What are your organisation’s most significant business challenges?

Published in January 2025, Fosway’s HR Realities research looks at the challenges, strategies and priorities of HR leaders in the business world – here Fosway analysts look at the ongoing challenges of skills and employee experience.

Over the past four years, from HR’s perspective the availability of skills has held a significant lead over all the challenges organisations face. And whilst HR leaders still see the lack of skills as the biggest challenge for their organisation, this year ‘performance and profitability’ has edged even closer to toppling skills off the top spot than ever before.

In the face of economic headwinds, delivering value is more at the forefront of HR thinking than it has been for the past decade. With economic pressures, automation and cost reduction all climbing up into the top five of the list of challenges, it’s not hard to get a sense of the budgetary belt tightening that many have experienced generating a pragmatism in HR strategy and investment trends.

Enhancing the employee experience and quality analytics are seen as critical to the future success of HR operations

The things that underpin HR operations’ success remain stubbornly consistent and this year show little significant change. At the core is the focus on the employee experience and quality data is central to success in a world where data is the foundation of personalisation and decision making. That closer integration between HR and business systems has nudged itself into 3rd place from 4th should be no surprise. Every function lives and dies by its ability to impact the bottom line and HR is increasingly under scrutiny to show its value-add.

AI continues to rise in HR’s thoughts about what powers its future success

AI continues to rise in HR’s thoughts about its future. This year sees another leap in expectations about the role AI will inevitably play in redefining the employee experience and HR operations. AI, machine learning and intelligent agents have steadily grown in their perceived importance, from relative obscurity back in 2018, and particularly in the last two years AI has emerged at the forefront of HR’s thinking about how it delivers success. Based on its current trajectory, it’s easy to see AI eclipsing strategic influencing skills and employer brand as an enabler of a successful HR operation.

Ceci est un extrait du Fosway’s HR Realities research 2024. Get the full insight and discover all the latest market and solution trends by viewing all the infographics ici.

Que devriez-vous faire ensuite ?

• How will future AI developments affect your HR priorities and challenges? Participez au projet stratégique de Fosway pour 2025 : ‘ L'IA dans les RH ’.
• How do you validate your vendor options as a HR leader? Read the latest Grille 9^TM for Cloud HR report.

Autres lectures recommandées

• Other Fosway research related to Cloud HCM and HR strategy.
• How to fix your Cloud HR suite for better employee experience.

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