'Significant disconnect' | Half of senior leaders don't know how to use their HR team effectively

HR is being held back from delivering important strategic value to their business, as half of C-suite executives admit they don’t know how to use their HR team as effectively and strategically as they’d like to.

That’s according to the latest research from Personio, Europe’s leading HR software company for small and mid-sized businesses, which surveyed 500 C-suite level executives and 1,000 HR decision makers at SMEs in the UK and Ireland.

Over half (55%) of C-suite executives state they are behind where they need to be to navigate current and future workplace challenges, including managing an increasingly fragmented multi-generational workforce, providing on-going support during the cost of living crisis and fostering more diverse and inclusive organisations. But C-suite executives are currently under-utilising their HR teams as a strategic function to help navigate such issues. Over half (54%) state they only see HR’s strategic value at times of crisis – such as during the Covid-19 pandemic or when there are talent shortages.

Meanwhile, highlighting a disconnect between C-suite executives and HR teams, two-thirds (66%) of HR professionals say they want to play a more strategic role in the business. HR teams have direct insights from employees on key topics such as how to maximise employee engagement, or how best to communicate new company goals, which business leaders often lack. But they are facing a myriad of challenges when it comes to supporting the business’s success, with 31% citing too much administrative and process driven work as a key barrier, while 29% cite poor collaboration with their senior leadership team.