New report underscores importance of cross-functional collaboration in rebuilding HR's influence
The influence of HR teams in organisations is stalling, according to new research, which underscored the need to deepen cross-functional collaboration to improve organisational outcomes.
New research from McLean & Company revealed that the percentage of HR organisations reporting that HR is a partner in planning and executing strategy has declined to 47% in 2026.
The stalled progress comes despite findings that 37% of organisations are more likely to be high-performing and achieve their strategic goals when HR is a partner in planning and executing strategy, according to the report.
Rebuilding HR's influence
Improving HR's influence in the organisation can be achieved by deepening the team's collaboration with other key internal partners, including IT, Finance, Legal, and Communications.
According to the report, HR and IT's partnership is a "non-negotiable," especially in the age of AI.
"By collaborating with IT, HR influences the organisation to take a strategic, human-centric approach to AI transformation that unlocks AI's full potential," the report read.
It stressed that implementing AI without a strategy can neglect the human side of the transformation, which can lead to major AI adoption barriers, such as fears of job disruption and resistance to change.
"HR is essential to overcoming these barriers through change management, targeted talent development, and proactive workforce planning," the report read.
Meanwhile, the report also underscored that collaborating with the Finance department can help HR optimise investments and measure ROI.
Collaboration with Legal and Communications, on the other hand, can manage risk and deliver clear, consistent messaging during change.
Karen Smith, senior vice president and chief human resources officer at Bruce Power, said there is "no reason" that different functions in an organisation should be at odds or work in silos.
"It's not about one function needing something from another," Smith said in the report.
"It's about working together collaboratively with shared purpose and aligned metrics to move the organisation forward."
Achieving this alignment and influence will require a formal strategy in HR, which will signal to other functions how HR's work contributes to the overall organisational strategy, according to the report.
"It gives HR a platform to proactively market its value, shifting perceptions from a support function to a strategic enabler," the report read.
"This improves alignment by clarifying HR's direction and making it easier for IT, Finance, Communications, and Legal to respond to HR's needs and work together to drive organisational objectives forward."
