Future of HR as a profession and business impact of HR

In an era marked by rapid technological advancement, geopolitical tensions, and economic uncertainty, the role of Human Resources (HR) is undergoing a seismic shift. The Daily FT Guest Columnist Dinesh Weerakkody engages with Prof. Dave Ulrich—renowned as the Father of Modern HR and a celebrated professor—to explore how HR can evolve from a support function to a strategic powerhouse driving value for all stakeholders.  Prof. Dave Ulrich is known as the “father of modern HR” and “HR thought leader” of the decade.

Q: How can HR shift its focus from internal HR processes to delivering tangible value to all stakeholders -employees, customers, investors, and the community?

HR must transition from a support role to a strategic enabler of stakeholder value. This requires aligning practices with core priorities for all stakeholders; employees (purpose, growth, well-being), customers (innovation, service), investors (performance, risk mitigation), and society (inclusion, responsibility). Therefore adopting an outside-in perspective is critical—translating internal people practices into measurable external impact. HR leaders should consistently ask: How does this initiative create value for every human connected to our organisation?

Q: Are CEOs assessing and enhancing human capability holistically by integrating talent, leadership, and organisational culture to drive performance?

Talent, leadership, and culture are interdependent. Talent thrives under strong leadership, and leadership flourishes within a high-performance culture. A holistic approach aligns these elements with strategy, ensuring they reinforce one another to maximise stakeholder value. Organisations that integrate these components execute better, innovate faster, and adapt more effectively.  HR’s mandate now spans people, organisation, and leadership—making integration the engine of sustainable performance.  

Q: What steps are CEOs taking to upgrade HR functions to operate as high-performing business units that deliver stakeholder value?

Progressive CEOs are treating HR as a strategic business partner. This involves reskilling HR teams in business strategy, data-driven decision-making, and change leadership. Initiatives like the Global HR Leadership Experience (GHRLE) exemplify this shift, equipping HR professionals with tools to tackle real-world challenges. By elevating HR competencies—both individual and functional—organisations ensure HR operates at the same strategic level as finance or business operations.  

Q: How effectively are we leveraging data analytics and AI to guide HR decisions and maximise stakeholder value?

Progress is underway, but untapped potential remains. AI and analytics can predict attrition, personalise development, and optimise workforce planning. There are four stages of AI adoption: assist, inform, guide, decide. Leading organisations now use predictive analytics and generative AI to guide decisions, prioritising initiatives with the greatest stakeholder impact. However, ethical implementation is non-negotiable: AI must augment human insight, fostering trust, fairness, and transparency.  

Q: How are HR strategies adapting to societal trends like political polarisation, mental health crises, work life balance and demographic shifts?

Awareness is growing, but HR must pivot from reaction to action. Mental health, generational expectations, and political uncertainty directly shape workplace experiences. Proactive strategies include embedding well-being into culture, fostering inclusive dialogue, and planning for demographic transitions. HR needs to become a sense-making function—interpreting external trends and enabling organisations to respond with empathy and agility.  

Q: How can CEOs ensure HR proactively shapes the future of work rather than reacting to changes?

HR must lead with curiosity, courage, and foresight. Strategic HR leaders belong in the boardroom, co-creating business decisions—not just executing them. Programs like GHRLE cultivate leaders who balance data-driven insights with purpose-driven action. By thinking long-term, HR can architect the future of work, ensuring organisations thrive amid disruption.  

Q: Final thoughts on the future of the HR Profession?

:HR stands at an inflection point. The choice is stark: cling to tradition or embrace a bold, stakeholder-centric vision. With the right mindset, skills, and tools, HR can steer organisations through chaos into sustainable growth. The future belongs to HR leaders who anticipate, innovate, and inspire.