written by Where, how, and why we work were redefined five years ago by the COVID-19 pandemic. It accelerated the adoption of trends and technologies that otherwise would have taken decades to become mainstream. Companies reimagined everything – from technological infrastructure to employee experience (EX). At the same time, artificial intelligence (AI) became a powerful catalyst for change.
Five years after the pandemic, business leaders and HR professionals are once again transforming organizations, looking for more effective ways to recruit, retain, and develop people. HR has taken a major leap: from a purely operational function to a strategic one.
According to the Sapient Insight Group study, 94% of decision-makers say that HR is now seen as a strategic part of the business. By comparison, only 52% of HR functions were considered strategic in the Sapient study. This progress clearly shows the maturity of the field, but also that HR transformation remains an ongoing process.
Why HR is not always perceived as strategic
For the 5% of respondents in the Sapient Insight Group study who believe HR’s role is not strategic, the main reasons are:
- Lack of contribution to organizational objectives;
- The perception that HR is only a support function;
- Gender bias (given that 71% of HR managers are women);
- Insufficient resources;
- Lack of support from executive leadership.
These perceptions limit HR’s role at the “decision-making table,” reducing its ability to influence organizational strategy and change. However, modern HR teams prove they are essential for business success, since people are the most important asset of any organization.
Weaknesses but also opportunities in HR
One of the major weaknesses is recruitment. 69% of HR leaders expect the recruitment landscape to be just as difficult or even more difficult than in 2024. To overcome this challenge, organizations need to rethink their recruitment processes:
- more effective strategies for sourcing and attracting candidates;
- a stronger employer brand;
- a better candidate experience.
On the other hand, the biggest opportunity for HR in 2025 is improving the employee experience and increasing engagement. These have a direct effect on productivity, retention, reputation, and the ability to attract talent.
The power dynamic between employer and employee
The past five years have been marked by phenomena such as the “Great Resignation,” “quiet quitting,” as well as the return to office or workforce reductions. Currently, 65% of HR decision-makers believe that power is shifting back towards employers, which will lead to:
- a stronger focus on cost reduction and efficiency;
- pressure on HR to prioritize business over employee well-being.
This shift may negatively affect the employee experience and, consequently, organizational reputation, retention, and recruitment.
When you say strategic partner, you say Smartree
Over time, HR has transformed from a support function into a strategic partner within organizations, influencing their direction and performance. Smartree seeks to support the strengthening of this strategic role for its partners, contributing to human resources development through modern solutions tailored to current needs.
However, challenges remain, especially in recruitment and in maintaining a healthy balance between organizational goals and employee well-being.
For HR’s strategic role to continue evolving, it is essential that administrative processes do not consume most resources. This is where Smartree comes in. By outsourcing payroll services, organizations can free their HR teams from repetitive and time-consuming tasks. Thus, specialists can dedicate more energy to initiatives with real impact: attracting and retaining talent, improving employee experience, and supporting business objectives.
Smartree provides not only accuracy and efficiency in payroll but also a trusted partnership that supports human resources development at a strategic level.
Organizations that invest in employee experience and treat HR as a strategic driver will be the ones to attract and retain top talent, ensuring a sustainable competitive advantage in the age of AI.
We are Smartree, pioneers in outsourcing and personnel administration services, active for 25 years in the Romanian HR market. We offer innovative, strategic, and automated solutions for your HR challenges. Beyond our payroll and HR specialists, legislative consultants, and creators of the MyStaff platform, we aim above all to be your trusted partner. Contact us for a conversation!
