EY CHRO 2030 Market Insights: leading HR into the future with confidence

The role of the chief human resources officer (CHRO) is shifting. The next five years are critical for the evolution of the role, the HR function and leading the people agenda. EY’s CHRO 2030 market insights, based on deep discussions with over 160 executives from some of the world’s leading organizations, representing 15 sectors and 26 countries, offer a glimpse into how leaders can navigate and elevate over the next five years. Continue reading for some of the highlights. If you are interested in exploring the full findings, including detailed data and insights that can help drive meaningful business and talent transformation, we encourage you to connect with us. 

The importance, urgency and opportunity for strategic HR leadership

EY’s CHRO 2030 market insights offer focus for the HR executive and function as the business calls them to lead on more fronts than ever before. While 89% of employers acknowledge that HR must evolve to meet their changing talent and strategic business needs, only 32% currently possess a talent advantage, driving greater business and talent outcomes. This disparity underscores a critical opportunity: as HR continues to rise in strategic importance and the urgency to transform mounts, HR executives must drive value by prioritizing the right strategic agenda, exploiting ready-now technologies and redefining what work and talent means for the business. HR executives must not only embrace the call to lead transformation but also strengthen the business, technology and humanistic capabilities critical to delivering business value.

To navigate the increasingly complex and dynamic business landscape and position themselves as vital leaders to organizational success, HR executives and business leaders should ask three key questions.

Question #1: How will the HR executive role evolve over the next five years?

Eighty-five percent of employers believe that having a strategic HR function will be critical to business success over the next five years, yet 89% believe HR will need to change notably to meet the evolving needs of the business. This statistic is the urgent need for HR leaders to accelerate the transition from traditional administrative roles to strategic partnership.

In a sea of responsibilities, three broad competencies have emerged as defining characteristics of high-performing HR executives in the coming years:

Question #2: How must the HR executive lead in transformation?

With technology as a primary catalyst, to redefine value to the business HR executives should drive transformation in four areas:

Question #3: How can CHROs leverage technology to deliver future value?

As HR executives navigate disruption and transformations, leveraging technology becomes a critical component in driving value. Executives cite several key technologies as impactful value drivers for HR over the next five years. These technologies will accelerate the move from administrative to strategic and drive efficiency of the HR function and the workforce but also modernize the employee experience. Among some the technologies expected to lead this change are:

• Artificial intelligence (AI) and machine learning: These technologies will automate routine tasks, enhance decision-making processes and provide predictive analytics to support talent.
• Generative AI (GenAI): GenAI will be utilized for creating content, such as training materials and performance feedback. This technology will streamline HR processes and improve efficiency by generating relevant and personalized content for employees and HR professionals.
• Robotic process automation (RPA): RPA will automate repetitive and administrative tasks within HR, such as payroll processing, benefits administration and compliance management. This will free up HR professionals to focus on more strategic initiatives.
• Advanced analytics and data science: The use of advanced analytics and data science will enable HR to gain deeper insights into employee performance, engagement and retention. These technologies will help HR make data-driven decisions and develop more effective talent, rewards and performance management strategies.

Evolution of workforce: adapting to new realities

As the role of the CHRO transforms, so does the workforce. The CHRO 2030 insights highlight significant shifts in workforce dynamics that HR leaders must navigate. By 2030, the global talent shortage is projected to exceed 85 million people, creating a pressing need for organizations to rethink their talent strategies and workforce management.

The expectations of employees are evolving rapidly, with workforces moving away from a one-size-fits-all approach to personalized experiences. Employees seek more than just competitive salaries; they desire meaningful work, flexibility and a supportive environment. According to the findings, only 32% of employers currently feel confident that they are able to deliver a talent advantage (programs, technology and culture) that aligns with the personalized expectations of employees.

The challenge is compounded by the fact that 70% of employers report an urgent need for talent with new skills to meet emerging business needs, drive enhanced performance and unlock unrecognized value. This highlights the critical importance of aligning talent development with organizational goals. To effectively respond to these changes, HR executives must focus on several key areas:

Evolution of the HR function

The HR function stands at a critical juncture, requiring a rapid evolution to not only keep pace with emerging demands, but also drive greater value and effectiveness. To accelerate their readiness, HR leaders must focus on the following key areas:

• Elevating HR with GenAI: AI creates an opportunity for HR to deliver additional business value, accelerate P&L cost savings and elevate employee experience. This is the time for HR to lead GenAI adoption.
• Operating HR as a business: HR must evolve to operate with the same strategic foresight and efficiency as a business to drive organizational success. HR will need to drive talent strategy underneath broader corporate strategy, delivering more value with fewer people resources.
• Transforming HR business partner (HRBP) role: Technology significantly enhances the effectiveness of HR business partners, making them more impactful in guiding the organization. Successfully leading this transformation will be essential.
• Modernizing reward structures: Through advanced analytics, HR will increase its ability to proactively manage and anticipate the pay, total rewards and wellbeing components of their people agenda to enhance employee experience, performance and business outcomes.

• Embracing talent mobility: According to the EY 2025 Mobility Reimagined Survey, most (90%) employers agree that there are benefits for aligning mobility to wider organizational and talent goals, but a staggering 70% of that group still can’t achieve it. Workforce mobility must foster a dynamic, borderless work environment where talent knows no geographical boundaries, compelling businesses to adapt or become obsolete.

The road to success

Reflecting on these insights reveals that the path forward for HR leaders is filled with both challenges and opportunities that require clarity in priorities. Challenges, such as skill gaps and evolving employee needs, must be navigated well for HR to have and hold its ‘seat at the table’. While challenges are significant, emerging technologies, including GenAI, present a substantial opportunity, and their adoption require leaders to build transformation as both business and people capability. As we look ahead to 2030, these challenges and opportunities require CHROs to level up their game and embrace a more complex role, build talent advantage with a strong focus on skills and ensure that the HR function evolves to keep up with growing business demands. Organizations that prioritize strategic HR leadership, embrace technology, and focus on employee experience will be better positioned to navigate the complexities of the now and future workforce.

The future of HR leadership is not merely about responding to change; it is about proactively leading the movement toward a more innovative workplace that unlocks new value.