91% of HR Leaders Are Excited About the Future Despite Many Feeling Burnt Out
Discover what HR’s role will look like over the year ahead and what the role will require to overcome challenges and succeed.
As the work landscape has drastically changed over the last few years, HR’s role has also evolved. So, what will the role of HR look like over the year ahead? And what does HR require to succeed in an evolving work landscape? Sage recently conducted a study to gain some insights.
The work landscape has changed drastically over the last three years, with the pandemic, the Great Resignation, talent shortages, inflation, and a possible recession affecting the workplace. As the work environment continues to evolve, an HR leader’s role is also evolving. So, what will the role of HR look like over the year ahead? And what will success look like in the new world of work? Sage recently conducted a study to understand that. The following are the key findings, which reveal what HR looks like today, what the future may hold, and how leaders and C-suite executives solve key HR challenges.
HR Leaders Are Feeling Stressed and Burnt Out
According to 91% of respondents, the last couple of years has been challenging, while 95% felt HR was too much work. About 84% said they felt stressed, and 81% said they felt burnt out. About 62% even said they considered leaving the HR profession.
Despite facing such challenges, 57% of HR leaders greatly enjoy their work. According to a respondent, it is really the time to make an impact and shape new ways of working.
See more: 3 Key Factors That Could Determine The Future Of Work
HR’s Role Has Dramatically Changed
The rate of change in HR’s role in the last few years has been eye-watering due to the seismic shifts in the world and workplace. About 91% of C-suite and HR leaders say that the role has changed dramatically over the last five years. About 32% of HR leaders and 41% of C-suite executives believe these changes won’t slow down anytime soon.
HR will have to pull up their socks and be part of the change. To be able to do that, they should be on their toes to stay educated and informed so that they can anticipate the transformation to the maximum possible extent.
Top areas where HR and C-suite think HR will play a leading role in the next three years
Source: The changing face of HR
Most HR Leaders Focus Primarily on Processes
Respondents universally agreed that HR needs to evolve from primarily an administrative function and take on more of a strategic focus, with a greater consultancy role in organizations today. Yet, most also pointed out that balance today usually still tips in favor of the administrative role more than they would prefer. About 73% of HR leaders and 76% of C-suite also say that HR teams today focus primarily on processes.
Despite this, there is a widespread consensus among HR professionals that the days of HR being seen as an admin function should have been long over.
HR’s Role Is Still Perceived Administrative
HR leaders still have some way to go to convince companies of their value and the power and flexibility of the modern People function. About 63% of C-suite leaders agree that they still see HR’s role as administrative, and many business leaders don’t expect HR to play a leading role across key areas, such as workforce planning and company culture. Further, only 39% of HR leaders think employees know what HR does.
C-suite leaders also report that they don’t expect HR to play a leading role in areas traditionally sitting in HR’s wheelhouse. For example, 49% of C-suite think HR should play a leading role in employee health and well-being, as well as talent management and workforce planning.
Most Leaders Are Excited About HR’s Future
About 91% of HR leaders and 95% of C-suite said they are excited about the profession’s future. Despite this, 66% of HR leaders are still concerned about what lies ahead.
About 83% of HR and 85% of business leaders also say employee experience and satisfaction will become more of a focus for HR as the function moves away from admin toward a more strategic and people-focused role in the changing work landscape.
HR leaders further believe that their experience makes them the right candidate to be future CEOs in the future, and business leaders agree with this. About 91% of HR leaders and 95% of C-suite say HR has the right skills to become business heads.
HR and Business Leaders May Not Be Aligned on Top Priorities
While HR and business leaders agree on certain things, they may have different priorities for the coming year. For example, talent management is the top priority for both. However, DE&I and employee health and well-being are the other top priorities for HR leaders. However, business leaders’ top priorities include financial growth, efficiency, and productivity.
Economic Turbulence Is a Major Challenge
The financial health of organizations is vital now. In the immediate term, 93% of business and HR leaders said economic uncertainty would be a challenge for HR in the coming years.
HR leaders also see a few barriers to future success. For example, 92% of HR leaders say that the amount of work they need to undertake is a big barrier to future success. Limited budgets, lack of resources, and lack of the right HR team skills are a few other barriers.
Top challenges in the year ahead
Source: The changing face of HR
Leaders Need Upskilling to Tackle Challenges
How can HR leaders overcome the barriers and challenges they predict? According to 42% of leaders, increased upskilling in HR can help them overcome challenges. About 40% say more technological know-how within HR, and 37% believe investing in HR specialisms like DEI specialists can help them overcome the obstacles. Below is a list of top requirements for HR leaders to overcome challenges.
What HR say they need to succeed
Source: The changing face of HR
Regarding skilling, HR doesn’t prioritize business-focused skill sets. Further, HR leaders and CEOs don’t have the same view regarding the top skills HR need. For example, according to HR leaders, the top three skills required are leadership and management, teamwork, and coaching or mentoring skills. On the other hand, according to C-suite, the top three skills are leadership and management, financial, and analytical skills.
Performance Management Is a Crucial Area of Focus
Both HR and C-suite leaders believe performance management is a crucial focus area following the Great Resignation. Despite 93% of companies having a formal review process, 75% of HR and C-suite leaders don’t think they have a performance management process fit for purpose. Further, 74% say it has become more challenging due to hybrid work.
See more: 2023 HR Predictions: Tech Will be Key to Harnessing Great Talent
HR Should Up the Pace in Adopting HR Tech
The study found that despite a plethora of HR tech tools available in the market, the current adoption rate is low. While 59% have adopted people analytics, cloud HR, and employee self-service, about 54% have incorporated automation. Further, only 49% have adopted machine learning, and 47% have adopted artificial intelligence (AI).
Prepare To Evolve
The role of HR has evolved much over the last few years and will continue to evolve. There are new priorities and challenges as we head into the new year. HR leaders should evolve from an administrative function to a more strategic and people-focused role. Further, to overcome the challenges thrown by the changing work landscape, C-suite and HR leaders should invest in empowering the teams with modern skills, technology, and specialists. Appropriate investments and support will help HR leaders and teams navigate the changing work landscape relatively easily.
What steps have you taken to make it easier for HR to navigate the evolving work landscape? Share with us on Facebook, Twitter, and LinkedIn.
Image source: Shutterstock
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