For decades, the HR function in many organizations has been defined by what it manages: headcount, compliance, payroll, policy, and process. These are necessary functions. They keep organizations legally sound and operationally stable. The problem is that managing them well has come to define HR's identity in ways that limit its strategic contribution. Across organizations in India, a more consequential shift is now underway. CEOs are asking more of their HR leaders than operational competence. They are asking for business judgment, financial literacy, and the ability to connect workforce decisions to organizational outcomes. Whether the HR function is ready to meet that expectation is one of the profession's more pressing questions in 2026.
The Gap Between What CEOs Expect and What HR Delivers
The evidence on CEO expectations is precise. According to the report Navigating the C-Suite: How CHROs Can Master Executive-Level Influence (SHRM, 2026), more than six in ten CEOs, 61 percent, highlighted financial acumen as a critical area for CHROs to develop to better support their organizations. This figure points to a specific and significant gap. Financial literacy has historically sat outside the core HR competency framework, yet CEOs are now evaluating their HR leaders against it as a baseline expectation. CHROs who cannot credibly speak to the financial implications of workforce decisions are operating under a meaningful credibility constraint at the leadership table.
Amit Sharma, Chief Human Resources Officer at Gokaldas Exports, offered a perspective at SHRMTech26 in May 2026 that frames the tension directly: "The HR role is a delicate balance between being business savvy and being an employee advocate. Be a true business partner and not a business leader." The distinction matters. A business partner brings workforce intelligence to business decisions. A business leader makes those decisions. HR leaders who develop genuine commercial understanding tend to earn the strategic influence that the business partner identity promises, while those who operate primarily within the HR domain tend to find that influence limited by the boundaries of what CEOs expect them to understand.
The process-heavy operating model that characterizes many HR functions in organizations in India makes this shift structurally difficult. HR teams that spend the majority of their capacity on compliance, payroll administration, and policy management have limited bandwidth for the strategic work CEOs are asking for. Technology was expected to resolve this by automating transactional work. The evidence suggests the shift has been partial, with many organizations investing in HR technology without redesigning the HR operating model around it.
From Policy Guardian to Experience Architect
Sameer Shaikh, Senior Director of FSS and Technology at XPO, offered a perspective ahead of SHRMTech26 in May 2026 that captures the strategic shift with precision: "HR must stop being the guardian of processes and start becoming the architect of experiences. Shift from policy-driven decisions to people-driven insights, where empathy, data, and business outcomes intersect. The real transformation begins when HR designs work."
The experience architect framing is analytically important because it redefines HR's primary output. Process guardianship produces compliance. Experience architecture produces workforce conditions that enable performance, belonging, and sustained contribution. These are different organizational outcomes that require different capabilities, data, and relationships with business leadership.
According to the SHRM State of the Workplace 2026 (SHRM, 2026), employee experience ranks among the top priorities that workers believe HR departments should focus on in 2026. Nearly 72 percent of HR professionals believe workers carry higher expectations of employers today than at any previous point. These findings place the responsibility for experience architecture squarely within HR's mandate. The workforce is asking for it. CEOs are measuring it. The question is whether HR functions in organizations in India are structurally positioned to deliver it.
Building that capability requires HR leaders to develop what might be described as a dual fluency: the ability to speak the language of business outcomes with CFOs and CEOs and the ability to design workforce conditions that produce those outcomes at the team and individual level. The two are connected, and HR leaders who can demonstrate that connection explicitly tend to earn the strategic influence that the business partner identity promises.
The GenAI Opportunity and the Capability Question
Generative artificial intelligence is reshaping what the HR function can reasonably be expected to do with its time. By automating the transactional and analytical work that has historically consumed HR bandwidth, generative AI creates capacity for the design, strategy, and leadership work required by the people strategist role. The opportunity is real and immediate. The constraint, as the CEO data suggests, is whether HR leaders have the business acumen and technological fluency to use that capacity productively rather than filling it with more process management.
Among the HR leaders who spoke at SHRMTech26 in May 2026 was Sharad Verma, VP and Chief Human Resources Officer at Iris Software, whose perspective on generative AI's potential to position HR as a builder of organizational outcomes is gaining traction across senior HR circles in India. The shift being described is less about AI adoption and more about what HR leaders choose to do with the organizational space it creates.
For HR leaders in organizations in India, this means the generative AI moment is as much a capability development challenge as it is a technology adoption question. Leaders who invest in building business and financial literacy alongside AI fluency are better positioned to leverage the capacity-generative AI creates for work that actually changes their strategic standing in the organization. The technology opens the door. The capability determines whether HR leaders walk through it.
What the People Strategist Role Requires in Practice
The shift from process owner to people strategist requires HR leaders to develop capabilities that current HR competency frameworks were not designed to produce at scale. Business acumen means understanding the organization's financial drivers well enough to connect workforce decisions to revenue, margin, and risk. Data fluency means using people analytics to identify workforce patterns that inform strategy. Organizational design capability means shaping how work is structured, how teams are composed, and how roles are defined to maximize both performance and employee experience.
In organizations in India, the structural complexity of labor law compliance across multiple states, alongside the consolidation of 29 central labor laws into four Labor Codes, creates a specific context for this shift. HR leaders who treat the Labor Codes as purely a compliance exercise are addressing the letter of the change. Those who treat it as a workforce design opportunity, examining how new definitions of fixed-term employment, working hours, and social security contributions can be used to build more flexible and productive workforce models, are operating as people strategists. The legislation provides the architecture. HR strategy determines what gets built within it.
The people strategist identity requires HR leaders to hold two things simultaneously: sufficient operational credibility to earn the business's trust and a broad enough strategic perspective to shape the conditions under which the business performs. That combination is demanding. Based on what CEOs are saying in 2026, it is also what the profession is being asked to become.
Was this resource helpful?