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    Analyst Insight: Addressing the HR and Leadership Disconnect
    Nicholas Biron
    Today’s business landscape, marked by rising costs, increasing labor expenses, compliance demands, and global disruptions, has left many businesses struggling to stay efficient and profitable. In response, executives are pressuring sales teams and seeking cost-cutting measures. What’s often overlooked is the potential for Human Resources (HR) to drive profitability through initiatives that align with business goals by valuing the organization’s people. When HR works in tandem with executive leadership and integrates with the overall business strategy, the resulting consonance supports both people and the bottom line.

    The Modern Time of HR
    Until recently, HR’s role was mainly administrative rather than strategic — providing a compliance perspective, headcount, or administering payroll and benefits, but rarely driving organizational decisions. However, the COVID-19 pandemic deeply impacted the HR line of business, forcing organizations to grapple with remote environments, fractured work communities, and fears and concerns among workforces. In response, organizations worked to address new workforce challenges, from adapting to remote and hybrid work to handling the Great Resignation and the threat of recession to fostering inclusion and belonging in office culture. All that uncertainty and change contributed to today’s HR environment: what 3Sixty Insights considers the “modern time of HR.” These shifts have elevated HR’s role in shaping strategy and driving profitability.

    This evolution is a double-edged sword. On one hand, it offers HR an opportunity to positively influence business outcomes. On the other hand, many HR professionals—whether new to the workforce or industry veterans—find themselves unprepared for these rapid changes. The modern workforce, emerging technology like generative AI, and shifting employee expectations require a new level of strategic acumen not taught in classrooms or cultivated in prior roles.

    In this Analyst Insight, we explore how HR leaders can harness this newfound responsibility to secure a seat at the table and become pivotal in reducing expenses, improving employee experience, and increasing profitability. It’s time to unlock HR’s untapped potential as a driver of business success.

     


     
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