To meet the new demands of a boundaryless world, human resources itself should become boundaryless, shifting from a specialized function that owns most workforce responsibility to a boundaryless discipline, cocreated and integrated with the people, business, and community it serves. One where people expertise isn’t solely owned by HR, but where the people discipline in an organization becomes a responsibility and capability of all, woven throughout the fabric of the business to create multidisciplinary solutions to increasingly complex problems.
Harnessing the potential of people has become as important as, or more important than, leveraging physical assets to achieve outcomes.1 And as dramatic changes in business, technology, and the world often demand unprecedented agility, responsibility, and the creation of human outcomes, no single function can tackle these on its own: People expertise (within or beyond HR), alongside expertise in other disciplines, will be critical.
People expertise is the knowledge and understanding of how to develop, motivate, and deploy workers to achieve business outcomes (for example, productivity) and human outcomes (for example, professional growth) throughout the talent life cycle. At an individual contributor level, people expertise is an understanding of how to amplify your own and your fellow team members’ performance through providing feedback, seeking and supporting development opportunities, reinforcing culture, engaging in positive teaming, and other actions.
Consider how the explosion of human and machine interaction demands close collaboration between HR and information technology. Chris Nardecchia, chief information officer for Rockwell Automation, for example, works closely with the chief human resources officer “because there is an inherent link between leadership, culture, skills, and behaviors in achieving digital transformation outcomes.” This collaboration has helped the organization achieve business process improvements, resulting in a 75% reduction in total order cycle time.2 Digital transformation—in particular, the impact of generative artificial intelligence—also creates a premium on people capabilities and skills for all; indeed, talent management is one of the top 10 skills that is increasing in importance for all workers, according to the World Economic Forum.3
Or consider how as work becomes more dynamic, people expertise is needed at the edges of the organization, close to the point of need—rather than many steps removed in a function. Likewise, the responsible use of workforce data and AI requires HR to partner with information technology, risk, and ethics. The pursuit of responsible business practices, including environmental, social, and governance concerns—in particular, the increasing importance of human sustainability—means HR is collaborating closely with other functions and groups like corporate social responsibility; diversity, equity, and inclusion; finance; operations; marketing; and public affairs.
These are just a few examples of boundaryless HR in action. But what exactly is boundaryless HR? Boundaryless HR is first and foremost a mindset shift—supported by the adoption of a different set of practices, skill sets, metrics, technologies, and even in some cases, structural changes. Boundaryless HR embeds the people discipline into the fabric of a business by breaking down the following boundaries:
HR has already worked to dissolve boundaries within the HR function, adopting more agile, employee-centric operating models.4 Now, HR is poised for the next evolution: shifting its mindset to reconsider the very boundaries of the HR function itself (figure 2). When HR becomes boundaryless, HR professionals can act more like orchestrators, coaches, and cocreators, rather than traditional employment managers.
It’s worth noting that boundaryless HR is not an HR operating model problem or a neat remapping of who owns what. It’s less a matter of where people are in the boxes and lines of an organization’s structure, and more how the organization taps into the most skillful people, no matter where they reside, inside or outside the organization, to address people-related challenges and issues.
As leaders recognize the critical importance of people expertise, it becomes less of a question as to where this expertise is housed, or where, when, and how it is delivered through an HR operating model, and more of a question of how to operationalize people expertise throughout the organization at the point of need. “HR is an ability and a discipline that everybody has to have,” explains Gabriel Sander, head of human resources at Cuervo. “As HR, we have to stop thinking that our managers being better is a detriment to our function. Every person who works with other people has to be good at HR.”5
This shift builds on our 2020 Global Human Capital trend, Memo to HR,6 which called for HR to expand accountability, extending its scope of influence beyond the function to the enterprise and business ecosystem as a whole, and broadening its focus from employees to the organization—and ultimately, to the work and workforce itself. Boundaryless HR is how we get there.
The end result is an ecosystem of HR professionals, business leaders, and workers who are equipped with the people expertise to unlock human performance.
The COVID-19 pandemic put a spotlight on the value realized when HR has broad involvement across the organization. During the pandemic, HR often:
By working outside of its traditional functional boundary, HR successfully kept people safe while sustaining business operations, created new ways of working with digital technologies, and helped advance human sustainability by keeping workers employed. And leaders recognized the impact: The percentage of executives who are very confident in HR’s ability to navigate future changes doubled from 2019 to 2020.8
Now, there is risk of a snapback, perhaps because HR earned a temporary spotlight and entry into work-related decisions, but business leaders didn’t fully recognize the ongoing value of people expertise; or because the prepandemic status quo offers a simpler path.9 Although the pandemic may have been an accelerator, the need for greater HR impact was growing well before the pandemic. Simply going back to previous ways of working overlooks the need to operationalize collaborative work across the organization and the ecosystem in which it operates.
At the same time, the pace of change and expectations continue to rise, suggesting that HR should reinvent its purpose. The world of work is changing, as illustrated by so many of our current and previous trends, requiring five major shifts (figure 3). But moving to a boundaryless HR approach can help organizations protect themselves against a snapback and evolve fast enough to keep pace with change. Moving toward boundaryless HR can be a path toward increased value creation—for HR, for workers, and for the organization as a whole. And value creation is what it needs; although HR has certainly made progress in recent years, only about 1 in 3 executives strongly agree that their organization values the work performed by HR, according to our 2024 Global Human Capital Trends research.
The five major shifts, and why boundaryless HR is needed to execute them, are as follows:
Instead, the people discipline is cocreating business strategy and key business outcomes, and 81% of business executives say the business agenda and the people agenda have never been more intertwined.18 Whether it’s innovation, customer satisfaction, digital transformation, or organizational agility, the discipline of people is a key, and often the most critical, driver of the major outcomes.
“It’s hard to implement change effectively if you’re not leading change,” said Donna Morris, chief people officer at Walmart. “If we want to be a strategic function, we need to think about the role we play in architecting that change—envisioning organizational design, ways of working, new opportunities for impact.”
Seventy-two percent of respondents in our research agreed that HR’s shift from an operations function to a discipline operating across functions to orchestrate work is very important or of critical importance. Some progress is being made: Thirty-five percent of respondents said that the HR function at their organization has expanded its scope over the past three years. And 27% of C-suite leaders strongly agreed that their HR function has become increasingly integrated with the practices of other business functions.
That trend is reflected across the organization, where functional boundaries are becoming less meaningful overall. In fact, 81% of executives said work is increasingly performed across functional boundaries21 and 54% of executives in our survey said cross-functional collaboration at the worker level is now happening often or all the time. These results represent a substantial shift from the data of our 2018 survey, in which 73% of respondents said their C-suite leaders rarely, if ever, work together on projects or strategic initiatives.22 Johnson & Johnson’s HR leadership saw an opportunity to break down functional boundaries in creating the HR Decision Science team, which is tasked with tapping the organization’s vast data resources to make better end-to-end workforce-related decisions and improve organizational and worker outcomes. The team includes experts and specialists from across the organization working together to help strengthen J&J’s ability to drive science-based and data-driven people decisions across talent practices (see the case study titled “Johnson & Johnson: A case study in cross-functional teaming”).23
The shift to boundaryless HR doesn’t necessarily indicate that HR needs to take over the responsibilities of other functions. At the same time, it is also true that, as the people discipline is increasingly integrated into the business, HR leaders may take on responsibilities such as real estate and customer experience that are outside their traditional functional purview. Consider how Alexion Pharmaceuticals introduced a chief patient and employee experience officer, integrating the worker and patient experience,24 or how KION Group AG’s chief people officer expanded her role to become chief people and sustainability officer.25
But these dynamics will work the other way, too. To become better integrated, HR may give up some of its ownership over certain tasks as HR-related activities are folded into other groups. For example, marketing may take on the responsibility of employer branding; chief strategy officers may be responsible for creating a human capital strategy; operations management groups may take on some HR responsibilities related to process excellence. Octopus Energy, for example, does not have an HR department, but rather empowers managers to be responsible for tactical tasks like resolving a case of bullying or mediating contract disputes.26 Managers will also need to take on more people management responsibilities themselves—performing their own analytics, conducting workforce planning, or identifying areas to improve human performance. For instance, Google Cloud managers use people dashboards provided by HR to share insights on organizational health and performance, and they plan to embed AI in the future to model changes to things like team structures or roles.27
However, it’s still early when it comes to fully shifting HR from an operations function to a boundaryless discipline that orchestrates work—and organizations are finding the process challenging. In our survey, 31% of C-suite leaders said this shift is one of the top three most difficult changes for their organization’s leadership to address.
Further, our research also indicates that organizations may be particularly challenged by their internal constraints. Potential constraints could include not prioritizing people expertise or not having a culture that supports it, as well as competing priorities. For example, while organizations might offer training courses on people-related issues to first-time supervisors or provide mid-level managers feedback or coaching to help them become better people leaders, these can sometimes be treated as secondary priorities, lack investment, and not be well-integrated into day-to-day ways of working. Resolving those issues, in part by moving boundaryless HR higher on the organizational priority list, is necessary for organizations to benefit from boundaryless HR’s promise.
HR is not alone in becoming boundaryless: IT, finance, and other functions are increasingly becoming integrated into the business to drive agility, innovation, and human sustainability. Like other functions, HR will need to actively seek better integration across roles, processes, objectives, teams, metrics, technologies, and systems throughout the organization.
Organizations can take the following actions to transform HR from a function to a boundaryless discipline:
Alternatively, organizations can create integrator roles that include the people discipline such as joint worker or customer experience leader, chief collaboration officer, or chief transformation officer. For example, after spinning off from Western Union, fintech organization Convera has created integrated transformation roles to drive its business strategy, naming a leader to each transformation goal. Senior leaders recognized the importance of embedding change capabilities and resilience throughout the organization, not siloed to one workstream or team within HR. To operationalize this change capability, each of the transformation leaders has been trained in change management, and each initiative is measured against organizational change management metrics as part of its business case.35 The change management training has also been rolled out for managers and employees to build individual and organizational resilience amid change.
When Johnson & Johnson identified an opportunity to make better, more objective, and data-driven decisions about their workforce, the Global Talent Management team set out to make it happen by finding a way to integrate the vast amounts of data that were available to them, but siloed across different functions of the organization, and then leverage this connected data within talent practices. To bring this data together, and ultimately provide added strategic value to the organization at large by collecting and connecting talent insights to actionable recommendations that drive outcomes, they launched the HR Decision Science team.
The team relied heavily on cross-functional teaming and collaboration, bringing together specialists from business units across the organization, as well as experts like industrial or organizational psychologists and data scientists. They work in close collaboration with both technology partners to ensure that they are integrating HR data with other data from the business (e.g., finance, operational, and customer data), as well as with the businesses themselves to strategically help frame up the right types of questions to answer their talent challenges. The team then blends high quality data and science to ultimately help business partners make informed, impactful decisions about people and organizations. This integrated team has been critical to delivering the best possible insights and decisions for the organization, informing decisions around, development, performance engagement, and workforce planning.
Beyond breaking down boundaries between HR and other disciplines, the HR Decision Science team is also working to break down boundaries that equate the notion of “jobs” to work. The team is driving a transformation that is enabling Johnson & Johnson to become a skills-based organization where skills, more than jobs, are at the center of the talent strategy ultimately launching a model that powers skills-based hiring, mentoring, development, and redeployment to other functional areas.
The mindset shift to boundaryless HR often requires that HR leave its comfort zone—shifting from owning the discipline of people to coowning and cocreating it with the people and business it serves in order to drive shared outcomes with mutual accountability. It’s a two-way street: Like counterparts in IT and finance, HR can become more integrated with the business, and the business can become integrated with HR.
The CHRO has a critical role to play in this evolution, which demands a new way of leading. It may even be time to make the CHRO the chief work officer, responsible for a workforce that is now composed of internal and external workers collaborating with AI, and where the line between technology and people is increasingly blurred. “The future of HR is one where we think about boundaryless differently, and how that changes our team constructs,” said Michael Ehret, PhD, head of global talent management at Johnson & Johnson, in an interview with Deloitte. “For example, our talent acquisition team has transformed into a talent access team, because it's not just about hiring people full-time or part-time. We need to access the best talent in the world, with the right skills, whether that’s full time, part time, contingent, or smart machines that will allow our people to focus on the most impactful work. Our Global Talent Management team has adopted the mantra of ‘ready for any future.’ We want to make sure the organization, our leaders, and our people are ready for whatever comes.”38
CHROs may need to shift their own roles, too, as they integrate the people discipline across the organization and cocreate new approaches to unlocking human potential and measuring human performance along with other functional leaders. Fortunately, many CHROs are already well-positioned to be an orchestrator across disciplines, as it is one of the only roles that serves every part of the business. For example, the CHRO is often well-placed to identify and orchestrate the connections among technology, data, and people, or the connections between the customer and worker experience. This shift will require that many CHROs grow their skills, as they forge connections across and beyond the enterprise, and create a stable home for HR professionals through belonging and purpose as they increasingly work outside of the HR function itself.
The shift to boundaryless HR will require a new vision of HR, a new mindset, new skills, a new way of leading, and potentially new roles and organizational structures. But the payoff from the move from knowing to doing can be tremendous. HR can help create more compelling worker value propositions, improve workforce effectiveness, and move talent management closer to serving as a strategic function of the business, rather than one that is primarily operational or reactive. In addition, the work of HR professionals can be more creative and meaningful. As human performance is unlocked and measured, organizations can thrive, along with the workers, partners, and communities they reach.
Deloitte’s 2024 Global Human Capital Trends survey polled 14,000 business and human resources leaders across many industries and sectors in 95 countries. In addition to the broad, global survey that provides the foundational data for the Global Human Capital Trends report, Deloitte supplemented its research this year with worker- and executive-specific surveys to represent the workforce perspective and uncover where there may be gaps between leader perception and worker realities. The executive survey was done in collaboration with Oxford Economics to survey 1,000 global executives and board leaders in order to understand their perspectives on emerging human capital issues. The survey data is complemented by over a dozen interviews with executives from some of today’s leading organizations. These insights helped shape the trends in this report.