How HR Can Evolve from Transactional Tasks to Strategic Powerhouse
I do not know who originally coined the phrase “Strategic HR,” but I would like to go back in time and change the course. Don’t get me wrong; I believe that we are at our best when we serve as strategic business partners. But as a profession this term has damaged our credibility and created barriers to success. HR has been patiently waiting for an invitation to join the strategic process in hopes that we will be embraced and given our rightful place at the table.
Well, hang on to your hat, Willy Wonka. There is no golden ticket wrapped up nicely in your favorite chocolate bar. While we were waiting for our invitation, everyone else was looking for us to step up and contribute strategically. They really want you to be their strategic partner. But they did not realize they needed to send a formal invitation.
Often, when I ask leaders what they would wish for if they had a magic wand, their desires are crystal clear: they want HR to align talent with organizational strategy, attract top talent, establish a robust leadership pipeline, and cultivate a culture of innovation. They might not label this as "Strategic HR," but they clearly want it.
We haven’t done a good job defining what Strategic HR really means, leading to missed opportunities for valuable conversations about its role and impact. As a result, HR professionals are left feeling disconnected and disillusioned, stuck in a cycle of transactional duties while yearning for strategic involvement. This conflict of expectations has led to an HR identity crisis that lingers yet today.
Traditionally, HR has been seen as a transactional function—overseeing policies, handling employee discipline, managing terminations, and enforcing wage decisions. This transactional focus has often made HR a necessary but unloved department. We’re seen as enforcers of rules, not as strategic partners. Everyone loves to hate HR. And we hate that they hate us!
We see ourselves differently. We believe in doing the right thing and that usually means following a less-than-friendly employment law. We are underpaid mini lawyers who can recite employment law better than most DOL bureaucrats. If we make a mistake, the proverbial poo will hit the fan. We have all sat through countless audits, unemployment hearings and depositions, and conversations with lawyers. We all have stories of attending employment law seminars that preach cautionary tales that would terrify even the most seasoned executive.
But this is where we are missing the boat. Our obsession with risk mitigation is perpetuating our comparison to the Catholic school nuns with rulers. We talk the strategic game, but we walk a traditional and transactional game.
The HR profession is at a crossroads. On one side, there are those who embrace the traditional roles of HR and find comfort in the familiar. They are recruiting warriors; they thrive during open enrollment season. They are fueled by the black and white of policy making. And they feel highly valued when managers come to HR for guidance around the progressive discipline process.
On the other side, a new wave of HR professionals is emerging, eager to redefine the profession by positioning themselves as strategic contributors – whether that’s through roles in organizational development, talent management, or even “workplace culture concierges”. They are distancing themselves from HR in order to establish a new, truly strategic brand.
In a conversation I had with Lyndsay Lord, CHRO for DECA Dental Group and former CHRO at Team Car Care (Jiffy Lube), she described herself as a “leader with an expertise in HR”. She embodies this new approach, she regularly does not stay in her lane. Her strategic philosophy is simple: right people, right roles, anchored in core values.
She offered this advice, “the world is changing; how we work is changing. If we don’t adapt, we won’t have the right talent. Without talent [the workplace] is just an empty building that doesn’t produce any value.”
As automation and AI continue to evolve, the traditional functions of HR – like payroll, benefits, administration, and compliance – are increasingly being outsourced or automated. This shift poses a critical question: will HR become obsolete if it doesn’t adapt to a more strategic role?
The answer lies in how HR responds to these changes. The profession must evolve from being seen as a necessary burden to becoming a vital strategic partner. The future of HR depends on its ability to redefine its role, embrace strategic thinking, and demonstrate its value in driving organizational success.
This is a reworked excerpt from my book, HR Leadershift: The Five Distinctions of a Strategic HR Leader. You can find more information about it here. Subscribe to our LinkedIn newsletter or follow HRLeadershift on LinkedIn to follow along for more.
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