Latest HR & People Analytics Trends: Board Diversity, Employee Focus Time, Embracing Talent Acquisition, US Tariff Challenges, People Performance

👋 Hello Everyone and Happy Sunday !

💥Welcome back to the 106th edition of Weekly People Analytics Research — our regular weekly check-ins! 🎉

☕ Some of you have coffee while reading this newsletter, some have lunch,... in short, enjoy reading as always!

🚀 Join Me every Friday at lunchtime in Europe as we explore the future of work together—HR & People Analytics Insights!

Last Friday’s session was truly remarkable! I had the pleasure of welcoming Diana Carolina P. - Director & People Consultant MyWorky - for an insightful conversation packed with valuable takeaways on Unlocking Workplace Happiness: The Power of Emotional Salary.

💡 Diana shared insightful perspectives on the concept of Emotional Salary—a powerful approach that goes beyond financial compensation to enhance employee motivation, satisfaction, and overall well-being. She highlighted how Emotional Salary is integrated into organizational models to drive positive outcomes, fostering stronger workplace relationships, increased productivity, and long-term engagement.

➡️ Unlike traditional financial compensation, which primarily addresses monetary needs, Emotional Salary focuses on non-monetary rewards such as recognition, career growth, work-life balance, and a sense of belonging.

If you missed it, no worries—you can catch the replay here: 🎥 Watch Now

A huge thank you to Diana for her expertise and to everyone who joined. Looking forward to another engaging session next Friday—who’s in? 🚀✨

📅 Get ready for engaging conversations, brilliant guest speakers, and deep dives into HR & People Analytics! Whether you're looking for fresh insights or thought-provoking discussions, this is the perfect opportunity to connect, learn, and grow.

Mark your calendar—you won’t want to miss it! 🔥

👍🏻 Want to be my guest? Book your spot and choose an available Friday—I’d love to have you in the conversation!

💡 In this latest edition, you will discover more about 📊:

❓How can organizations effectively integrate people-centric strategies to maximize performance and revenue growth? McKinsey & Company researchers found that four reward categories—compensation, career progression, development opportunities, and recognition—remain the core pillars of an effective performance management system.

❓Why is employee retention a critical strategy during economic uncertainty caused by tariffs? Gartner researchers revealed that just 1 in 3 HR leaders believe their organization’s leadership has the skills needed to respond effectively.

❓Why is talent acquisition often underestimated as a key driver of organizational success? iCIMS researchers highlighted that despite HR leaders recognizing TA as a catalyst for transformation, business misalignment—especially at the executive level—is holding it back from reaching its full strategic impact.

❓How can companies rethink their meeting culture to create more efficient and productive workdays? Reclaim.ai researchers noticed that the average person spends 4.2 hours/week managing their calendars.

❓Why is boardroom diversity essential for better business performance and long-term success? Egon Zehnder researchers observed that directors strongly believe a diverse range of perspectives enhances decision-making, strengthens alignment with company values and culture, and brings a host of strategic advantages.

🔥 Now, let's do a recap of the week on published research:

Companies that prioritize their people’s performance see 4.2x higher performance, 30% more revenue growth, and lower attrition by 5 points !

💡 Findings of researchers:

💉 Despite its critical role in business success, today’s performance management systems often fail to inspire confidence among company leaders. The challenges?

❌ Fragmentation – Disjointed systems that lack cohesion

❌ Shadow Systems – Unofficial, informal evaluation methods

❌ Misalignment – Disconnect between performance, rewards, and strategy

❌ Inconsistency – Uneven application across teams and departments

💡 Companies typically structure accountability around managers, committees, or a mix of both, yet gaps persist.

🔑 To build an effective performance management system, organizations must anchor it in four core reward pillars: must anchor it in four core reward pillars:

1️⃣ Compensation – Recognizing contributions through fair pay

2️⃣ Career Progression – Offering clear paths for growth

3️⃣ Development Opportunities – Equipping employees with the tools to succeed

4️⃣ Recognition – Fostering motivation through meaningful appreciation

At its foundation, performance management relies on four essential elements:

🎯 Goal Setting

📝 Performance Reviews

🚀 Ongoing Development

🏆 Rewards

🔥 While the right system will vary by organization, one thing is certain—companies must elevate their approach to empower employees and drive long-term success, according to a recent interesting research published by McKinsey & Company using data 📊 from experiences of more than 30 global companies across sectors, as well as research by the McKinsey Global Institute (MGI) but also a study of more than 50 companies’ performance management practices.

☝️ Recommendation of researchers:

📍 Finally, researchers identified key enabling factors behind high-performing systems—simple in theory, but challenging in execution. When applied consistently, they unlock transformative results:

✔️ Ensure that performance management systems are agile.

✔️ Provide regular feedback

✔️ Establish an effective fact base.

✔️ Maintain rating and differentiation.

✔️Employ Generative AI.

☝️ 𝙈𝙮 𝙥𝙚𝙧𝙨𝙤𝙣𝙖𝙡 𝙫𝙞𝙚𝙬:

I find this article absolutely fascinating—it highlights how leading organizations are redefining performance management to thrive in an AI-driven world. The most effective performance management systems prioritize people-first strategies, ensuring employees feel empowered, valued, and supported. As AI continues to evolve, businesses must strike the right balance between technology and human-centric leadership. The future of performance management isn’t just about efficiency—it’s about unlocking potential, fostering engagement, and driving sustainable growth.

🙏🏼 What were the best HR expert opinions:

Dave Ulrich Again, wonderful research on an important topic. Creating positive performance accountability has positive outcomes for individuals and organizations. In our work on performance management, we see a rather simple logic: positive performance management increases individual and organization learning that leads to stakeholder value. We see four steps in performance management: clarify expectations, measure and track, allocate rewards, and have positive conversation. The step that we found having the most impact on learning and results is conversation where the boss and employee share information and make change happen. This study helps confirm our logic on both outcomes and on steps in the process. Unlocking potential (your term) often comes from the positive conversations both in formal performance reviews and daily interactions.Thanks again for sourcing and sharing.

Anna Klus , as always, you've found an intriguing report, and McKinsey & Company’s insights add even more food for thought. One thing that really stands out is how companies need to stay flexible in all aspects of their work - especially now, with AI shaking things up faster than ever. If performance management systems don’t actually motivate employees, they end up doing the opposite - frustrating and disengaging people.A rigid, one-size-fits-all approach, where performance is tied only to company financials, with little transparency, can leave employees feeling disconnected from their own contributions. At the end of the year, they might be completely surprised by the low results, which is the reality in so many organizations today.That said, having too many separate systems isn’t the answer either. It just creates unnecessary complexity and friction between teams. The real challenge is finding the right balance: an approach that’s simple, transparent and meaningful, giving employees a sense of ownership while still supporting company goals. It’s not just about tracking performance - it’s about keeping people engaged and motivated in a world that’s evolving at lightning speed.

Jos van Snippenberg Valuable research about how to make use of the right solutions to translate peoples performance into tangible business outcomes. In my opinion not only driven by AI, but more through the overload of performance, and other kind of systems, applications and scans. The Effectiveness is ruined. In my experience pushing the right buttons do have impact. Like this research is emphasising, “personalize” the solution. And navigate to achieve fullfilment and meet the universal needs of people to perform, grow and matter. A) be safe - show up as who you areB) become - grow and be significantC) believe - live your purposeD) belong - connect with others & contribute.

HR Leaders navigate US Tariff Challenges with Retention, Layoffs, and Cost-Saving Strategies, Despite limited Decision-Making Influence !

💡 Findings of researchers:

📢 New research reveals critical insights into how HR leaders are navigating evolving US policies

🔥 Only 31% of HR leaders say their function plays a key role in tariff-related decisions.

📉 Just 1 in 3 HR leaders believe their organization’s leadership has the skills needed to respond effectively.

✂️ 50% of HR leaders are focusing on stronger retention strategies to counter cost-saving measures and layoffs.

💼 One in three confident leaders possess the skills necessary to adapt and lead through policy changes.

💡 As talent competition intensifies, wage pressures rise, and workforce resilience becomes essential, organizations must integrate HR expertise into critical policy discussions, according to a new interesting research published by Gartner using data 📊 from a survey of 340 HR leaders about their views on the labor market climate and key emerging trends in the workplace.

☝️ Recommendation of researchers:

With U.S. administrative tariff policies driving layoffs and cost-saving measures, half of HR leaders are prioritizing enhanced retention strategies to safeguard their workforce.

☝️ 𝙈𝙮 𝙥𝙚𝙧𝙨𝙤𝙣𝙖𝙡 𝙫𝙞𝙚𝙬:

I find these research findings truly insightful—it’s fascinating to see how a single political decision, such as US tariffs, can ripple across global talent strategies, affecting companies worldwide. This highlights the urgent need for business leaders to actively involve HR in navigating these challenges, ensuring workforce resilience, strategic planning, and adaptability during critical moments.

It’s also important to recognize the potential downsides—with tariffs contributing to layoffs, layoffs, and cost-saving measures, organizations must rethink how they balance financial stability with talent retention.

🙏🏼 What were the best HR expert opinions:

Dave Ulrich Clearly timely research, thank for sharing. The tariffs are the symptom, the underlying cause is more about the increased uncertainty, or chaos that the tariffs bring. There are lessons from chaos (heightened VUCA) that this research confirms:*build agility and the ability to act quickly*prepare options through scenario planning*create confidence among all humans who interact with the firm (employees, customers, investors)*be transparent by engaging people in decision options*seek share of opportunity more than market share as competitors face the same challenges*create disciplined processes that can be implemented quickly*decentralize decisions to those closest to the actions required*empower employees to think, not what to think.*emphasize planning more than plansThese ideas come from US military leaders who coined and acted on the VUCA challenges (General Frank Kearney). In today's political climate tariffs are one major example of heightened uncertainty. I agree that HR can bring insights to business discussions hat help respond.thanks for sourcing this timely research

Lourdes Gonzalez ☕️ Not surprised by this stat yet an important wake up call. What a great question at the end of your post. We, as HR leaders, can influence without owning the decision by translating workforce impact into business risk: “Here’s how this plays out for your people AND your bottom line”.

George Kemish LLM MCMI MIC MIoL We are already seeing cost-saving strategies (including lay-offs) due to decisions made by the UK Government (higher taxation and the introduction of new employment legislation that will have a negative effect on employers and employees). The introduction of US tariffs, over and above the costs of exporting to the US that are already in place, has already created a trade war that will have little benefit to anyone (including the US which is likely to become insular with other countries finding ways of reducing US imports as well as retaliating by increasing their own tariffs). This, combined with the inconsistent decision making of the US President, is already creating uncertainty in the marketplace. For this reason I believe that scenario planning will come to the fore.

While many HR leaders see Talent Acquisition as a catalyst for business success, this perspective is not yet widely embraced in the C-suite !

💡 Findings of researchers:

⚠️ Despite playing a critical role in shaping organizational growth, Talent Acquisition (TA) remains underestimated in business strategy.

♻️ Nearly 9 in 10 HR leaders say they are actively driving change, reinforcing HR’s role as a key driver of transformation.

🚩 Yet, CIOs remain unconvinced—only 27% believe TA has a significant impact on business outcomes.

Meanwhile, priorities are shifting rapidly:

💡 AI reskilling now tops the list of CHRO concerns, with businesses racing to prepare their workforce for the AI era.

💡 Upskilling & reskilling employees to adapt to AI-driven technologies has overtaken last year’s top priority—compliance and regulatory challenges.

💡 Retention of top performers remains urgent, with 20% of HR leaders focused on protecting high-impact talent in a fiercely competitive landscape, according to a new interesting research published by iCIMS in partnership with Censuswide using data 📊 from surveys of 1,000 U.S.-based Chief Human Resource Officers (CHROs) and Chief People Officers, 500 CIOs and 1,000 U.S. adults aged 18 or older, between February 27 and March 3, 2025.

☝️ Recommendation of researchers:

In today’s evolving labor market, researchers have pinpointed the key metrics that define success in talent acquisition—shaping how HR leaders drive impact and long-term value:

1️⃣ Quality of hire (34%)

2️⃣ Candidate & recruiter experience (30%)

3️⃣Time-to-hire (29%)

☝️ 𝙈𝙮 𝙥𝙚𝙧𝙨𝙤𝙣𝙖𝙡 𝙫𝙞𝙚𝙬:

I find this research incredibly insightful—it shines a light on a crucial disconnect in the C-suite's perception of TA. While HR leaders recognize Talent Acquisition’s transformative role in upskilling, engagement, and workforce innovation, CIOs remain skeptical, often prioritizing tech and sales investments with faster, more tangible returns.

💡 Bridging this gap is essential—companies must reposition TA as a strategic growth driver, integrating its impact into broader corporate strategy. The data speaks loud and clear: HR leaders understand the power of TA in shaping business success, ensuring organizations remain competitive in an evolving talent landscape.

🙏🏼 What were the best HR expert opinions:

Dave Ulrich As always, insightful research on a relevant topic. The importance of talent acquisition is not new, e.g. Jim Collins proposing the "get people on the bus, and figure out where you are going" and one leader saying that "strategy follows people." Our research (below) shows talent acquisition as the most critical predictor of stakeholder value (green boxes)So, how can this message be communicated better to other c=suite leaders? ask them to ponder:*what gives their business competitiveness ... something the firm uniquely does that adds value to customers? Talent (and culture) is the more difficult to copy difficult to copy then product, access to capital, or declared strategy.*what differentiates successful ... sports teams, theatrical productions, investment advisors, start up companies, etc.? Talent.*what is the difference in IT (or other areas) between top and average talent in terms of performance.*What is the biggest risk for the company? losing top performers.*?Talent matters and I see top business leaders wanting to know more how to buy, build, borrow, boost, and bounce the right talent.

Lakshmi Raju TA is indispensable for business growth and success. Continuous dialogue with C suite round the year to align and course correct will ensure a cohesive partnership. With diminishing supply of required talent and skills, the future leans towards build (upskill & reskill) rather than buy (plug & play)

Dr. Bhanukumar Parmar Without the people who are Fit-For-Future, even the best business plans are just ideas on paper. The future of business isn’t tech or strategy - it’s the people who drive both. Companies that treat Talent Acquisition as an Investment, & not a Cost, don’t just hire - they build legacies. A Winning Approach for Talent-Savvy Leadership 3T's (Which we used to follow - a bit costly - BUT returns are good). Leaders to Travel & Observe – Explore top workplaces globally, learning from innovative cultures firsthand. Leaders to Train & Upskill – Stay ahead by engaging with universities & consultancy firms on emerging workforce trends. Leaders to Team Up & Collaborate – Build cross-industry networks, leveraging diverse expertise for fresh perspectives on talent strategy.

SUNDARRAJ. S Talent acquisition is a part of Talent Management. The first step of the talent management process is attracting and selecting A-players. When a company is able to both attract and select (future) top performers, all its other talent management practices will be much more effective.

Max Blumberg Your research perfectly captures what I've observed - the 27% CIO belief rate versus 88% CHRO drive for change highlights a fundamental misalignment that's costing organizations competitive advantage. Companies that successfully bridge this gap tend to reframe TA metrics around business outcomes rather than just hiring efficiency. Thanks again for highlighting this.

George Kemish LLM MCMI MIC MIoL Whilst skills are important, recruiters need to ensure that they are looking at both skills and future potential. We are seeing constant changes in the external environment (government policies, AI, customer expectations, investor decisions et al) and there is a need to ensure that talent acquisition identifies and acquires people that can react to change with the speed and scale required to add value. Acquiring such people is one thing - developing them is another. Talent Acquisition needs to be linked to the management of human performance and their talents should be utilised to assist in the development of other members of staff - they need to be willing to share their knowledge, skills and experience whilst also being willing to listen to and learn from others (thereby ensuring a well-rounded workforce that creates both value and growth. Perhaps this needs to be 'sold' to the C-Suite in a way that provides them with an insight of the value that can be achieved.

Herman Leroy As long as Talent Acquisition is seen as an executional function, its impact will remain underestimated, especially at the C-level.In today’s competitive landscape, success depends on who you hire, how fast they evolve, and whether they stay.AI readiness, upskilling, retention—these don’t start with L&D. They start with hiring.The real shift? Reframing TA as an orchestration function, not just an operational one.That means translating talent dynamics into business risks and opportunities and forging real alignment with CIOs, CFOs, and beyond.For me, this is the turning point.Only then will TA move from “nice to have” to mission critical.

Arturo Aranda Marín For Talent Acquisition to be seen as indispensable, we must evolve from an operational approach to a strategic one. TA not only fills vacancies, but anticipates future capabilities, builds organizational culture and accelerates digital transformation etc.... In a context where AI redefines competencies, the real value of HR has to be in connecting business strategy, data and people, only in this way we will get management to see talent not as a cost, but as a competitive advantage in the long term.

Too many meetings and overflowing calendars are zapping productivity—employees need protected focus time to work smarter, not just busier !

💡 Findings of researchers:

💡 No matter your role, everyone needs uninterrupted focus time to deliver their best work.

☝️ Yet, the reality is stark—employees are getting 46% less deep work time than they need to be most productive.

⏰ The average employee needs 19.6 hours of focus time per week but gets only 10.6 hours—less than half of what’s required for peak performance.

👔 👗 The C-suite spends, on average, 10.2 hours per week working overtime. This is 35.3% more overtime than the average employee and adds up to over 50 hours per week.

🏆 Executives also attend the greatest number of meetings per week, at 11.5, compared with someone in a non-managerial role attending 8.2.

📈 Meeting overload is a major culprit—employees are attending 29.6% more meetings than they’d like, leading to 6.6 hours of overtime weekly and an average of 4.7 cancelled or rescheduled meetings each week.

🚩 “Defending enough focus time” and “keeping multiple calendars in sync” are consistently the two top challenges employees face across all levels, closely followed by “keeping schedule flexible for priority changes”

💡 Fragmented schedules—with short gaps between meetings—prevent workers from getting into a true flow state, making it harder to drive meaningful results, according to a new interesting research published by Reclaim.ai using data 📊 from over 10,000 Microsoft Office users, revealed some alarming findings about how busy employees are at work.

☝️ Recommendation of researchers:

Despite working overtime, employees are spending more time on busy work and less on deep, focused tasks. Research shows that workers are accessing 46% less focus time than they actually need to be productive.

For leaders, the challenge is even greater—disruptions, meetings, and admin tasks are cutting into their ability to strategize, innovate, and drive meaningful results.

☝️ 𝙈𝙮 𝙥𝙚𝙧𝙨𝙤𝙣𝙖𝙡 𝙫𝙞𝙚𝙬:

I find this research fascinating—it highlights just how crucial focus time is for employee productivity, especially as meetings continue to take up more of the workday. With the rise of AI-powered tools, organizations now have a unique opportunity to enhance efficiency and give employees more time for deep, meaningful work. A new study from Microsoft reveals that employees using Copilot save up to 10 hours over 11 weeks, proving the tangible impact of AI on workplace productivity. Meetings are a top priority for organizations, and Microsoft itself found that the number one productivity disruptor is inefficient meetings. The challenge teams are facing is identifying the 2.4 unproductive meetings a week that should be removed from employees schedules.

🙏🏼 What were the best HR expert opinions:

Dave Ulrich Again, very useful and fascinating research on the productivity dis-ablers, particularly meetings. Where and how employees become distracted has a rich history ... Henry Mintzberg looked at "the :nature of managerial work" and found a lot of short term activities shaping managers use of time. Gary Hamel focused on removing bureaucracy through "humanocracy." Bob Sutton called time wasters "friction". Our work at General Electric called it "Workout" and looked at Reports, Approvals, Meetings, Measures, Policies, and Practices that burdened employees. This useful research confirms the importance of protecting time by making meetings more efficient. and managing distractions. Hopefully using AI can further remove work distractions and increase productivity and performance. The focus on time at work reminds us to have a positive "ROTI" ... return on time invested ... by doing the right tasks in the right way. Thanks again for sharing research that builds on previous work and shapes the future of work.

Jose Santiago We had a simple rule set ...Don't go to a meeting if there is no agenda and if if there is no clear aim or outcome for it. And the third ask why am I needed?

Dr. Masroor Hussain Shah Thanks for another distinct research and topic. I fully agree that focus time is a greatest challenge. Real issue is the mindset of multi-tasking that zaps most of precious time and energy. Mindset needs to be changed.Meetings should be focused and if I say standing meetings. Just talk what is critical, discuss, exchange ideas and make a decision. Another solution is shift to virtual focused discussions by using google meet, zoom, team etc. Make good use of these tech based facilities. If a point can be discussed and resolved through text and email, just do it. Delegation is another facilitator. Educated delegation will greatly help. I experienced meetings in an organization going beyond 2-3 hours. COO was engaged in small operational issues which could be done by managers and below. I suggest to trust your teams and let them handle issues not falling within your ambit. Micromanaging is so lethal that it frustrates the potential talent and they either quit or go quiet.

Micheline el Housseini Timbrell In my experience with remote work increaseinv online (WFH) meetings have multiplied. But let’s be honest how many of those meetings could have been an email or a quick update? It says a lot about the company culture. The numbers aren’t great, it really makes you think: are we helping people be effective? How we can help executives avoid such number of hours spent at work and avoid burnout? Etc …

Diversity at the Boardroom table strengthens Company Culture and Business Performance !

💡 Findings of researchers:

💡 In today’s fast-evolving business world, embracing a variety of perspectives isn’t just beneficial—it’s essential!

🏆 Corporate boards are recognizing that diverse viewpoints drive stronger discussions, sharper insights, and smarter decision-making.

While different opinions can create friction, board members see this as an advantage, not a challenge. The numbers speak for themselves:

✔️ 94% of directors prioritize diverse perspectives at the boardroom table.

✔️ 90% agree it leads to better decision-making.

✔️ 97% say every voice is heard, ensuring well-rounded strategies.

This isn’t just a short-term trend—it’s a long-term strategy for success!

🚀 When boards commit to inclusion, they pave the way for greater effectiveness, better performance, and future-focused leadership, according to a new interesting research published by Egon Zehnder using data from a survey of 450 global public board members.

☝️ Recommendation of researchers:

inally, researchers have highlighted key ways to enhance board effectiveness and inclusion, many of which can be led by the board chair:

✔️ Mentorship for new members

✔️ Coaching opportunities

✔️ Encouraging informal interactions

✔️ Amplifying diverse perspectives

✔️ Championing inclusivity at the board level

☝️ 𝙈𝙮 𝙥𝙚𝙧𝙨𝙤𝙣𝙖𝙡 𝙫𝙞𝙚𝙬:

I continue to be deeply impressed by this research, which underscores the powerful benefits of diversity and inclusion, even in the face of evolving DEI trends. It clearly highlights that board directors recognize the impact of diverse perspectives on business outcomes—not as a challenge, but as a strategic strength. The ability to bring varied viewpoints to the table fuels better decision-making, innovation, and long-term success, proving that true leadership thrives on inclusivity.

🙏🏼 What were the best HR expert opinions:

Dave Ulrich Again, fascinating research on board governance. I really like the timeless principles that apply in a timely way to board effectiveness.Having board members with different backgrounds, experiences, and styles coupled with a climate of candor and respect improves decisions. This principle applies in most settings. A leader told me once that effective diversity starts with unity (inclusivity). A board starts with a common and unifying agenda (to help the organization succeed) and clarity about their role (CEO succession, strategy reinvention, financial discipline, risk management, etc.). Then, once this shared agenda is agreed on, everything else about the board should vary (be diverse): age, gender, race/ethnicity, experience, style, knowledge, ethnicity, religion, etc.). Then, with a shared agenda and diverse background, discussions explore unique options that results in unified and better actions. I like that the research confirms the value of board (and other) diversity, starting with unity or feeling included. Thanks again for sharing.

SUNDARRAJ. S Thanks for sharing. Indeed, Diversity in board will enhance the strength of the company and it's culture. Diversity opens the door for different perspective in business. In India it's followed now, in southern India, diversity is well appreciated in board early too.

Micheline el Housseini Timbrell This is a very interesting piece of content and I’m not surprised by the numbers. Serious work is expected from board executives, as they play a critical role in guiding & supporting the business.Unfortunately in many organizations and cultures a board seat is still viewed as an honorary position (the Golf club) rather than one earned through expertise, strategic insight & the ability to add real value.We need a mindset shift: selecting individuals who can challenge the status quo + ask the right questions!

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