What business wants from HR leaders

HR is at a critical juncture according to a new report

BY Dexter Tilo 08 Jul 2025

HR leaders will face increasing demands in the next five years to provide critical strategic guidance to business, manage changing employee expectations and enhance overall performance.

According to a new report from EY, the HR function is at a "critical juncture, requiring a rapid evolution to not only keep pace with emerging demands, but also drive greater value and effectiveness".

The EY CHRO 2030 Market Insights based on discussions with with more than 160 executives, found that 85% of employers consider a strategic HR function to be critical to success. However, 89% also said that HR will need to change to meet evolving talent and strategic business needs.

"This statistic is the urgent need for HR leaders to accelerate the transition from traditional administrative roles to strategic partnership," the insight read.

In the wake of growing responsibilities for HR leaders, the insight outlined the three qualities of a high-performing HR executive in the coming years. They are:

Business operator. Gain in-depth knowledge of financial and operational indicators to efficiently oversee expenses, boost productivity, and enhance overall performance.
Technology transformer. Adopt and apply technological solutions to foster innovation, improve employee involvement, and simplify HR operations.
Talent authority. Take proactive leadership on talent-related issues, placing a strong emphasis on the employee experience by developing emotional intelligence to build meaningful connections and advocate employee wellbeing.

The ireport outlined these characteristics as it pointed out challenges, such as skill gaps, and opportunities, such as artificial intelligence, currently facing HR leaders.

"As we look ahead to 2030, these challenges and opportunities require CHROs to level up their game and embrace a more complex role, build talent advantage with a strong focus on skills, and ensure that the HR function evolves to keep up with growing business demands," the insights report read.

"The expectations of employees are evolving rapidly, with workforces moving away from a one-size-fits-all approach to personalized experiences. Employees seek more than just competitive salaries; they desire meaningful work, flexibility and a supportive environment."

Taking advantage of tech disruption

Meanwhile, the EY market insight underscored that leveraging technology will be critical to drive value.

According to the executives, there are several key technologies that will boost the shift of the HR function from administrative to strategic. They are:

Artificial intelligence and machine learning. To automate routine tasks, enhance decision-making, and provide predictive analytics
Generative AI. To create content, such as training materials and performance feedback
Robotic process automation. To automate repetitive and administrative tasks within HR, such as payroll processing, benefits administration, and compliance management
Advanced analytics and data science. To enable HR to gain deeper insights into employee performance, engagement, and retention

The findings come in the wake of widespread implementation of emerging technologies, such as AI, in the HR function. In fact, some of the workforce have grown concerned over getting replaced by these tech tools.

But Joe Dettmann, PhD, EY Global People Experience Solution Leader, said tech can be an opportunity for HR leaders.

"We can't accomplish new things with old ways of working — it's time to update how we lead and how we work," Dettmann said in a statement. "Tech disruption and social trends can be a threat, or an opportunity."