About 45% of HR professionals reported an increased pressure to justify their program spend in recent survey. And only 27% said their C-suite recognizes HR’s positive effects on business revenue, according to a Dec. 5 report from people management software Lattice.

In addition, only 48% of respondents said their C-suite leaders take data from employee surveys seriously, and just half said their C-suites recognize that a positive culture leads directly to better business outcomes.

“Successful people teams and leaders are increasingly those who go beyond just taking a seat at the table to demonstrate the strategic potential of the function, implementing programs that move the needle for employees and drive business results,” Cara Brennan Allamano, chief people officer at Lattice, said in a statement.

“This year’s State of People Strategy Report reveals a missing link for some HR teams in demonstrating those business outcomes,” she said.

In a survey of more than 1,000 HR leaders from companies worldwide, performance and engagement tied as HR’s top priorities for 2024. Although employee engagement topped the list for a third year, it tied with performance management, which had a 40% increase from last year’s survey.

Despite a challenging year, many HR teams reported a positive outlook for the future. About 64% said they felt engaged, and 65% felt confident about their job security. In terms of resources, 79% said their budgets would remain the same or increase, and 86% reported a flat or increasing headcount. In addition, 76% are proactively looking for ways to incorporate AI solutions into their HR workflow.

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