CEOs Rank Workforce as the Third Business Priority for 2024-2025 Gartner Survey Reveals

Workforce considerations have been ranked as the third most important business priority for CEOs in 2024-2025, following growth and technology, according to a report by Gartner, Inc. The survey, conducted between July and December 2023, included responses from 416 CEOs and senior business leaders. It revealed a shift in investment priorities, with 57% of CEOs planning to increase investment in people and culture, a decrease from 69% the previous year. Similarly, only 46% intend to boost investments in hiring, down from 54% in 2022.

Alexander Kirss, Senior Principal in Gartner’s HR practice, explained that the focus on growth strategy and the role of technology, especially AI, is diminishing attention to workforce-related investments. Kirss noted that 86% of surveyed CEOs plan to use AI to maintain or grow company revenue, and 56% expect company productivity to increase by at least 11% due to GenAI over the next two years.

Chief Human Resources Officers (CHROs) play a critical role in aligning talent priorities with planned investments. They must identify the key talent risks that could impede organizational success and work closely with CEOs to ensure these risks are managed effectively. Gartner advises CHROs to partner with their CEOs in three key areas:

1. Translating Broad Views into Actionable Priorities: CEOs often have general ideas about talent but struggle to create specific, actionable priorities. CHROs can help by examining the assumptions behind the CEOs’ views and discussing the potential challenges, costs, and impacts on employees and the organization. This can uncover areas of misalignment and help CEOs understand the implications of their goals.

2. Maintaining CEO Engagement in Talent Strategy: Once CHROs take over the execution of talent priorities, CEOs can become disengaged. To prevent this, CHROs should encourage CEOs to communicate talent priorities regularly through company-wide town halls, internal communications, and performance management practices. This helps reinforce the importance of the talent strategy and keeps the CEO involved.

3. Monitoring Emerging Talent Trends: CHROs should stay ahead of future talent priorities to provide a competitive edge for their organization. This involves reviewing emerging talent trends and assessing their potential impact on the organization. CHROs must evaluate the organization’s readiness to adapt and proactively address any barriers.

In addition to collaborating closely with their CEOs, CHROs can benefit from engaging with a broader network of C-suite peers and cross-functional leaders to understand emerging issues within their industry.

Kirss emphasized the importance of CHROs in transforming CEOs’ broad visions into operational realities. He stated that CHROs who excel in this role become essential architects of the company’s strategic talent blueprint and solidify their position as trusted partners to the CEO.

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