CEOs Rank Workforce as the Third Business Priority for 2024-2025, Gartner Survey Reveals

Focus Shifts to Growth and Technology as Workforce Investments Decline

A recent survey conducted by Gartner, Inc. between July and December 2023 reveals a notable shift in business priorities among CEOs for the 2024-2025 period. Workforce considerations have been ranked as the third most crucial business priority, following growth and technology. The survey, which gathered insights from 416 CEOs and senior business leaders, highlights an evolving focus in corporate investment strategies.

Key Findings and Shifts in Investment Priorities

The survey indicates that 57% of CEOs plan to increase their investment in people and culture, a decrease from 69% in the previous year. Similarly, only 46% of CEOs intend to boost investments in hiring, down from 54% in 2022. This shift reflects a growing emphasis on growth strategies and technology, particularly artificial intelligence (AI), which is capturing a larger share of corporate focus.

Alexander Kirss, Senior Principal in Gartner’s HR practice, notes that while growth strategy and technology are increasingly central to business plans, the role of AI is expected to significantly impact revenue and productivity. According to Kirss, 86% of surveyed CEOs plan to leverage AI to sustain or enhance company revenue, with 56% anticipating a productivity boost of at least 11% due to Generative AI (GenAI) in the next two years.

The Role of CHROs in Aligning Talent Strategies

Chief Human Resources Officers (CHROs) are pivotal in translating broad CEO visions into actionable talent priorities. Gartner outlines three key areas where CHROs can make a significant impact:

1. Translating Broad Views into Actionable Priorities: CEOs often possess general ideas about talent but may struggle to develop specific, actionable strategies. CHROs can assist by clarifying the assumptions behind these views, identifying potential challenges, and assessing impacts on employees and the organization. This collaboration helps ensure alignment and prepares the organization for effective implementation.
2. Maintaining CEO Engagement in Talent Strategy: As CHROs take charge of executing talent priorities, there is a risk that CEOs may become disengaged. To maintain engagement, CHROs should encourage regular communication of talent strategies through company-wide updates, internal communications, and performance management practices. This ongoing involvement helps reinforce the importance of the talent strategy.
3. Monitoring Emerging Talent Trends: Staying ahead of emerging talent trends is crucial for providing a competitive edge. CHROs should evaluate these trends, assess their potential impact, and ensure the organization is ready to adapt. Proactive engagement with these trends can help address barriers and capitalize on opportunities.

The Essential Role of CHROs

Kirss emphasizes that CHROs are essential in transforming broad CEO visions into operational realities. Successful CHROs become integral to the company’s strategic talent framework, strengthening their role as trusted partners to the CEO. By working closely with their CEO counterparts and engaging with a broader network of C-suite peers, CHROs can drive effective talent management and contribute to overall organizational success.

The survey underscores the evolving landscape of business priorities, with a clear shift towards growth and technology while maintaining a critical, though slightly diminished, focus on workforce investments.