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Leadership
Visionfor2023
Top3strategicprioritiesfor
ChiefHROfficers
©2022Gartner,Inc.and/oritsaffiliates.Allrightsreserved.GartnerisaregisteredtrademarkofGartner,Inc.oritsaffiliates.Thispresentation,includingallsupportingmaterials,
isproprietarytoGartner,Inc.and/oritsaffiliatesandisforthesoleinternaluseoftheintendedrecipients.Becausethispresentationmaycontaininformationthatisconfidential,
proprietaryorotherwiselegallyprotected,itmaynotbefurthercopied,distributedorpubliclydisplayedwithouttheexpresswrittenpermissionofGartner,Inc.oritsaffiliates.
KeyQuestionsAddressed
WhatarethemajortrendsaffectingCHROsandtheHRfunction?
HowshouldCHROspreparefortheyearahead?
WhatskillsandcapabilitiesdoCHROsandHRbusinesspartners(HRBPs)needtosucceed?
LeadershipVisionforCHROsin2023
Amideconomicuncertaintiesandcostpressure,and
withtalentbothscarceandexpensive,CHROsmust
understandhowthetrendsimpactingtheworkforceand
broaderorganizationwillshapetheirprioritiesin2023
andbeyond.
Inthisclimate,itiscriticalCHROstakeactiontoincrease
thepositiveimpactthattheyandtheirteamshaveon
theorganization.
CHROscanusethisresearchtorespondtomajortrends
impactingtheworkforceandimprovetheirownpersonal
impactandeffectiveness.
RisingInflation
90%ofCEOsexpectasignificantriseininflationwithinthenext12months.
23%ofCFOsarespecificallyincreasingemployeepaytocompensateforconsumerpriceincreases.
2
3
OrganizationsFaceUncertainandConfusingTimes
TheTriple-Squeeze
ThreeCompoundingPressuresthatMostExecutivesHaveLikelyNeverExperienced
1
ScarceExpensiveTalent
GlobalSupplyConstraints
48%ofCFOsbelievesupply-chainvolatilityandshortageswilllastbeyond2022.
50%ofHRleadersexpect
increasedtalentcompetition
overthenext6months.
46%ofHRleaders
anticipateattritionwill
remainhighforin-
demandrolesin2023.
Margins
Source:2022GartnerCEOandSeniorBusinessExecutiveSurvey;2021GartnerCFOCapitalAllocationSurvey;Gartnerwebinarpoll:CFOs’2022PlaybookforEnhancingProfitabilityandDrivingDigitalAcceleration;AttractingandRetainingCriticalTalentWhilePreparingHRforDisruption(July2022);2023GartnerHRPrioritiesSurvey
WorkforceIsIncreasinglyHighPriorityforCEOs
Top10CEOBusinessPriorities,2022and2023
PercentageofRespondentsIncludinginTheirTopThreeMentions,CodedResponses
60%
30%
0%
51%
UpFromFifth
in2020
34%
31%
29%
20%
15%15%
9%
6%
9%
v-8%
v-5%
▲32%
v-5%
v-27%
▲43%▲26%▲292%
v-24%
▲77%
Growth
Tech-Related
Workforce
Corporate
Financial
ProductsCustomerEnvironment&Services
Cost
Sales
n=410,allrespondents
Q:Pleasetellusaboutyourorganization’stopfivestrategicbusinessprioritiesforthenexttwoyears(2022-2023).
Source:2022GartnerCEOandSeniorBusinessExecutiveSurvey
SharedPurpose
52%ofemployeessayflexibleworkpolicieswillaffectthedecisiontostayattheirorganizations.
ShiftsinEmployeeExpectationsAreHeretoStay
NewEmployeeExpectationsImpactingRetentionandAttraction
Flexibility
53%ofemployeeswanttheirorganizationstotake
actionsonissuestheycareabout.
n=3,500employees
Source:2021GartnerHybridandReturntoWorkplaceSentimentSurvey
Well-Being
70%ofcompanieshaveintroducednewwell-being
benefitsorincreasedtheamountofexisting
well-beingbenefits
n=77HRleaders
Source:2021GartnerEVPBenchmarkingSurvey
n=5,000employees
Source:2021GartnerEVPEmployeeSurvey
Person-FirstExperience
82%ofemployeessayit’simportantfortheir
organizationtoseethemasaperson,
notjustanemployee.
n=5,000employees
Source:2021GartnerEVPEmployeeSurvey
Manage
Spend
HRLeadersMustWeighManyTrade-Offs
Periodsofeconomicuncertaintycanofferbusinessleaderstheopportunitytoreinvesttodrivefuturegrowth,butthisrequiresdeliberateprioritizationoftrade-offsinbudget.
Someofthemostrelevantandsignificanttrade-offsHRleadersmustbalancearemanagingspend,securingtalent,andacceleratinggrowth.
Increaseddigitalizationandautomationwillultimatelymakeworkflowsandprocessessimpler,faster,andmorecost-effectivewhilealsoprovidingHRstaffwithmoretimetofocusontheactivitiesthataddbusinessvalue.Atthesametime,HRleadersmustaddressbusinessleaders’concernsandensuretheorganization’semployeevalueproposition(EVP)isclearanddesignedtoattractandretaintherighttalent–particularlythosewithdigitalanddataskills.
AccelerateDigital
SecureTalent
HRLeaders
Source:Gartner
LeaderandManager
Effectiveness
Change
Management
EmployeeExperience
CHROs
CHROPrioritiesfor2023
TopBusiness-SupportingHRInitiatives
1LeaderandManagerEffectiveness
2OrganizationalDesignandChangeManagement
3EmployeeExperience
4Recruiting
5FutureofWork
6LearningandDevelopment
7HRTechnology
8Diversity,EquityandInclusion
9TalentAnalytics
10TotalRewards
n=353headsofHR
Q:Pleaseselectthetwokeyinitiativesyouneedtoconcentrateonthemostinyourfunctionto
effectivelysupporteachoftheprioritiesyourankedmostcriticaltoyourorganization.
Source:2023GartnerHRPrioritiesSurvey
LeadersNeedaNewApproach
Theshiftingworkenvironmenthaschangedemployeeexpectationsandblurredtherelationshipbetweenleaderandemployee.Itrequiresleaderstoapproachtheircoreresponsibilitiesinnewwaysbydisplaying“human-centricleadership”–leadingwithauthenticity,empathyandadaptivity.Whilethesetraitshavebeenlistedamongthekeyqualitiesofgreatleadersinthepast,today’senvironmenthasmadethemimperativesthatemployeesnolongerjustdesirebutdemand.
CoreLeaderResponsibility
RoleModelBehavior
SupportTeams
DeliverResults
Prior
Approach
Professional
Enableworkplaceboundaries
Employees
Addressworkneeds
Efficient
Managestandardizedworkflows
Work
Environment
Shift
SocialandPolitical
Turbulence
Highstressandrisk
ofcontroversy
Work-LifeFusion
Increasinglyvisible
personallives
HybridWork
Morevarietyinworkpatternsandnorms
New
Approach
Personal
Enablesafeself-
expressionatwork
People
Addresslifeneeds
Individualized
Managetailored,flexibleworkflows
Source:Gartner
RecommendedActionsforCHROstoBuildHuman-CentricLeadership
Understandhowtheconceptofhuman-centricleadershipandassociatedbehaviorsalignswithyourorganization’scurrentleadershipcompetencymodelandidentifyneededadjustments.
Identifypotentialtrade-offsthatmayneedtobemadebetweenfocusingoninvestinginleadership
developmentprogramsandotherbusinessrequirements.
Assessyourownstrengthsanddevelopmentareasasahuman-centricleaderandidentifyopportunitiestodisplayauthenticity,empathyandadaptivitywithyourownteam.
Adjustleadershipdevelopmentprogramstodevelophuman-centricqualities(whilemaintainingafocusonbusinessneeds)andupdatesuccessionstrategiestoidentifysuccessfulhuman-centricleadersinhigh-impactroles.
PositionHRteammemberstoidentifyemployeeswhocansharediverseperspectiveswithleadersinordertocataloghigh-andlow-stakesopportunitiesforleaderstodisplayvulnerablehumanleadership.
Askyourleadershipteamtoactivelycommittoclearexpectationsforhuman-centricleadershipbyprovidingtheoptiontochoosebetweenpeople-leadershipandnon-people-leadershipcareerpathways.
Top-DownChange
LeadersSettheChangeStrategy
LeadersOwnImplementationPlanning
OrganizationsRollOutCommunicationCampaigns
SettheStrategyandDefinetheVision
PlanImplementation
CommunicateandSustainChange
Open-SourceChangetoLeadThroughUncertainty
Todecreasechangefatigueandsupportemployeesthroughuncertainty,CHROsshouldleadtheirorganizationstoadoptanopen-sourcechangestrategyinsteadofatop-downchangestrategy.Whenemployeesareactiveparticipantswithownershipinanopensource-changestrategyemployeesare1.5xmorelikelytobewillingtochangeandoverallchangesuccessis14xmorelikely.Theriskofchangefatiguealsodropsasmuchas29percentagepoints.
Open-SourceChange
EmployeesCo-CreateChangeDecisions
EmployeesOwnImplementationPlanning
EmployeesTalkOpenlyAboutChange
Source:Gartner
RecommendedActionsforCHROstoLeadOpen-SourceChange
Collaboratewiththecommunicationsfunctionandseniorleaderstocraftmessagesaboutchange,includingspecificmessagestohelpemployeesunderstandtheimpactofchangeontheirownwork.
Communicateopenlyaboutdisruptionsandchangeswithyourownteam.
EncourageHRteammemberstoshareinsightsopenlyandprovidefeedbackonchangeplans.
UpskilltheHRteamtohelpleadersshiftimplementationplanningtoemployeesandsolicitupward
feedbackandconstructivecriticism.
Designandimplementprocessestoshareemployeefeedbacktodemonstrateemployees'voices
arebeingheard.
Source:Gartner
ConnectednessbyOsmosis
HybridShift
FacilitateCultureConnectednessbyIntention
Foraculturetotrulysucceed,employeesmustbebothalignedandconnectedtoit.Becauseoflesstimeinoffices,fewerin-personcontactsandshrinkingworkecosystems,HRleadersnowhavetobemoreintentionalabouthowtheyconnectemployeestothecultureratherthanthroughosmosis.
ConnectednessbyIntention
DiffuseCulture
ThroughtheOffice
Workreplacestheofficeasthemostcommon,constantculturalexperience.
DiffuseCulture
ThroughWork
ConnectThroughPhysicalProximity
Beingseenbecomesrarefied,placinggreaterweightontheneedtofeelseen.
ConnectThrough
EmotionalProximity
OptimizeaMacro-
BasedExperience
Cultureisexperiencedinsmallerecosystemswithintensifiedrelationships.
OptimizeaMicro-
BasedExperience
RecommendedActionsforCHROstoFacilitateCultureConnectedness
Definehowyourorganization’scultureimpactsyouremployeeexperience.
Workwithseniorleaderstoidentifyleadersandmanagerswhocanhelpchampionintentionaleffortstodrivecultureconnectedness.
SetupanHRteamtoreview“momentsthatmatter”toidentifywhenemployeesfeelseen.
Solicitemployeefeedbackaboutworkprocessesandhowtoredesignthemtoensuretheyarealignedwiththedesiredculture.
CreateopportunitiesforHRemployeesandteamstosharehowtheyappreciatetheorganization’sculture
andsupportotherleaderstodosointheirownareas.
PlanandSupport
CEOandC-Level
Succession
EnsureTopTalentand
CapabilitiesforCritical
Roles
CreateOrganization
AgilityandResilience
Capability
Anticipateand
RespondtoExternal
Trends
BuildEffective
Compensation
Supportedby
Shareholders
EmbedDEIIntoTalentandCultureStrategy
AssessandCatalyzeActionstoDriveCompetitiveness
AlignandLink
OrganizationalMetrics
toStakeholder
Expectations
DriveCulture
andPurpose
DeliveraCompelling
EmployeeValue
Proposition
Integrationof
OrganizationalLevers
toSustainChange
FocusonWorkforceasaPrimaryStakeholder
ModelofaWorld-ClassCHRO
DevelopedwiththeinputofGartner’sCHROGlobalLeadershipBoardandvalidatedbythemosttalentedCHROsandCEOsinbusinesstoday,thismodelestablishesaglobalstandardforCHROexcellence.
DriveBusinessResults
LeaderofEnterpriseStrategicChange
TrendWatchlist
TrustedAdvisorandCoach
LeadingThrough
EvolvingStakeholder
Scenarios
BoardandCEO’sLeaderofHumanCapital&Culture
WinInaDynamicTalentLandscape
AdviseandCoachtheCEO
MaximizeSeniorTeamEffectiveness
CoachandDevelopKeyEnterpriseTalent
BusinessAcumen
BusinessStrategyDevelopment
FunctionalBusinessLeader
Createafuture-focused,technology-oriented,operationallycapableandfinanciallydisciplinedteamtoruntheHRfunction.
Source:Gartner
HRProfessionalsCompetencyModel
86%ofHRBPsreportanincreaseintheskillsrequiredtobeeffective.ToattractandretainHRtalent,HRleadersmustassesstheiremployees’competenciesanddeveloptheirskillsforcurrentandfutureroles.
DataJudgment
BusinessAcumen
DataFoundationsDataInterpretation
DataStorytelling
IndustryKnowledge
OrganizationalKnowledge
FinancialKnowledge
TalentManagement
StrategicConsulting
StrategicHRExpertise
EmployeeExperienceManagement
HRProfessionals
ConsultativeProblemSolving
ProjectManagement
ChangeManagementTechnologicalSavviness
Agility
RiskManagement
RelationshipManagement
GrowthMindset
Innovationanditeration
CollaborationandNetworking
PersuasionandInfluence
WhatWeHearFromHRBPs
WhatHRLeadersCanDo
UnclearExpectations
“I’mnotevensurewhatitmeanstobestrategic.”
Interest,SkillsandExpectations
IdentifyHRstaffbestsuitedforstrategicworkandcommunicateroleexpectations.
TacticalWorkTakesPrecedence
“IwishIcouldgettostrategicprojects,butIspendmostofmydayputtingoutfiresandcollectingdata.”
HREcosystem
Leveragesharedservicesfortransactionalwork,ensureemployeeself-serviceisuserfriendly,andprovideeasyaccesstodata.
HR-BusinessMisalignment
“Mybusinessunitneverasksformystrategicinput.”
PartnershipClarity
DefinepartnershipprinciplesandtiebusinessstrategytoHRoutcomes.
HardtoBreakHabits
“Evenafterweputinself-service,thebusinesskeptcomingtomeforhelp.”
ChangeManagement
Involveyourteamandthebusinessinchangingthestatusquo.
AddressBarrierstoStrategicHRImpact
Fordecades,HRleadershavetriedtomaximizethestrategicimpactofHRBPs.Regardlessofoperatingmodelandorganizationalstructure,fourkeybarrierspreventHRBPsfromreachingtheirfullstrategicpotential.
WhatHRProfessionalsCanDo
DevelopKeySkillsand
Competencies
Buildthecompetenciesnecessaryforstrategiceffectiveness.
ShapeStrategicDecisions
Developstronganalyticalskillsandusedatatoshapestrategicdecisions.
ImproveLinePartnerships
Asktherightquestionstochallengeleaderassumptionsandbuildcredibility.
ChangeManagement
Leveragechangemanagementtechniquestoensuresuccess.
Journal
HRLea
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