HR must address future issues more proactively

Skills shortages, quiet quitting, changing values: HR has been in a perma-crisis for years. HR topics have accordingly gained significantly in attention in companies; in the same course, the demands of management and employees on HR teams are increasing. Nevertheless, HR is still hardly integrated into the corporate strategy. In addition, the HR department often does not yet have the necessary tools to fully exploit its potential and proactively tackle future issues. This is the result of a study by Personio, an HR software provider for small and medium-sized enterprises, in which 1,000 HR managers and 500 C-level executives from companies with up to 2,000 employees in the DACH region were surveyed.

Finding new forms of collaboration

66 % of executives believe that the importance of HR will continue to grow in the future. 34 % want HR to be a strategic partner. However, because HR departments are often only sporadically involved in corporate strategy and are often entrusted with repetitive and reactive tasks, it is difficult to actually address strategic goals. For example, 69 % of HR teams say that administrative tasks keep them from working on strategic issues. So there needs to be a shift in thinking: Companies would be well advised to create new structures and put the current form of collaboration to the test.

HR needs a seat at the management table

The first step is to create the framework conditions for this. Management and HR must gain a deeper understanding of the topics and priorities of the other position. Above all, however, management should actively involve HR in strategic decisions and make more resources available for future-oriented HR work. However, some 47 % of the C-level executives surveyed admit they do not even know exactly how they could effectively and strategically deploy their HR team.

More strategic HR also includes digital technologies that enable data-driven decisions: According to 71 % of C-level executives surveyed, metrics and key performance indicators that show how HR is paying down to business goals are important. Digital solutions help provide these. An HR team that brings data-driven suggestions to increase workforce engagement and productivity is much more likely to speak the "language" of the executive team; and ensure a common point of view is developed and shared across the organization. In fact, HR teams benefit from digitization twice: by automating repetitive, administrative tasks, they are supported and can devote more time to more strategic issues - for example, to establish a modern and sustainable corporate culture or to take care of the needs and further development of employees.

Staying on the ball with artificial intelligence

Artificial intelligence (AI) also plays a key role in this context: Although it cannot and should not replace personal employee interviews, it will also significantly change HR work in the future. Two-thirds (66 %) of the C-level respondents are convinced of this. Since the topic is just now gaining momentum, company-wide training is eminently important. Just under 75 % of the corporate decision-makers surveyed state that HR departments must continue to familiarize themselves with the topic of AI in order to keep their finger on the pulse. However, this is by no means limited to AI: 58 % of the C-level decision-makers surveyed do not currently feel that their HR team has the necessary technical and analytical skills to keep pace with digital transformation.

"HR teams need to reinvent themselves and unleash their full potential. With the right tools, it will be easier in the future to understand complex issues like the skills shortage, quantify the impact and present solutions to the C-level. The same is true for issues such as understanding around Gen-Z requirements and the discussion around remote working. HR departments are the key link between the employee:inside and the C-level - and that connection needs to be not just managed, but proactively built," says Cassandra Hoermann, Head of Employer Brand & Experience at Personio. "With the support of AI, which has the potential to dramatically improve the employee experience, now is the time to reboot HR."

Source: Personio