The Impact of HR: Preparing Leaders for the Future Today

BY Katie Chambers | August 23, 2023

When it comes to problem-solving, are you a reactor, a partner, or an anticipator? If you work in human resources, ideally, you are a combination of all three. But as Rosey Rhyne, senior research manager at DDI, points out, 47% fewer organizations identified HR as an anticipator in 2023 compared to 2018. This shows how the onset of the pandemic affected HR’s ability to predict talent behavior and needs in a workplace that is more dynamic than ever before.

HR’s talent management skills are crucial, but they remain underutilized. As companies brace for a faster digital future, HR is vital for anticipating and developing leadership and talent strategies.

Rhyne led a thought leadership spotlight during From Day One’s August virtual conference where she shared insights from DDI’s Global Leadership Forecast. The study surveyed 13,695 leaders, including 1,827 HR professionals across 1,556 organizations. Rhyne offered key takeaways about current trends and ways that HR can prepare their approach for a rapidly changing workplace future.

What Role Do You Play?

Rhyne explains how HR can be reactors, partners, or anticipators. Reactors merely respond to what is going on at their organization and to requests from leaders. Partners are more involved. “They identify needs and work together [with leaders] to mitigate any potential risks that pop up,” Rhyne said.

Anticipators are the most future-forward HR professionals. “They’re leveraging data to identify and forecast future talent needs,” Rhyne said. “And they’re working to mitigate any gaps that they see in advance and put people in place with the right skill sets to help achieve strategic objectives.” This strategy can be the most rewarding.

Rhyne led the thought leadership spotlight during the virtual conference about “The Changing Profile of HR” (company photo)

Due to constant disruption in the workforce from the pandemic onward, including an increase in remote workers and a reliance on AI, many HR departments are moving more toward a reactive rather than an anticipatory strategy – there are just too many variables in play to operate otherwise. But Rhyne notes that anticipators are still the ideal going forward, as they are 1.4x more likely to be able to navigate change effectively, and their company is 4x more likely to have a strong bench of leaders ready to tackle surprising challenges.

Fragile Workforces Keep CEO’s Up at Night

The need for anticipatory HR strategies became clear when DDI surveyed 529 CEO’s about their greatest concerns, Rhyne notes. The top three CEO fears are all related to future preparedness. 59% are concerned with attracting and retaining top talent. 50% are anxious to develop the next generation of leaders. And 45% worry about maintaining an engaged workforce.

Each of these pain points are related. “[CEO’s] recognize that there is a need to have the talent aligned with a strategy to have the right people in the right place at the right time,” Rhyne said.

Remove CEO’s Blind Spots With Talent Data

It is crucial, Rhyne says, for HR to arm CEO’s with talent data so that they can mitigate concerns and address them effectively. “In many organizations, there's a disconnect between the CEO’s perceptions of key things like burnout, turnover, inclusion, and senior leader quality in their organizations compared to the rest of their company,” Rhyne said.

Leveraging data about employee needs can help HR anticipate them and address them before they become a crisis.

Prepare Leaders for the Future

Rhyne notes that preparing leadership talent for future success is about more than getting “butts in seats.” A survey on five critical leadership skills shows a critical gap between the percentage of leaders who say skill development is critical vs. the percentage of leaders who have received actual training in those skills. The skills are:

  1. Identifying and developing future talent
  2. Strategic thinking
  3. Managing successful change
  4. Decision-making prioritization
  5. Influencing others

Again, an anticipatory strategy can help prioritize the development of each of these leadership skills so that talent is amply prepared when a challenge arises. By creating a common leadership culture, Rhyne says, companies are poised for greater success. In a study of companies financially performing in the top 10% of their industry, the majority had effective leadership development across all levels of their business. The return on investment in a leadership development program is clear.

The Impact of HR

Rhyne acknowledges that juggling the balance of being a reactor, partner, and anticipator is “not an easy feat.” But there is a strategy to increase the odds of success. HR must increase data collection and make the results visible to the CEO or leadership team to increase situational awareness. Armed with that data, leaders can then identify necessary skills for the future and provide training so that the team is ready when the next disruption hits. Finally, HR and the leadership team must revisit the leadership development program to ensure it is aligned with the organization’s strategic goals.

Editor’s note: From Day One thanks our partner, DDI, for sponsoring this thought leadership spotlight. 

Katie Chambers is a freelance writer and award-winning communications executive with a lifelong commitment to supporting artists and advocating for inclusion. Her work has been seen in HuffPost, Honeysuckle Magazine, and several printed essay collections, among others, and she has appeared on Cheddar News, iWomanTV, and CBS New York.

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