'HR's growth risks productivity': HR leaders react

The rise of HR coincides with decreased productivity and increased tribunal claims and sick days, The Telegraph's employment editor claimed - ©NonVig/peopleimages.com/Adobe Stock

The growth of HR is negatively impacting productivity, The Telegraph reported yesterday (2 December), in an article that claimed “HR is driving Britain’s bosses potty”. 

While the HR sector grew by 42% between 2011 and 2021, according to the CIPD's statistics, the article (paywall link) noted, productivity has decreased, as tribunal claims and worklessness have increased. 

The growth of the HR sector has not led to desirable outcomes, suggested Lucy Burton, The Telegraph's employment editor. HR must be reset before the sector grows again, Burton wrote, to ensure that HR teams “are driving a force for good”.

“It’s disappointing to read such a broad-brush critique of HR – especially as HR is far too diverse a function to be painted with one stroke,” Claire Williams, chief people officer at software provider Ciphr, told HR magazine.

"HR’s true potential lies in its ability to align people strategies with business objectives, creating workplaces that are both compliant and productive

“To dismiss it as a bloated or unnecessary function ignores the very real value it brings to managing the complexity of modern workforces."

Issues such as a rise in tribunal claims and sickness days are due to workplace conflict, rather than the HR function, according to Woosh Raza, founder and principal consultant of HR consultancy Woosh.

Speaking to HR magazine, he said: “The HR function still receives significant scrutiny in terms of the role it serves in the organisation, with concerning narratives attributing increased sickness days and employment tribunals as HR issues when in fact they are symptomatic of increased conflict in the workplace in recent years. 

“The focus should be firmly on building leadership and management capability, which many HR teams are doing valiantly in efforts to bolster productivity.”


Read more: Comms to the rescue: How to boost HR's reputation


The Telegraph article pointed to a bank executive’s claims that his organisation’s HR arm had “grown so powerful that they now think they are an extension of his team”. Meanwhile, a Whitehall adviser told The Telegraph that HR frequently makes the “final call”. 

According to Ronni Zehavi, CEO of software provider HiBob, HR leaders should be more involved in business decisions.

“According to our recent research the vast majority of Brits (95%) believe HR representation at executive level is important, while three quarters (75%) advocate for HR to have significant influence over a company’s strategy,” he told HR magazine.

“This overwhelming consensus reflects the growing understanding that effective HR teams are not just a support function but are strategic partners who bridge organisational and individual employee needs.  

“With the cost of employing people one of the most significant burdens on a company, ensuring employee satisfaction is crucial.”

The article also suggested that some workers thought HR focused on areas that were not important, such as wellbeing.

A civil servant told The Telegraph that “HR nonsense has been allowed to snowball” to the extent that “some meetings now start with an anxiety-inducing emotional check-up, with staff encouraged to divulge personal problems”. 

“All that would be hunky-dory, if it meant that people were happier and productivity was up. But neither is the case,” Burton wrote. 

HR teams are viewed as the least productive department in an organisation by employees, a survey conducted by Ciphr's team in January 2024 showed.

But attributing responsibility for productivity challenges to HR ignores wider problems in the labour market, Vicky Walker, group director of people at wellbeing provider Westfield Health, told HR magazine.


Read more: HR viewed as the least productive department by employees


She said: “Criticism that HR departments are not focusing on the ‘right areas' often stems from perceptions that they spend too long on administrative tasks or implement complicated or restrictive policies. 

“This is not the case across the board. Linking HR’s growth directly to the UK’s productivity challenges overlooks key factors like skill shortages, capital investment gaps, and economic uncertainty

“HR drives real value when championing diversity, equity, and inclusion, while adapting to changing workplace dynamics and unique employee needs.”

Without HR teams, the number of tribunal claims and worklessness could be even higher, Williams added.

She continued: “It’s worth asking: without HR, how many more tribunals would employers face? How many additional days would be lost to work-related illnesses due to poor workplace practices? 

“These are the invisible benefits of HR that often go unrecognised or even criticised. Whether navigating the complexities of employment legislation, managing workplace disputes, or fostering a safe and inclusive environment, HR should exist, in part, to mitigate risks and support employment practices.”