What's Happening?
Stacey Harris, chief research officer at Sapient Insight Group, emphasized the strategic role of HR professionals during a keynote address at isolved’s Connect for People Heroes event in Philadelphia.
Harris highlighted the importance of HR leaders in balancing short- and long-term visions, especially in the context of AI advancements. Despite the strategic potential, many companies still struggle to fully integrate HR into their strategic framework. Sapient’s 28th Annual HR Systems Survey revealed that only 51% of leaders consider their HR function strategic, a slight decrease from the previous year. The survey also noted varying perceptions of HR’s influence across different corporate functions, with finance being the most negative. Amberly Dresser from isolved pointed out the challenges HR faces in gaining influence, particularly as labor market dynamics shift power back to employers.
Why It's Important?
The strategic integration of HR is crucial for businesses aiming to enhance productivity, performance, and market share. Companies that view HR as a strategic partner tend to outperform those that do not. However, achieving this requires substantial investment in HR capabilities and tools. The ongoing AI advancements present both opportunities and challenges for HR leaders, who must navigate these changes to maintain their strategic relevance. As labor market conditions evolve, the ability of HR to influence organizational decisions becomes increasingly vital, impacting employee satisfaction and retention.
What's Next?
Organizations are encouraged to reassess their HR strategies and invest in tools that enable HR professionals to lead change effectively. This includes planning for positions rather than individuals, elevating time and scheduling management, and humanizing absence and leave policies. As AI continues to transform the workplace, HR leaders must proactively guide their organizations through these changes to ensure alignment with strategic goals.
Beyond the Headlines
The shift towards strategic HR requires a cultural change within organizations, where HR is seen as a key driver of business success rather than a support function. This transformation involves redefining HR’s role in decision-making processes and ensuring that HR data is utilized effectively to inform strategic decisions.
