Here’s where HR leaders think the industry is headed—and how they need to prepare

Good morning!

There’s no doubt about it: HR is going through some major transformations. CHROs are rising to prominence , executive are thinking about the function differently, and AI is fundamentally changing the way practitioners do their work. Tomorrow is unwritten, but a recent survey of HR leaders may give us some indication as to where the industry is headed.

Around 84% of CHROs expect the function to become more automated and tech enabled, according to Mercer’s 2024 Voice of the CHRO Report , which polled HR and people leaders from 183 organizations. Another 65% say that the traditional HR skill set will diversify to focus more on non-traditional areas, including technology, analytics, scenario planning and business operations. And around 79% of CHROs say the function will be more aligned with business strategy.

That's a fundamental rethink of how many businesses have treated their HR departments in the past. “HR needs to be a true partner, versus HR being an order taker,” Shari Chernack, a senior principal of transformation at Mercer and a co-author of the report, tells Fortune . "Every time an organization wants to make an acquisition, wants to create a new product line, or open a new site, if HR is not at the table for these things as a critical decision maker and enabler, these things don't happen."

These future CHRO predictions are aspirational to a point, and where leaders think they're headed—not necessarily where they are today. Preparing for that future means taking ownership of their organization's AI transformation, developing their skill sets, and being intentional about building C-suite relationships, according to the report.

But amid all the heady talk of technology and the future, CHROs shouldn't forget that the job comes down to people. Prioritizing the needs and expectations of talent, retaining that talent, and building an internal HR team that is better able to take on a new slew of responsibilities will all be key to CHRO success as well.

“One of the things we want to make sure we definitely don't lose focus on is employee experience,” says Jonathan Gordin, an HR effectiveness partner at Mercer and co-author of the report. “What is their experience going to be like? How do we make sure that there's a really good value prop for them?

Azure Gilman
azure.gilman@fortune.com

This story was originally featured on Fortune.com