News Spotlight

Repetition is the new leadership imperative. Effective leaders must skillfully and engagingly repeat key messages to ensure they resonate and are internalized within their organizations (The Economist).

​The DEI divide. Some companies are scaling back DEI initiatives due to political and legal pressures, while others reaffirm their commitment to fostering inclusive workplaces (New York Times).

AI has hindered job searching. The increasing use of AI-powered tools by job seekers to automate applications may inadvertently lead employers to rely more heavily on personal referrals (Time).

Stat of the Week

A new study finds that the share of consumers who expect unemployment to rise over the next year surged to 66% in March, the highest level in a decade.

This heightened apprehension can lead to decreased employee morale, productivity, and retention. HR departments must proactively address these concerns by enhancing transparent communication about organizational stability and prospects. Implementing robust employee support programs, including mental health resources and career development opportunities, can help alleviate workforce fears. HR leaders should collaborate with senior management to ensure that any potential organizational changes are managed thoughtfully, minimizing uncertainty and reinforcing a culture of trust and resilience within the company.

Deep Dive Article

How HR is Gaining Influence While Facing Gender Bias

The role of HR has undergone a fundamental transformation over the past decade. Once viewed primarily as a support function focused on hiring, benefits administration, and compliance, HR has emerged as a strategic force within organizations. Today, HR leaders are deeply involved in shaping company culture, driving business outcomes, and influencing workforce planning at the highest levels. In fact, according to recent survey data from isolved’s fifth Annual HR Leaders Report, 94% of HR leaders say their department is now considered essential to business success—a dramatic rise from just 70% in 2022.

This evolution underscores the growing recognition of HR’s value in an era of rapid workplace change. Factors such as the rise of hybrid work, the demand for improved employee experiences, and the integration of AI-driven HR technology have all contributed to this shift. However, while most HR leaders report strategic alignment, there remains a critical minority—5%—who say their teams are still not considered integral to business strategy. The reasons vary, from lack of alignment with organizational goals to perceptions that HR remains a transactional function rather than a strategic one.

One potential contributing factor to this persistent gap is gender bias. HR is a female-dominated profession, with up to 71% of HR managers being women. This demographic reality raises important questions: Could outdated gender biases be influencing how HR is perceived within some organizations? If so, what can companies do to ensure HR is recognized for its strategic contributions? As we celebrate Women’s History Month, it is critical to examine these challenges and explore solutions that elevate HR’s position in the corporate hierarchy.

HR’s Strategic Maturity and the Role of AI

A key driver behind HR’s rising strategic influence is technology. AI-powered solutions, particularly in workforce analytics and talent management, are helping HR leaders make data-driven decisions that directly impact business performance. According to the "HR Trends Report," organizations that leverage AI for HR functions see higher efficiency and improved talent retention, further reinforcing HR’s strategic value. These advancements demonstrate how HR is moving beyond administrative duties and actively shaping company strategy.

However, the report also highlights a gap in AI adoption. While many HR teams are using AI-powered tools such as applicant tracking systems, workforce analytics, and performance management platforms, others remain hesitant. The hesitation often stems from concerns about data privacy, lack of expertise, and resistance to change within leadership teams. This discrepancy can create a divide between organizations that recognize HR’s strategic role and those that still view it through a traditional lens.

The rise of AI-driven decision-making within HR presents an opportunity to challenge gender bias. By utilizing objective, data-driven insights, AI can help mitigate unconscious bias in hiring, promotions, and performance evaluations. The research indicates that organizations implementing AI in HR processes report increased fairness and transparency in decision-making. Yet, without careful oversight, AI systems can also reinforce existing biases if they are not properly trained and monitored.

The Gender Bias Challenge in HR

Despite HR’s elevated role, gender bias remains a subtle but persistent issue. The perception that HR is a "soft" function, often associated with emotional intelligence and interpersonal skills, can lead to its strategic contributions being undervalued. This is particularly concerning given that HR professionals are instrumental in managing organizational change, workforce planning, and leadership development—areas that have a direct impact on business outcomes.

The gendered perception of HR may be further reinforced by leadership demographics. While women dominate HR roles, C-suite positions, particularly CHRO roles, are still disproportionately held by men. This imbalance suggests that while women are driving HR initiatives at various levels, they may face barriers when it comes to ascending to top executive roles. The research from isolved shows that companies with female HR leaders in executive roles report stronger alignment between HR and business strategy, underscoring the need for more gender-diverse leadership at the highest levels.

How Organizations Can Elevate HR’s Strategic Role

To ensure HR is recognized as a strategic function, organizations must take proactive steps to address gender bias and outdated perceptions. Here are three key strategies:

1. Reframe HR’s Role in Business Strategy Organizations must actively communicate the impact HR has on business outcomes. This includes showcasing HR’s contributions to revenue growth, operational efficiency, and workforce productivity. By positioning HR alongside other strategic departments such as finance and operations, companies can help shift outdated narratives about its role.
2. Promote More Women into Executive Leadership Closing the gender gap at the CHRO level and beyond is critical. Companies should implement leadership development programs tailored for women in HR, ensuring they have access to mentorship, executive coaching, and succession planning opportunities. isolved’s research shows that organizations with diverse executive teams report stronger business performance and higher employee engagement.
3. Leverage AI to Drive Fairness and Objectivity: AI-powered HR tools can help combat bias in hiring, promotions, and performance evaluations. However, organizations must be intentional about training AI systems to recognize and mitigate bias rather than reinforce it. Implementing transparent AI oversight policies will ensure these technologies support equitable decision-making.

Ensuring HR’s Strategic Future by Breaking Bias and Driving Change

HR’s transformation into a strategic business function is a significant achievement, but challenges remain. While 94% of HR leaders now say their department is essential to business success, a lingering 5% still struggle with recognition. Gender bias may be a contributing factor, given HR’s female-dominated workforce and persistent misconceptions about its role. By leveraging AI, promoting more women into executive leadership, and actively reframing HR’s contributions, organizations can ensure that HR continues to be recognized as a vital driver of business success. As we reflect on these issues during Women’s History Month, companies must act in dismantling biases and positioning HR where it truly belongs—at the center of strategic decision-making.

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Quote of the Week

“We need to accept that we won’t always make the right decisions, that we’ll screw up royally sometimes―understanding that failure is not the opposite of success, it’s part of success.”
​Arianna Huffington