HR is called to action. Tight labor markets, economic uncertainty, and rising operational costs — cited by 45% of CHROs in SHRM’s latest research — have made HR a primary driver of business strategy. Organizations are turning to HR leaders for solutions to protect margins and power growth.
What holds us back from making the changes needed to tackle these pressing issues? Often, it’s the lingering, outdated ideas about HR's role which slow our progress and keep us from reaching our full potential as strategic partners.
The Journey to HR Maturity
Human resources has a history stretching back more than a century. Considering its long legacy, it's natural for some perceptions of HR to be out of sync with its modern function. For much of its history, HR focused on administrative and compliance work. Today, HR is a strategic partner, a role made essential by technological shifts, changing regulations, and broad economic pressures.
For example, Hilton instituted a comprehensive wellness program to support employees’ mental, physical, and spiritual health. One of the benefits, a third-party caregiving concierge service, helped more than 60% of employees who used the service avoid missing work. By easing the burden of arranging care for loved ones, Hilton not only strengthened its bottom line but also showed how HR maturity directly fuels retention — keeping employees present, engaged, and committed.
Examples like Hilton highlight how HR maturity delivers tangible results, with retention being just one measure of success. To meet this moment, HR departments must reach high maturity — an achievement attained by only 1 in 8 HR functions despite it being linked to exceeding financial objectives, according to SHRM’s The Business Case for HR Excellence report.
The journey begins by challenging long-held myths limiting HR’s potential and focusing on specific practice areas to drive maturity.
Myth 1: HR Isn't Part of the Core Business
One of the most stubborn myths is HR doesn't belong in core business discussions. This idea persists despite our knowledge that strong HR leadership is vital to a company's success. In fact, more than half of HR leaders at organizations with high HR maturity reported their organizations exceeded financial goals in the past year, according to SHRM’s The Business Case for HR Excellence report. Such results are possible only when HR operates as a core driver of business strategy, not merely an administrative function.
Myth 2: HR Is the "Softer" Side of Business
This common misunderstanding means HR leaders must work harder to gain respect. Topics such as company culture, leadership development, and employee engagement can sometimes be viewed as less tangible than sales figures.
Far from being “soft,” these elements are the very foundation of business performance. Employee experience and engagement drive results: SHRM research shows these factors predict over half of job satisfaction and explain 42% of turnover intent, underscoring their massive impact on the bottom line.
Myth 3: HR Is Only Reactive
On top of being removed from the core business and considered an expert in the softer side of operations, HR is often thought of as only reactive to major company initiatives. On the contrary, HR is at the heart of managing these monumental moves to propel an organization forward.
When leaders ideate a new line of offerings or consider relocating for better prospects, HR is a crucial partner. It puts together a staffing plan to upskill current employees and recruit new ones to support a change in offerings. It builds strategies to manage relocation and can even provide data on current employees’ domiciles to help guide location selection. These are not secondary tasks; they are central to whether these important projects succeed or fail.
Building Resilient Organizations Together
To guide our organizations forward, we must first lead the effort to dismantle these myths. Real transformation isn’t just about new systems or policies. It begins when we collectively reframe HR's purpose and own our voice as a vital part of the business.
Empowered HR leadership centers around taking our role at the table, helping to shape its purpose, and ensuring it serves both our people and our performance. As the future of work unfolds, we must lead from the center of the organization, not from the sidelines.