Reimagining HR: Building visibility and impact in the age of disruption.
The HR function at a crossroads
Reimagining the world of work during a period of significant disruption is a topic we have explored in several of our recent LEADINGThought issues. Inevitably, the HR (or people function) emerges as an important enabler for this significant transition, but there are varied, sometimes conflicting views, as to the degree of its impact and influence. HR are often still seen as the ‘gatekeepers’ rather than the ‘enablers’ in the business. There are also those who strongly believe that ‘the HR function is out of control’, and it should be reined in, alongside those who strongly believe that it has an important role to play.
The landscape has changed- prior to the COVID-19 pandemic the world of people management was in the main certain and predictable and HR functions were focused on advancing their offerings through best practice, and by learning from what others have done. A lot of HR leaders are now throwing the old blueprints and playbooks out the window. But are we prioritising the right things?
McKinsey’s 2025 HR Monitor highlights that the gap is widening between what is needed from an efficient and effective HR function to what organisations currently offer [5]. While elevating employee experience is seen as an important focus for HR, about 36% of employees across Europe and the United States are not satisfied with their current employer. And according to Gallagher’s 2025 state of the sector report [12], based on data from HR leaders across 55 countries, “low capacity” (49%), change fatigue (44%), and poor people manager communication (41%) were identified as the most challenging barriers to success, even as HR leaders were prioritising engagement, and connecting teams to purpose, strategy, and values.
If HR’s role is to drive business outcomes through human insight, then as we are reimagining the role of humans at the workplace and beyond, this inevitably leads to reimagining the role and purpose of the function. So how does the profession navigate this latest transition, ensuring that it prioritises the right things and achieves the right balance in delivering for the company and its people.
Mind the visibility gap…
In a recent poll we asked, ‘what is holding HR back?’ Over half of respondents voted for ‘Limited visibility of impact’. The function has often got caught up in its dual-purpose of serving the people and the company. This means that it ends up taking on a wide-ranging set of responsibilities that can eclipse its real impact. Even when employees are top of mind, HR is subject to the needs of the organisation, such as speed, cost, strategy enablement and more.
But people are not looking for an HR strategy, they are looking for an ally, because as humans we operate from the heart. The COVID-pandemic allowed the profession to focus on employee needs and elevated its contribution and influence. At a time when 75% of employees have stated that they are looking for greater stability in work in the future, while they report that 40% of the time they are looking for the resources to be able to do their work [10], the HR function should be focused on making things simpler and less exhausting for people in organisations, while also helping them to be more productive.
Is it possible for HR to effectively strike a balance here?
The HR profession has long suffered from doubts around being sufficiently business savvy. Its limited impact and recognition have been attributed to a combination of insufficient business understanding, focus on process, and an inability to deliver on what matters to the company.
Research on HR professionalization finds practitioners straddle compliance and strategic influence, creating mixed expectations that dilute perceived impact [1]. Clarifying the professional project of HR—its scope, accountability, and authority—is foundational to recognition. The opportunity but also challenge for HR professionals is that their influence and impact is tied to the organisational context. Unlike other professions their professional expertise is shaped through their organisational experiences and the organisation’s assessment of their ability to add value.
A significant body of research over the last two decades has been focused on building a case for the impact of HR on business outcomes, such as productivity and financial performance [2]. The results have been at best mixed, however, a more recent body of work has highlighted the synergistic effects of HR practices, with a 3.5% increase in workforce productivity, corresponding to circa $10.5million sales revenue for a medium-sized firm [7]. Studies have also highlighted the importance of understanding how HR practices and initiatives are received by employees, which have shown to impact engagement, rather than simply focusing on the presence and content of HR practices themselves [3]. Bridging the gap between research and practice with evidence-based insights should help to target what will deliver most value.
As we are navigating another transformational phase at the workplace this is an opportunity to re-evaluate HR’s influence and impact. We should also remind ourselves of the lessons from the pandemic – that focusing on shaping the future of work in ways that are good for people benefits business, the economy, and society.
What does influential HR look like?
So, what are the key elements that need to come together for the profession’s sustained influence and impact?
A lot has been written about the opportunity for HR in deploying AI technologies at scale to simplify the function and effectively address employee and organisational needs [6,13]. Of course, this is key and would allow the function to release capacity for value-adding activities.
With the growth and expansion of the CHRO role, there is an opportunity for HR to become a strategic enabler in this current phase of workplace transformation. CHRO’s are highlighting a capability gap in digital and data skills, business acumen and strategic thinking across the people function [14,15]. Closing this gap is seen as essential to increasing the people function’s strategic influence and impact across the business.
But we should also take a step back to really recognise what is at the core of the profession that should be preserved and amplified.
Holding leaders to account and constructively challenging organisations to be better – research focused on the nature of the HR profession has highlighted the importance of ethics and integrity in HR practice. The ability to guide ethical and responsible AI adoption would be one important contribution of the function.
Understanding the ‘science of people’ and bringing human insight into every conversation – ensure that neuroscience and behavioural science underpin people strategies and solutions.
Understand employee needs and simplify the offering to really meet those needs – HR leadership is more than just AI, managing stakeholders, or people analytics. It is about truly understanding your employees, their needs, values, what makes them engaged. AI powered tools and technologies could support a more personalised offering and approach to people management.
Positioning the HR function for the unknown may feel daunting, but as Warren Buffet said, ‘Predicting rain doesn’t count, building arcs does.’ With strong clarity on the purpose and role of the profession, we can build those arcs well into the future.
Resources
Anna Syrigou, Steve Williams, Professionalism and professionalization in human resources (HR): HR practitioners as professionals and the organizational professional project, Journal of Professions and Organization, Volume 10, Issue 2, June 2023, Pages 151–164, https://doi.org/10.1093/jpo/joad008
Bowen, D., & Ostroff, C. (2004). Understanding HRM-performance link ages: The role of the ‘strength’ of the HRM system. Academy of Management Review, 29(2), 202–222.
Chacko S, Conway N. Employee experiences of HRM through daily affective events and their effects on perceived event‐signalled HRM system strength, expectancy perceptions, and daily work engagement. Hum Resour Manag J. 2019;29:433–450. https://doi.org/10.1111/1748‐8583.1223.
Gattermayer, A. The Death of HR: How changing the current approach can help revive human resources. Forbes, April 2025. https://www.forbes.com/councils/forbescoachescouncil/2025/04/07/the-death-of-hr-how-changing-the-current-approach-can-help-revive-human-resources/
HR Monitor 2025: A comprehensive look at the HR landscape. McKinsey and Company. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/hr-monitor-2025.
HR Reimagined. Deloitte Insights, July 2025. https://action.deloitte.com/insight/4669/hr-reimagined.
Kang, S., Han, J. H., Oh, I.-S., Van Iddekinge, C., & Li, J. (2025). Do human resource systems indeed have “system” effects? The dual internal fit model of a high-performance work system. Journal of Applied Psychology, 110(4), 575–597. https://doi.org/10.1037/apl0001241
Negt, P., Haunschild, A. Exploring the gap between research and practice in human resource management (HRM): a scoping review and agenda for future research. Manag Rev Q 75, 837–879 (2025). https://doi.org/10.1007/s11301-023-00397-7.
Page, N. and Lucas, E. Influential HR: What makes for influence in today’s HR profession – and how practitioners can build presence and impact. HULT International Business School, 2022. https://www.hultashridge.com/en/insights/research/influential-hr-presence-impact/
Stagility: Creating stability for workers for organisations to move at speed, Deloitte Human Capital Trends 2025. https://www.deloitte.com/us/en/insights/topics/talent/human-capital-trends.html#stagility-creating-stability
Sue Cantrell, Michael Griffiths, Robin Jones, and Julia Hiipakka, “The skills-based organization: A new operating model for work and the workforce,” Deloitte Insights, September 2022.
The definitive annual report on employee experience and internal communications trends. Gallagher, 2025.
The Future of HR: From flux to flow. KPMG International, 2022.
The Vital Role of CHROs in 2025. Korn Ferry. https://www.kornferry.com/insights/featured-topics/leadership/role-of-the-chro
Chief People Officer’s Outlook. World Economic Forum, September 2025.