In the latest PwC Pulse Survey conducted in June 2024, human capital leaders have emphasised the critical need to develop leadership capabilities within their organisations. This priority stems from a broader commitment to enhancing the overall employee experience, despite some missed opportunities in leveraging feedback and AI tools in daily operations.
The survey highlights that CHROs recognise the necessity of cultivating effective leaders to drive change across their companies. To this, they are implementing new formal training programs aimed at building competent leaders. Concurrently, there is a significant focus on optimizing costs to fund growth, alongside evolving approaches to performance management and career development.
Investing in future leaders is seen as paramount. Organisations are encouraged to prioritise building leadership skills among potential key leaders. A multifaceted approach is recommended, encompassing formal training programs, partnerships with external organizations and academic institutions, business rotations, and “stretch” opportunities that challenge employees beyond their current roles.
In addition to leadership development, CHROs are also championing leadership — both as leaders themselves and by fostering a leadership-centric culture. Nearly half (49%) of CHROs say making their function a more strategic partner to the CEO is a high priority, and it seems to be working. The survey shows that 60% of CEOs label CHROs as a highly effective business partner in driving company strategy.
CHROs are advised to take a business strategy approach to driving HR as a business. They need to understand the business priorities of their C-suite peers and the total cost of the workforce to identify collective opportunities to optimise that cost and deliver a more aligned experience.