A recent HR Technology Report by isolved reveals that 94% of HR leaders now see their department as a key business driver, a significant rise from 70% in 2022. However, this evolution comes with challenges, including hiring concerns, talent shortages, and skills gaps.
Findings from the isolved Report
-
HR as a Strategic Business Driver
- 94% of HR leaders recognize HR’s impact on business success.
- A shift from traditional HR functions to a strategic leadership role.
-
Challenges in the Talent Landscape
- 69% expect hiring difficulties to persist.
- 62% report an ongoing talent crisis in their industry.
- 48% acknowledge a growing skills gap.
-
Employer-Employee Power Shift
- 65% of HR leaders believe power is returning to employers.
- This shift may result in cost-cutting and reduced employee experience (EX) investments.
-
Employee Experience (EX) and Engagement Gaps
- One-third of HR leaders see improving EX as their biggest opportunity.
- However, 79% of employees report burnout, while only 61% of HR leaders recognize it as an issue.
- A disconnect between HR priorities and employee needs persists.
-
Impact on Retention and Recruitment
- Poor EX investment can harm engagement and increase attrition.
- A declining labor force and reduced immigration may create long-term hiring challenges.
- Companies that neglect EX risk damaging their reputation and recruitment efforts.
HR’s transformation into a key business driver brings both opportunities and challenges. While power dynamics shift, organizations must balance cost efficiency with investments in EX and employee engagement to maintain productivity and retention.
