Leadership

Vision for 2024

Top 3 Strategic Priorities for
Chief HR Officers

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Leadership Vision for CHROs in 2024

An “unsettled” employee-employer relationship, skills

shortages, transformative technology and pressure for Key questions addressed
efficiency are shaping CHRO priorities in 2024. At the
top of the list are leader and manager development, • What are the major trends affecting CHROs?
organizational culture and change management.
• How should CHROs prepare for the year ahead?
This research provides insights into these challenges
and priorities, and it gives CHROs action steps to lead • What skills and capabilities do CHROs and their
their teams and their organizations through the next year. teams need to succeed?

CHROs can use it to stay ahead of major workforce

trends and lead their teams toward a successful future.

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Trends Impacting CHROs

“Unsettled” Persistent Transformative Pressure for

Employee-Employer Skills Technology Operational
Relationship Shortages Innovations Efficiency

Source: Gartner
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“Unsettled” Employee-Employer Relationship

Organizations Employees

• 75% have an on-site attendance requirement. Flexibility Almost half say the costs of going to the office outweigh
• 26% report their employees fully comply.a Controversy the benefits (only 12% disagree).b

58% are confident they can meet their performance Productivity 45% worry they can’t sustain their current level of
targets in the coming year.c Anxiety performance over the next year.c

The average annual number of enterprise changes has Transformation 43% are willing to change their behavior to support
increased from 2 to 10 since 2016.d Deficit organizational transformation (down from 74%).d

Mutual
63% trust their employees.e Mistrust
53% trust their organizations.e

a Source: 2022, Benchmark With Gartner: How HR Leaders Navigate Return to Workplace Pressures and Other Challenges, November 16, n = 51
b Source: 2022 Gartner Hybrid Collaboration Survey, n = 3,524
c Source: 2023 Gartner Achieving High Performance Survey, n = 228 remote capable employees
d Sources: Gartner 2016 Workforce Change Survey, n = 6,686 employees; Gartner 2022 Workforce Change Survey, n = 3,548 employees; Gartner Organizational Effectiveness and HR

Professionals Key Priorities Survey, n = 3,497 employees

e Sources: 2023 Gartner ReimagineHR HR Leader Survey, n = 287 HR leaders; 2023 Gartner ReimagineHR HR Leader Survey, n = 3,540 employees

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Persistent Skills Shortages
Severity of Damage to Business Outlook Perceptions of Skills Shortage
Percentage of CEOs Ranking Factor as Most Damaging Percentage of HR Leaders

Talent Shortage 26%

83% of HR leaders say they struggle
to find enough talent with the skills
Inflation 22% they need.

Recession 22%

Supply Chain Problems 12% 57% of HR leaders say skills

shortages are undermining their ability
to sustain corporate performance.
Rising Interest Rates 9%

Energy Costs 9%

0% 15% 30%

n = 312 CEOs and senior executives n = 59 HR leaders

Q. Rank the six items in order of the severity of their impact on the outlook for your business, from most Source: 2023 Benchmark With Gartner: Affirmative Action, Apprenticeships and Candidate Expectations (23 August)
damaging to least damaging.
Source: 2023 Gartner CEO and Senior Business Executive Survey

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Pressure for Operational Efficiency
Prevalence of Efficiency-Related Keywords in S&P 100 Earnings Calls

360 Productivity
Efficiency
Reduction

Implications for HR Leaders

180 • Pressure to justify the value of
HR investments
• Workforce productivity, the
dominant success measure
• Risk of talent supply disruptions

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2021 2022 2023

n = 855 earnings transcripts

Source: Analysis of all S&P 100 Company Earnings Calls Transcripts, Jan 1, 2021 — Aug 31, 2023
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Transformative Technology Innovations

Employees More Disruptive

Expect to Use AI Tech Is Imminent

170 million+ people 93% of HR leaders agree that new

were immediate users of flash tech trends will be more frequent
ChatGPT at home.a in the next three years.c But HR Involvement
Remains Limited

Only 22% of HR leaders

Leaders Expect are highly engaged in
Implementation of AI enterprisewide discussions
on GenAI.d
68% of executives agree
benefits of AI outweigh the risks.b

a Source: Gartner Generative AI: The Basics

b Q. Do you believe the benefits of generative AI outweigh the risks?
Source: Beyond the Hype: Enterprise Impact of ChatGPT and Generative AI Webinar Polls, 21 April 2023, n = 1,079
c Q. Please indicate to what extent you agree with the following statements. The number of new flash technology trends (e.g., generative AI, metaverse, blockchain, etc.) arising will become more frequent within the next three years.

Please indicate to what extent you agree with the following statements. As a result of flash technology trends (e.g., generative AI), I am now having to make decisions on whether to adopt and implement it into HR or not.
Source: 31 May 2023 Gartner Benchmark: Persistent Talent Shortages, Sustaining DEI and Other Emerging Issues, n = 74
d Q. As an HR leader, how engaged are you in enterprisewide discussions around use of GenAI?

Source: 21 June 2023 Gartner Benchmark Special Edition — Navigating the Workforce Impact of Generative AI, n = 167
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CHRO Priorities for 2024
Top Focus Areas
l Efficiency “Un
iona se
ttl
1 Leader and Manager Development t ed
era ”
p

Re
2 Organizational Culture

or

lat
ef

ion
3 Change Management

sur
Leader

ship
Organizational

Pres
4 Career Management/Internal Mobility and Manager
Culture
Development

s
5 Employee Value Proposition (EVP) CHROs

r ta g e
Tr a ns
6 Workforce Planning

S ho
7 HR Talent and Operating Model

for
ma
Change

i l ls
8 HR Technology
Management

ti v

Sk
e
ec

nt
9 Organizational Design

T
hn te
olo r si s
10 Performance Management gy
In nov Pe
ations
n = 175 heads of HR
Q. [For each of three custom priorities shared] Please select the two key areas in which you will focus to support that priority.
Source: 2023 Gartner HR Priorities Survey
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Low Confidence in Rising Leaders
How Confident Are You That Your Organization Has Rising Leaders Who Can …

... Respond to Unexpected Economic Changes 37%

... Ensure Uninterrupted Performance of Current
Organization Functions and Activities 35%

... Transition Into Current Managers or Equivalent Next Role 31%

... Adjust to Changing Demands of Their Roles 31%

... Assume More Than One Different Role
(e.g., Different Function, Market) 24%

... Meet the Future Needs of the Organization 23%

... Fill Unexpected Leadership Vacancies 23%

... Transition Into Newly Created or Unfamiliar Roles 23%

0% 20% 40%
Percentage of HR Leaders
n = 62 HR leaders
Source: 2022 Gartner Leadership Development HR Leader Survey
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Leaders Need a New Approach
2024 Trends and Their Impact on Core Leader Responsibilities

Core Leader Responsibility

Role-Model Behavior Support Teams Deliver Results

Prior Approach Professional Employees Efficient

Enabling workplace boundaries Addressing work needs Managing standardized workflows

Emerging Anxiety, confusion and mistrust in Blurring boundaries, fatigue and Variety in/transformation of work norms
Challenges the employee-employer relationship uncertainty as organizations grapple as organizations cope with skills
with skills shortages and productivity shortages and adapt to disruptive
demands technologies

New Approach Personal People Individualized

Enabling safe self-expression Addressing life needs Managing tailored, flexible workflows
at work

Source: Gartner
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The Human-Centric Leader
Components of Human-Centric Leadership

Authentic + Empathetic + Adaptive = Human Leadership

Act with purpose and enable Show genuine care, respect Enable flexibility and
true self-expression, for both and concern for employees’ support that fit team
themselves and their teams. well-being. members’ unique needs.

Source: Gartner
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Recommended Actions for CHROs

Assess Plan Execute

• With your head of learning and • With your head of L&D, identify • Work with your CEO to build
development (L&D) or talent and prioritize necessary updates human-centric leadership
management (TM), review to development programs​ for principles into C-suite performance
human-centric leadership rising leaders. management.
principles against your • Build buy-in for key leadership • With your head of L&D or TM,
organization’s current leadership investments with the broader update succession plans and
competencies and expectations. C-suite. processes to reflect human-centric
• Assess C-suite level strengths leadership principles.
and development areas
associated with human-centric
leadership and discuss with
your CEO.

Source: Gartner
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Organizations Struggling With
Inclusive Culture

An inclusive culture is a culture where employees feel

Only 50% of employees believe their
respected, accepted, supported and valued, and
organization has an inclusive culture.
where they feel able to express their true selves.

n = 3,594 Source: Gartner

Source: 2023 Gartner Drivers of Global Belonging and Inclusive Culture Survey

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How to Make Culture Work
The 2 Essential Components to Culture Success

Alignment Connectedness

1 I know what the culture is. 1 I identify with the culture.

2 I believe the culture is right for us. 2 I care about the culture.

3 I demonstrate our cultural behaviors. 3 I belong within the culture.

Both contribute to culture’s impact on outcomes such as performance and retention.

Source: Gartner
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Facilitate Connectedness by Intention
Key Shifts to Move From Connectedness by Osmosis to Intention

Connectedness by Osmosis Hybrid Shift Connectedness by Intention

Work replaces the office as

Diffuse culture Diffuse culture
the most common, constant
through the office. through work.
cultural experience.

Being seen becomes rarefied,

Connect through Diffuse culture
placing greater weight on
physical proximity. through work.
the need to feel seen.

Optimize a macro- Culture is experienced in smaller Optimize a micro-

based experience. ecosystems with intensified relationships. based experience.

Source: Gartner
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Recommended Actions for CHROs

Assess Plan Execute

• Review implications of • Work with the C-suite to evaluate • Update processes to reflect
environmental trends on the the impact of environmental trends cultural priorities; make desired
organization’s desired culture on cultural health. norms easier in the current
with the C-suite and board. • Identify opportunities to increase environment.
• Gather employee feedback alignment/connection, particularly • Empower teams to identify and
to evaluate the current state of in “moments that matter.” nurture the micro-cultures that
the organization’s culture. work for their context; ensure
macro-culture provides safety and
guidance.

Source: Gartner
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Organizations Face a Transformation Deficit
Change Volumea and Employee Willingness to Changeb Compared

Change Volume

Change Willingness
10

The
Transformatio
n Deficit

2016 2022

n = 305 organization, 6,686 employees

Sources: 2016 Gartner HR Change Readiness Survey; 2022 Gartner Workforce Change Survey, n = 3,548 employees; 2022 Gartner Organization Effectiveness and HR Professionals Key Priorities
Survey, 3,497 employees
a Average Number of Enterprise Changes in Past 12 Months, 2 in 2016 and 10 in 2022
b Percentage of Employees Willing to Change to Support Enterprise Change, 74% in 2016 and 43% in 2022
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A Holistic View of Transformation Success
Pillars of Transformation Success

Change Quality Delivery Fatigue Successful

x x =
Communication and Training Management Transformation

Pillar 1 Pillar 2
Open-Source Change Fatigue:
Change Identity, Fix and
Management Prevent

Foundation: Managers as Resilience Builders

Source: Gartner
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Identify, Fix and Prevent Change Fatigue
The 3 Components of Change Fatigue Management
Identify

Equip
Managers
to Identify
Educate Escalate
Hotspots
Workforce Turning
on Fatigue Points
Drivers

Exercise Normalize
Actionable Change Proactive
Empathy Fatigue Rest
Management

Build
Facilitate
Psychological
Open Change
Safety Into
Conversation

en t
Teams

ev
Employees Employees

Pr
Fi

Own Co-Create
x

Implementation Change
Plans Strategy

Source: Gartner
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Recommended Actions for CHROs

Assess Plan Execute

• Assess the current state of • Identify fatigue-related risks to • With your head of L&D, train
change fatigue across the the success of current/planned leaders and managers to
organization and within critical transformations. identify and manage signs
talent segments. • Build buy-in for key leadership of change fatigue.
• Benchmark current change investments with the broader • With your head of TM, apply
management processes against C-suite. open-source principles and
open-source change principles. monitor fatigue associated with
talent management process
updates or HR transformation.

Source: Gartner
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New Demands Move HR Beyond Traditional Scope
Outside HR Traditional Scope
(e.g., Payroll, Compliance)
Mental Health and Integrated Work Well-Being
Initial Strategic Expansion
Human-Centric EVP (e.g., Performance
Management, Leadership
Development)
Hybrid-Work Productivity
Current Scope
Who Delivers
the Work? Frontline-Worker Flexibility

Digital Workplace

Office Work Design

AI Augmentation
Mostly HR

Mostly HR Outside HR
Who Has the Experience?
Source: Gartner
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New Demands on HR Are Different in Kind
Attributes of HR’s New Demands

Conflicting Interdependent Novel

45% of HR leaders say that meeting the 50% of HR leaders say the changes 80% of HR leaders say their function is
conflicting demands of stakeholders is happening today are more difficult to facing different challenges to those they
more difficult today than prepandemic. manage than prepandemic. faced prepandemic.

Examples

• Employee demand for a “human • Digital workplace • Hybrid work productivity

deal” versus organizational • Integrating well-being into workflows • AI work augmentation and allocation
productivity.
• Talent marketplaces and “gig” careers
• Flexibility for frontline workers
• Self-service versus “white glove”
support
n = 217 HR leaders n = 243 HR leaders n = 243 HR leaders
Source: 2023 Gartner HR Functional Excellence HR Leader Survey Source: 2022 Gartner ReimagineHR HR Leader Survey Source: 2022 Gartner ReimagineHR HR Leader Survey

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Model of a World-Class CHRO Trend Watchlist

Drive Business Results

Board and CEO’s Leader of Win in a Dynamic Talent Leader of Enterprise Leading Through Evolving Trusted Advisor
Human Capital and Culture Landscape Strategic Change Stakeholder Scenarios and Coach

Plan and support Ensure top talent and Create organization agility Anticipate and respond to Advise and
CEO and C-level succession. capabilities for critical roles. and resilience capability. external trends. coach the CEO.

Align and link organizational

Build effective compensation Embed DEI into talent and Assess and catalyze actions Maximize senior
metrics to stakeholder
supported by shareholders. culture strategy. to drive competitiveness. team effectiveness.
expectations.

Drive culture Deliver a compelling Integrate of organizational Focus on workforce as a Coach and develop
and purpose. employee value proposition. levers to sustain change. primary stakeholder. key enterprise talent.

Business Acumen Business Strategy Development

Functional Business Leader

Create a future-focused, technology-oriented, operationally capable and financially disciplined team to run the HR function.

Source: Gartner
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HR Professionals Competency Model
Business Acumen Data Judgment
• Industry Knowledge • Data Foundations
• Organizational Knowledge • Data Interpretation
• Financial Knowledge • Data Storytelling

Strategic Consulting Talent Management

• Consultative Problem Solving • Strategic HR Expertise
• Project Management • Employee Experience Management
• Risk Management • Change Management
HR
Professionals • Technological Savviness

Relationship Management Agility

• Collaboration and Networking • Growth Mindset
• Persuasion and Influence • Innovation and Iteration

Source: Gartner
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Address Barriers to Strategic HR Impact

What We Hear From HRBPs What HR Leaders Can Do What HR Professionals Can Do

Unclear Expectations Interest, Skills and Expectations Develop Key Skills and Competencies
“I’m not even sure what it means to be Identify HR staff best suited for strategic Build the competencies necessary for
strategic.” work and communicate role expectations. strategic effectiveness.

HR Ecosystem
Tactical Work Takes Precedence
Leverage shared services for Shape Strategic Decisions
“I wish I could get to strategic projects,
transactional work, ensure employee Develop strong analytical skills and use data
but I spend most of my day putting out
self-service is user-friendly and provide to shape strategic decisions.
fires and collecting data.”
easy access to data.

HR-Business Misalignment Partnership Clarity Improve Line Partnerships

“My business unit never asks for my Define partnership principles and tie Ask the right questions to challenge leader
strategic input.” business strategy to HR outcomes. assumptions and build credibility.

Hard to Break Habits Change Management Change Management

“Even after we put in self-service, Involve your team and business in Leverage change management techniques to
business kept coming to me for help.” changing the status quo. ensure success.

Source: Gartner
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Actionable, objective insight
Position your organization for success. Explore these additional
complimentary resources and tools for HR leaders:

Research Guide Virtual Event Action Plan

Model of a World-Class A New Strategic Vision Overcome the Evolve Culture and
CHRO for HR’s Expanding Role Transformation Deficit: Leadership for the
Explore a practitioner-defined Reignite Employee Hybrid World
and CEO-validated model to help Gain actionable insights to navigate
you become a stronger HR leader. the shifting demands and transform Enthusiasm for Change Use this 12-month roadmap to
your HR function. build cultural connectedness and
Boost change buy-in and
reduce change fatigue by having develop human leaders in your
teams own change implantation. organization.

Download Research Download Now Watch Now Download Plan

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