ANZ HR leaders take more strategic role than APJ counterparts

Research undertaken by Workday has shown that HR leaders in Australia and New Zealand (ANZ) are adopting a more strategic role than their counterparts across Asia Pacific and Japan (APJ), significantly contributing to organisational change.

The study, conducted by McCrindle and titled "The Forever Forward HR Leader", surveyed 1,515 business leaders and HR professionals within large companies across the region, including 450 respondents from ANZ. It revealed that 79% of HR leaders in ANZ are actively driving change, compared to 76% in ASEAN and just 57% in Japan. Additionally, 82% of organisations within ANZ acknowledge that HR leaders add strategic value.

HR professionals in ANZ reported a higher participation in board meetings, with 72% indicating increased involvement since the pandemic onset. This reflects a broader trend where HR leaders are pivotal in addressing challenges related to talent retention, employee engagement, and workforce development amidst economic shifts.

The main challenge identified by HR professionals and business leaders in ANZ was staff retention, noted by 34%, whereas talent acquisition was named the top challenge APJ-wide at 36%.

To tackle these issues, ANZ leaders have prioritised training and development (32%) and employee upskilling (31%) by investing significantly in training initiatives (49%), implementing skills-based strategies (47%), and enhancing employee experiences (46%).

"We see first-hand what the research shows — that HR leaders and professionals in ANZ have been elevated to a more strategic role in organisations," stated Jo-Anne Ruhl, Vice President and Managing Director at Workday Australia and New Zealand. "They're increasingly tasked with undertaking significant change to address existing challenges and position their organisations to achieve future goals, whilst remaining people-focused."

Ruhl further commented, "The research highlights the importance of using the tools at hand, including emerging technologies like AI, to unlock insights, elevate people, and stay competitive in a fast-changing landscape."

Jenny McKie, Chief People Officer at Hungry Jacks, reiterated this strategic shift, "I would say that Hungry Jacks has been very supportive of the fact that HR plays an important role in business success, but it's definitely grown in momentum and significance."

McKie addressed practical implementation, "I'm not just going to implement something because it looks good on paper. I really do think about how it's going to impact the users, how it's going to impact their experience at work, and how it's going to impact the guest experiences and outcomes."

Looking forward, McKie emphasised, "A priority for the future is having a HCM system that will help us manage our people. We're looking at improving the recruitment and the onboarding process. It's all about the time to recruit and the time to get our staff onboarded and upskilled enough to be proficient in their roles."

Kent Cabrera, General Manager for Talent, Insights & HR Systems at AIA Australia, highlighted data's role, "Everyone wants to say they're data-driven, but not all HR people are analytical. So, unless you build that sort of capability and a model that utilises the data, it's not going to work."

"Futurewise, we're trying to build a level of HR capability to help inform or support business decisions," Cabrera added.

Technology features prominently in HR strategy, as 70% of senior managers and HR professionals report an increase in data management responsibilities post-Covid-19. Emerging technologies like AI are helping streamline HR operations, though ANZ organisations are slower to adopt AI, with only 70% utilising it.

The study also highlighted that 88% of change-focused HR leaders prioritise employee wellbeing. Organisations in ANZ are most likely to have introduced more employee wellness programs since the pandemic, at 81%, compared to 76% in ASEAN and 71% in South Korea.

Proactive organisations are leveraging the multigenerational workforce, as indicated by 63% of leaders across APJ. In ANZ, 74% of HR leaders believe there is effective knowledge transfer between older and younger workers, aiming to harness intergenerational strengths within their organisations.