The business of people: How HR can think like a CEO

The future of work is fast-moving, unpredictable, and shaped by technology, globalization, and shifting workforce expectations. In this environment, HR can no longer afford to be reactive- it must lead the way.

To understand what this shift means in practice, we spoke with Dr. Dieter Veldsman, Chief Scientist at AIHR. He argues that HR must be run like a business- investing resources strategically, measuring impact, and aligning priorities with broader business objectives. Rather than simply requesting budgets, HR leaders should be demonstrating the value of their investments.

In this discussion, we break down the key pillars of impactful HR strategy: identifying high-impact priorities, managing resources effectively, leveraging AI, and redefining employee experience in a world of constant change.

How do you prioritize HR initiatives to ensure they drive meaningful business outcomes?

You always have to remember that HR exists in a particular context. You have to ask what is going to make the biggest difference to the business in this time period. Usually, we help people understand the challenge they are trying to solve for the business and how the HR priority links to that. A mistake a lot of people make is prioritizing what HR thinks is important rather than what makes the biggest difference to the business.

An exercise we sometimes do with clients is asking business leaders what they think HR needs to do and how HR is performing, then asking the same question to HR. Very seldom do we achieve alignment there.

Prioritization should be done in collaboration with business, aligned to a specific challenge, with clarity on what success and impact look like. HR initiatives should be feasible. Many organizations embark on long-term digital transformation journeys, but it's important to identify short-term initiatives that demonstrate continuous value.

How do you balance resource constraints such as budgets, technology, and headcount while executing your HR strategy?

HR needs to be run like a business, with discipline in how resources are invested, managed, and measured. Many HR teams still operate as support functions, asking for budgets instead of demonstrating the value of investment. The conversation should shift to: "If these are the business objectives, this is what we need to invest to achieve them."

Clarity is key- what can and can't be done? Rather than trying to do everything, focus on fewer priorities and execute them well. Otherwise, HR becomes too thinly spread and doesn't deliver meaningful value. HR leaders must think like business executives, strategically managing finances and headcount to drive impact.

In what ways has your approach to HR strategy evolved over time, and what lessons have you learned from past challenges?

The first time I did HR strategy, I went too broad, trying to include everything instead of distilling it into two or three priorities with the biggest impact. Clarity and focus are crucial. What you say no to is as important as what you say yes to.

Another lesson is thinking in time horizons. A long-term vision is essential, but you also need short- and medium-term milestones to show progress and demonstrate value.

Lastly, scenario planning is key. The world is unpredictable, so having multiple strategy scenarios allows for agility. This also helps executives see possibilities and builds confidence in the strategy.

How do you create an employee experience strategy that resonates across different age groups?‍

Understanding your workforce is key. Age and generation are just one factor. Socioeconomic background, job type, and other elements also influence needs. A strong approach is to develop employee personas to capture these variations.

Then, organizations should identify key moments that matter to employees while delivering value to the company. Employee experience is a reciprocal relationship—both sides need to benefit.

For example, in a blue-collar work environment, flexibility doesn’t mean remote work but rather scheduling choices and input into work hours. Younger employees may seek coaching and growth opportunities, while older employees may prioritize autonomy and decision-making. The strategy should be based on understanding these diverse needs.

What are the biggest challenges HR teams face when integrating AI-driven solutions?‍

1. The first challenge is education, understanding what AI is, what it’s not, and what it can and cannot do. There’s a lot of unnecessary fear around AI replacing jobs.

2. The second challenge is competence. HR professionals need proficiency in using AI tools effectively. 

3. The third is confidence. Many HR teams don’t know where to practice using AI because organizations lack clear guidelines. 

4. Lastly, there’s the need for oversight, ensuring AI is used in targeted, meaningful ways. HR should focus on use cases where AI adds value rather than fearing its impact. Clear guidelines and training can help HR professionals integrate AI more effectively.

If you could make one bold prediction about the future of HR, what would it be?‍

HR is seeing an increasing focus in organizations, with significant investment in its role and growing attention at the executive level. The expectations for CHROs are evolving, and there is extensive work happening around employee experience.

In 10 to 15 years, HR will look completely different, with a new skill set and a much broader scope. It will become a more business-led function, driving specific value areas toward execution. While some existing responsibilities will remain, they will play out in a very different way.

HR will focus more on sustainability, the future of work, leadership capacity building, and talent and experience- rather than just transactional tasks. These tasks will still be important, but they will be handled differently. To meet future mandates and expectations, HR will need a fundamentally different skill set.

Redefining HR for a changing world

HR is standing at a turning point. No longer just a support function, it has the potential to be one of the most critical drivers of business success. But this won’t happen automatically- it requires HR leaders to step up, think strategically, and align their work with business priorities. The organizations that recognize and invest in this shift will thrive, while those that cling to outdated models will struggle to stay relevant.

Key takeaways for HR leaders

💡 Align priorities with business goals and show value.
💡 Prioritize what drives results, not just HR’s interests.
💡 Invest wisely, manage budgets, and execute with focus.
💡 Balance long-term vision with short-term wins
💡 Employee experience isn’t one-size-fits-all- understand diverse needs of your workforce.
💡 HR’s impact will grow through new skills, adaptability and strategic thinking.

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