HR's involvement in strategic planning rises to 50%, even as stress and burnout remain high, finds McLean & Company
Research from McLean & Company, the HR research and advisory division of Info-Tech Research Group, indicates that HR's role in organizational strategy has significantly increased, rising from 36 percent in 2021 to 50 percent in 2024.
According to their new industry guide, ‘Effectively Manage HR's Work,’ HR departments are increasingly involved in supporting critical strategic initiatives while still handling their standard transactional duties.
Amani Gharib, PhD, and director of HR Research & Advisory Services at McLean & Company, commented, “HR is dedicating more time to strategic responsibilities as its involvement as a partner in planning and executing organizational strategy has steadily increased.”
However, he noted, “This has led to decreased effectiveness alongside elevated rates of workplace stress and burnout because the volume of administrative and transactional tasks remains unchanged without an increase in resource allocation. To enable effective teams, HR leaders must proactively optimize and prioritize their work.”
The guide also addresses the high levels of stress and burnout among HR teams, which can lead to decreased engagement, reduced performance, and increased turnover.
These issues carry significant costs for organizations, with the average cost to replace an employee estimated at six to nine months' worth of the employee's salary.
Moreover, the guide points to systemic barriers that hinder HR's effectiveness, such as negative stereotypes that depict HR as lacking in business and data acumen or as mainly administrative. These misconceptions can make it challenging for HR leaders to secure support for strategic HR initiatives.
The firm also highlights common biases and mindset barriers that can prevent effective HR management, such as the sunk cost fallacy and the fear of saying no. It emphasizes the need for a mindset shift among HR leaders to successfully implement workload management strategies.
