HR is stepping out of the background and into the strategy room.
In the past, HR was simply seen as a support function, but future-ready organisations will place it at the heart of the business strategy – particularly when it comes to performance, workforce well-being, and cultural progress.
One of the biggest drivers of this shift is the reinvention of work through AI. Organisations are embracing AI to reimagine how work gets done – and HR is leading this transformation.
According to Bruce Fecheyr-Lippens, “HR’s role is neither to purely defend the organisation’s interests nor to simply advocate for employees. Instead, HR succeeds when it creates shared value a sustainable, mutually beneficial equilibrium between people and performance.”
In 2026, HR must prove its value in business terms: driving growth, resilience, and innovation while safeguarding employee well-being. This means becoming a Value Creator for your organisation.
Your role as a Value Creator will mean focusing on aligning people strategy with business outcomes. The value will come from breaking down silos, embedding sustainability into decisions, and using data to anticipate workforce needs before they become crises.
For HR to lead this change effectively, the journey begins with embedding three core principles at the heart of your strategy:
Strategic alignment
How people strategy connects directly to business outcomes such as growth and resilience.
Holistic integration
How HR breaks down silos to operate as a connected ecosystem across teams.
Sustainability
How ESG principles and long-term employability shape decisions beyond short-term wins.
In 2026, HR leaders that become Value Creators will do more than earn a seat at the table – they’ll lead the conversation.
Value Creator: Strategic HR
We are currently witnessing HR shift from a support function to a central driver of business value. In 2026, HR will no longer take a back seat when it comes to board-level decisions – it will earn its seat at the table through business fluency
As Bruce Fecheyr-Lippens puts it: “There is no point coming to the executive table with HR jargon. You must speak the language of the business and then embed the people agenda inside it.” Bruce describes this as a tango: with business leading the direction and HR understanding where to begin shaping culture, leadership, and organisational systems so that the strategy becomes executable and sustainable. Strategic HR will create shared value where both employees and executives can thrive.
What will strategic HR include?
Outcome-based metrics Success will be measured through tangible KPIs, such as retention, productivity, engagement, and innovation – instead of just activity volumes. These metrics will make HR’s impact visible and accountable. Board-level HR strategy HR leaders will bring people data, workforce insights, and cultural foresight together to shape executive decision-making, which will lead to HR ultimately becoming a strategic voice in the boardroom. Data-driven workforce planning Scenario planning will become a core capability, as AI-powered forecasting tools will help HR teams anticipate talent gaps, succession risks, and future skills needs. HR as a business partner HR will act as a challenger and proactive advisor by asking tough questions, influencing investment decisions, and shaping organisational design through a people-first lens.
Value Creator: Holistic HR
HR can no longer function effectively in silos – it needs to shift from executing isolated tasks to solving cross-functional challenges such as skills-based turnover or culture gaps.
In 2026, success will depend on how well HR integrates its systems, data, and practices into one connected ecosystem. Holistic HR means breaking down barriers between talent, performance, rewards, and learning to create a seamless experience for employees and a unified strategy for leaders. Bruce Fecheyr-Lippens explains: “Employees do not want to be passed around. They want one point of contact. We still have work to do.” In the year to come, integrated HR systems will become the foundation for agility – enabling faster insights, proactive interventions when necessary, and a more people-first experience across the employee lifecycle.
What will Holisitc HR include?
Value Creator: Sustainable HR
Sustainability is a strategic necessity – no matter the size or scale of your organisation.
Sustainability is about shaping a workforce and culture that prioritises long-term resilience, ethical practices, and societal impact. Companies who don’t embed ESG principles into the heart of organisational decision-making will simply be left behind. Sustainable HR ensures that every policy and process reflects environmental responsibility, and governance standards. This includes green payroll systems, carbon-aware benefits, and inclusive policies that reinforce fairness and belonging. As Pirashan Nagalingam puts it: “Treating employees well not only drives productivity, but it also makes them your customers and ambassadors. That’s true value creation.” In 2026, HR leaders must make sustainability a visible metric of success to gain a competitive edge.
What will sustainable HR include?
ESG-embedded HR practices ESG will become a core strategic lens for decisions. HR must integrate environmental, social, and governance principles into core processes – from recruitment and benefits to leadership development and culture. Green payroll and carbon-aware benefits Payroll systems will begin tracking carbon impact and benefits packages will reflect company-wide sustainability goals. This may include carbon offsets and climate-aware healthcare options. Inclusive and ethical policies HR will take the lead in implementing social impact policies and initiatives, including ethical labour practices, community engagement, environmental impact and stakeholder welfare. Societal impact as a metric HR’s contribution to long-term societal value, including employability, equity, and well-being, will become a visible, measurable outcome.
How can HR leaders become Value Creators?
Break down silos with integrated systems
Coordinate all HR functions (such as separate teams) into one integrated ecosystem. You can also use AI and analytics to link insights across domains for faster, coordinated action and systemic problem-solving. These integrated systems allow HR to diagnose complex issues like turnover and skills gaps holistically, allowing proactive solutions instead of reactive fixes.
“HR is evolving from being siloed to operating as an integrated system — where HR practices, data, and decisions are connected across functions.” Pirashan Nagalingam Global Sales Manager, SD Worx
“Only being friendly creates comfort without growth. Only being critical creates fear. The combination of being supportive and challenging is where we all become stronger.” Bruce Fecheyr-Lippens Chief People Officer, SD Worx
Create a Positive Impact Culture
Culture should be your organisation’s most secure advantage, so shaping it effectively is crucial. As an example, SD Worx is forming a Positive Impact Culture. Grounded in the principle of being critical friends, this involves creating an environment where employees are safe and comfortable to give direct, honest feedback to colleagues – including challenging them where necessary. The end goal is to be supportive and connected as a team.
Align HR metrics with overarching business KPIs
In 2026, HR must show its impact on growth and resilience. This will involve moving beyond engagement scores to measurable outcomes like productivity, retention, and transformation. HR leaders should make these metrics visible and link them directly to business performance, ensuring that HR is seen as a driver of growth and capable of making board-level decisions.
“Stop firefighting. Tackle the root causes, act like entrepreneurs, and show the value HR can create. Only then will HR take its rightful seat at the table.” Pirashan Nagalingam Global Sales Manager, SD Worx
“Culture is not defined in presentations or slogans. It is practiced, especially by leaders.” Bruce Fecheyr-Lippens Chief People Officer, SD Worx
Embed ESG into your People strategy
Make sustainability a core part of your HR strategy, implementing initiatives from green payroll and carbon-aware benefits to inclusive policies and ethical labour practices. This will ensure compliance as well as giving you a competitive edge. Embedding ESG principles signals to employees, candidates, and stakeholders that your organisation values long-term impact.
Provide internal and external listening spaces
Spend time with your customers (not just your internal stakeholders!) to understand what really matters to them and drives business value. Combine this external insight with internal listening spaces such as skip-level lunches, open forums, and informal feedback circles to uncover the truth behind the dashboards.