More than eight out of 10 HR leaders are misaligned with their organisation’s business strategy, according to a new survey of HR professionals by 3Sixty Insights in collaboration with talent management software provider, Eightfold AI.
The report, which surveyed more than 500 HR professionals at VP level and above from companies with over 5,000 employees, found that only 18% of organisations felt that they effectively coordinated across business strategy development, C-suite collaboration and talent strategy. The remaining 82% of organisations reported critical issues such as strategic misalignment, friction in strategic buy-in and competing priorities.
For example, HR was perceived as lacking executive support for major strategic initiatives or criticised for focusing on operational tasks, rather than aligning its efforts with broader business objectives. Another finding was that executives did not fully recognise HR’s value in shaping the company’s long-term vision, which can result in expectations and investment gaps. Meanwhile, executives tend to prioritise profits, cost management and operational targets, while HR focuses on employee well-being, development and compliance.
“The cost of HR misalignment is no longer acceptable, and the organizations that adapt accordingly will be the most successful going forward," said Chano Fernandez, Co-CEO of Eightfold AI. "Employees and HR leaders alike demand transparency and connectivity to the needs of the business. We must equip everyone with not only the correct skills data, but also the ability to act upon it. Talent intelligence makes this possible on a global scale.”
Overall, only half (53%) of HR leaders said that they were involved from the outset in developing and executing their company’s overall business strategy, while two thirds (66%) said that their talent strategies do not align with the overall business objectives.
As a solution, the report suggests bridging the strategic gap between HR and the C-suite, particularly by recognising HR’s integral role in business strategy discussions, as well as leveraging technology to map current workforce skills and anticipate future talent needs, thereby reducing reliance on external hiring. More proactive talent intelligence strategies can also improve employee satisfaction and ensure sustained alignment with business goals, the report argues.
The full report is available here.