Based on a global survey of 1,250 HR managers and leaders, the report examined the pressures that HR teams are under, from uncertainty in hiring to AI’s influence.
Sarah Franklin, CEO of Lattice, said, “This year’s State of People Strategy Report shows that HR is at a pivotal point. It demonstrates why in this age of AI it is HR’s time to lead.” “Employee Engagement is Down, Skill Gaps are Growing, and People Teams are Being Asked to Do More With Less – While Innovation in AI Technology, which has a massive potential to assist HR to address these challenges is often raising New Questions instead of solving Real Problems,” said Lattice CEO Sarah Franklin.
To build a world where AI is used to help people succeed, we need to continue to empower the HR department to do what it does best: unlocking potential, driving performance and elevating every employee.
The Core Priorities remain the Same
Lattice’s report shows, despite an environment characterized by frequent changes, that high-performing organizations have focused on four key areas: employee engagement (engagement), performance management (performance management), learning and development(L&D), as well as manager enablement.
High-performing HR Teams that support their managers actively see positive results, such as higher engagement of their managers, increased loyalty to the company, and better employee relationships. In these teams, 91% of them report that they are meeting their managers’ most or all needs. This compares to only 41% in low-performing HR teams.
This presents a great opportunity for HR to improve alignment and engagement of managers by providing tools, resources and training that help them foster trust and cohesion in teams.
Slow AI adoption: A Missed Chance
The report states that HR is yet to maximise AI’s potential. Only 15 percent have gone beyond evaluating AI and implemented it. AI has shown promise in various HR processes. However, the lack of tools that are tailored to HR needs as well as concerns over its broader impact have prevented its adoption.
HR teams that are willing to try out AI report a high level of satisfaction, especially in areas like pay and promotion analyses. The key to successful integration is intuitive data-driven solutions which empower HR professionals without requiring extensive technical knowledge. According to the report, AI, when used correctly, can reduce administrative burdens, allowing HR to focus on people-centric initiatives.
Resources Constraints Force DEIB to Take a Backseat
The report attributes this drop to resource limitations and difficulties in demonstrating return on investment, particularly among U.S.-based organisations, where DEIB prioritisation lags behind that of their European counterparts. This drop is attributed to limited resources and the difficulty of proving return on investment.
The European HR leaders are 2.8 times as likely to prioritize DEIB than their American counterparts.
Limited Resources Limit Engagement Efforts
The report shows that although employee engagement is a priority for the fourth year in a row, there’s a large gap between the ambitions of HR teams and the resources they have to achieve them. While 92 per cent of HR professionals recognize the importance of employee engagement, only 39 per cent of HR teams have the resources and support necessary to implement engagement initiatives. This leaves a worrying 61percent unable to fully execute their plans.
“HR Teams have faced significant challenges over the past few years. Yet ourState of People Strategy Report shows their resilience and provides a way forward,” said Gianna Drive, Chief People Officer of Lattice. “We can build future-ready, resilient teams by partnering with managers and prioritising performance alongside engagement.
