The SHRM HR excellence research summary is a research initiative from the Society for Human Resource Management (SHRM) that shows what makes HR functions excellent....
The SHRM HR excellence research summary is a research initiative from the Society for Human Resource Management (SHRM) that shows what makes HR functions excellent. Built on the HR-X Framework and data from more than 1,200 organizations and 2,000 workers, the SHRM HR excellence research summary finds that only about 1 in 8 HR functions reach high maturity, while high HR maturity correlates with stronger financial performance, engagement, and retention.
HR functions have always claimed to be strategic partners. But for decades, few organizations could prove the link between HR quality and business results. That changed with the SHRM HR excellence research summary, a research initiative from the Society for Human Resource Management that measures HR maturity across thousands of organizations and connects it directly to financial performance, engagement, retention, and culture.
This guide breaks the SHRM HR excellence research summary into clear, practical insights. You will learn what the HR Excellence framework measures, what the SHRM HR excellence research found, the ten proven insights every HR leader should know, and how to apply the SHRM HR excellence research findings in your own organization. Whether you lead a small HR team or a global HR function, the SHRM HR excellence research summary offers a road map to greater impact.
What Is the SHRM HR Excellence Research Summary?
The SHRM HR excellence research summary refers to a series of research initiatives from SHRM, the world’s largest HR professional society. The centerpiece is the HR-X Framework, which defines what excellent HR looks like and measures how mature HR functions really are.
SHRM built this research on a critical question: what must the HR function of the future look like to maximize its value and drive measurable business outcomes? To answer it, SHRM analyzed HR maturity data from more than 1,200 organizations and surveyed more than 2,000 U.S. based workers. The resulting reports, including the Business Case for HR Excellence report, form the core of the SHRM HR excellence research summary.
The SHRM HR excellence research summary is not a single document. It is a body of evidence that includes the HR-X Framework itself, the Business Case for HR Excellence report, the State of the Workplace series, the CHRO Priorities and Perspectives reports, and the State of AI in HR research. Together, these reports tell a consistent story: HR maturity is measurable, most organizations are not there yet, and the gap between high and low HR maturity has a direct financial cost.
The HR-X Framework That Powers the Research
To understand the SHRM HR excellence research summary, you first need to understand its foundation. SHRM developed the HR-X Framework as the standard for high performing HR, built on real data from more than 1,250 organizations.
The HR-X Framework defines excellent HR across four foundational dimensions. Together, these dimensions capture the full scope of HR responsibilities through 16 practice areas and more than 70 sub practices. Every finding in the SHRM HR excellence research summary is organized around these four dimensions.
Functional Acceleration
The first dimension of the HR-X Framework is Functional Acceleration. This dimension focuses on maximizing people and technology resources through strategic and efficient operations. High maturity HR functions align HR strategy with business goals, leverage advanced HR technology, and optimize resources to achieve measurable return on investment.
Talent Optimization
The second dimension is Talent Optimization. This dimension drives performance, engagement, and retention through innovative talent management. Its practice areas include leadership and manager development, learning and development, performance management, employee experience, inclusion and diversity, talent analytics, talent management, and labor and employee relations. High maturity HR functions adopt structured approaches across all of these areas.
Market Discernment
The third dimension is Market Discernment. This dimension emphasizes a deep understanding of the business and labor market so the organization can attract and reward top talent. Its practice areas are recruiting and total rewards. High maturity HR functions use data driven strategies and advanced technologies to align recruitment and compensation with market demands.
Organizational Impact
The fourth dimension is Organizational Impact. This dimension captures how HR supports and drives enterprise success. It measures the outcomes of HR maturity, including financial performance, workforce engagement, retention, and employer brand. The SHRM HR excellence research summary consistently shows that organizations scoring high on these dimensions outperform those scoring low.
What the SHRM HR Excellence Research Found
The core finding of the SHRM HR excellence research summary is striking: most organizations operate far below their HR potential. Nearly 90 percent of organizations operate with average or low HR maturity, leaving substantial business value untapped. Only about 1 in 8 HR functions reach high maturity, and more than 1 in 10 struggle at a low level.
The SHRM HR excellence research summary also draws a direct line between HR maturity and organizational success. High maturity HR functions deliver basic services well and then go further, driving revenue growth, talent retention, and workforce engagement. Low maturity HR functions struggle to keep up, and the difference shows up in the numbers.
The research studied nearly 1,300 HR leaders and more than 2,000 U.S. workers. Over half of HR leaders at organizations with high HR maturity reported exceeding financial objectives over the past year. By contrast, over half of HR leaders at organizations with low HR maturity reported missing their financial objectives in the same period. That contrast is the heart of the business case for HR maturity.
The 10 Proven Insights From the SHRM HR Excellence Research Summary
These ten insights from the SHRM HR excellence research summary give HR leaders a clear picture of what excellence requires and what it returns.
1. HR Excellence Is Rare
The first insight from the SHRM HR excellence research summary is that high HR maturity is rare. Only about 1 in 8 HR functions reach high maturity, while nearly 90 percent of organizations sit at average or low levels. This means the competitive advantage from high HR maturity is real, because most competitors are not achieving it.
2. HR Excellence Is Linked to Financial Performance
High HR maturity is associated with financial performance. Over half of HR leaders at high maturity organizations reported exceeding financial objectives over the past year. At low maturity organizations, over half reported missing financial objectives. The SHRM HR excellence research summary treats HR maturity not as a nice to have but as a business imperative.
3. HR Excellence Drives Revenue Growth
The SHRM HR excellence research summary shows that 75 percent of high maturity organizations achieved revenue growth over the past two years. That compares with 50 percent of average maturity organizations and just 40 percent of low maturity organizations. Revenue growth is one of the clearest outcomes of high HR maturity.
4. HR Excellence Raises Revenue Per Employee
For a company with 1,000 employees, the SHRM HR excellence research summary shows that high HR maturity generated 62,000 dollars more revenue per employee. That is a 62 million dollar company wide advantage. Few HR investments can claim that kind of measurable impact.
5. HR Excellence Boosts Employee Engagement
More than 80 percent of high maturity organizations report highly engaged employees. Low maturity HR functions have a near zero chance of fostering high engagement. Moving from average to high maturity can yield a 15 point increase on a 100 point scale in employee engagement scores, which directly affects productivity, retention, and culture.
6. HR Excellence Improves Retention
High HR maturity results in lower turnover and lower voluntary attrition rates, along with higher worker intention to stay. Retention is expensive to get wrong, and the SHRM HR excellence research summary shows that high HR maturity is one of the most reliable ways to protect your workforce.
7. HR Excellence Strengthens the Employer Brand
Organizations with high HR maturity earn stronger employer brand ratings. A strong employer brand makes recruiting easier, reduces hiring costs, and gives HR more leverage in a competitive labor market. The SHRM HR excellence research summary includes employer brand as a direct outcome of high HR maturity.
8. Most Organizations Have Gaps in Market Discernment
Within the HR-X Framework, only 19 percent of organizations have reached high maturity in total rewards, and only 13 percent have reached high maturity in recruiting. These gaps in the SHRM HR excellence research summary show that even organizations with strong overall HR still have clear opportunities in compensation, benefits, and talent acquisition.
9. AI Is Becoming Part of HR Excellence
The SHRM HR excellence research summary, through the State of AI in HR research, shows that less than half of organizations use AI in HR today. AI is most common in recruiting, HR technology, learning and development, and employee experience. HR professionals who use AI report efficiency gains of 87 percent and work quality improvements of 75 percent, and AI is more likely to shift responsibilities and create new roles than to displace jobs.
10. Worker Expectations Are Rising
Seventy two percent of HR professionals and executives report that workers have higher expectations of employers today. Workers who believe their organization effectively addresses workplace needs report job satisfaction at 91 percent, compared with just 44 percent among those who view their organization as ineffective. The SHRM HR excellence research summary makes clear that meeting rising expectations is now core to HR excellence.
How to Apply the SHRM HR Excellence Research Findings
Knowing the findings is only half the battle. The SHRM HR excellence research summary becomes valuable when HR leaders act on it, and the HR-X Framework provides the structure for action.
Start by assessing your current HR maturity. Use the HR-X Framework to score your function across the four dimensions and 16 practice areas. Be honest about where you are, because the SHRM HR excellence research summary shows that most organizations overestimate their maturity.
Prioritize the biggest gaps. If your total rewards maturity is low, invest in market benchmarking and transparent pay practices. If your recruiting maturity is low, connect hiring plans to business priorities and use analytics. The SHRM HR excellence research summary gives you the evidence to justify these investments to leadership.
Build a road map from functional to strategic. The HR-X Framework is designed as a progression, from foundational effectiveness to strategic partnership. Move your HR function up that curve deliberately, dimension by dimension.
Finally, measure what matters. Track the outcomes the SHRM HR excellence research summary links to high HR maturity: financial performance, engagement, retention, and employer brand. When your HR maturity rises, these numbers should move with it.
The Business Case for HR Excellence
The SHRM HR excellence research summary is essentially a business case for HR maturity, and the case is compelling.
For a 1,000 employee company, the difference between high and low HR maturity can be 62 million dollars in annual revenue. High maturity organizations are 75 percent likely to achieve revenue growth over two years, while low maturity organizations sit at 40 percent. Engagement scores can improve by 15 points simply by moving from average to high maturity, and high maturity organizations are more than 80 percent likely to report highly engaged employees.
The SHRM HR excellence research summary also shows the cost of inaction. Nearly 90 percent of organizations leave this value on the table because they operate at average or low HR maturity. For HR leaders who want to prove their strategic value, the business case for HR maturity is the strongest evidence available.
SHRM HR Excellence Research and the Future of HR
The SHRM HR excellence research summary also points to the future of the HR profession. Three themes dominate the outlook.
The first theme is AI. The SHRM HR excellence research summary shows that 92 percent of CHROs anticipate greater AI integration in workforce operations, and 84 percent expect upskilling in AI specific skills to increase. AI is not replacing HR professionals, but HR functions that adopt AI thoughtfully will move faster than those that do not.
The second theme is employee experience. CHROs are prioritizing employee experience and workplace culture more than ever, with culture cited by 31 percent of CHROs, up from 15 percent in 2025. The SHRM HR excellence research summary ties employee experience directly to retention and satisfaction.
The third theme is leadership development. Effective leadership and management is the top workplace need identified in the research, and 46 percent of leaders cite leadership and manager development as a top priority for 2026. High HR maturity in the future will depend heavily on how well organizations build their leaders.
How SHRM Built the HR Excellence Research
The SHRM HR excellence research summary is built on rigorous, large scale methodology. SHRM analyzed HR maturity data from more than 1,200 organizations and surveyed more than 2,000 U.S. based workers, and a related study spanned nearly 1,300 HR leaders. The goal was to measure how mature HR functions really are and to connect those maturity levels to outcomes that business leaders care about.
The research uses the HR-X Framework as its measurement standard. Each organization is scored across the four dimensions and 16 practice areas, which produces a maturity profile rather than a single number. That profile reveals where HR functions excel, where they plateau, and where they fall behind.
The findings appear in a series of reports, including the Business Case for HR Excellence report, the State of the Workplace reports, and the CHRO Priorities and Perspectives reports. Together these documents make up the SHRM HR excellence research summary that HR leaders can use for benchmarking and planning.
Common Misconceptions About HR Excellence
Several misconceptions keep organizations from acting on the SHRM HR excellence research summary. The first is that HR maturity is only about hiring great people. In reality, the research measures operational efficiency, technology, compensation, and organizational impact as well.
The second misconception is that high HR maturity is already common. In fact, only about 1 in 8 HR functions reach high maturity, which means most teams overestimate their standing.
The third misconception is that improving HR takes years before results appear. The research links maturity to outcomes that move relatively quickly, including engagement, retention, and revenue per employee.
The fourth misconception is that high HR maturity belongs only to large enterprises. The framework applies to organizations of every size, and smaller teams can use the same dimensions to prioritize their improvements.
Avoiding these misconceptions helps leaders use the SHRM HR excellence research summary with realistic expectations and a clear action plan.
Frequently Asked Questions
- What is the SHRM HR excellence research summary?
It is a research initiative from SHRM, built on the HR-X Framework, that shows how HR maturity drives financial performance, engagement, and retention. - What is the HR Excellence Framework?
The HR-X Framework defines HR excellence across four dimensions, 16 practice areas, and more than 70 sub practices, based on data from over 1,250 organizations. - How many organizations have high HR maturity?
Only about 1 in 8 HR functions reach high maturity, while nearly 90 percent of organizations operate at average or low maturity. - Does HR excellence affect financial performance?
Yes, over half of high maturity organizations exceeded financial objectives, while over half of low maturity organizations missed them. - What are the four dimensions of HR excellence?
The four dimensions are Functional Acceleration, Talent Optimization, Market Discernment, and Organizational Impact. - How does HR excellence affect employee engagement?
More than 80 percent of high maturity organizations report highly engaged employees, and moving from average to high maturity can raise engagement by 15 points. - What role does AI play in HR excellence?
AI is becoming a key part of HR excellence, with recruiting as the top use case, and AI more likely to shift responsibilities and create roles than to displace jobs. - How can my organization improve HR excellence?
Assess your maturity with the HR-X Framework, prioritize your biggest gaps, build a road map from functional to strategic, and measure outcomes like engagement and retention.
Conclusion
The SHRM HR excellence research summary makes one message unmistakable: HR maturity is measurable, rare, and directly tied to business results. Only about 1 in 8 HR functions reach high maturity, yet high maturity organizations are 75 percent likely to achieve revenue growth, generate up to 62,000 dollars more revenue per employee, and report engagement and retention outcomes that low maturity organizations cannot match. The HR-X Framework gives every HR leader a practical standard to assess where their function stands and a road map to move from foundational effectiveness to strategic partnership.
Whether you act on the business case for HR excellence by upgrading total rewards, transforming recruiting, adopting AI deliberately, or building stronger leaders, the SHRM HR excellence research summary offers the evidence and the framework you need. The value of high HR maturity is real, and the SHRM HR excellence research summary shows exactly how to capture it.