Many organisations are unprepared to navigate upcoming changes despite new strategic objectives being rolled out by CEOs, says Gartner, Inc. research.
Jessie Knight, Vice President in Gartner’s HR practice, explained that three critical areas – collaboration, skills, and technology – require urgent attention.
“Organisations are seeking to reset their strategies to reflect emerging conditions, but most feel unprepared to execute,” Knight stated.
Gartner’s findings suggest that the gaps in these areas are impacting employee satisfaction, skill development, and the productivity potential of technology – all of which are essential to organisations’ future success.
Declining Satisfaction and Its Impact on Performance
According to a Gartner survey conducted in the second quarter of 2024 among nearly 18,000 employees, satisfaction with workplace collaboration has fallen to 29 percent from 36 percent in 2021. Employees who report satisfaction with collaboration are shown to be stronger performers on average.
Russ McCall, Director of Advisory in the Gartner HR practice, pointed to factors such as shifting post-pandemic work norms, increased social tensions, and isolating effects of certain technologies as contributing to this decline.
“Employees today have more connections but less valuable collaboration,” McCall said.
Gartner’s research also found a widening skills gap, which is now outpacing levels observed during the pandemic. In a May 2024 survey of 3,375 employees, only half reported feeling prepared to adapt to unexpected changes in their work. The same survey highlighted that nearly 60 percent of employees are not receiving on-the-job coaching relevant to their core responsibilities.
“We also see on-the-job learning falling short. A May 2024 Gartner survey revealed that nearly 60% of all employees are not getting on-the-job coaching that supports their core job skills,” said Knight. “Due to factors like new work models, turnover, the pressure to do more with less and an emerging technology, there is a growing disconnect between employees who have critical skills and those who need to learn them.”
Technology and the Human-First AI Approach
Technology, particularly artificial intelligence (AI), is transforming many organisations’ approaches to productivity, yet Gartner’s August 2024 survey of 450 AI users revealed that 41 percent of time saved through AI use remains underutilised. McCall attributed this to a disconnect between employers and employees.
“There is a lack of communication between employers and employees around the effects of technology in the workplace,” said McCall. “In fact, employers often don’t involve employees in technology discussions at all – as of July, only 14% of HR leaders, among more than 180 surveyed, said that employees have a voice in technology decisions at their organization.”
Gartner advocates for a “Human-First AI” approach to improve technology adoption and productivity. This model prioritises the needs and preferences of employees when implementing new technologies, ensuring they are engaged in the adoption process. Research suggests that a human-first approach to AI increases the likelihood of high performance by 1.5 times and improves employee engagement by 2.3 times.
