Human resource leaders nationwide reaffirmed HR’s role in shaping company strategy and revealed a sharpened focus on talent management activities for employee engagement and company culture in the second annual Paychex Pulse of HR Survey.

HR leaders continue to have strategic influence with their organization’s C-suite. Between 2017 and 2018, the same number of HR leaders, 80%, said they feel they are a strategic partner within their organization. And nearly half, 44%, reported meeting with their CEO, CFO or both on a weekly basis in 2018.

The Paychex report also found 85% of respondents said they’re focusing on company culture to drive results, and 77% feel their current HR technology solution is improving overall employee experience.

“Between the US reaching full employment, significant shifts in societal trends and priorities, and a new generation entering the workforce, HR is uniquely positioned to manage talent in a way that drives higher engagement and better business results,” said Leah Machado, Paychex senior director of HR services. “For that reason, attracting, engaging and retaining high-quality talent is more important today than perhaps ever before.”

Societal trends and priorities are driving changes to employee protection policies, according to the report. Eighty-three percent of HR leaders surveyed said they now have a discrimination and harassment policy in place, and 65% have updated those policies within the last 12 months. Additionally, 67% have re-evaluated their pay practices this year with an eye on gender equality.

In 2017, HR leaders were far less likely to be comfortable supporting the HR needs of millennials when compared to Gen Xers and baby boomers, Paychex found. One year later, though, managing the multi-generational workforce seems to have evened out, as perceived support for all generations hovered at around 51%. In 2017, 64% of HR leaders felt managing the needs of Gen X was a significant challenge, followed by baby boomers at 57% and millennials at 48%.

The survey also queried HR leaders on their top challenges. The five most-cited HR challenges in 2018 include:

• Keeping up with regulations: 38%
• Tracking employees’ time: 38%
• Complying with regulations: 35%
• Offering competitive benefits: 33%
• Retaining talent: 31%

The 2018 Paychex Pulse of HR Survey was conducted online between April 13 and April 21, 2018, and polled 300 HR decision-makers at US companies with between 50 and 500 employees.