In recent years, the role of HR has been thrust into the spotlight alongside some headline-grabbing criticism of the industry. But as we race towards 20250, all signs suggest that the people profession must become more value-enhancing to their organisations.
A hidden powerhouse?
Recently, Edelman surveyed 33,000 people in 28 countries. Almost half of those surveyed now rank employees as the group most important to the success of a company – the first time that has happened.
Globally, people believe that employees are now more vital to an organisation’s success than its shareholders and investors. While the employer remains the most trusted institution in the lives of 75% across the world, 2025 has seen the first-ever dip in this trust, signalling that HR needs to support the rebuilding of this trust. Add to this the fact that human skills are now in demand 50% more than digital skills, and we can see how people operations is gaining importance as a business function.
Last year, 89% of CEOs said that HR should have a more central role in their organisation, with 70% of the C Suite saying their HR department will be more important to them in the future. But for HR to ensure their relevance and impact is secured for 2050, we may have to change some common HR behaviours.
Leaning into expertise
There’s a lot of loud voices in any organisation. It can be difficult for HR professionals to embrace their expertise and make their voice heard, especially given the historic perception of HR as an admin function.
Yet a wealth of research shows that HR creates an environment where high-performing teams can succeed. In fact, the evidence tells us that many common HR activities predict profitability and shareholder returns:
1. Recruitment: Quality onboarding will generate 3.5 times more revenue growth
2. Employee engagement: Employee engagement = 23% higher profitability
3. Compensation and benefits: Benefit schemes create high growth organisations
4. Development and training: HR-led training programs lead to a 218% higher income per employee than those without
5. Risk management: Strong HR practices experience fewer legal disputes
6. Payroll: 1 in 5 employees have quit their role due to payroll errors
7. Employee wellbeing: Employee wellbeing is directly linked to high performance
8. Communication: Consistent HR communication leads to a boost in employee productivity
9. Performance management: Where HR aligns their work with the organisation’s strategic objectives, they deliver sustained excellence and resilience.
10. Rewards: Well-structured reward schemes increase productivity by up to 44%
A more active and not passive HR
With a direct line to both employees and leadership, HR is well-positioned to diagnose challenges and implement solutions that make a tangible impact.
Data-driven insights allow HR teams to design programmes that address issues like employee engagement, wellbeing, and productivity in measurable ways. By proactively identifying and solving these challenges, HR teams can continue to drive both organisational success and social good. But this has to come from outreach work, where the HR team actively connects with key stakeholders and works specifically to help them with their goals.
This year, Leadership Development will become the number one job in HR across high-growth companies. When we look at the characteristics of a high-performing team, it’s those who feel most supported by HR who sit at the top.
HR teams who engage frequently with management have high-achieving teams. Even managers who interact more regularly with HR tend to have higher engagement and lower team turnover. We can even link the regularity of managers meetings with HR to higher team productivity.
Historically, many in HR have held their door open for leadership to engage with them when needed. But this passive action doesn’t work.
Half of leaders say they don’t get enough input or advice from HR, and 70% say they would like HR teams to better understand business goals. A further 77% of leaders say they want HR to help them achieve their individual goals and support greater productivity.
Given the above insights, it’s apparent that to secure the function’s future and maintain its reputation, HR must connect with key stakeholders on a deeper level than they have historically.
HR must also become its own biggest champion
From the many meetings I’ve held with HR teams recently, it’s clear that they need to become their own biggest champion.
In organisations where HR teams actively communicate their own contributions, organisational trust is higher. When HR teams showcase their own achievements and influence, they gain more credibility and even more influence in the organisation.
This higher visibility enables HR to play a more strategic role and drive stakeholder engagement in HR-led initiatives. According to McKinsey, HR teams that highlight their own successes even tend to get higher budgets.
Across the next few decades, HR will need to stand by its purpose, grow resilience, and maintain an unwavering commitment to making work – and life – better for all.
We must show business leaders that HR has value and is worth caring about. That’s what will carry us successfully towards 2050.
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