Korn Ferry CHRO Survey Reveals Serious Gaps in HR Talent Including Low Business IQ

Korn Ferry CHRO Survey Reveals Serious Gaps in HR Talent Including Low Business IQ

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Chamber Member News Post Date: 05/01/17 Source: Korn Ferry By: Korn Ferry
Summary

A new Korn Ferry (NYSE:KFY), survey of Chief Human Resource Officers (CHROs) shows that as the HR function becomes more strategic and high-profile, HR professionals need to step up their game when it comes to business insights and achieving results.

When asked which skills are most lacking when searching for HR talent for their own teams, respondents’ top answer was business acumen (41 percent), followed by the ability to turn strategy into action (28 percent).

According to the survey, competitive pressure on the business is the top factor for increasing the complexity of the HR role compared to five years ago.

“Disruptors such as digitization and globalization are creating an environment of constant organizational change,” said Joseph McCabe, vice chairman in Korn Ferry’s Global Human Resources Center of Expertise. “HR leaders must understand the business challenges that occur as a result of these disruptions, including the impact on the business strategy, and be able to quickly adapt and act.”

More than half of respondents (52 percent) said a tolerance for ambiguity, defined as the ability to work in conditions of uncertainty and change, is the most important competency for a CHRO. In addition, nearly half (44 percent) said creating an agile workforce to meet evolving demands is the top talent challenge organizations face.

The top way to meet long-term, bottom-line goals, according to the survey, is creating a culture where people are most engaged. Only 1 percent of respondents cited altering compensation and benefits packages as the top way to long-term success.

“HR leaders need to create a culture of allowing people to take chances, to be agile and adaptable to meet challenges of today and tomorrow,” said McCabe.

The inability to align talent strategy with business goals is clearly a frustration for HR leaders. When asked why a CHRO would voluntarily leave the company, the largest percentage of respondents (36 percent) cited the inability to directly connect HR efforts to tangible business outcomes. When asked why a CHRO would get fired, not linking tangible business outcomes to HR efforts came in a close second, behind the CHRO’s inability to work well with or lead others.

“Today’s CHROs are judged both on what they do and how they get things done,” said McCabe. “While it’s critical that HR must act quickly to adapt to changing business strategy, it’s also important to take the time to align their team and other key leaders to foster engagement and a shared vision. It’s no surprise that CHROs reported aligning talent with business strategy (34 percent) and employee engagement and retention (24 percent) as the top things that keeps them up at night.” Read Full Article