Once seen as a vital control function in the industrial era, overseeing workforce operations, HR has struggled to redefine itself as organizations entered the knowledge economy. In an age driven by data, connectivity and automation, HR appears to be limping along as a compliance and administrative branch rather than an impactful strategic partner.
Think about the young engineer freshly minted from a university and buzzing with ideas, or the middle manager rising up the ranks and managing a small team in the hope of leaving a mark. Both likely interact with HR mainly during onboarding, payroll issues or performance appraisals.
At its best, HR is friendly and functional, but does it empower them, guide them or help them fulfil their potential? More often than not, HR’s interactions are viewed as formalities, with little substance that adds value.
HR often feels like a tick-box function, focused on procedural formalities rather than meaningful support or change. Take exit interviews, for example. Despite collecting insights from departing employees, HR rarely acts on this feedback, making the exercise seem superficial and disconnected from real work.
This is not to say that HR professionals do not care; indeed, many enter the field with a genuine passion for people. Yet, over time, the agenda shifts.
In its quest to standardize roles and rewards, HR has arguably missed a crucial turning point: aligning with the larger business purpose and playing a central role in fostering human ambition. In many organizations, it can feel as if HR has been pushed to the periphery, busy with tasks that resonate little with broader corporate goals.
For too many employees, ‘going to HR’ means filling out forms rather than finding meaningful guidance or support. This perception is ironic, given that people are increasingly recognized as a company’s most valuable asset, a refrain heard in countless corporate mission statements.
When did HR lose its way? Perhaps the seeds were sown decades ago when companies treated personnel as just another ‘resource’ rather than as the very essence of their business. During the industrial era, employees were managed as a part of the production line; HR’s job was to enforce attendance, maintain discipline and contain disputes.
This was a time of timecards and factory floors, where the individual was secondary to the process. As we moved into the knowledge economy, it was expected that HR would evolve to see each employee as a unique talent, capable of creativity and innovation.
Instead, HR has often clung to its administrative roots, becoming a department associated more with procedures and hierarchy than with human potential.
Consider an anecdote from a manufacturing CEO I recently met, who described HR’s role at his firm as a “passive firewall”— a function that primarily manages risks, rather than create opportunities.
This CEO, who had transformed his business by embracing technology and agility, often felt HR lagged behind, unable to keep pace with the operational demands of the modern workplace. “In our growth strategy meetings, HR is silent. They’re there, but I wouldn’t call them present,” he said.
Is the problem structural, a result of embedded but outdated practices? At a time when innovation is central to success and employees expect more autonomy and purpose, should HR not be leading the charge on culture, workforce adaptability and employee well-being?
Also, has HR become too risk-averse? The pressure to ensure compliance in a heavily regulated world is real, but should that be at the expense of creativity and empowerment? Rather than building a proactive people strategy, HR seems too often to settle into a reactive mode, addressing issues as they arise instead of preventing them.
If HR cannot influence a company’s direction by championing its most valuable resource, its people, then who will?
There is, however, an opportunity here. If HR can redefine its role from a gatekeeper of policies to a driver of purpose, it could shine through.Today’s digital transformation, led by artificial intelligence, big data and personalization, demands that HR transforms into a strategic hub to nurture human creativity, emotional intelligence, and adaptability—qualities that no machine can replicate.
Imagine an HR department that not only marks its presence in the boardroom, but acts as a catalyst for change, actively shaping the organization’s future by fostering a culture of learning, growth and resilience.
Ultimately, HR must ask itself: Is it here to fulfil administrative duties or get people focused on a higher purpose? It’s time to shake off the image of HR as a cog in the compliance machine and re-imagine it as the steward of human potential.
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