The report, created by 3Sixty Insights in collaboration with Eightfold AI, explores the priority gap between HR leaders, business strategies and the short-term and long-term issues that may occur as a result. Hundreds of HR executives and employees were surveyed to ensure significance and relevance of the report.

The report illustrates several major concerns: only 18% of organizations felt that they effectively coordinated across business strategy development, C-suite collaboration and talent strategy. The remaining 82% of organizations reported critical issues such as:

1. Strategic Misalignment: HR was perceived as lacking executive support for major strategic initiatives or focusing on operational tasks, rather than aligning with broader business objectives. 
2. Friction in Strategic Buy-in: Executives may not fully recognize HR’s value in shaping the company’s long-term vision, which can result in expectations and investment gaps. 
3. Competing Priorities: Executives may prioritize profits, cost management, and operational targets, while HR may focus on employee well-being, development, and compliance.

Additional key findings from the report include:

1. Low employee satisfaction has led to 82% of employees applying for new jobs. This metric is up from a 2022 Eightfold Talent Survey, which reported 76% of employees considered applying for a job in the past 12-18 months. 
2. Only 53% of HR leaders report involvement from the outset in developing and executing their company’s overall business strategy. 
3. 66% say their talent strategies do not align with the overall business objectives. 
4. 60% of CHROs told us that their company understands the future skills needed to remain competitive.

As a solution, the report suggests bridging the strategic gap between HR and the C-suite, particularly by recognizing HR’s integral role in business strategy discussions. In this case, the potential benefits of investing in AI-powered skills intelligence and talent intelligence platforms is significant, as these platforms create improved organizational efficiency and employee satisfaction. Skills and talent intelligence can enable leaders to map current workforce skills and anticipate future talent needs, empowering HR to upskill or reskill existing employees, thereby reducing reliance on external hiring. Adopting talent intelligence, paired with an inclusive approach to HR strategy, represents a comprehensive roadmap for leaders to enhance HR effectiveness, improve employee satisfaction, and ensure sustained alignment with business goals.

Chano Fernandez, Co-CEO of Eightfold AI said: “The cost of HR misalignment is no longer acceptable, and the organizations that adapt accordingly will be the most successful going forward. Employees and HR leaders alike demand transparency and connectivity to the needs of the business. We must equip everyone with not only the correct skills data, but also the ability to act upon it. Talent intelligence makes this possible on a global scale.”