(PR in) HR Pulse | US HR News Round-up: 11th – 24th March 2024
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HR chiefs’ stature and pay increase
A study by Stanford University researchers found a significant increase in the number of HR leaders with “chief” in their title, along with a rise in their pay and influence. The shift is a reflection of increasingly challenging roles where they navigate organisations through, among other issues, hiring, resignations, redundancies, DEI and hybrid working contentions.
The researchers’ analysis of U.S. Securities and Exchange Commission filings show that from 1992 to 2022, HR chiefs’ pay increased by 30%, closing the gap between them and other C-suite executives (that aren’t CEO’s) by a third. This is also interesting as the role of HR chief is mostly made up of women. The percentage of S&P 1500 firms that have an HR chief among their top five highest-paid executives also increased from 0.5% to 13% in 2022.
Professor Nicholas Bloom and post-doctoral research fellow Mert Akan’s research also reveals that for the past decade, the title of “chief” has become more popular than “vice president” or “director”. Professor Bloom also says that individuals who have experience working in HR are more likely to be hired for a CEO role and this is unlikely to change in the near future.
Larry Emond, Senior Partner at Modern Executive Solutions says that the ongoing labour shortage issues will continue to increase the importance of HR leaders, noting that current searches for US HR chiefs is $1 million and a sizable benefits package. He adds that people issues are now at the forefront of organisations' minds and HR chiefs are taking on additional responsibilities like marketing or serving as a corporate secretary.
Source: Forbes.
Trust disparity: employers are overestimating how much employees trust them
PwC's new report found that the gap has grown between how trusted US employers think they are, in comparison to how much employees' actually trust them. The majority (86%) think employees' trust in them is high - however, just over two-thirds (67%) of employees reciprocated the view.
PwC’s 2024 Trust Survey reveals that the gap in understanding is a result of subjective and incomplete metrics that don’t accurately measure opinions.
The survey also found that high trust correlated to productivity and operational efficiency, yet, many organisations often equate it to long-term retention.
The key to increasing trust among employees needs to start with the C-suite, according to PwC’s report. Just 44% of survey respondents say they greatly trust their C-suite colleagues. Flexibility for employees is also increasingly important - nearly three-quarters (71%) say flexible working deadlines would increase trust, but less than half (43%) of employers currently offer this. More than two-thirds (69%) of employees say flexible working locations would also build trust, yet again, just above a third (39%) of employers provide this.
Source: HR Dive and PwC.
The majority of organisations are unsure how to optimise their AI investments
Orgvue's new report reveals that the majority (82%) of organisations have invested in AI, a third (33%) of which plan to increase their investments by 50% next year - however, 48% are unsure how to optimise its use in the workplace. Over two-thirds (69%) of those surveyed believe AI will be a core part of business opportunities by 2025, yet, more than a third (39%) say they don’t have the understanding and skills to integrate AI into their businesses.
Oliver Shaw, CEO of Orgvue, says that organisations are realising that the integration of AI will not be a simple task, made more difficult due to the uncertainty of how AI will affect businesses and their people.
A report from the Society for Human Resource Management (SHRM) and The Burning Glass Institute found that CHROs will need to prepare for AI-driven disruptions in the coming decade, especially in the finance, insurance and professional services sectors, so reskilling workforces will be crucial to managing this change.
Meanwhile, a December 2023 Amazon Web Services survey shows that 73% of employers are prioritising hiring employees with AI skills - however, 75% report having difficulty finding talent.
Source: HR Dive, Orgvue and Amazon Web Services.
And here are links to other interesting news stories this week:
BenefitsPro: Gender accounts for 80% of pay equity audits but issues still remain
BenefitsPro: Mental health-related worker absences increased by a third last year, research finds
Employee Benefits News: 4 in 10 employees grade their benefits a "C" or lower
Forbes: Why $4.6 Billion Health Records Giant Epic Is Betting Big On Generative AI