The Predictive Index, an award-winning talent optimization platform that aligns business strategy with people strategy for optimal business results, and HR Dive, a publication providing in-depth journalism and insight into the most impactful news and trends shaping human resources, jointly released the 2023 State of Talent Optimization Report that reveals most companies fail to align their business strategy with their people strategy.
In a survey of 159 HR executives, results show that:
- Only 50% of HR executives has a business strategy.
- Only 36% of HR executives believe they have the right executive team to execute their business strategy.
- Only 33% of HR executives’ business strategies align with their talent strategies.
Companies have often thought about business and talent separately. Yet, this research suggests that aligning business and talent strategies by optimizing talent could help companies overcome today’s top HR challenges. “We think about our business strategy, and we fall in love with the technical and operational bits, and we think about new products and metrics and numbers, and we act as if people aren't what makes it all happen,” notes Dr. Matt Poepsel, Ph.D., The Predictive Index's VP of Professional Services and author of Expand the Circle.
Despite the misalignment, the research also identified areas of opportunity where talent optimization could help HR leaders bridge the gap between business and talent, including:
- Creating a more inclusive culture: 70% of HR executives believe their company could do more to create an inclusive environment where all people and ideas are equally valued.
- Investing in your employees: 30% of HR executives' companies have adopted or considered being flexible with candidate qualifications, and doing so could broaden the skill set of teams.
- Doubling down on well-being: 32% of HR executives believe that physical/mental well-being is a fundamental value within their company.
- Creating alignment around your mission: 45% of HR executives say their companies have core values aligned with the business strategy.
HR leaders are bound to see positive results when embracing talent optimization. “Talent-optimized companies see higher revenue, less absenteeism, more productivity, and a better company culture overall,” says Jackie Dube, the Chief People Officer at The Predictive Index. “We also see higher rates of innovation, diversity, and retention. In general, talent optimization creates a great environment where you can attract and retain employees while delivering on business needs.”
Given that 57% of HR executives in the survey indicated they feel their company could’ve used help with talent acquisition and retention in the past year, companies have no time to waste before optimizing their talent. Access the full report to fill the gap between talent and business and get the better of today’s HR challenges: https://hrdive.tradepub.com/free/w_defa4114/prgm.cgi?a=1
About The Survey
The 2023 State of Talent Optimization Report was conducted in partnership between HR Dive, a platform that provides in-depth journalism and insight into the most impactful news and trends shaping human resources, and The Predictive Index, an award-winning talent optimization platform that aligns business strategy with people strategy for optimal business results. A total of 159 executives participated in the study, all of whom have Human Resources titles—except for 7% who are CEOs. Of the participants, more than a third have the title of Director of HR, while the second two most popular titles were CHRO and VP of HR. Survey participants span a wide range of industries, with the most common being healthcare, consumer services, and retail. Three in four (76%) survey respondents work for organizations with 100 to 999 employees, and the findings of this research are based on an online survey conducted in February 2023.
About The Predictive Index
The Predictive Index (PI) is an award-winning talent optimization platform that aligns business strategy with people strategy for optimal business results. More than 60 years of proven science, software, and a curriculum of insightful management workshops make PI the solution for any company looking to design great teams and culture, make objective hiring decisions, foster engagement, and inspire greatness in their people anywhere in the world. More than 10,000 clients and 480+ partners use PI—including Nissan, Citizens Bank, Subway, Blue Cross Blue Shield, and Omni Hotels—across 90+ countries. Learn more here: The Predictive Index - Talent Optimization Leader.