The Shakeup of the HR Function Is at Hand (and Needed)

“HR hasn’t outlived its purpose, but it has absolutely outlived the model it has been operating from.”
— Rose Shelton, learning strategy and innovation VP, Cornerstone OnDemand

Work is changing at a rapid pace — and HR leaders who don’t shift gears risk becoming irrelevant, according to new research from Deloitte.

HR was created for dependability, efficiency and control, often operating within silos, noted the consulting firm in its 2026 Global Human Capital Trends report. But in this post-pandemic era of artificial intelligence (AI) and automation, organizations are prioritizing speed and agility — and acknowledging HR’s traditional structure hampers the cross-functional collaboration and innovation required to move the business forward.

Put in statistical terms, the report showed:

• 70% of the more than 3,000 surveyed business leaders agreed being fast and nimble is their primary competitive strategy over the next three years.
• 66% agreed traditional functions (e.g., HR, finance, IT) must change to enable that strategy.
• Only 7% said their organizations are progressing toward that goal.

“HR’s future hinges on helping the organization operate differently,” said Kyle Forrest, Deloitte’s U.S. future of HR leader and one of the report’s authors. “As work becomes more dynamic and skills-based, HR has a chance to lead a shift away from rigid functional silos toward a model where expertise moves to the work, work is designed around outcomes and learning is continuous, not episodic.”

The crux, according to the report, is that HR leaders and teams typically aren’t doing that. They are likely:

• “Misaligned with the dynamic, multidisciplinary needs of modern organizations”;
• “Struggling to bridge the gap between the cost of services and the value they deliver”; and,
• “In need of substantial reinvention in both capability and mission to meet rapidly changing demands in the future.”

The report concluded teams such as HR “need to bring not just functional expertise but also pattern recognition around how to drive results in [specific business contexts].”

Access a bonus Workspan Daily Plus+ article on this subject:

• How a Cisco Executive Views the Future of HR and the Future of Work 

Deloitte isn’t alone in this thinking.

“Human resources’ operating model hasn’t meaningfully changed in years,” said Rose Sheldon, the vice president of global learning strategy and innovation at Cornerstone OnDemand, a talent management and training software provider. “Although the word ‘human’ is in the title, its real focus is job and tasks.”

She said HR has put the task at the center of work, then sought to recruit the person with the best combination of knowledge, skills and abilities needed to do that task.

“That worked when jobs were stable. But the pace of work has accelerated so fast that job descriptions can’t keep up with the ever-changing tasks at the heart of a role,” Sheldon said. “We keep layering new expectations onto an architecture that was never built to support them. HR hasn’t outlived its purpose, but it has absolutely outlived the model it has been operating from.”

How to Address the Gap Between Speed and Control

HR needs to move beyond its foundational base (administration, compliance and risk mitigation) and become a strategic partner that helps design how work gets done, with an emphasis on acquiring, developing, engaging and rewarding talent, said Tom McMullen, a senior client partner at consulting firm Korn Ferry.

“Technology is everywhere — human capability is now the real differentiator,” he said. “What matters is how organizations combine technology with uniquely human skills like judgment, creativity, adaptability and influence.”

HR should foster that integration and change work, he said.

To make strides, consider how to segment your work and teams between “run the business” and “transform the business,” Forrest added.

“Executives and the workforce are turning to HR and expecting an answer about how to navigate AI [and] automation impacts to the workforce and address topics like how to manage a hybrid workforce of humans and machines, what new career pathways look like, and more,” he said.

Regardless of how you and your organization currently view your HR function, Forrest recommended considering four questions:

• What is our business strategy?
• What is the talent/workforce strategy needed to drive those business outcomes?
• What services does our HR team need to provide to deliver on that talent/workforce strategy?
• What skills/capabilities does our HR function need to deliver those services?

By answering those questions, he said, you can then align the HR function to the business outcomes with common metrics, integrated systems and AI-enabled workflows that ensure teams are jointly responsible for results.

“Organizations will need to rethink how teams are formed and brought together to break down functional boundaries, both within HR and across the organization, bringing together data and technology paired with an investment in human skills and capabilities to drive value,” Forrest said.

There’s no one-size-fits-all approach to rethinking the HR function, he emphasized — organizations have a range of options, with varying degrees of integration and disruption, to best fit the business’ needs and its appetite for change.

Don’t Forget the Human Element

According to Sheldon, HR plays (or should play) a critical role in shaping organizational culture — and that critical element is frequently missing in the conversation about AI and work.

“Company culture is eroding, and I don’t think it’s primarily because employees are afraid AI will take their jobs. It’s deeper than that,” she said. “When executives announce they’re going to replace roles with AI, and then turn around and ask the employees to redesign their own work using AI, the underlying message is ‘You’re not valuable.’ That’s a cultural problem HR has to be equipped to address, and the current model just doesn’t give it the tools.”

So, flip the script.

Instead of starting with the task and finding a human to fill it, Sheldon recommended that you:

• Start with the human;
• Understand their skills and capabilities and how they work best; and then,
• Design the role and the supporting AI around them.

To get there, she advised HR and their organizations to invest in the underlying infrastructure.

“You need intelligent systems that map the skills, knowledge and capabilities of your workforce — not just what’s on a resume, but how people work and where they thrive,” Sheldon said. “Without that foundational data layer, everything else is guesswork.”

McMullen added HR should build a culture of continuous learning, where you help people develop the skills needed to work alongside new technologies by:

• Prioritizing reskilling; and,
• Encouraging experimentation.

“Instead of static job descriptions and traditional career paths, organizations must rethink tasks, workflows and decision-making processes in ways that combine human strengths with technological capabilities,” he said. “HR will play a central role in enabling human-AI collaboration, building cultures that support experimentation and learning, and ensuring employees develop the skills needed to thrive in rapidly evolving environments.”

By taking these steps, he said, HR becomes less about administration and more about shaping organizational capability and resilience.

“When functional boundaries are loosened, data, insights and expertise [from HR and other functions] can move more easily across the business,” added Deloitte’s Forrest. “Broader perspectives and shared insights can strengthen collaboration and help drive meaningful change. Organizations that embrace this shift will be better positioned to operate with the speed and adaptability today’s environment demands.”

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Career Growth
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