The Hackett Group's 2025 Digital World Class® HR research reveals that leading HR organizations achieve 29% lower operational costs while supporting three times more employees, showcasing their strategic focus on enhancing business impact.

This research outlines a roadmap for HR transformation, emphasizing proactive workforce planning, the use of intelligent automation for routine tasks, and the development of data skills within HR teams.

These top HR organizations leverage generative artificial intelligence (Gen AI) and advanced automation to enhance their capabilities, allowing them to concentrate on higher-value tasks and align more closely with business objectives.

Key findings indicate that these advanced HR organizations are significantly integrated with business strategies, spending twice as much time collaborating with line leaders on talent plans, which enhances their perceived value as partners.

By adopting these practices, HR teams can significantly enhance their strategic impact and drive better business outcomes.

Investment in AI and automation is crucial, as these organizations are 2.3 times more likely to provide self-service automation for HR functions, indicating a strong shift towards digital enablement.

Digital World Class® HR teams are notably agile in navigating disruptions, enabling quicker adjustments to workforce dynamics and economic challenges.

Jessica Haley from The Hackett Group emphasizes that successful HR organizations are not just managing talent but are leveraging digital capabilities to unlock employee potential and elevate their strategic impact.

The research indicates that these organizations invest heavily in AI and automation, resulting in greater efficiency and a higher return on investment from technology.

The Hackett Group's findings suggest that organizations should collaborate with AI-focused partners to drive operational efficiency while maintaining ethical AI practices.

A public version of the research paper, titled 'Driving HR Performance With Gen AI,' is available for free with registration, providing insights into these transformative practices.

The research identifies five key performance areas where these organizations excel: Business Effectiveness, Digital Enablement, Customer and Stakeholder Experience, Operational Efficiency, and Process Automation.