Organizations face many challenges in managing their people, such as managing a multi-generational and global workforce within a skills shortage. To stay competitive there is a strong focus on retaining the best talent and keeping employees engaged while managing an increasing virtual workforce. Are HR functions and HR leaders equipped to meet these challenges? The Human Capital Institute (HCI), along with research partner SuccessFactors, explored the current state of HR. This initiative revealed the value organizations place on HR, based on where they position the function within their organization. We researched the state of HR, the perceptions of it, and profiled an HR function that does create business impact. Finally, we identified the most common barriers and challenges for HR to better understand and combat them.