The pandemic made one thing clear: people are the beating heart of every organisation. As businesses scrambled to adapt, it was chief people officers (CPOs) who kept the wheels turning, managing remote work, wellbeing and complex government policies.
Since then, the role of HR has only grown more urgent and expansive. In today’s environment of economic uncertainty, skills shortages, AI disruption and evolving employee expectations, HR leaders are driving change like never before. The days of HR being seen as purely transactional are over. Now, the people function is a strategic powerhouse, ready for the top table.
HR’s commercial shift
There was a collective eyeroll from many HR professionals in late 2024 when a UK political magazine claimed that HR had “captured the nation” and was holding the country back from economic success. The article accused HR of hampering productivity with rigid recruitment policies, fuelling rising tribunals and sick days, and prioritising DEI and wellbeing over business needs.
It’s just the latest in a long history of myths painting HR as a cost centre disconnected from commercial realities. But in 2025, HR has an opportunity to prove otherwise and show that it’s not only commercially aware but central to business success.
The idea that HR doesn’t understand the numbers or strategy is outdated. Today’s HR leaders are data-literate, commercially fluent and adept in analytics reporting. They understand business KPIs and often help define them. (After all, who typically oversees annual goal setting? HR does.)
Of course, the scope of HR still varies depending on organisational size, sector and leadership outlook. In some companies, it’s still focused on the basics, like payroll, compliance and employee relations. But many people teams now hold significantly more strategic weight.
According to executive search firm Russell Reynolds, the number of CHROs taking on expanded responsibilities rose from 12% in 2022 to 17.3% in 2024. In the FTSE 100, over half (51%) of HR leaders now have remits that extend beyond traditional HR.
HR as a driver of change
Greg McCaw, CPO at private equity-backed accounting firm BKL, is a clear example of this shift. With BKL growing through acquisition, McCaw plays a strategic role across business and people functions.
“My CEO will always consult with me on key decisions and not always on things you’d consider to be ‘HR’,” he says. “I support everything from business to people strategy. To add that value is immense and it feels good.”
Rupert Brown, former CPO and author of Mind the Gap, sees this evolution as essential: “You need to be a business leader first and a people leader second. What helped me was to have a commercial interest in other functions, meeting customers and understanding the pain points of the business.”
Senior HR professionals increasingly build cross-functional experience – or even pursuing MBAs – to sharpen their commercial impact. In short, it’s obvious: the days of ‘HR doesn’t get the business’ are fading fast.
Breaking through the glass ceiling
Still, few HR leaders make the leap to CEO – a fact that fuels outdated perceptions of the CPO role as a career cul-de-sac. FTSE 100 trends show CFOs and COOs remain the most common internal successors. But when CPOs do step up, it's often after taking on broader responsibilities.
Take Roisin Currie, chief executive of Greggs. Before becoming chief executive, she served as retail operations director and retail and property director – after time as the company’s CPO. In the public sector, Stephen Moir followed a similar path from people roles to CEO of Cambridgeshire County Council.
It’s also important to acknowledge gender dynamics. Most CPOs are women, and structural bias – along with career breaks – still affects progression. In 2024, only 10 FTSE 100 CEOs were women.
No wonder some HR leaders suffer from imposter syndrome. Claire Williams, our chief people and operating officer, says executive coaching helped her build boardroom confidence. Our CEO, Sion Lewis, played a key role too. He says: “I gave her projects beyond absenteeism reports, that were cross-functional and linked to our vision and values. I’ve convinced her and the board that it’s natural for the CPO to be in the room.”
Getting comfortable with data
Today’s HR leaders are navigating a complex landscape: economic pressures, workforce shifts, ESG demands and AI disruption. Many now oversee DEI, sustainability and organisational development – all of which require a strong handle on data.
HR software dashboards now reflect a wider range of business-critical metrics, from engagement to emissions. As Lucy Graley, director of people at The Royal Parks, puts it: “This is all numerical. What we do drives business outcomes and key performance indicators. Any change we make comes back to whether we can afford to do this or not.”
Executive recruiter Chris Taylor of ChapmanCG agrees: “There’s been a dynamic shift from that ‘personnel’ role to a forward-facing, value-add, enabling function, often reporting directly to the CEO. They need the people function to attract, develop and retain top talent because that directly impacts innovation, customer experience and financial performance.”
Williams adds: “If you’re not comfortable with data, it’s time to ‘lean into those weaknesses’. You must identify those gaps and do the reps to build your knowledge. Make the CFO your best friend. Don’t be afraid to ask questions.”
HR’s future: People-first, tech-smart
HR’s role in shaping the ethical use of AI is growing fast. From building AI into workflows to rethinking job design, the CPO is becoming central to how businesses adapt.
Interim HR director and change specialist Melanie Steel explains: “HR can look at what the problem is that we’re trying to solve [with AI] rather than starting with the solution. This is what we can bring to the table.”
As this responsibility grows, so does the influence of the so-called ‘golden triangle’ of CEO, CFO and CPO. Once, that third point didn’t exist – but now it’s becoming essential. People challenges are driving today’s biggest business issues, from reputational risks and return-to-office debates to productivity and engagement.
As Graley says: “The CPO is definitely becoming as key as the CFO. As we move into more human-centred work design, companies need to be strong on people. And as AI comes into business more, we need that more than ever.”
Where does HR stand today?
- Scrutinised: some leaders still question HR’s value – but expectations are rising
- Strategic: people challenges now sit at the heart of business transformation
- Data-driven: AI, ESG and DEI demand commercial and analytical fluency
- Essential: the CPO is now a vital partner to the CEO and CFO
- Evolving: HR job descriptions – and capabilities – are changing fast
The time is now for HR
The outdated view of HR as a back-office function is no longer fit for purpose. HR leaders are now central to organisational performance, helping to shape strategy, drive culture and deliver commercial results. They’re not just supporting the business. They’re helping to lead it.
If you’re a current or aspiring HR leader looking to unlock your potential and deliver organisational success, download our free white paper. Or, if you’re ready to see how our HR solutions can help you make a bigger impact at your company, request a free, no-strings-attached demo today.