— Over 70% of respondents identified employee retention and
attraction as key concerns — 79% said improving the employee
experience is of high importance — 77% said they have an AI
strategy in place
Grant Thornton, one of America’s largest brands 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,” said Jennifer Morelli, Growth
Advisory services principal at Grant Thornton Advisors LLC.
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 LLC, 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,” said Belden. “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 LLC, says 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
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Lourdes Perez T +1 305 341 8097 E Lourdes.perez@us.gt.com
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