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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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