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International HR Day 2026: How HR became the fastest-rising power function in corporate leadership

• By Samriddhi Srivastava
International HR Day 2026: How HR became the fastest-rising power function in corporate leadership

There was a time when the biggest corporate announcements came from finance, operations, or technology leaders.

Now, increasingly, they come from HR.

Whether it is return-to-office mandates, AI workforce strategies, executive succession, wellbeing policies, or organisational restructuring, the modern workplace is being shaped as much by Chief Human Resources Officers as by CEOs or CTOs.

That shift has been gradual, but impossible to ignore.

Over the past few years, HR has evolved from a largely operational department into one of the most influential functions inside global corporations. The change has been driven by overlapping crises: the pandemic, the race for digital talent, the rise of hybrid work, and now the rapid adoption of generative AI.

On International HR Day 2026, the modern HR leader looks very different from the stereotype many companies operated with for decades.

The role is no longer confined to hiring, policies, and performance reviews.

It now sits at the intersection of business strategy, technology transformation, workforce planning, and corporate culture.

1. The pandemic forced CEOs to rely on HR like never before

The pandemic years reshaped corporate leadership structures globally.

As offices shut and millions of employees shifted to remote work, HR teams became responsible for managing operational continuity, employee communication, safety protocols, mental health support, and workforce restructuring simultaneously.

According to workforce research published by Gartner, HR leaders became central to crisis management and organisational resilience planning during Covid-19.

The function gained visibility inside boardrooms because business continuity increasingly depended on workforce stability.

That period changed how many CEOs viewed HR. Before 2020, HR was often seen as a support function.

After 2020, companies began treating workforce strategy as a core business priority.

The impact of that shift is still visible today.

2. AI transformed HR from a people function into a business function

If the pandemic elevated HR, AI accelerated its influence further.

The rise of generative AI has created major workforce questions that extend far beyond technology infrastructure.

Companies are now grappling with:

  • Which roles can be automated
  • How employees should be reskilled
  • What ethical AI deployment looks like
  • How productivity should be measured
  • How managers should lead AI-enabled teams

These conversations increasingly involve HR leaders alongside technology executives.

According to research from The Josh Bersin Company, organisations are redesigning workforce structures around AI integration and skills transformation.

That has expanded HR’s strategic role significantly.

At ServiceNow, for example, Jacqui Canney holds the title of Chief People and AI Enablement Officer, reflecting how closely AI deployment is now linked with workforce planning.

The language around HR leadership has changed too.

Terms like “people analytics”, “skills architecture”, and “workforce intelligence” now dominate boardroom discussions.

3. HR thinkers became some of the most influential voices in business

The rise of HR influence has also created a new generation of globally recognised workplace thinkers.

Among the most influential figures shaping modern HR strategy are:

  • Josh Bersin, founder of The Josh Bersin Company, whose research on HR technology and workforce transformation has become widely referenced across enterprises
  • Dave Ulrich, often described as the “father of modern HR”, known for developing the HR business partner model
  • Laszlo Bock, former Google People Operations leader, who helped popularise data-driven people management
  • Adam Grant, the Wharton organisational psychologist whose work on burnout, motivation, and workplace culture gained significant traction after the pandemic
  • Johnny C. Taylor Jr., President and CEO of SHRM, who has consistently argued that workforce issues are now central business issues

The growing visibility of these figures reflects a broader shift.

Workplace culture, leadership trust, and employee behaviour are no longer treated as secondary management concerns. They are increasingly tied to growth, retention, and long-term business performance.

4. Corporate culture became measurable business infrastructure

One of the biggest changes inside large organisations is how workplace culture is now discussed in commercial terms.

Research from Gallup and McKinsey has repeatedly linked employee engagement and organisational culture with productivity, retention, and business outcomes.

As a result, companies have begun treating culture as operational infrastructure rather than an internal communications exercise.

That has elevated HR leaders who specialise in organisational transformation.

Executives such as:

  • Ellyn Shook, Chief Leadership and Human Resources Officer at Accenture
  • Francine Katsoudas, Chief People, Policy and Purpose Officer at Cisco
  • Donna Morris, Chief People Officer at Walmart

have all been recognised for integrating workforce strategy into broader business transformation agendas.

5. The modern CHRO now influences more than talent strategy

The responsibilities attached to HR leadership have expanded sharply in recent years.

Today’s CHROs increasingly oversee:

  • Leadership development
  • Workforce productivity
  • Skills transformation
  • Employee wellbeing
  • Organisational design
  • Diversity and inclusion strategy
  • Hybrid work frameworks
  • AI readiness planning

At companies like IBM, Procter & Gamble, and Cisco, HR leaders now play visible roles in long-term strategic planning and operational transformation.

Industry analysts say the role increasingly demands a combination of business, technology, analytics, and behavioural expertise.

That is a significant departure from the traditional perception of HR leadership.

6. Leena Nair’s rise became a defining moment for HR leadership

Perhaps no appointment symbolised HR’s growing influence more than Leena Nair becoming global CEO of Chanel.

Nair previously served as CHRO at Unilever, where she was known for championing inclusive leadership and people-centric organisational strategy.

Her appointment was widely viewed as evidence that modern people leadership skills can translate into broader enterprise leadership.

For years, future CEOs typically emerged from finance or operations backgrounds.

That pattern is slowly shifting.

As businesses confront AI disruption, workforce instability, leadership trust issues, and cultural transformation, executives with deep organisational and people expertise are becoming increasingly valuable.

7. HR’s influence is likely to grow further in the AI era

The next phase of business transformation is expected to revolve around workforce adaptation.

According to reports from Mercer, Deloitte, and Visier, companies are investing heavily in:

  • Workforce analytics
  • Skills mapping
  • AI-enabled learning
  • Employee experience platforms
  • Organisational redesign

Those priorities place HR leaders at the centre of long-term business planning.

The irony is that HR became more influential precisely when work became more unpredictable.

The more unstable the workplace became, the more companies needed leaders who understood behaviour, communication, trust, and organisational change.

On International HR Day 2026, that may be the clearest sign of HR’s transformation.

The function once associated mainly with administration has become one of the defining power centres of modern corporate leadership.