iCIMS, the leading talent acquisition software company trusted by the world’s best brands, published its second annual State of the CHRO Report, revealing a critical divide inside the C-suite. While 88% of HR executives say they are driving strategic change within their organizations, fewer than one third (27%) of Chief Information Officers (CIOs) agree.
Informed by 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, the new report explores the top priorities and challenges keeping HR leaders up at night. It also details how they are partnering with CIOs on talent acquisition (TA) technology investments to foster more agile, future-ready workforces that support strategic business goals.
The misalignment is particularly evident as HR increases its investment in hiring and technology. Seventy-five percent of HR leaders plan to invest more in TA this year, and 85% say TA technology is a higher priority today than it was just two years ago. But without stronger alignment with IT, these ambitions risk being undermined, stalling talent strategies, innovation and limiting HR leaders from leading strategic transformation at scale.
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“People are the heart of business success, and HR must be viewed as a strategic partner essential for connecting talent, technology and business growth,” said Laura Coccaro, chief people officer, iCIMS. “In today’s competitive landscape, where AI and advanced TA technology are essential to attract and retain top talent, HR and IT must have a united front. This tight strategic alignment and execution is one of the most powerful levers to drive organizational success today.”
The report delivers practical takeaways for leaders and job seekers alike.
- For CHROs and TA leaders: The shift of HR leaders from operational to strategic talent advisors has arrived. While 90% anticipated this evolution last year, 88% of HR leaders now say they’re leading strategic transformation. Still, only 34% say their organization views TA as a core strategic function. The message is clear: HR must continue to strengthen ties with IT and demonstrate measurable business impact—from efficiency to growth to innovation.
- For CIOs: Nearly 9 in 10 CIOs (89%) say HR-IT collaboration is essential to attracting top talent. Yet, strategic disconnect (51%), limited budgets and resources (48%) and a lack of shared understanding of tech capabilities (48%) are holding this partnership back. To close these gaps, CIOs must recognize their priorities are more aligned with CHROs’ than they may seem. By building on this common ground, they can develop more unified, forward-looking talent technology strategies that drive business growth.
- For job seekers: Six in 10 HR leaders are using AI across the entire TA process, reshaping how candidates are sourced, screened and hired. Meanwhile, CIOs have placed automation and AI at the top of their TA tech agendas (42%). Nearly half of adults surveyed (48%) say they plan to look for a new job this year, making digital fluency and AI proficiency increasingly important for candidates to differentiate themselves in a technology-driven job market.
The report also highlights how AI remains both an opportunity and an obstacle for HR leaders. Twenty-two percent of CHROs rank AI as their top priority in TA. Yet, it remains a top challenge keeping them up at night. Tech leaders are moving in parallel, with 72% of CIOs planning to implement agentic AI within the next one to three years and 13% aiming to do so in less than 12 months.
According to Jo-Ann Feely, chief innovation officer, AMS, “AI gives TA a chance to become a more strategic, influential voice within the organization—and that’s exciting. But to fully capitalize on this shift, TA leaders need to step into a more influential role, align their goals more closely with business outcomes and make sure they have a seat at the table when AI strategy is on the agenda. They must lead the charge on AI — not simply react to it.”
Source: PRNewswire
