Grant Thornton, a brand of professionals providing end-to-end audit, assurance, tax and advisory services, has released its latest survey, offering insights into how human resources (HR) leaders are tackling major challenges such as talent retention.
The HR leaders survey features data from more than 600 professionals, including chief human resource officers (CHROs), chief people officers, chief talent officers and vice presidents and directors. The findings show HR leaders are eager to maintain effective workforces in a competitive talent environment while also preparing for the future.
More than 70% of survey respondents identified employee retention and attraction as key concerns over the next 12 months, especially in some industries like manufacturing and healthcare. Population trends indicate that, at least in the U.S., employee attraction and retention may be a challenge for decades, exacerbated by the retirement of Baby Boomers and declining birth rates.
“These major societal trends reinforce the importance of employee retention in particular,” Jennifer Morelli, growth advisory services principal at Grant Thornton Advisors, said.
Prioritizing Employee Well-Being
Addressing employee well-being concerns is increasingly recognized as a key retention tactic, with 79% of respondents saying their organization places a high priority on improving the employee experience. In the past 12 months, HR leaders reported improvements in employee well-being physically (79%), mentally (78%) and financially (74%).
Despite these favorable results, more than one-third (37%) of respondents’ employees are disengaged, primarily due to a lack of work/life balance. Margaret Belden, growth advisory services director at Grant Thornton Advisors, emphasized the need for HR leaders to dig deeper into employee challenges and actively support their mental health needs.
“Offering employee assistance programs and other wellness activities is simply not enough,” Belden said. “Leaders need to look at the work environment, the activities, the intensity of the work schedule and expectations, and allow for a safe environment to speak up about challenges.”
Modernizing with AI
Over three-fourths (77%) of HR leaders say their organization already has an artificial intelligence (AI) strategy in place.
Additionally, the survey revealed that more than 60% of HR leaders say AI is being used to assist with performance reviews at their organizations. The technology is also being deployed in chatbots to drive employee engagement and as a tool for monitoring employee well-being. Some organizations are also using AI to help develop training, but Joe Ranzau, growth advisory services managing director at Grant Thornton Advisors, said HR leaders need to maintain a human element to training and development.
“Be mindful to balance the cost savings and convenience of virtual onboarding,” Ranzau said. “Most humans crave interaction — when using virtual onboarding, try to minimize the use of pre-recorded content.”
HR leaders also are concerned about other AI implementation issues, citing data privacy concerns (51%), integration with existing systems (49%) and lack of clear business case (38%) as their top concerns.
Changes go beyond AI, too. The survey noted that 78% of respondents expect their HR function to be modernized, and 83% anticipate updating their HR operating model within the next year. Ranzau notes that legacy technology systems have often kept various HR functions in silos, which have been an obstacle to cohesion in HR.
“Employees have shifted to view the entire HR experience as one,” Ranzau said. “So, HR leaders need to start thinking more about shifting to a chief employee experience officer role with an integrated view of the whole function. Re-engineer HR to meet employee expectations rather than sticking with a structure and technology that keeps everything in silos.”
To see additional findings from Grant Thornton’s HR leaders survey, visit: https://www.grantthornton.com/insights/survey-reports/advisory/2024/hr-leaders-double-down-attraction-retention.
