The influence paradox Canadian CHROs need to resolve

Human resources leadership has undergone an evolution, with CHROs often having a seat at the executive table in their organizations. But a recent study shows that, even though HR is visible to the C-suite, it may not always have as central a role in strategy as some think. 

Seventy per cent of organizations believe that HR functions as a strategic partner, but only 25 per cent consider it central to enterprise strategy, according to research from Principal Connections' HR Directors Consensus 2026. For two Canadian HR executives, that gap isn’t simply a perception problem — it’s a call to fundamentally rethink the role. 

“Visibility doesn't always translate into decision-making authority,” says Sonja Nelsen, Vice-President of Human Resources at Peak Products. “The fact that HR is seen as a strategic partner but is still not viewed as central to enterprise strategy, speaks to the complexity of the role.” 

Nelsen points to longstanding assumptions — on the part of executives and HR professionals alike — that continue to hold the function back. 

The misconception that lingers 

For Nelsen, one of the most persistent barriers is the framing of HR itself. Too many executives, she says, still associate the CHRO with administrative functions — payroll, compliance, performance reviews — rather than as a driver of business outcomes. 

“A truly strategic CHRO is deeply involved in driving culture, aligning talent with business goals, and helping to shape long-term strategy, especially in today's fast-changing market,” she says. “I think a critical part of the HR role is understanding and getting ahead of the rapid pace of change and what we can do to support the business and its operations.” 

Christine Barwell, Senior Vice-President of Human Resources at Wesdome Gold Mines, echoes the sentiment. “There's an element of being there at the table and then there's an element of how you're contributing, so I'm quite surprised there's that gap,” she says. “I see the people side of the business as quite significant and you absolutely have to be strategic when it comes to the people side of the business.” 

To close that gap, Barwell believes that HR leaders need to meet executives on their own terms — financially and operationally. “Understand the financials of the organization, understand the details of the operations, and speak the same language,” she says. “I think that’s a really big part of the level of engagement [with executives].” 

This view aligns with broader conversations Canadian HR leaders are having about strategic positioning, with many emphasizing that true influence begins long before a formal strategy session. 

The confidence gap 

The disconnect is made sharper by a parallel finding. A separate survey of more than 260 Canadian CHROs found that 86 per cent believe their influence is at an all-time high, with 80 per cent reporting they’re working more closely with the C-suite than ever before. Nearly all — 96 per cent — said their role strongly influences profitability. Yet set alongside the Principal Connections data, those self-assessments reveal something worth examining: CHROs feel more influential than ever, but some organizations are still not placing HR at the centre of enterprise strategy. 

“The influence paradox is an interesting challenge that many CHROs face,” says Nelsen. “By showing executives how our people strategy directly impacts profitability, productivity, and customer satisfaction — that's when you can truly demonstrate that HR plays a central role to business success.” 

Barwell frames it as a question of engagement quality, not just presence. “It's not just attending strategic sessions,” she says. “It's what conversations are you having outside of those sessions with your executive peers? That’s where you can help solve a lot for the organization.” 

From the executive table to the room 

Strategic influence isn't built primarily inside boardrooms — it's cultivated in the spaces between them, according to Barwell. She says her own investment in that credibility included completing an executive MBA — an experience she recommends for any HR leader who wants to close the gap between functional expertise and business literacy. “When you're trying to put valuations on an acquisition together, albeit in a learning environment, it's quite challenging and you're really into the details which, ordinarily, they wouldn't be in their job,” she says. “I'm a big fan of continual lifelong learning.” 

Building lateral relationships across the organization has also been a deliberate strategy for Nelsen. “Building relationships with other executives in the organization — not only senior executives, but director-level and manager-level — and making sure our HR strategies align with their objectives has really helped increase my visibility and the HR team's influence in decision-making,” she says. “I talk a lot about my experience in building authentic relationships  it's so critical to understand the needs of leaders and employees — as an HR professional, it enables you to turn what might be seen as a people problem into a business opportunity.” 

This approach reflects what HR leaders across Canada are increasingly doing to move from being a valued adviser to a genuine business architect. 

Stop enforcing, start enabling 

Both leaders are clear that CHROs who want a larger strategic footprint need to abandon a particular professional identity — that of policy enforcer. 

“Too often, HR is still seen as a gatekeeper of rules and regulations, which can truly be a barrier to strategic conversations,” says Nelsen. “CHROs need to start thinking like business leaders first and ensuring HR initiatives are tied directly to business outcomes like growth, profitability, and employee engagement.” 

For Nelsen, this shift extends to how succession planning and talent development are integrated into organizational life — not as separate HR exercises, but as embedded cultural practices driven by data. “How do we build that strategy into the everyday culture of the organization? That's how we get seen as a trusted business partner that really understands the complexities of the business,” she says. 

HR key to transformation strategy 

The technology and transformation dimension adds another layer of urgency. Nelsen says that HR's role in guiding organizations through AI adoption and automation is too important to be left to IT departments alone. “We need to offer training for all departments, and first thing is to have the executive team tell the story of why this is so important – and it definitely needs to start with the top executives like the CEO,” she says. 

Nelsen also believes that concerns about data security remain a real obstacle in some organizations, and that HR leaders must partner with IT to vet and deploy tools responsibly. 

The shift toward AI-enabled workforce planning is already providing Canadian CHROs with sharper data to make that case, turning real-time workforce intelligence into a tool for executive influence rather than just operational reporting. 

Both Nelsen and Barwell return to the same foundation for building strategic influence: authentic relationships, business fluency, and a willingness to lead through change rather than simply manage around it. “When HR is seen as an enabler of business success rather than just a support function, that's when the real transformation happens,” says Nelsen.