HR leaders in mid-sized businesses are being left out of critical decisions about technology and productivity strategy, as boardrooms struggle with a lack of independent guidance. New research suggests this “advice gap” is creating confusion, fuelling interdepartmental tensions, and preventing organisations from making joined-up decisions on where to invest for meaningful performance gains.
While HR directors are tasked with driving workforce productivity and preparing teams for AI-led change, they are often sidelined in strategic planning. Thinc, a Manchester-based business technology and managed services provider, found that senior executives and IT leads are pulling in different directions, with no clear consensus on whether people or systems should be the priority.
Dominic Ball, managing director and co-owner at Thinc, warns that many companies are making the right noises about productivity but are using the wrong tools.
“Mid-market organisations do not lack ambition, they lack clarity,” he says. “Too often, businesses are trying to solve the right problems with the wrong tools, or they are stuck debating whether tech or people are the answer. The truth is, the answer is different for every business, and looks different from every business role. You just need someone who can help you find it.”
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HR caught between systems, strategy
HR teams are often expected to implement digital tools and support culture change but are rarely the ones shaping tech investment. While 74 percent of CEOs are prioritising AI and automation in future strategy, HR leaders are typically not the ones deciding how or where those tools are deployed.
The findings show that CTOs and IT directors are advocating for automation and smarter systems, with 56 percent calling for more investment in these areas. In contrast, CFOs and MDs cite budget constraints and limited resources to fund external IT help as key barriers. Just 39 percent say they have the capacity to bring in external advice, often leaving HR departments to manage workforce impacts without being fully informed about the broader strategic direction.
This disconnect can leave HR with a fragmented set of digital tools, often bought reactively or introduced by different departments at different times. Many mid-market firms continue to manage HR, compliance and IT systems in-house, adding to operational strain and undermining the role of HR as a strategic partner.
The real productivity blocker
Thinc’s research suggests that the root issue is not resistance to technology or lack of talent, but a lack of clear, unbiased advice on what to prioritise. While HR leaders are expected to drive transformation on the ground, they are often left without a seat at the table where big decisions are made.
Executives are sourcing their information from varying and sometimes conflicting channels. CEOs rely on trade shows and industry events (62 percent), whereas managing directors are more likely to trust their IT partners (56 percent). CTOs consult a mix of advisers, but almost no senior leaders are turning to their internal teams for strategic input. This not only sidelines HR but also reinforces a siloed approach to productivity planning.
Without cross-functional alignment, organisations risk investing in systems that create more work rather than streamlining it. In the worst cases, technology becomes a blocker instead of an enabler, placing more pressure on HR to deliver results without the necessary visibility or control.
Practical support over hype
“Mid-market businesses stand at a crossroads – in a testing climate, they understand that they need to find more efficient ways to work. But it’s hard to decide on, let alone commit to, the technology investments that will make this a reality,” says Ball.
“There has never been more information out there about the power of technology. What businesses need is unbiased, practical advice that cuts through the hype … As our research shows, this is exactly what the mid-market needs.”
Experts said that for HR, this means pushing for a stronger role in decision-making and insisting on joined-up planning that includes people as well as platforms. Without it, they say, the promise of improved productivity risks being lost in translation.
