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CHROs reassess location strategies as they eye election impact
Human capital leaders are watching the November elections and the impact they could have on the talent market — from minimum wage and paid leave to collective bargaining and executive compensation. In some cases, CHROs are monitoring and waiting, while other issues have spurred more active efforts to influence policy changes, our October 2024 PwC Pulse Survey shows.
In the meantime, HR leaders are evaluating and adjusting their approach in one area where they know they wield influence: employee work location. Gone are the days when employee demands for flexibility ruled the roost. Just 36% say this factors significantly in their location strategies. Instead, CHROs are focusing more on access to skilled workers and the cost savings that come along with a reduced office footprint.
CHROs favor talent in their location strategies
Many employees may be returning to the office, but that doesn’t mean CHROs have settled on the ideal balance of work locations. When it comes to work location strategy, access to skilled workers (52%) and cost savings from a reduced footprint (49%) are the most significant factors. By comparison, employee demand for flexibility and paid family leave (each 36%) are the least.
52% of CHROs say access to skilled talent is a significant factor in location strategy
Even so, strict return-to-work mandates largely haven’t yielded the desired results, and HR leaders shouldn’t ignore the importance of culture, collaboration and compromise as they make crucial location decisions. Consider that in our recent Workforce Radar report, 76% of hybrid workers told us they felt like they belonged at their company, compared to 63% of full-time remote employees.
What you can do
Marry recruitment and retention strategies. Access to skilled talent is vital, but it means little if employees end up feeling discouraged. Accommodating employee preferences for flexibility still can help attract and retain talent and provide a competitive edge in the market.
Assess your collaboration needs. These can vary from one company to the next, but understanding what your teams require to be most effective is important. Foster a culture of connectivity regardless of employee work location to build and maintain cohesion.
Keep an eye on the tax man. Engage specialists to understand how location decisions impact the bottom line, but don’t necessarily default to the lowest tax costs. Determine the right balance of the talent you need and what you’re willing to spend in light of compliance considerations.
CHROs overlook key opportunities to influence change
There’s no shortage of policy areas piquing the interest of CHROs as the election draws near. Of particular interest, with at least two-thirds of human capital leaders either monitoring closely or actively engaging on policy, are healthcare and employee benefits (72%), immigration policies (72%), workplace safety (70%) and retirement benefits (69%).
Only 15% are actively engaging with lawmakers on executive compensation policy
Just as revealing, however, may be the areas where they’re not focusing. While about half (46%) monitor executive compensation policies closely, only 15% say they’re actively engaging on the topic — the lowest of the policy areas on the list. Other areas that rank lower include collective bargaining rights and paid leave. These policy areas are not only important for CHROs but also may emerge as bigger issues in the next presidential administration and Congress.
What you can do
Write your representatives. Even better, meet them in person. Staying informed and involved can help your company maintain a competitive edge in employee welfare, and you can use your voice to educate lawmakers on how policies affect your business.
Focus your attention. It may be harder to influence policymakers on massive topics like healthcare and immigration, but compensation and bargaining are right in the CHRO’s wheelhouse. Being prepared for shifts in legislation will help your organization better respond and comply.
Be thorough with benefits. Given the interest in healthcare and retirement benefits, reevaluate how your benefits packages can be stronger. Pay will always be important, but offering comprehensive benefits can attract and retain top talent and improve employee satisfaction and well-being.
Tech and talent development are top challenges for HR leaders
Tasked with getting the most out of their workforces and increasing productivity, CHROs see technology adoption as a key challenge to achieving their priorities. They’re most concerned with investing in skills development in critical growth areas like AI (51% say it’s a significant challenge), preparing leaders to drive workforce transformation (51%) and using technology and automation effectively (49%).
51% say investing in skills development in areas like AI is a key challenge to achieving priorities
CHROs know that if they don’t find ways to arm their workforces with useful technology — and set employees up to be more productive — their competitors will. Regardless of who wins the election, human capital leaders expect their companies to increase investment across areas as broad as sustainability, capital projects, foreign investments and hiring. But it’s strategic investments in tech — not just implementing but using effectively — that will help drive success.
What you can do
Get employees on board. Successful tech implementation requires cultural change, and that means getting employees to buy in. Ask your employees what kind of targeted training programs and continuous learning opportunities could help them bridge skill gaps and enhance capabilities.
Prepare leaders for transformation: Those in charge can still continue to develop. Equip managers and executives with the skills needed to help transform your workforce, including training in change management and strategic thinking.
Focus on productivity in tech adoption. Installing new technologies is just the start. Using them effectively involves continuously evaluating their impact — hopefully positive — on productivity, as greater operational efficiency can set your organization apart.
Get access to the complete survey responses and data
View the main Pulse survey
Executive takes on Election 2024
About the survey
Our latest PwC Pulse Survey, fielded September 12 to September 19, 2024, surveyed 709 executives and board members from Fortune 1000 and private companies about the current business environment, the risks executives are facing and their company’s strategic plans and priorities. Of the respondent pool, 67 were CHROs.
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