Digital World Class HR organizations operate at 29% lower cost than peers while delivering faster results and stronger business alignment.
The Hackett Group, a leading generative artificial intelligence (Gen AI) consultancy and executive advisory firm, released its 2025 Digital World Class Human Resources (HR) research. It reveals how top-performing HR organizations are redefining excellence.
Digital World Class HR organizations – those achieving top-quartile performance in both business value and operational excellence – are achieving 29% lower cost while supporting three times more employees.
The report shows that Digital World Class HR organizations – those achieving top-quartile performance in both business value and operational excellence – are achieving 29% lower cost while supporting three times more employees. This reflects a strategic approach to scaling impact, not doing more with less. These HR leaders are embracing Gen AI and advanced automation to expand the capacity of HR teams, unlock time for higher-value work, and reshape the function into a more agile, insight-driven partner to the business. This trend is about building a better workforce experience to more effectively enable business objectives.
“Digital World Class HR organizations aren’t just managing talent – they’re unlocking the full potential of their people with digital capabilities,” said Jessica Haley, principal and Global Human Resources Executive Advisory practice leader at The Hackett Group. “These organizations are showing what’s possible when you combine human insight with digital enablement and AI. They are not reducing the function; they are elevating the impact of HR. Amplifying the power of HR to drive stronger business outcomes at scale, fostering resilience, and leading the way in shaping the workplace and the workforce – that is Digital World Class HR and that is the future.”
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Key findings: What sets Digital World Class HR apart
The Hackett Group’s research, which draws from global benchmark studies across hundreds of companies, highlights distinguishing characteristics of top-performing HR organizations:
1. They are more integrated with business strategy and engaged with business stakeholders.
- 2X more time working directly with line leaders on business-aligned talent plans
- 2.4X more likely to be seen as a valued partner by business stakeholders
- 57% more roles filled internally, signaling stronger alignment between talent development and business needs
2. They prioritize enterprise-level initiatives like strategic workforce planning.
- 32% more staff focused on strategic workforce planning
- 40% more organizational development efforts built into success metrics
- Stronger emphasis on change enablement, with more HR staff dedicated to facilitating business transformation
3. They invest more in AI, automation and digital enablement of HR service delivery.
- 2.3X more likely to offer self-service automation for HR data, compliance and reporting
- 2X more likely to align human capital management application strategies to enterprise goals
- 71% of primary software functionality is actively used, maximizing technology return on investment and scalability
Digital World Class HR organizations are also significantly more agile in navigating disruption, enabling faster adaptation to shifting workforce dynamics, economic headwinds and regulatory demands.
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Closing the performance gap: A blueprint for transformation
The research outlines a clear road map on leveraging Gen AI to reshape the HR service delivery model and close the Digital World Class performance gap:
- Address long-term workforce talent needs proactively by leveraging emerging tools to optimize workforce planning, skill development and internal mobility.
- Employ intelligent automation for routine HR work and transactional processes to open capacity for HR to focus on more strategic work.
- Identify and address your HR team’s skills gaps; embrace new ways of working, such as co-intelligence; and elevate HR’s strategic impact by strengthening data savviness and storytelling.
- Drive operational efficiency by collaborating with AI-focused partners who emphasize ethical AI practices, transparency and trust.
- Evolve the HR operating model into an integrated, aligned, digitally enabled model that empowers HR teams to drive strategic value for the business.
A public version of the research paper, “Driving HR Performance With Gen AI” is available for free with registration.
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Source: Businesswire
