
People Leader or Business Leader? Rethinking the Role of HR in 2025
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There’s a lot of pressure on senior HR leaders today as they navigate critical industry shifts. From technological transformation to reimagining ways of working that foster collaboration, whether teams are in the office or not. At the same time, they’re rethinking key policies to keep up with the constantly evolving needs and priorities of both workplaces and the workforce.
What’s weighing on HR leaders today?
The role of CHROs is no longer what it was just a couple of years ago, let alone pre-COVID era. It has completely transformed from a supportive function to a strategic one, now closely aligned with the company’s boardroom priorities and evolving industry needs. All while constantly reimagining what it takes to build a great workplace culture.
Leading Author, Educator & HR Advisor, Josh Bersin, explaining this shift, said, “Once considered a job as ‘head of HR,’ the CHRO is now a business transformation officer. And as the speed of change accelerates, the role has evolved into that of an ‘Organisational Strategist,’ responsible for building innovative HR and management programs that directly support business growth.”
He also outlined how today’s CHRO is juggling it all, recruitment, rewards, and retention; leading the HR team; building the HR tech stack; and more, serving as the critical conduit between business goals and talent strategy.
Similarly, Dave Ulrich, a distinguished author, professor at the University of Michigan, and HR leadership coach, resonated these sentiments at the People Matters TechHR Singapore 2025 conference. He emphasised,
HR is no longer just about HR. It’s about delivering business results. If your organisation isn’t winning in the marketplace, there will be no workplace. HR is not just a support function but a strategic enabler of business success.”
He outlined four key focus areas for HR leaders to drive real value: Talent, building a future-ready workforce; Organisational Culture, fostering a strong, cohesive environment; Leadership, one that embraces change; and a Strategic HR Function, powered by AI and analytics to enhance business impact.
People, Culture or a Seat at Strategy Table?
A key question that continues to challenge HR leaders today is this: should they be People Leaders first, or Business Partners foremost?
Some say, “Think like a CEO.” Others argue, “Make people the priority.” And then there are those who believe the real win lies in striking the right balance across all fronts.
But if HR leaders try to focus on everything at once, nothing moves forward – no progress, no transformation, just chaos. That’s why, whether the focus is business, people, or both, setting clear priorities must come first.
In a Korn Ferry report exploring how CHROs sit at the intersection of workforce and business transformation, Laura Manson-Smith, Global Leader of Organisation Strategy Consulting, noted, “Today’s CHROs aren’t just shaping the talent agenda. They’re helping to shape the entire strategic direction of the organisation. This means having a seat at the strategy table, where they’re influencing decisions that impact everything from corporate culture to the bottom line.”
Anyuta Dhir, an HR leader based in India, writes, "After years of working with CXOs and board members, I’ve noticed three patterns that quietly push HR out of high-stakes conversations:
Accepting the “cost center” label (HR seen as a cost center than a profit center) - budget meetings defending headcount instead of demonstrating business value like cost saved from retention or performance gains we reinforce the wrong narrative.
Skipping business alignment - It’s easy to build great HR programs. It’s harder to link them to what keeps the CEO up at night. When we don't anchor our work to production, growth, or efficiency goals, we become isolated. Influence starts with relevance.
Avoiding the ROI conversation - Boards don’t want vanity metrics. They want results. If we shy away from connecting engagement to outcomes or culture to performance we miss our biggest opportunity to lead.
The hard truth? HR doesn’t get invited to the table. We earn our place by speaking the language of strategy, not just empathy. It’s time we stop just supporting the business and start driving it."
Becoming the Hybrid CHRO
HR is one of those rare roles that can’t be confined to either pure people leadership or pure business leadership. What’s clear, though, is that HR is no longer traditional. It has evolved, adapting rapidly to technological transformations.
As MEPCO’s EVP of HR & Shared Services, Maan Fatani, highlighted in one of our coversations, “AI combined with strategic insight can unlock new business opportunities and enhance HR’s contribution to an organization’s competitive advantage.”
Echoing a similar sentiment, Omani HR leaders in a recent Talent Study Circle session shared, “The shift is about more than tech, it’s about creating a work culture that embraces automation while preserving meaningful human support where it matters most.”
Sharing an example of digital transformation, which is a top priority across industries, the leaders emphasized that true transformation requires alignment throughout the organisation, driven by openness, empowerment, and a shared vision. Digital transformation is a shared responsibility, extending from leadership to every employee — not just HR.
Yet, HR continues to serve as the torchbearer of collaborative and sustainable change, setting the tone for transformation that cascades across all levels of the organisation.
In conclusion, HR leaders today must lead with clarity, a strategic mindset, deep empathy, and an end-in-mind vision to successfully navigate the transformation that’s underway. Because the future of HR isn’t about choosing between people or performance, it’s about connecting the two to drive transformation that lasts.