support for this podcast comes from eightfold ai. Eightfold ai's market leading talent intelligence platform helps organizations retain top performers, upskill and reskill their workforce, recruit talent efficiently and reach diversity goals. Eightfold's patented deep learning artificial intelligence platform is available in more than 155 countries and 24 languages, enabling cutting edge enterprises to transform their talent into a competitive advantage. For more information visit eightfold dot ai. There's been more of scientific discovery, more of technical advancement and material progress in your lifetime of the mind and of all the ages of this. Hi there, welcome to episode 665 of Recruiting Future with me, Matt Alder. In this disruptive time HR must be perfectly aligned with the business strategy of its organization. However recent research from eightfold ai and 360 insights highlights a significant misalignment between the two. This misalignment creates challenges that impact everything from hiring to employee satisfaction and ultimately negatively impact long-term organizational success. So why is this misalignment happening and what can HR leaders do to address it? Could AI help bridge the gap and drive better outcomes for both HR and the wider business? My guest this week is Theresa Weix, Senior Director of Talent-Centered Transformation at Eightfold AI. Theresa shares valuable insights from the research and we explore some of the root causes of this misalignment and assess potential solutions to the problem. Hi, Theresa and welcome to the podcast. Hi, Matt, thanks for having me. An absolute pleasure to have you on the show. Please could you introduce yourself and tell us what you do? Sure, so my name is Theresa. Theresa Weix and I joined Eightfold AI earlier this year. Eightfold AI is a talent intelligence platform that companies use to allow them to hire and develop their talent through automation and AI-driven insights. And I'm part of the Talent-Centered Transformation team. What we do is work with organizations to support them through various aspects of their decision to partner with us. So that's things like moving from a transactional to a strategic talent approach or becoming a skills-based organization or using talent intelligence and everything that that entails. Eightfold have recently published. It's a really interesting report. It's picking up on what you're saying about being strategic. It looks at really what we can only describe is the misalignment between HR and the strategy of the business. I mean, it's a really interesting read. I mean, how bad is that problem? And what are the implications of HR talent acquisition being so misaligned with the overall business's strategy? Well, I'm glad you found it interesting, Matt. So first of all, let me just give a couple of bits of context of the survey, just to clarify why we get involved in this. So survey like this will tell us quite a lot about the maturity of the HR market. And then in turn, that tells us a lot of things about HR sentiment towards AI and their propensity to look at new technology for their businesses. And it also tells us where they might be on their skills journey, for example. And we partnered with 360 so that we could be more objective about that. And given our customers are mostly HR people, we really wanted to understand their alignment to their businesses as we are discussing here today. So the survey gives us data that's current, that's obviously quite powerful. And I think it's a given that at the moment the environment is uncertain and we all need to be dynamic and agile, etc. But what we really wanted was to look at what's creating those changes so that we can think about how to make leadership better, and how to optimize our workforces. And, you know, we want to be thought leaders, so we want to be at the Vanguard of those conversations. And, you know, and it's, you all know this, it's a very lively time, especially right now. I know over the last couple years is HR is redesigning itself. So I think, I think broadly speaking, the survey has given us the opportunity to create a lot of inward reflection for HR about what the priorities should be, but getting into it and to return to your question. And in terms of how bad the problem is, well, if we start with some numbers, so only 18%, that's one in five of HR leaders and we had a sample of 500 for this survey, told us that they are fully aligned with the business. And that's based on how they integrate across three key areas. So that's business strategy development, C-suite collaboration and talent strategy alignment. And then if we break that data down a little bit more, just to illustrate, 52% said that they regularly collaborate with the C-suite. So that would suggest a more proactive kind of driving approach to relationship management, still only half though, that are actually regularly collaborating with the C-suite. And then 38% say that they occasionally collaborate. So that's probably a more reactive cohort there. And interestingly, 44% of the survey respondents said that their talent strategy was fully aligned to business objectives. 43% said mostly at night. And that's less than half. I think that's rather interesting, slightly daunting, because if you think talent is probably the most accountable part of HR, because it is so measurable, so not brilliant for less than half to be aligned to the business. But I think in terms of how serious that is, well, obviously downstream, it's going to have effects on the efficacy of any talent strategy, the overall organization and general business needs. 69% of the respondents said that they were a bit worried about their ability to keep up with the pace of change in their company. And also alongside that, keeping up with the HR needs of their employees. And obviously, that's not great because the longer HR remains misaligned, that's going to get worse. So we are going to cover some more of that later. At the same time, though, we looked at employee satisfaction, I think these two go hand in hand. And that employee satisfaction in this survey came out at 61%. So, you know, very well documented that low employee satisfaction will negatively impact performance. Then if you're not happy for work, you look elsewhere. And we found in our survey that actually 82% of all employees admitted to looking for a new job in the last 12 to 18 months. And, you know, no surprise paying culture with the leading drivers for that. And then another misalignment, these employee numbers, you know, juxtapose the three out of four HR leaders of the survey who report that they had what it takes to help employees grow in their role. Yet they still struggle with staffing challenges. So I think, you know, there's something they're quite big about the fact that current HR and corporate initiatives are a bit out of step with what employees need and want. And they're, you know, they're thinking with their feet. So yeah, that's a sort of overview of, you know, the negativity of this situation. Yeah, I mean, there are quite some quite scary numbers there in terms of, you know, how bad some of that sort of misalignment is. And as you say, the implications are pretty serious. What do you think's causing this? Because, you know, I'm sure that, you know, no one does this on purpose. So what do you think some of the recourse is behind it? There's a lot of there's a lot of noise at the moment about what HR should be, what talent should be, how it's changed, etc. I think, I think for HR and business alignment, it has to come back to communication and how HR is working with other departments. I think it also raises the question of, to what extent HR ensures that they are actually properly understanding the company's strategic goals and how they go about that. It might also be something about maintaining an administrative culture rather than aspiring to represent, you know, strategic initiatives. I think there's a big one as well about the language that she used to communicate with the business. You know, I think HR needs to look at whether it is data literate, as opposed to being data-driven, which is something different. Is HR using data that's good? Is it relevant? How is that data being used to inform decisions? It's probably HR's job to be the ones who own the understanding of the talent market, not the business. So how they use this knowledge is very, very important. And I think that might tell you whether the business disease HR is a purely transactional compliance-focused function role as a true strategic partner in driving business success. You know, an HR often gets sidelined because they hide the wrong people, but it's up to HR to make sure the business has the right idea in the first place and down to how they set expectations through data and, you know, reality checking. I think there's often a, you know, the business only knows what they know. Whereas HR has actually got access to the whole of the market. So why would they not, you know, use that information to coach and, you know, set the truth of what's actually out there? So I think, yeah, big piece there about relationships, aptitude to be aligned to the business. You know, does HR know how to be aligned to the business in the first place? You know, I think sometimes it's not happening because people don't know how to do it rather than they're just not doing it or they're focusing on something different. And I do think as well, Matt, there might be something as well about the way that we're working at the moment. You know, I mean, it's not so much about, well, I mean, whichever side of the fence you sit on about remote working or return to office, it's definitely got consequences for how not only relationships are built and maintained, but how information gets communicated and passed around teams. And I think I'd also say that, you know, HR does tend to focus on short-term wins or maybe, you know, incremental steps towards a result. And that then gets reflected in the way it gets measured on, you know, short-term factors. Whereas I think, you know, taking a more strategic view will just give HR more to work with and is more aligned with perhaps where the business is going. A really interesting sort of section of the report illustrates that HR is actually deprioritizing areas and activities that could actually help them achieve their objectives. Take us through what's happening there. That's right. So we asked a set of questions around the relative importance that HR leaders are giving to various topics. So they ranked understanding their workforce's skills and capabilities as the second most crucial factor. The first most crucial factor was retaining top performers. However, our survey said that gaining a better understanding of the skills makeup of their talent networks was actually last on their priority list for the next 12 to 18 months. So just to give you a bit more detail here, because I think it is interesting. So top business priorities for HR leaders are recruiting better candidates to the talent pool, lowering turnover, and identifying high potentials to promote internally. And again, not surprisingly, recruitment marketing platforms consistently rank as a top investment, especially amongst those who are quite advanced with their AI deployment. At the same time, HR leaders said their bottom three organizational priorities were speeding up the hiring process, analyzing workforce data, and better understanding the skills makeup. So straight away, there's a disconnect there because the bottom three priorities would actually help address the top three priorities. So, you know, there's some things not getting its act together there. And I think, you know, one in five, that's 20% of HR leaders saying they have little to no insight into the skills makeup of their workforce. The correct skills data is just not being looked at. And what that means is that their hiring practices are actually not backed up by anything tactical or anything strategic, hence misalignment. Just to go back to something you were talking about earlier and just dig a little bit deeper into that employee satisfaction issue because that's such a such a big thing. I mean, you know, what other insights did you kind of get around around that and the causes of it? This survey employee satisfaction came out 61%. And you know, there's all sorts of internet rabbit holes you can go down to benchmark that. But in terms of implications of that figure incidentally, Gallup estimated an $8.9 trillion shortfall on productivity coming out of which is pretty massive. So that's actually a 9% loss of productivity through people not showing up to work. I don't mean literally not showing up. I mean, you know, in an engaged way. You know, and if you're disengaged, you're also not going to be inclined to grow or develop yourself perhaps, which is which is further wastage. So, you know, it does have it does have quite serious consequences. But you know, in our survey, the quoted causes were fairly standard in adequate money, poor work, life balance, and lack of career development, a significant concern. We did find that people who have a shorter length of service, so lower tenure has the lower satisfaction and women are less satisfied than men. And then if we look at what the HR leaders have to say about that, well, half of those leaders that we surveyed said that gaining a better understanding of their talent network was a priority. So, as well as recruiting better people and retaining top employees. But then, you know, the survey does indicate that the execution of addressing these priorities is actually quite hurtful to the employees' perceptions of them and their overall execution. You know, and I think HR just needs to catch up a bit with employee needs and, you know, that culture of where the employer tells you what you're all about and what you need. This is a bit out now, I think. The company priorities is, you know, is making sure that you retain the right people. But I don't think that intention is getting through to the workforce because they're nearly all looking for a new job. Right. And I think, as well, there's, you know, there just needs to be a bit more nuanced and attention to detail around some of this. Things like, you know, generational diversity in terms of needs and expectations, because we are going to start seeing a lot of shortfalls directly related to generational cohorts and their skills. You know, and that gets expressed in different attitudes towards work and indicators of engagement across different generations. You know, if you're a younger, you're the part of the younger generation, you're probably more interested in the meaning that your work gives you. Whereas if you're older, it might be more about benefits. So, you know, it's, it's just, it's getting closer to your workforce, treating them as people with needs and wants, just being having a bit more of a kind of service culture, I think, both to your, to your workforce, but also also to your business. Absolutely. So let's kind of sort of look at this in the, look at this as a whole, I suppose, in terms of the, you know, the Mr. Lyman and everything that's going on. And I don't think any of this will be a surprise to anyone listening, because I think you can, probably they've probably all experienced some aspects of this. What's the, what's the solution? I mean, is this, is this something that AI and technology could solve? And if so, how, how, how, how might it do that? I think it can, Matt. I think, you know, I think first of all, I think sometimes it's better to rely on the talent that you already have, rather than looking outside. And I think if organizations don't know what skills they need for the future, you know, there's, there's, there's ways that you could look at that, you know, a good plan and good technology can support, you know, a great hiring experience for hiring leaders and, and, and the talent themselves. There are ways that you can meet those expectations. And I think a lot of that is about increased awareness, increased insight, better data, and investing in the right areas. But, you know, that takes effort and, and, and, and capital, you know, I talked earlier about, you know, greater attention to detail. I do also think that there are a few things that need to be returned to in terms of the basics here. And I do think, I think some of these things might mean that we decide there's a difference set of skills required for HR to be aligned. And that might be met by seeing more natural moves from other parts of the business into HR, for example. You know, we're seeing that already. I think there's something as well about HR and talent needing to be there early in the conversations, having the confidence to insist that they are part of those conversations so that they can manage expectations about delivery. And then that means they can make a plan at the right time. And, you know, fulfill their job, which is to make sure that the company's got the right people on board to deliver business goals in the right way. But yes, AI certainly can help solve it. You know, and there are, there are a few ways. So, you can use AI to give you a view of the whole talent lifecycle. And that's going to mean that you can plan, and plan efficiently. And you can be strategic rather than reactive, which, again, aligns you more strategically to the business. You can use AI to predict future talent leads and also current skills gaps. And that gives you data to show with the business that data also might help you challenge assumptions that are incorrect or exaggerated about the existence of talent in the outside market. Again, you're coming closer to the business, you're helping them support their own goals. You can use AI to identify people in your existing workforce who are ready for upskilling or reskilling. And that's good for engagement, as well as cost-effective in avoiding external hiring. So you're speaking the language of cost with the business there. Again, you'll be, you know, you'll be more aligned. And then finally, you know, you can actually use AI to let your teams find opportunities or projects themselves. So that's empowering and engaging. If they're more engaged, then more productive, then more productive, then more aligned to the commercial aims of the business. You know, so much of this is about data. So talent intelligence workforce analytics are growing. I think there's still quite a long way to go. But yeah, I think starting to look at the way that technology can help you with some of these issues is a really good place to start. So I mean, there are some amazing tools and some, you know, very different and interesting, interesting thinking, and, you know, as you say, you know, potentially new skills that kind of really need to come in and solve these issues. What steps can organizations take to deal with resistance to, you know, what's a pretty big change in terms of all of those things and overcome, you know, the barriers to implementing this kind of thing successfully? That's such a massive question. I do think again, it comes back to how you partner with the business. And you know, that's things like how you go about building trust, the vocabulary that you use, how you create your case using data and then relating your work to the business's work, you know, explaining how HR tasks and activity directly impact business goals, leveling to a strategic viewpoint, having the confidence to challenge in an appropriate and robust way using data that's relevant and representative. But ultimately, you know, any, any, any resistance just needs breaking down. And it's all about alignment, aligning HR's work to individual goals held by business leaders, for example, something like that. That definitely makes a lot of sense. What do you think the future looks like? What do you hope the future looks like? What might technology make it possible to do in, say, five years time? I reckon if we did the survey again in a few years time, I think the questions would probably look a bit different given the pace of change, especially for this current year. So the outcomes would probably look a bit different. And alongside that, I think there's also scope for a new set of KPIs for HR and talent acquisition, talent management, and, you know, some of that's already happening now. So, so in the context of that, in practical terms, we're probably looking at, you know, questions around even more automation. So if that properly takes off, then the thing to watch is whether HR actually does take the bait to be strategic and whether it has the capability to be strategic in the right way, you know. I think, obviously, a lot more and a lot better tailored interfaces for a better user experience. So, you know, maybe the questions will explore how people are working with the technology versus the parts of their work that AI won't be supporting. And I think that, and it's not my idea, but it's one I agree with that, you know, a new or a greater part of HR's remit could be around owning the relationship employees have with AI and how that's working. And obviously, that has consequences for what people, you know, what people do all day long. Yeah, those are just some thoughts on that. So, lastly, where can people find a full copy of the report? So, the full survey report is on our website, eightfold.ai. Everything is there to read full survey report. Yeah, should should be interesting and relevant for many people. Absolutely. Theresa, thank you very much for talking to me. Thanks, Matt. My thanks to Theresa. You can follow this podcast on Apple Podcasts on Spotify or wherever you get your podcasts. You can search all the past episodes at recruitingfuture.com. On that site, you can also subscribe to our weekly newsletter, Recruiting Future Feast, and get the inside track on everything that's coming up on the show. This is the last episode of Recruiting Future for 2024. And I want to thank everyone who's listened, shared, been interviewed, or sponsored. I'll be back next year, and I hope you'll join me. [Music] Probably more of technical advancement and material progress in your lifetime than mine, and at all the ages of history. [Music] [BLANK_AUDIO]
In this disruptive time, HR and Talent Acquisition must be perfectly aligned with organizations’ business strategies. However, recent research from Eightfold AI and 3Sixty Insights highlights a significant misalignment between the two. This misalignment creates challenges that impact everything from hiring to employee satisfaction and ultimately negatively impact long-term organizational success.
So, why is this misalignment happening, and what can HR leaders do to address it? Could AI help bridge the gap and drive better outcomes for both HR and the wider business?
My guest this week is Teresa Wykes, Senior Director of Talent-Centered Transformation at Eightfold AI. Teresa shares valuable insights from the research, and we explore some of the root causes of the misalignment and assess potential solutions to the problem.
In the interview, we discuss:
Business strategy development. C-Suite collaboration and talent strategy alignment.
The extent and causes of misalignment of HR with the business
The implications of prioritizing an administrative culture over strategic initiatives
The crucial difference between being data driven and data literate.
How HR is deprioritizing the activities that could help them achieve their objectives.
Solving the problem
The new skills needed in HR and Talent Acquisition teams
Dealing with resistance to change
What does the future look like?
Access the full report here - Aligning the Path Forward: How to Bring HR and Business Strategy Together.
Follow this podcast on Apple Podcasts.
Follow this podcast on Spotify.
