Wright), we identified 5 core competence domains and 13 sub competences not only for CHROs, but HR professionals at all levels. We showed the impact of these competencies on [1] personal effectiveness, [2] stakeholder value, and [3] business results. We also found that organization capabilities had more impact on stakeholder value than individual competencies.
Jos van Snippenberg Relevant insights, especially now that this week also saw the release of research results advocating the importance of good career planning. I'm very curious about the impact of a decrease in the switching behavior of CHROs. It would be hopeful to see an increase in intrinsic motivation and the recognition of opportunities to evolve HR. Perhaps external factors such as geopolitical developments are reducing the willingness to switch. Interestingly, I observe this trend much less within the small and medium-sized businesses in the Netherlands.
Dr. Bhanukumar Parmar Absolutely, the title choice between Chief People Officer (CPO) & Chief Human Resource Officer (CHRO) can significantly impact perception & organizational focus. While both titles encompass the strategic management of Human capital - CPO tends to emphasize a more holistic approach, emphasizing the importance of people beyond just resources, further CPO deals with external people (CSR, Institutes, Courts, Govt. Offices, etc.) On the other hand, CHRO may convey a more traditional HR-centric role. Ultimately, the decision should align with the organization's culture, values, & strategic priorities.
Gemma Atkinson Tenure yes - experience less. I came through the commercial route but was encouraged to pivot. Fantastic opportunity
?? Findings of researchers:
The office tends to be an inherently male playing field and they feel less motivated working remotely!
?? In the early-career, men generally spend more time in the office than women. Far more young men than women said they were advancing by working from the office.
?? Men are significantly more likely to derive key benefits from in-office work as they feel more at ease in offices, more productive, more connected and are better able to advance their careers.
?? The more senior the employee, the greater the struggle in building rapport with remote workers, with 65% of executives citing it as an issue.
?? In addition to rapport-building challenges, many respondents (43%) also said that remote work hinders collaboration.
?? 1 in 5 respondents (21%) who said they had a strong desire to advance were not receiving training and development. This amounts to a lost opportunity for organizations to get more from their employees and could diminish loyalty in a still-tight job market, according to a new interesting research published by American Management Association using data ?? from a survey of 1,000 US knowledge workers.
?? Recommendation of researchers:
Finally researchers provide 4 factors that can help collaborative success of employees:
?? Developing trust, which in a hybrid environment needs to be achieved without face-to-face interaction
?? Leading with influence, to support teamwork with “soft power,” meaning by inspiring rather than directing
?? Working fluidly across boundaries, by learning colleagues’ approach to work, collaboration style, and cultural references
?? Demonstrating global awareness, so that an individual can be an active, informed teammate and leader
??My personal View:
This wonderful research found that a thriving hybrid culture is essential to supporting workplace gender equity. Also career ambition is alive and robust in the age of hybrid work. As researchers suggested, now more than ever, managers and leaders have the responsibility of making sure their organization’s employees are being developed, coached and provided with opportunities of advancement equally across genders and various workplace environments. Although training is booming, many organizations are falling behind in preparing their managers for the workplace shift and training ambitious employees.
???? What were the HR expert opinions:
Dave Ulrich Very interesting research. Work from home has both benefits (productivity, job satisfaction, flexibility) and costs (lack of personal development, collaboration, and sense of culture) . George (and others) have cited this research and experience. My sense is that many companies are figuring out the "where to work" policies that work for them What is interesting in this research are some of the subtleties where gender and role shape the experience. I think I understand senior executive struggle with rapport given role and history, but I am not sure I fully understand why these gender difference exist. It would be interesting to control for age, family status (married, children), education, role, job type, and some other factors. Thanks for continuing to share thoughtful research which provides more granular insights into the world of work.
George Kemish LLM MCMI MIC MIoL If not managed well, remote working can suffer from lack of communication and collaboration leading to detriment in lost development (for both the employee and the organization). Productivity without development adds no value to the individual or the organization. Remote/hybrid working does work - but it needs a totally different thought process from both the employee and employer viewpoint and, unfortunately, my own research shows it to be very poorly managed.
Dr. Bhanukumar Parmar Creating an equitable workplace requires ongoing commitment & vigilance. By actively addressing biases & promoting equal opportunities, organizations can build a thriving hybrid culture that benefits everyone.
Reema Purohit Creating an inclusive and supportive hybrid work culture is vital for gender equity in the workplace.
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Nicolas BEHBAHANI
Leading Transformations and Positioning Organizations for Future Success | Transformation Executive and Strategic Leadership Coach | Best Selling Author
6 个月Lots of good good information here, Nicolas. What caught my eye was the reference to AI within Change Management. I could see it really helping, but like any other new technological advancement, it needs to be refined for the greatest opportunity. Best way to refine it: use it.
GEN AI Evangelist | #TechSherpa | #LiftOthersUp
6 个月Impressive insights as always. Looking forward to diving into the latest edition of Weekly People Research. Nicolas BEHBAHANI
ZOHO Authorized Partner | The Sniper Recruiter | ZOHO CRM Integrator | Business Operations Automation Expert | Consultant
6 个月Such insightful research shared, looking forward to the next edition. ??
Human Resource Professional | MBA | Coporate Recruiting Professional- ASA | Ex-Wirtgen Group,A John Deere Company
6 个月What a comprehensive roundup! It's truly appreciated how you've summarized complex topics in an accessible manner. Your exploration into various facets of talent management, including gender dynamics, succession planning, and the impact of AI, provides valuable perspectives for both HR professionals and organizational leaders. Your clear explanations make these complex issues understandable to all readers, regardless of their level of expertise. Thank you Nicolas BEHBAHANI for sharing such meaningful content and fostering discussion on these important issues. Thank you for expanding my understanding of these important topics. I appreciate your efforts in making this newsletter both informative and accessible. Looking forward to diving into more enriching editions and continuing to learn from your expertise. Huge gratitude to the author and all HR experts. Happy Readings! Happy Sunday everyone!
Senior Consultant I Human Resources I Change Management I People Consulting I HRBP SR
6 个月This compilation of good content, views, and points of view has become mandatory reading. Thank you Nicolas BEHBAHANI, for the content and for all the connections between professionals that you have made here on LinkedIn