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“HR is under increased scrutiny to demonstrate ROI [return on investment], as organizations navigate economic uncertainty, evolving talent needs, and AI change management challenges,” says Stephanie Neal, director of DDI’s Center for Analytics and Behavioral Research, in a statement about the report. “CHROs are making a pivotal shift to develop talent capabilities within.”
Looking inward for the next generation of business leaders, however, comes with its own challenges. Only 20% of HR leaders say they have internal candidates ready to fill many or almost all of their critical top roles.
That means that CHROs need to think hard about their own leadership talent pipeline, rather than banking on the “expectation that someone will be ready,” the report suggests. That includes things like mapping the profiles of people who could make future leaders, prioritizing growth opportunities for them, and focusing on cultivating softer people skills among this group, along with technical expertise.
“On top of the AI skill gap, CHROs are running up against a shift in attitudes toward leadership,” writes Neal. “Priming the next generation of talent to take on leadership roles will require HR to go back to the basics, focusing on building emotional intelligence and trust.”
