2023 is the year that HR leaders are being considered as the perfect successors for outgoing CEOs.
So, why do only 50% of executives say their HR teams aren’t very involved in business strategy? Personio spoke to 2,200 C-suite leaders and 4,500 HR managers to find out.
1. Executives need to involve HR more
While nearly 70% of C-suite leaders say their HR department will be more important in the future, 63% would still like to better understand what they do. Over half admit they don’t know how to use their HR team as strategically as they would like.
2. HR teams don’t feel valued
Two-thirds of HR managers felt valued more during the pandemic’s peak than today, while 60% say their strategic influence has reduced.
This means 50% of HR managers don’t feel HR’s input is valued in their organisation – 70% wish it had a bigger influence. The result is that 40% of HR managers plan to leave their job in the next 6-12 months.
3. AI can help empower HR teams
Executives are open to the power of AI and its ability to make HR more efficient, but HR teams are worried:
Executives:
“It has a lot of potential to make HR more efficient” (68%)
“We intend to incorporate it into HR in the next five years” (64%)
HR leaders:
- “HR needs more technology to keep up” (73%)
- “AI has a lot of potential to free up time to be more strategic” (70%)
What next?
“This is a great opportunity to redefine HR’s role. HR should take the lead with the CEO and push for a hard reset, finding where their expertise can benefit the bottom line. Misalignment benefits no one.”
Ross Seychell, CPO, Personio