65% of the C-Suite only see HR’s strategic value in times of crisis

HR teams have seen their fair share of challenges over the past few years – the COVID-19 pandemic, the shift to hybrid working, and mass layoffs are just a few that have ruffled feathers.

Despite the huge challenges HR teams have faced, a recent report by German HR tech company Personio, shows that HR’s standing in organizations remains massively underestimated.

The research, which surveyed 4,500 HR managers and 2,200 executives across Europe, declares that a “vicious cycle” has begun to form, where HR executives are undervalued.

The issue is that almost two-thirds of HR managers believe that European executives only value HR strategies during times of crisis.

Instead, 40% stated that HR should be used as an ongoing strategic partner.

“Although it could be wrong to call out the C-Suite and HR disconnect as a new phenomenon, our research uncovered a new and concerning finding; despite HR being an integral function in guiding businesses through the pandemic, a staggering 65% of European C-Suite executives only see HR’s strategic value at times of crisis,” says Pete Cooper, Director of People, Partners & Analytics at Personio.

“This means that the strategic and creative strengths of HR teams are currently being under-utilized when it comes to businesses navigating new challenges, such as changing working patterns and the impact of technology – particularly when they’re being held back by unnecessary admin (64%).”

How to re-connect the C-Suite and HR leaders

So, what can businesses do to fix this disconnect, and transform HR into a problem-solver for the business?

Cooper advises that to unlock HR’s full potential for strategic growth, it’s essential that business leaders free up HR teams from admin-heavy work by leveraging technology.

HR tech should therefore be brought in to improve efficiency and to give HR teams the time to focus on what matters most.

Despite the continuing disconnect between HR and the C-Suite, 63% of C-Suite executives expressed an ambition to better understand HR’s function.

In fact, 73% stated it would be beneficial for HR to demonstrate their contribution to business success.

“HR leaders must seize this opportunity to prove their contribution to commercial objectives and relevance to the business,” Cooper explains.

“One way to do this is by reporting to the C-Suite using hard data and analytics, for example, analyzing employee trends, identifying drivers of churn, or developing strategies to prepare for potential workplace challenges.

“By tangibly demonstrating their achievements and impact, HR can underline their value and contribution to the business at all times – not just when there’s a crisis.”

HR tech at UNLEASH World

HR tech is UNLEASH’s bread and butter. Tech, AI and automation will dominate the conversation at UNLEASH World 2023. 

It’s not too late to grab your ticket, and hear how YOU can leverage AI to your organization’s advantage from industry stalwarts like Josh Bersin and Ubisoft’s Anika Grant!