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LeadershipVisionfor2025

Top3Strategic

PrioritiesforChief

HROfficers

?2024Gartner,Inc.and/oritsaffiliates.Allrightsreserved.Thispresentation,includingallsupportingmaterials,isproprietarytoGartner,Inc.and/oritsaffiliatesandisforthesole

internaluseoftheintendedrecipients.Becausethispresentationmaycontaininformationthatisconfidential,proprietaryorotherwiselegallyprotected,itmaynotbefurthercopied,

distributedorpubliclydisplayedwithouttheexpresswrittenpermissionofGartner,Inc.oritsaffiliates.

LeadershipVisionforCHROsin2025

Keyquestionsaddressed:

?WhatarethemajortrendsaffectingCHROs?

?WhatarethetopprioritiesforCHROsintheyearahead?

?WhatskillsandcapabilitiesdoCHROsandtheirteamsneedtosucceed?

CHROsarenavigatingacomplexlandscapeshapedby

severalkeytrends.CEOsprioritizinggrowththrough

transformation,AIdeploymentchallengesandshiftinglabormarketpressuresontalentstrategiesareinfluencinghow

thebestorganizationsareleadingHRtoachievebusinessgoals.

Inthiscontext,thetopCHROfocusareasfor2025are:

?ElevatingHR’simpactontheorganization’sgrowthstrategy

?Buildingadeepbenchofchangeleaders

?Creatingafuture-readyworkforce

Usethisresearchtostayahead,achieveyourgoalsandleadHRtosuccessin2025andbeyond.

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TRENDS/PRIORITIES/CAPABILITIES

TrendsImpactingChiefHROfficers

>

CEOssettheirsightsongrowththroughtransformation

AIaspirationsconfrontdeploymentrealities

Labormarketshiftsput

pressureontalentstrategies

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TRENDS/PRIORITIES/CAPABILITIES

CEOsSetTheirSightsonGrowthThroughTransformation

CEOsselectinggrowthasatoppriorityisup25%sincelastyearandisatitshighestlevelsince2014.

CEOTopStrategicBusinessPrioritiesfor2024-2025

Top10SummaryofTopThreeMentions

62%

GrowthTechnologyWorkforce

Financial

CorporateCostmanagementEnvironment

CustomerProductsandservicesEfficiency/productivity

33%27%

23%22%

16%

10%

10%9%

8%

0%35%70%

CEOsarepreparingtheirstrategyforanewera:79%ofCEOswillhavetheirpostcrisisbusinessstrategyreadybytheendof2024.

n=416CEOsandseniorbusinessexecutives;307CEOsandseniorbusinessexecutives

4Source:2024GartnerCEOandSeniorBusinessExecutiveSurvey

ChangesattheCoreofNew-EraBusinessStrategyShifts

WeightedbyPrevalenceofResponse

Digitalization/technology

Resilience/agility

Productandpricing

Sustainability/ESG

Profitability

AI

Efficiency/automation/productivity

Growthrate/focus

Customerneeds

Cost

management

n=339CEOsandseniorbusinessexecutives

Source:2024GartnerCEOandSeniorBusinessExecutiveSurveyQ.Inafewwords,whatisatthecoreofthatstrategychange?

TRENDS/PRIORITIES/CAPABILITIES

AIAspirationsConfrontDeploymentRealities

GenAI’spositionontheGartnerHypeCycleTM

Onaverage,businessleadersexpecta22.6%improvementinfunctionalproductivityinthenext12-18monthsbyusingGenAI.

Expectation

Generative

AI

AIimplementationchallenges:

?Dataissues

?Uncertaintyaboutbestpractices

?Employeeskillsgaps

?Changefatigue

InnovationTrigger

PeakofInflatedExpectations

Troughof

Disillusionment

Slopeof

Enlightenment

PlateauofProductivity

n=380functionalleaders

Source:GartnerGenerativeAI2024PlanningSurvey

Q:Onaverage,whatpercentagechangeinproductivitydoyouexpecttoseefromtheuseofgenerativeAIinyourorganizationoverthenext12-18months?

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TRENDS/PRIORITIES/CAPABILITIES

LaborMarketShiftsPutPressureonTalentStrategies

ThreeDriversofDecliningAvailabilityofCriticalTalent

61%oftalentmanagementleadersagreethatthedemandsontalentmanagementexceedtheircapacitytodeliver.1

1

TalentSupply

Laborshortage:Globallymorethan85millionjobsareprojectedtogounfilledby2030.2

Mismatchedskills:23%ofglobaljobswillchangeinthenextfiveyearsdueto

industrytransformation,includingAI.3

2

Employeeexpectations:62%ofcandidatessaytheyonlyapplyforjobsthatmeetthe

majorityoftheirEVPrequirements.4

3

n=3,435candidates

12024GartnerModernizingTalentManagementHRLeaderSurvey,n=190HRleaders.

2The$8.5TrillionTalentShortage,

KornFerry.

3TheFutureofJobsReport2023,

WorldEconomicForum.42024GartnerVoiceoftheCandidateSurvey(Q2).

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TRENDS/PRIORITIES/CAPABILITIES

OurResearchProcess

2025CHROPrioritiesResearchInputs

KeyResearchQuestion:

WhatareCHROs’topprioritiesfor2025?

2025GartnerHRPrioritiesSurvey

641CHROsand

762HRLeaders

23industries6regions

2024GartnerCEOandSeniorBusinessExecutiveSurvey

2024GartnerReimagineHRHRLeaderandEmployeeSurveys

SecondaryResearchandDataAnalysis

CHROInterviews

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TRENDS/PRIORITIES/CAPABILITIES

CHROPrioritiesfor2025

TopFocusAreas

ElevateHR’simpactonorganizationalstrategy

Createafuture-readyworkforce

Buildadeepbenchofchangeleaders

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ElevateHR’simpactonorganizationalstrategy

TRENDS/PRIORITIES/CAPABILITIES

CHROsHaveanOpportunitytoIncreaseHR’sInfluence

CEOsAreDeprioritizingtheWorkforceasaFocusArea

40%

20%

0%

MentionsofWorkforceinTopThreeCEOStrategicBusinessPriorities

32%

▽5%

27%

2023-20242024-2025

n=339CEOsandseniorbusinessexecutives;422CEOsandseniorbusinessexecutives

Source:2024GartnerCEOandSeniorBusinessExecutiveSurvey;2023GartnerCEOandSeniorBusinessExecutiveSurvey

CEOsAreOverlookingHRtoUnlocktheValueofNewInvestments

ExecutiveCommitteeMembertheCEOIsMostRelyingOntoUnlocktheValueofGenerativeAItotheBusiness

1%

Agree

Lessthan1%ofCEOsare

relyingmostontheirCHROto

unlockthevalueofgenerativeAI,balancingthebenefitsandrisks.

99%

Disagree

n=416CEOsandseniorbusinessexecutives

Source:2024GartnerCEOandSeniorBusinessExecutiveSurvey

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ElevateHR’simpactonorganizationalstrategy

TRENDS/PRIORITIES/CAPABILITIES

AugmentedHRDeliversNewWorkinNewWays

HRWork/TechnologyMatrix

Newtechnology-enhancedways

HowHRdoesitswork

Traditionalstaff-ledways

Source:Gartner

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Under-leveragedtechnology

AugmentedHR

Capacity-focus

Under-equippedstaff

TraditionalworkNewstrategicdemands

TheworkHRdoes

ElevateHR’simpactonorganizationalstrategy

TRENDS/PRIORITIES/CAPABILITIES

HowtoOvercomeHRValueTraps

TheThreeAugmentationApproachesThatHelpUnlockNewBusinessValue

Foundations“viciouscycle”

Preservationmindset

Competingsolutionsdilemma

Providetransformationalbuildingblocks

ExpandHRstaff’sviewpointsonvalue

Formalizesharedgoalsandnewroles

Whyitworks:

Buildingblocksengagestakeholders

innewvalueprioritization.

Expanded

HRstaffto

viewpointsinspire

pursuenewvalue.

Sharedgoalshelpprocessleadsdesign

complementarysolutionsthatgeneratenewvalue.

Source:Gartner

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ElevateHR’simpactonorganizationalstrategy

Recommended

Actions

Assess

Thinkabouttheorganization’sbigstrategicbetsandhowHRcanenabletheirsuccess.

Identifythetalentrisksthatmightimpedethesebigstrategicbets.

Plan

HelptheC-suiteunderstandthehumanimplicationsofstrategicbusinessdecisions.

TakeanactiveapproachtoC-suiteconversationsaboutworkforceproductivity.

Execute

WorkwithotherfunctionalleaderstoaugmentHRrolestoachievesharedgoalsanddrivecomplementaryvalue.

DefineanHRoperatingmodelofthefutureforyourorganizationthatcanhelpdeliveronHRandbusinessgoals.

12

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Buildadeepbenchofchangeleaders

TRENDS/PRIORITIES/CAPABILITIES

LowConfidenceinLeadersandManagerstoLeadChange

LeadersandManagersAreNotPreparedtoLeadChange

PercentofCHROsWhoAgreeThatTheirLeadersandManagersAren’tEquippedtoLeadChange

28%

Disagree

72%

Agree

n=446CHROs

Source:2025GartnerHRPrioritiesSurvey

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ChangeAgilityIsNotaStrengthforMostLeadersandManagers

PercentofLeadersIdentifyingChangeAgilityasaStrength

100%

50%

30%

26%

23%

0%

ExecutiveleadersSeniorleadersMid-levelmanagers

Theabilitytoleadchangegetsworseasyoulookdeeperintotheorganization.

n=287executiveleaders,407seniorleaders,287midlevelmanagers

Source:2024GartnerLeadershipBenchandLeaderLearningHRLeaderSurvey;2024GartnerLeadershipDevelopmentLeaderSurvey

Buildadeepbenchofchangeleaders

TRENDS/PRIORITIES/CAPABILITIES

RoleModelingIsMoreThanJustCommunication

ThreeWaysLeadersandManagersRole-ModelChanges

2

1

Howleaderspersonallyactin

alignmentwiththedesiredchange

Howleaderscommunicateaboutthechange

“Say”

“Behave”

3

LeaderandManagerRoleModeling

Howtheprocesses,budgetsand

policiestheleadercontrolsreinforcethechange

“Operate”

Source:Gartner

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Buildadeepbenchofchangeleaders

TRENDS/PRIORITIES/CAPABILITIES

HowHRCanRedefinetheLeadershipBench

HowtoRedefinetheRolesofLeaderandManager

ResetRoleExpectations

RebuildthePipeline

RewireHabits

RemoveProcessHurdles

What

Redefineeffectiveleadershipas

Puttherightpeopleintheright

Buildlong-termhabits,notjust

Eliminateprocessesthatgetin

changeleadership.

rolestoprepareforthefutureoftheorganization.

skills,toleadchange.

thewayofchangeleadership.

How

Realignleaderandmanagerresponsibilitiestohigh-impacttasks.

Encouragefutureleadersandmanagerstoself-discoveriftheroleisrightforthem.

Drivehabitbuildingthrough

intentionalcues,maintainableroutinesandfocusedreflection.

EquipHRleaderstoeliminate

low-valueprocessesthatburden

leaders,managersandemployees.

Source:Gartner

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Buildadeepbenchofchangeleaders

Recommended

Actions

Assess

Benchmarkleaderandmanagerconfidencetoleadthroughchange.

Assessyourleadershippipelinetodeterminefuturechangeleadershipeffectiveness.

Plan

Withyourheadoftalentmanagement,buildaroadmaptoattract,retainanddeployeffectivechangeleaders.

Buildbuy-inforkeyleaderandmanagerinvestmentswiththebroaderC-suite.

Execute

WithyourheadofL&D,trainleadersandmanagerstonotjustcommunicate,butalsoactandoperationalizechangesacrosstheorganization.

WorkwithyourHRleadershipteamtoredesignprocessesthatgetinthewayofeffectivechangeleadership.

16

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Createafuture-readyworkforce

TRENDS/PRIORITIES/CAPABILITIES

CHROsAreStrugglingtoPlanAmidstUncertainty

TalentQuestionsGoBeyondSkillNeeds

QuestionsCHROsFaceinBuildingaStrategicWorkforcePlan

?Whatskillsandcapabilitiesshouldwebuild,buyandborrow?

?Whattalentsegmentswillbethehardesttoattractandretain?

?Isourorganizationaldesignhelpingorhinderingourgoals?

?Whatleadershipmindsetsandbehaviorsmustwefoster?

?Whatcultureandwaysofworkingmustweco-create?

?HowhaveEVPexpectationschanged?

Source:Gartner

CHROsAreNotConfidentinTheirAbilitytoDeliver

ConfidenceinDeliveringStrategicWorkforcePlanningGoalsintheNext12-18Months

29%

Confident

71%

Notconfident

n=242CHROs

Source:2025GartnerHRPrioritiesSurvey

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Createafuture-readyworkforce

TRENDS/PRIORITIES/CAPABILITIES

KeyComponentsofStrategicWorkforcePlanning

StrategicWorkforcePlanningProcess

Understandbusinessstrategy;definevaluedrivers/capabilities

1

Segmentrolesbyimpactoncapabilitydelivery

2

6gaps,monitorprogressandadjustforchange

Strategicworkforceplanning

5

Developactionplanstoclose

Thesetalentgaps—andactionplanstoclosethem—arecriticalfordrivingconversationswiththeC-suiteandtheboard.

Assessthecurrentstateoftheworkforce;definegapsagainstthefuturestates

Scantheenvironmentto3

identifykeyfactorsdrivingfuture-statescenarios

4

Constructscenariosforthefuturestateoftheworkforce

Source:Gartner

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DegreeofRiskImpact

LowMediumHigh

Createafuture-readyworkforce

TRENDS/PRIORITIES/CAPABILITIES

IdentifyTalentRiskstoOvercomeBarrierstoReadiness

TalentRiskAssessmentHeatMap

Example

Risk2

●Risk1

Risk3

LowMediumHigh

LikelihoodofRiskOccurrence

TimeFrameofRiskImpact

Short-Term

Medium-Term

Long-Term

CurrentCapacitytoManagetheRisk

Insufficient

Sufficient

CriticalityofTalentRisks

HeatMapLegend

High—Breachesriskappetite,shouldbeescalatedtoboard

Medium—Threateningto

breachriskappetite,escalatedtorelevantseniormanagementteamattherighttime

Low—Undercontrol,managedbyHRandthebusiness

Source:Gartner

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Createafuture-readyworkforce

Recommended

Actions

Assess

WithyourC-suite,understandthevaluedriversofyourcurrentbusinessstrategy.

Assessthecapabilitiesofyourorganization’stalentandconsiderhowculture,organizationaldesignandthewayemployeesare

compensatedshapethesecapabilities.

Plan

Segmenttalentrolesbytheirimpactondeliveringthesecapabilities.

Withyourheadoftalentmanagement,createscenariosforthe

futurestateofyourorganizationandidentifygapsinthecurrentstate.

Execute

Withyourheadoftalentmanagement,identifytalentrisksusingthetalentriskassessmentheatmap.

PrepareanactionplantomitigatebetweenthreeandfiveofthemostcriticalrisksandescalatethemtotheC-suiteandtheboard.

20

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TRENDS/PRIORITIES/CAPABILITIES

NewDemandsMoveHRBeyondItsTraditionalScope

OutsideHR

MentalHealthandWell-Being

Human-CentricEVP

Hybrid-WorkProductivity

WhoDeliverstheWork?

DigitalWorkplace

OfficeWorkDesign

AIAugmentation

MostlyHR

Frontline-WorkerFlexibility

TraditionalScope

(e.g.,payroll,compliance)

InitialStrategicExpansion(e.g.,performancemgmt.,leadershipdevelopment)

CurrentScope

MostlyHROutsideHR

WhoHastheExperience?

Source:Gartner

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TRENDS/PRIORITIES/CAPABILITIES

NewDemandsonHRAreDifferentinKind

AttributesofHR'sNewDemands

Novel

80%ofHRleaderssaytheirfunction

isfacingdifferentchallengesthanthosetheyfacedprepandemic.

Examples

?Hybridworkproductivity

?AIworkaugmentationandallocation

?Talentmarketplacesand“gig”careers

Conflicting

45%ofHRleaderssaythatmeetingthe

conflictingdemandsofstakeholdersismoredifficulttodaythanprepandemic.

Examples

?Employeedemandfora“humandeal”versusorganizationalproductivity

?Flexibilityforfrontlineworkers

?Self-servicevs.“whiteglove”support

Interdependent

50%ofHRleaderssaythechangeshappeningtodayaremoredifficulttomanagethanprepandemic.

Examples

?Digitalworkplace

?Integratingwell-beingintoworkflows

n=217HRleaders

Source:2023GartnerHRFunctionalExcellenceHRLeaderSurvey

n=243HRleaders

Source:2022GartnerReimagineHRHRLeaderSurvey

n=243HRleaders

Source:2022GartnerReimagineHRHRLeaderSurvey

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TRENDS/PRIORITIES/CAPABILITIES

ModelofaWorld-ClassCHRO

BoardandCEO’sLeaderofHumanCapital&Culture

LeaderofEnterpriseStrategicChange

CreateOrganization

AgilityandResilience

Capability

AssessandCatalyzeActionstoDrive

Competitiveness

IntegrateOrganizationalLeverstoSustainChange

LeadingThrough

EvolvingStakeholder

Scenarios

AnticipateandRespondtoExternalTrends

AlignandLink

OrganizationalMetricstoStakeholderExpectations

FocusonWorkforceasaPrimaryStakeholder

TrustedAdvisor&Coach

Adviseand

CoachtheCEO

MaximizeSenior

TeamEffectiveness

CoachandDevelopKeyEnterpriseTalent

PlanandSupport

CEOandC-Level

Succession

BuildEffective

CompensationSupported

byShareholders

DriveCultureandPurpose

TrendWatchlist

DriveBusinessResults

WininaDynamicTalentLandscape

EnsureTopTalentand

CapabilitiesforCritical

Roles

EmbedDEIIntoTalentandCultureStrategy

DeliveraCompelling

EmployeeValue

Proposition

BusinessAcumenBusinessStrategyDevelopment

FunctionalBusinessLeader

Createafuture-focused,technology-oriented,operationallycapableandfinanciallydisciplinedteamtoruntheHRfunction.

Source:Gartner

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TRENDS/PRIORITIES/CAPABILITIES

IdentifyYourGapsWithGartnerHRDiagnostics

ManagetheHRFunctionWithHRScore

HRfunctionshavethelowestaveragematurity

scoreinthefollowingactivities:criticalskillsneedsidentification,EVP,andorganizationdesignand

changemanagement.

DevelopYourselfWithCHROSelf-Diagnostic

CurrentCHROshavethelowestaveragemasteryinactivitiesrelatedto“WininaDynamicTalent

Landscape”and“LeaderofEnterpriseStrategicChange”fromthemodelofaworld-classCHRO.

GartnerHRDiagnostics

MeasureProgramEffectivenessWithHRBudget&EfficiencyBenchmark

HRspends$2,810peremployeeannually,mainlyonrecruiting,totalrewardsandL&D.HR

technologygets8.4%ofthebudgetandisthetopinvestmentareaforthethirdconsecutiveyear.

Wanttoseehowyouandyourfunctioncomparewithpeers?

UsetheCHROSelf-Diagnostic,HRScore,andHRBudget&EfficiencyBenchmarktools.

Source:CHROSelf-Diagnostic(n=105CHROs);HRScore(n=276HROrganizations);2023HRBudget&EfficiencyBenchmark(n=600HROrganizations)

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TRENDS/PRIORITIES/CAPABILITIES

HRProfessionalsCompetencyModel

Q

BusinessAcumen

?DataFoundations

?DataInterpretation

?DataStorytelling

?IndustryKnowledge

?OrganizationalKnowledge

?FinancialKnowledge

DataJudgment

TalentManagement

HR

Professionals

StrategicConsulting

?StrategicHRExpertise

?ConsultativeProblemSolving

?ProjectManagement

?RiskManagement

?EmployeeExperienceManagement

?ChangeManagement

?TechnologicalSavviness

Agility

?CollaborationandNetworking

?PersuasionandInfluence

?GrowthMindset

?InnovationandIteration

RelationshipManagement

Source:Gartner

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TRENDS/PRIORITIES/CAPABILITIES

AddressBarrierstoStrategicHRImpact

WhatWeHearFromHRBPs

UnclearExpectations

“I’mnotevensurewhatitmeanstobestrategic.”

WhatHRLeadersCanDo

Interest,SkillsandExpectations

IdentifyHRstaffbestsuitedforstrategicworkandcommunicateroleexpectations.

WhatHRProfessionalsCanDo

DevelopKeySkillsandCompetencies

Buildthecompetenciesnecessaryforstrategiceffectiveness.

TacticalWorkTakesPrecedence

HREcosystem

ShapeStrategicDecisions

“IwishIcouldgettostrategicprojects,butI

Leveragesharedservicesfortransactionalwork,

Developstronganalyticalskillsandusedatato

spendmostofmydayputtingoutfiresand

ensureemployeeself-serviceisuserfriendly,and

shapestrategicdecisions.

collectingdata.”

provideeasyaccesstodata.

HR-BusinessMisalignment

PartnershipClarity

ImproveLinePartnerships

“Mybusinessunitneveras

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