Hackett

HR Organizations Feeling Increased Pressure in the Face of Global Uncertainty

As companies face significant uncertainty, including the potential for stalled global economic growth, high interest rates and possible labor and skills shortages, human resources (HR) teams expect to feel increased pressure, including a growing workload and the need to enable the success of business stakeholders, according to new HR Key Issues research from The Hackett Group, Inc. (NASDAQ: HCKT). HR leaders also see generative AI (Gen AI) and other technologies as key to improving efficiency and effectiveness.

In 2024, developing effective leaders remains the top priority for HR, marking its second consecutive year in the top spot, according to The Hackett Group. The need to create and maintain a high-performing organizational culture climbed three spots in 2024 to become priority No. 2. As organizations navigate these priorities, it is crucial to recognize the emerging need for HR business partners to incorporate leadership coaching at the highest levels. The Hackett Group’s research recommends that organizations carefully deliberate on how leadership development is integrated into the broader HR operating model. In light of these trends, the research calls for HR organizations to take proactive measures to align workforce planning and strategy with business planning, and enhance the experiences of employees, managers, and candidates – both critical considerations newly introduced to the top 10 priorities list for 2024.

A complimentary version of The Hackett Group’s 2024 Human Resources Key Issues research – The CHRO Agenda – is available, with registration, at https://go.poweredbyhackett.com/ush.

While HR workload volume is expected to rise by 7%, cost reduction is also a focus. The research found that both HR operating budgets and staff are expected to drop slightly in 2024, creating significant efficiency and productivity gaps. Technology spending, which is expected to rise by 4%, is one way HR organizations are hoping to bridge those gaps. More HR work will also be apportioned to fully automated and self-service systems’ functionality, and HR executives expect global business services (GBS)/HR shared services units to handle 3.5% more work, while centers of excellence, corporate HR and business unit HR will see over 2% increases in overall workload.