As economic conditions tighten and AI transforms workflows, companies are leaning towards promoting leadership talent from within rather than hiring externally. A survey shows 60% of CHROs target existing succession pools for leadership roles, with talent development becoming their top priority. However, only 20% feel there are sufficient internal candidates ready for critical roles, highlighting an urgent need for effective succession planning. CHROs must map potential leaders and prioritize their growth, especially in soft skills areas, while also responding to workers' disinterest in pursuing leadership positions.
HR is under increased scrutiny to demonstrate ROI [return on investment], as organizations navigate economic uncertainty, evolving talent needs, and AI change management challenges. CHROs are making a pivotal shift to develop talent capabilities within.
Only 20% of HR leaders say they have internal candidates ready to fill many or almost all of their critical top roles, which signals a need for better succession planning.
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