Human Resources (ie; People and Culture, Talent Management, Human Capital, People Resource Centre) is often touted as the lifeblood of an organisation, but in many cases, it’s a failing system that neither serves the employees nor the business effectively. Despite being tasked with building strong workplace cultures and driving employee engagement, HR has become a bureaucratic obstacle, more focused on compliance than transformation.
RdL, Result Driven Leadership has been passionate about the role HR should play in an organisation, but far too often sees HR as the policy police, stifling workplace culture, destroying trust and critically injuring businesses and their bottom line.
The Data Doesn’t Lie
Gallup’s 2023 State of the Global Workplace Report revealed that only 23% of employees feel engaged at work, a damning statistic for an industry supposedly dedicated to fostering engagement. Worse, 18% actively disengage, costing companies billions in lost productivity. HR’s inability to address core issues like toxic cultures and poor leadership leaves employees disillusioned and companies bleeding talent.
A Broken System
HR departments are often more interested in protecting the organisation from lawsuits than empowering employees. For example, a 2019 report from the Society for Human Resource Management (SHRM) showed that only 36% of employees feel their HR department advocates for them. Instead of being allies for staff, HR often becomes the enforcer of top-down decisions, further eroding trust.
Failure to Drive Strategy
In too many cases, HR fails to align with the organisation’s strategic goals. McKinsey research shows that 70% of transformation efforts fail, often due to a lack of cultural alignment. HR should be the driver of cultural change, yet many departments remain reactive, handling crises rather than preventing them.
The Way Forward
To stay relevant, HR must evolve. Leaders need strategic HR partners who prioritise people as assets, not liabilities. Until HR sheds its bureaucratic shell and becomes a true force for innovation, both employees and organisations will continue to suffer.
The question isn’t whether HR is failing—it’s whether it’s capable of redemption.
Click the link to read more on some potential solutions – https://rdlmanagementconsultants.com.au/2025/02/04/making-hr-a-key-player-in-business-success/