HR leaders in Australia and New Zealand (ANZ) are increasingly stepping into strategic roles, significantly influencing organizational change more than their peers in the Asia Pacific and Japan (APJ) region, revealed recent research from Workday. This shift underscores the critical importance of HR in navigating contemporary challenges within businesses.

The study, titled "The Forever Forward HR Leader," was conducted by McCrindle and surveyed 1,515 business leaders and HR professionals across large organizations in the region, including 450 from ANZ. 

Key findings indicate that 79% of HR leaders in ANZ are actively driving change within their organizations, surpassing the 76% reported in the ASEAN region and significantly higher than the 57% in Japan. Moreover, a striking 82% of organizations in ANZ recognize that HR leaders bring strategic value to the business.

One significant aspect of this trend is the increased involvement of HR professionals in executive discussions. The research revealed that 72% of HR leaders in ANZ report greater participation in board meetings since the onset of the COVID-19 pandemic. This engagement reflects HR’s crucial role in addressing pressing issues like talent retention, employee engagement, and workforce development, especially as companies adapt to the evolving economic landscape.

Retention emerged as the most pressing challenge for ANZ HR professionals, with 34% identifying it as a primary concern, in contrast to talent acquisition, which was the top issue for 36% of APJ respondents. In response, HR leaders in ANZ are prioritizing investments in training and development, with 32% focusing on these areas, alongside employee upskilling (31%). Notably, 49% of organizations are committing to training initiatives, while 46% are enhancing employee experiences to foster a more engaged workforce.

Jo-Anne Ruhl, Vice President and Managing Director at Workday Australia and New Zealand, commented on the shift in HR dynamics: "HR leaders in ANZ have been elevated to a more strategic position. They are increasingly tasked with significant change to address challenges while remaining people-focused." This viewpoint is shared by many in the industry, reflecting a broad recognition of HR's evolving role.

Jenny McKie, Chief People Officer at Hungry Jacks, further emphasized this strategic shift, noting that the company's support for HR's importance has grown significantly. McKie highlighted the need for HR initiatives to have practical implications, focusing on how they impact both employees and customers alike.

Data analytics are also playing a pivotal role in shaping HR strategies. Kent Cabrera, General Manager for Talent, Insights & HR Systems at AIA Australia, pointed out that while many HR leaders aspire to be data-driven, not all possess the necessary analytical skills. "Building the capability to leverage data effectively is essential for supporting informed business decisions," he stated.

Technology adoption remains a key factor in HR’s evolution, with 70% of senior HR professionals reporting increased responsibilities related to data management post-pandemic. However, despite the acknowledged benefits of artificial intelligence, only 70% of organizations in ANZ are currently utilizing such technologies.

The study also reveals that a majority of HR leaders in ANZ are prioritizing employee well-being, with 88% focusing on wellness initiatives. Since the pandemic, 81% of organizations in ANZ have introduced more employee wellness programs, indicating a proactive approach to maintaining a healthy workforce.