Two-Thirds of Leaders View HR as Key Business Driver

Global Survey from BCG and WFPMA Reveals HR's Expanding Strategic Role, Challenges with AI and Digital Transformation

Mar. 17, 2026 at 7:01am

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A new global survey from Boston Consulting Group (BCG) and the World Federation of People Management Associations (WFPMA) of over 7,000 HR and business leaders found that 65% of senior leaders now view HR as a key business enabler driving transformation and value creation. However, the function faces critical execution challenges, with 51% of leaders citing administrative workload as the primary barrier preventing HR from contributing more strategically. The survey also revealed uneven progress on AI adoption and skills-based talent management approaches.

Why it matters

The survey highlights the evolving role of HR, with senior leaders increasingly seeing the function as a strategic partner in driving business performance. However, HR leaders must overcome operational hurdles and accelerate digital transformation efforts to fully unlock HR's potential to enable enterprise-wide change. The findings offer guidance for CHROs on priority areas to focus on, from leveraging AI and digital solutions to reskilling the workforce around skills-based approaches.

The details

The survey found that nearly 70% of respondents report using generative AI, but only 38% consider it highly relevant for their organization today. Scaling AI remains a challenge, with 51% citing data privacy and compliance concerns as the biggest barrier. On the digital front, while the importance of digital solutions jumped 13 ranks, current capabilities remain low, underscoring the need for HR to move faster on implementation. The survey also revealed uneven progress on skills-based talent management, with only 11% of companies having a fully embedded skills taxonomy across the enterprise.

  • The survey was conducted in 2026.

The players

Boston Consulting Group (BCG)

A global management consulting firm that partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities.

World Federation of People Management Associations (WFPMA)

A global network of professionals in people management, founded in 1976 to aid the development and improve the effectiveness of professional people management all over the world.

Philipp Kolo

A BCG partner and director and a coauthor of the report.

Peck Kem Low

The WFPMA President and a coauthor of the report.

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What they’re saying

“HR needs to move faster in terms of implementing digital technology, both within the HR function and driving the people elements of digital transformation across the business.”

— Philipp Kolo, BCG partner and director (bakercityherald.com)

“Ultimately, companies measure the success of the HR function by the value it creates for the business, not the volume of activity it delivers.”

— Peck Kem Low, WFPMA President (bakercityherald.com)

The takeaway

The survey highlights the growing strategic importance of HR, but also the need for HR leaders to overcome operational challenges, accelerate digital transformation, and reskill the workforce around skills-based approaches to fully unlock HR's potential to drive business value and enable enterprise-wide change.