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THE MAIN CHALLENGES OF HR DIRECTION FOR 2024
December 11, 2023
THE MAIN CHALLENGES OF HR DIRECTION FOR 2024
On November 29, the HR Innovation Practice Observatory launched its 2023-2024 edition with the first workshop, entitled "The Main Challenges of HR Direction for 2024." Adopting the HR Innovation Net format for the first time, HR Innovation Netthe event aimed to activate the networking of the Observatory community through discussion and debate on the priority challenges of HR Direction for the coming year.
THE INTRODUCTION OF THE OBSERVATORY AND HR MANAGEMENT
The Observatory's Research highlighted two relevant issues for HR Departments in 2023 : Talent Shortage and the difficulties in finding candidates and the phenomenon of Great Resignation and low levels of employee engagement. The Research involved a sample of 107 HR Departments of organizations operating in the country and a panel of 1000 workers, statistically representative of the Italian context. What emerged?
Over the past year, despite the fact that about 60% of the HR Departments in the sample had planned for staff growth, almost all (94%) experienced difficulties in hiring new staff. This situation is even more alarming considering that for 74% of the organizations, this difficulty grew precisely in 2023. Among the most significant critical issues was that of finding, in the labor market, the technical and soft skills best suited to the demands of the business. The estimated impact is extremely negative, with 12% of the sample already having to give up part of their turnover. with reference to the introduction of new employees, but also in terms of retention of people already in the company. In 2023, the Great Resignation phenomenon recorded similar numbers to the previous year, with 46% of the sample of workers reporting that they had left the organization or intended to do so in the short to medium term. This percentage peaks among younger workers at 77%. Among the main reasons for leaving, people said they were seeking better working conditions (economic - for 43% - and growth and career opportunities - for 13%), flexibility in managing their working hours, and mental and physical well-being. So, what is happening in the world of work? Research by the HR Innovation Practice Observatory highlighted a major mismatch between expectations,desires and needs on the candidate/employee side and organizational responses. The gap can be bridged by working on redefining the relationship between the organization and workers, offering people "good and sustainable work" that aims at full engagement, retention and satisfaction. In other words, to the creation of environment that fosters Happiness at Work.
In light of the major challenges that accompanied HR Management in 2023, how will priorities evolve for the coming year? The Observatory posed the question to some members of its Advisory Board, the HR Executive Committee that closely follows the Research, in a panel discussion.
THE ROUNDTABLE DISCUSSION WITH THE ADVISORY BOARD
Participating in the roundtable discussion of the HR Directorate's priority challenges for 2024 were Roberto Battaglia, Chief Operating Officer of AIRC Foundation; Patrizia BelottiChief People & Organization Officer of Gefran; Gianfranco Chimirri, Chief People Officer of Sace; Simone MartinaChief People Officer of Cerved and Livio ZingarelliHead of People at Philips.
One of the themes explored was that of purpose as an element in building people's loyalty to the organizational context and giving new meaning to their work.It is critical for organizations today that their business model combine both economic and social outcomes, the latter linked to the purpose and meaning that people wish to associate with their own work. Through the levers of training, communication and involvement, organizations have the opportunity to nurture a new purpose in their people by empowering them to "make their mark." How? For example, by collaborating with Third Sector companies and activating volunteer projects of expertise.
Another priority challenge for 2024 concerns the ability of organizations to be more attractive, especially to technical and digital profiles, at a time of Talent Shortage and strong difficulties in retaining them.These barriers inevitably create loss of efficiency on production processes, damaging the employee and customer experience and consequently the brand. Reasoning about Talent Attraction means first and foremost understanding what talent is. Based on the assumption that all people are holders and carriers of talent, it becomes essential to attract everyone's talent and bring it out, defining an Employee Value Proposition in line with people's desires.
The panel discussion continued with an in-depth look at the impacts of AI,in terms of the potential of "AI-based" tools for HR Management and the development of new skills and roles.. In recent months, the advent of Generative AI has opened up new scenarios for automating work activities, even in previously less impacted departments (such as marketing, sales, R&D, and HR). Managing this business change requires an HR strategy geared towardupskilling and reskilling its employees, giving them the right tools. The first challenge for HR management is therefore to integrate technology into people's daily work. The second, however, is to become the "early adopter" in the organization, ascertaining its benefits and identifying its potential risks. AI can help "improve" people's skills-not replace them-creating a positive impact for the whole company.
Another frontier for HR Management concerns the use of people and process data, drawing value from it in terms of improved decision-making.In today's organizational context, where physical proximity to people is being replaced by new "hybrid" working models, "data-driven" decision-making approaches can help managers and HR Direction make objective, bias-free decisions. From here, a series of further reasoning opens up regarding: what data makes sense to process; what legitimate use can be made of it; what results are desired; and finally, how to distribute and convey the emerging evidence. Data then becomes the fundamental prerequisite for decision making,for measuring strategic indicators, and for understanding the cause-and-effect relationships of certain factors.
Finally, the roundtable concluded with an in-depth discussion onthe evolution ofEmployee Experience, to make it consistent with people's expectations and to connect it with the organization's People Strategy.Nowadays, empowering one’s employees and taking care of their experience means going beyond organizational boundaries, dealing with People Experience across the board-not only people's experience at work (Employee Experience), but also the needs and demands that arise outside. To maximize the value created for people, it is not only important to personalize the experience, but also to give them support.The manager becomes a true coach, able to bring out potential and coach to new challenges. In this new paradigm, the role of communication also changes ,no longer oriented outside or inside the organization, to employees, candidates or customers, but consistent across the board and directed to all people.
CONCLUSIONS
What should we expect, then, for 2024 in terms of priorities for the HR Management? The challenge is twofold:on the one hand engage in frontline experimentation on the frontiers of innovation, leading by example, and on the other hand to increasingly connect people and organizations, intercepting desires, needs and expectations.
CONSULTANCY, TRAINING, HR DIGITALIZATION AND CORPORATE SOLUTIONS, DISCOVER THE ALVERIA METHOD. GET READY FOR CHANGE.
On 29 November, the HR Innovation Practice Observatory kicked off its 2023-2024 edition with the first workshop, entitled "HR Direction's main challenges for 2024". Adopting the HR Innovation Net format for the first time, the event aimed to activate the networking of the Observatory community through discussion and debate on the priority challenges of HR Direction for the coming year.
THE INTRODUCTION OF THE OBSERVATORY AND HR MANAGEMENT
The Observatory's Research highlighted two relevant issues for HR Departments in 2023 : Talent Shortage and the difficulties in finding candidates and the phenomenon of Great Resignation and low levels of employee engagement. The Research involved a sample of 107 HR Departments of organizations operating in the country and a panel of 1000 workers, statistically representative of the Italian context. What emerged?
Over the past year, although about 60% of the HR departments in the sample had planned to increase their staffing levels, almost all (94%) experienced difficulties in recruiting new staff. This situation is even more alarming considering that for 74% of the organizations, this difficulty grew precisely in 2023. Among the most significant critical issues was that of finding, in the labor market, the technical and soft skills best suited to the demands of the business. The estimated impact is extremely negative, with 12% of the sample already having to give up part of their turnover. with reference to the introduction of new employees, but also in terms of retention of people already in the company. In 2023, the Great Resignation phenomenon recorded similar numbers to the previous year, with 46% of the sample of workers reporting that they had left the organization or intended to do so in the short to medium term. This percentage peaks among younger workers at 77%. Among the main reasons for leaving, people said they were seeking better working conditions (economic - for the 43% - and growth and career opportunities - for the 13%), flexibility in managing their working hours, and mental and physical well-being. So, what is happening in the world of work? Research by the HR Innovation Practice Observatory highlighted a major mismatch between expectations,desires and needs on the candidate/employee side and organizational responses. The gap can be bridged by working on redefining the relationship between the organization and workers, offering people "good and sustainable work" that aims at full engagement, retention and satisfaction. In other words, to the creation of environment that fosters Happiness at Work.
In light of the major challenges that accompanied HR Management in 2023, how will priorities evolve for the coming year? The Observatory posed the question to some members of its Advisory Board, the HR Executive Committee that closely follows the Research, in a panel discussion.
THE ROUNDTABLE DISCUSSION WITH THE ADVISORY BOARD
Participating in the roundtable discussion of the HR Directorate's priority challenges for 2024 were Roberto Battaglia, Chief Operating Officer of AIRC Foundation; Patrizia BelottiChief People & Organization Officer of Gefran; Gianfranco Chimirri, Chief People Officer of Sace; Simone MartinaChief People Officer of Cerved and Livio ZingarelliHead of People at Philips.
One of the themes explored was that of purpose as an element in building people's loyalty to the organisational context and giving new meaning to their work. Today, it is crucial for organisations that their business model combines both economic and social performance, the latter linked to the purpose and meaning that people wish to associate with their work. Via the levers of training, communication and involvement, organisations have the opportunity to nurture a new purpose in their people by giving them the chance to 'make their mark'. How? For example, by collaborating with Third Sector companies and activating volunteer projects of expertise.
Another priority challenge for 2024 concerns the ability of organizations to be more attractive, especially towards technical and digital profiles, at a time of talent shortage and great difficulty in retaining them. These barriers inevitably create loss of efficiency on the production processes, damaging the employee and customer experience and consequently the brand. Thinking about Talent Attraction means first of all understanding what talent is. Based on the assumption that all people are holders and carriers of talent, it becomes essential to attract everyone's talent and bring it out, defining an Employee Value Proposition in line with people's desires.
The panel discussion continued with an in-depth look at the impacts of AI,in terms of the potential of AI-based tools for HR management and the development of new skills and roles. In recent months, the advent of generative AI has opened up new scenarios for automating work activities, even in previously less impacted departments (such as marketing, sales, research and development and HR). Managing this corporate change requires an HR strategy geared towards upskilling and reskilling one's employees, giving them the right tools. The first challenge for HR management is therefore to integrate technology into people's daily work. The second, however, is to become the "early adopter" in the organization, ascertaining its benefits and identifying potential risks. AI can help 'augment' people's skills - and not replace them - creating a positive impact for society as a whole.
Another frontier for HR Management concerns the use of people and process data, drawing value from it in terms of improved decision-making. In today's organisational context, in which physical proximity with people is being replaced by new 'hybrid' working models, 'data-driven' decision-making approaches can help managers and HR management to make objective and bias-free decisions. This opens up a series of further considerations concerning: what data makes sense to process; what legitimate use can be made of it; what results are to be obtained; and finally, how to distribute and convey the evidence that emerges. Data then becomes the fundamental prerequisite for decision making,for measuring strategic indicators, and for understanding the cause-and-effect relationships of certain factors.
Finally, the round table concluded with an in-depth discussion on the evolution of theEmployee Experience, to make it consistent with people's expectations and to connect it with the organisation's People Strategy. Today, valuing one's people and caring for their experience means going beyond organisational boundaries, dealing with People Experience across the board - not only people's experience at work (Employee Experience), but also the needs and demands that arise outside. To maximise the value created for people it is not only important to to personalize the experience, but also to give them support.The manager becomes a true coach, able to bring out potential and coach to new challenges. In this new paradigm, the role of communication also changes ,no longer oriented outside or inside the organization, to employees, candidates or customers, but consistent across the board and directed to all people.
CONCLUSIONS
What should we expect, then, for 2024 in terms of priorities for the HR Management? The challenge is twofold:on the one hand engage in frontline experimentation on the frontiers of innovation, leading by example, and on the other hand to increasingly connect people and organizations, intercepting desires, needs and expectations.
SOURCE: HR Innovation Practice Observatory
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THE MAIN CHALLENGES OF HR DIRECTION FOR 2024
December 11, 2023
Human Resources
THE MAIN CHALLENGES OF HR DIRECTION FOR 2024
On 29 November, the HR Innovation Practice Observatory kicked off its 2023-2024 edition with the first workshop, entitled "HR Direction's main challenges for 2024". Adopting the HR Innovation Net format for the first time, the event aimed to activate the networking of the Observatory community through discussion and debate on the priority challenges of HR Direction for the coming year.
THE INTRODUCTION OF THE OBSERVATORY
The Observatory's Research highlighted two relevant issues for HR Departments in 2023 : Talent Shortage and the difficulties in finding candidates and the phenomenon of Great Resignation and low levels of employee engagement. The Research involved a sample of 107 HR Departments of organizations operating in the country and a panel of 1000 workers, statistically representative of the Italian context. What emerged?
Over the past year, although about 60% of the HR departments in the sample had planned to increase their staffing levels, almost all (94%) experienced difficulties in recruiting new staff. This situation is even more alarming considering that for 74% of the organizations, this difficulty grew precisely in 2023. Among the most significant critical issues was that of finding, in the labor market, the technical and soft skills best suited to the demands of the business. The estimated impact is extremely negative, with 12% of the sample already having to give up part of their turnover. with reference to the introduction of new employees, but also in terms of retention of people already in the company. In 2023, the Great Resignation phenomenon recorded similar numbers to the previous year, with 46% of the sample of workers reporting that they had left the organization or intended to do so in the short to medium term. This percentage peaks among younger workers at 77%. Among the main reasons for leaving, people said they were seeking better working conditions (economic - for the 43% - and growth and career opportunities - for the 13%), flexibility in managing their working hours, and mental and physical well-being. So, what is happening in the world of work? Research by the HR Innovation Practice Observatory highlighted a major mismatch between expectations,desires and needs on the candidate/employee side and organizational responses. The gap can be bridged by working on redefining the relationship between the organization and workers, offering people "good and sustainable work" that aims at full engagement, retention and satisfaction. In other words, to the creation of environment that fosters Happiness at Work.
In light of the major challenges that accompanied HR Management in 2023, how will priorities evolve for the coming year? The Observatory posed the question to some members of its Advisory Board, the HR Executive Committee that closely follows the Research, in a panel discussion.
THE ROUNDTABLE DISCUSSION WITH THE ADVISORY BOARD
Participating in the roundtable discussion of the HR Directorate's priority challenges for 2024 were Roberto Battaglia, Chief Operating Officer of AIRC Foundation; Patrizia BelottiChief People & Organization Officer of Gefran; Gianfranco Chimirri, Chief People Officer of Sace; Simone MartinaChief People Officer of Cerved and Livio ZingarelliHead of People at Philips.
One of the themes explored was that of purpose as an element in building people's loyalty to the organisational context and giving new meaning to their work. Today, it is crucial for organisations that their business model combines both economic and social performance, the latter linked to the purpose and meaning that people wish to associate with their work. Via the levers of training, communication and involvement, organisations have the opportunity to nurture a new purpose in their people by giving them the chance to 'make their mark'. How? For example, by collaborating with Third Sector companies and activating volunteer projects of expertise.
Another priority challenge for 2024 concerns the ability of organizations to be more attractive, especially towards technical and digital profiles, at a time of talent shortage and great difficulty in retaining them. These barriers inevitably create loss of efficiency on the production processes, damaging the employee and customer experience and consequently the brand. Thinking about Talent Attraction means first of all understanding what talent is. Based on the assumption that all people are holders and carriers of talent, it becomes essential to attract everyone's talent and bring it out, defining an Employee Value Proposition in line with people's desires.
The panel discussion continued with an in-depth look at the impacts of AI,in terms of the potential of AI-based tools for HR management and the development of new skills and roles. In recent months, the advent of generative AI has opened up new scenarios for automating work activities, even in previously less impacted departments (such as marketing, sales, research and development and HR). Managing this corporate change requires an HR strategy geared towards upskilling and reskilling one's employees, giving them the right tools. The first challenge for HR management is therefore to integrate technology into people's daily work. The second, however, is to become the "early adopter" in the organization, ascertaining its benefits and identifying potential risks. AI can help 'augment' people's skills - and not replace them - creating a positive impact for society as a whole.
Another frontier for HR Management concerns the use of people and process data, drawing value from it in terms of improved decision-making. In today's organisational context, in which physical proximity with people is being replaced by new 'hybrid' working models, 'data-driven' decision-making approaches can help managers and HR management to make objective and bias-free decisions. This opens up a series of further considerations concerning: what data makes sense to process; what legitimate use can be made of it; what results are to be obtained; and finally, how to distribute and convey the evidence that emerges. Data then becomes the fundamental prerequisite for decision making,for measuring strategic indicators, and for understanding the cause-and-effect relationships of certain factors.
Finally, the round table concluded with an in-depth discussion on the evolution of theEmployee Experience, to make it consistent with people's expectations and to connect it with the organisation's People Strategy. Today, valuing one's people and caring for their experience means going beyond organisational boundaries, dealing with People Experience across the board - not only people's experience at work (Employee Experience), but also the needs and demands that arise outside. To maximise the value created for people it is not only important to to personalize the experience, but also to give them support.The manager becomes a true coach, able to bring out potential and coach to new challenges. In this new paradigm, the role of communication also changes ,no longer oriented outside or inside the organization, to employees, candidates or customers, but consistent across the board and directed to all people.
CONCLUSIONS
What should we expect, then, for 2024 in terms of priorities for the HR Management? The challenge is twofold:on the one hand engage in frontline experimentation on the frontiers of innovation, leading by example, and on the other hand to increasingly connect people and organizations, intercepting desires, needs and expectations.
SOURCE: HR Innovation Practice Observatory
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