As the pressure on HR intensifies in the age of AI, one thing is clear: top-performing HR teams aren’t doing more with less—they’re doing more with intelligence.
According to new research from The Hackett Group, Digital World Class® HR organizations—those in the top quartile for both business value and operational excellence—are cutting costs by 29% while supporting three times more employees than their peers. Their secret weapon? A strategic combination of generative AI, advanced automation, and enterprise alignment.
In a post-spreadsheet world where talent is harder to find and even harder to retain, these high-performing HR teams are showing what it takes to make the leap from tactical task managers to strategic business partners.
Scaling HR’s Impact Without Stretching Its Limits
“This isn’t about shrinking HR—it’s about amplifying its value,” said Jessica Haley, principal and Global Human Resources Executive Advisory practice leader at The Hackett Group. “The leading organizations are blending human insight with digital enablement to drive business outcomes, not just fill roles.”
And those outcomes speak volumes. According to the study, Digital World Class® HR teams:
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Spend twice as much time working with line leaders on talent planning
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Are 2.4X more likely to be seen as strategic partners by business stakeholders
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Fill 57% more roles internally, indicating stronger pipelines and better talent alignment
It’s not about doing HR faster—it’s about doing it smarter, with enterprise goals at the core.
Gen AI: Not Just a Tool – A Transformation Engine
What sets these high performers apart is not just digital adoption—it’s digital fluency. Top-tier HR teams are:
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2.3X more likely to use self-service automation for compliance and reporting
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2X more likely to align HCM software strategy to business priorities
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Using 71% of their software’s core functionality, maximizing ROI and scale
The emphasis is on practical, AI-powered enhancements: automating the mundane, freeing up bandwidth, and helping HR professionals focus on strategic initiatives like workforce planning, DEI, change enablement, and talent mobility.
And while many HR teams are still struggling to get AI pilots off the ground, Digital World Class® orgs are navigating change faster, adjusting to disruption, and setting the pace for what HR should look like in 2025 and beyond.
A Blueprint for the Rest of Us
The Hackett Group doesn’t just point out the gap—it provides a roadmap to close it. Among the key recommendations for HR leaders ready to elevate their game:
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Embrace Gen AI to anticipate workforce needs and strengthen skill development
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Automate routine processes to unlock capacity for strategic priorities
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Upskill HR teams in data literacy, storytelling, and AI co-intelligence
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Partner with ethical AI providers to ensure transparency and trust
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Evolve HR into an integrated, insight-driven operating model that drives business value
These are no longer “nice to haves.” In a competitive talent market and increasingly volatile economy, they’re survival strategies.
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