The role of HR in recent years has received some criticism, which has made headlines. As we speed towards 20250, it is clear that the HR profession will need to become more valuable for their organisation.
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Recently, Edelman surveyed 33,000 people in 28 countries. Nearly half of the people surveyed ranked employees as most important for the success of their company, the first time this has ever happened.
People around the world believe that employees have become more important to an organization’s success. This is a shift from previous beliefs. HR must support the rebuilding this trust. While 75% of people around the world still trust their employer as the most trusted institution, the trust has dropped for the first time in 2025. Human skills are in greater demand than digital skills. This is why people operations has become a key business function.
89% CEOs stated that HR should play a central role in their organization, while 70% C Suite members said their HR department would be more important in the future. For HR to remain relevant and have a positive impact in 2050, it may be necessary to change certain HR behaviors.
Leaning into expertise
In any organization, there are many loud voices. It can be hard for HR professionals, given their historical perception of HR being an administrative function, to make their voices heard and embrace their expertise.
A wealth of research has shown that HR can create an environment in which high-performing teams will succeed. The evidence shows that a number of common HR activities are predictive of profitability and shareholder return:
1. Recruitment: Quality onboarding generates 3.5 times the revenue growth
2. Employee engagement: Employee engagement = 23% higher profitability
3. Benefits and compensation: Compensation schemes that create high-growth organisations
4. Development and training: HR-led training programs lead to a 218% higher <a href="https://elitebusinessmagazine.co.uk/people/hr/item/the-impact-of-sales-training-on-employee-morale-and-retention#:~:text=Research%20from%20the%20Association%20for,positive%20attitude%20towards%20their%20work. Research from the Association for Positive Attitude towards Work.
5. Risk management: Strong HR practices experience fewer legal disputes
6. Payroll: One in five employees has quit their job due to payroll mistakes
7. Employee wellbeing: High performance is directly related to employee wellbeing
8. Communication: Consistent communication with HR leads to an increase in employee productivity
9. Performance management: When HR aligns its work with the strategic objectives of an organisation, it delivers sustained excellence and resilience.
10. Rewards: Well-structured reward schemes <a href="https://theteam.co.uk/blog/the-power-of-incentives/#:~:text=increase%20in%20profitability.-,Well%2Dstructured%20incentive%20programmes%20can%20increase%20employee%20performance%20by%20as,the%20correct%20reward%20was%20offered. Well%2Dstructured%20incentive%20programmes%20can%20increase%20employee%20performance%20by%20as,the%20correct%20reward%20was%20offered.
Human Resources that is more active, not passive
HR has a direct connection to employees and leaders, allowing it to identify challenges and implement tangible solutions.
The data-driven insights of HR teams allow them to design programmes which address issues such as employee engagement, productivity, and wellbeing in a measurable way. HR teams can drive organisational success while also promoting social good by proactively identifying these challenges and solving them. This can only be achieved through outreach, in which the HR team engages with key stakeholders to work with them to achieve their goals.
Leading Development will be the number one job within HR for high-growth companies this year. The highest-performing teams are those that feel the most supported by their HR department.
HR teams that engage often have high-achieving management teams. Managers who interact with HR more frequently tend to be more engaged and have lower team turnover. can be used to link regular meetings between managers and HR with higher team productivity.
In the past, HR professionals have left their doors open to allow leadership to contact them whenever they needed. This passive approach doesn’t work.
The half leaders who say that they do not get enough advice or input from HR and 70% of leaders who say that they would like to see HR teams better understand the business goals. Another 77% of leaders want HR to support them in achieving their personal goals and increase productivity.
In light of the insights above, it is clear that in order to maintain the reputation and future of the HR function, they must engage with their key stakeholders at a deeper level.
Human Resources must be its own greatest champion
It’s obvious from the meetings I’ve had with HR teams in recent months that they must become their own greatest champion.
Organisational trust increases when HR teams communicate their contributions. They gain credibility and more influence by showcasing their achievements.
This increased visibility allows HR to take on a more strategic position and encourage stakeholder engagement for HR-led initiatives. McKinsey says that HR teams who highlight their successes tend to receive higher budgets.
In the coming decades, HR must remain true to its mission, develop resilience and keep a constant commitment to improving work and life for everyone.
We need to show the business leaders how important HR is. This is what will take us to 2050.
