Response to “Bloated HR is more about woke than wealth”

Iain Martin’s recent article in The Times, “Bloated HR is more about woke than wealth,” makes sweeping and misplaced generalisations about the state of HR functions. Here’s why his claims are fundamentally flawed: 

HR functions are shrinking, not bloated

Contrary to Iain’s assertion, HR departments are not growing unchecked. LinkedIn data reveals that multinational companies have been significantly reducing HR headcounts this year:

• 6% at Thales
• 8% at Nationwide
• 4% at GSK
• 9% at AstraZeneca
• 7% at Asda
• Additionally, RBS and BP have reduced their HR functions by 1%, which is particularly impactful given their already lean HR structures.

These reductions have driven a 13% increase in self-employed HR professionals, indicating that businesses are trimming internal resources and outsourcing HR expertise. The CPO/Chief HR Officer landscape also reflects significant pressures, with 20% of professionals open to new opportunities and 10% seeking contract work in the UK alone. This data paints a clear picture of a profession grappling with downsizing and economic volatility – hardly the image of bloated excess.

Talent acquisition and HR automation: the reality 

While HR functions experienced growth in 2021 – notably in talent acquisition – this was a response to a unique moment in time. The surge in hiring during the pandemic recovery phase led to unprecedented growth in TA teams. However, as the market corrected, talent acquisition has faced widespread cutbacks and reductions.

Simultaneously, investments in HR automation and self-service have significantly streamlined shared services functions. Companies now expect HR professionals to manage systems and provide strategic insights, not just transactional support. This shift has led to more specialised but narrower roles, making HR’s adaptation to economic and societal changes even more challenging.

HR’s role in crisis management

HR played a pivotal role during the COVID-19 pandemic. The function was central to ensuring employee safety, coordinating remote work policies and facilitating return-to-office transitions. These responsibilities went far beyond traditional HR tasks, encompassing facilities management and public health initiatives.

In the aftermath of George Floyd’s murder, HR departments were also tasked with navigating deeply sensitive societal issues and helping businesses articulate authentic responses to racial inequality. These were complex, uncharted waters that required empathy, strategy and resilience.

Perhaps, a more relevant question might be: How many senior leaders outsourced these responsibilities to their HR teams or DEI executives? Rather than showing leadership themselves, many C-suites relied heavily on HR to address issues that should have been shared responsibilities.

A multidimensional function driving change

HR today is a multifaceted discipline that contributes directly to business success:

• Executive compensation: HR plays a key role in remuneration committees, helping define executive pay strategies that align with business goals.
• Organisational change: HR teams are integral to implementing target operating models, driving efficiency and transformation across businesses.
• Data-driven insights: The field is increasingly leveraging analytics to inform decisions about workforce planning, diversity initiatives and employee engagement.

To dismiss these contributions as “woke” is to misunderstand the essential functions of modern HR. Iain’s critique overlooks the strategic impact HR has on business outcomes and the significant challenges professionals face in this demanding environment. 

Acknowledging imperfections

Is HR perfect? Certainly not. The profession sometimes struggles with overbranding and can’t escape the inevitable growing pains of technological disruption. However, it remains a cornerstone of organisational change and workforce strategy. Far from being “bloated,” HR is under increasing pressure to do more with less.

HR is far from the caricature Iain paints. It is a dynamic, evolving profession that continues to adapt and deliver value in challenging times. Rather than disparage its efforts, we should recognise and support the vital role it plays in shaping the future of work.