Is HR in the midst of an identity crisis?

With so much change impacting HR professionals in recent years, is it time for a rebrand of the role?

As previously reported, the role of HR professionals has seen a dramatic change in the last five years, with further change predicted for the years ahead. The role is demanding more than ever before, with both the expectations HR leaders put on themselves and that put on them by other C-suite executives reaching an all-time high.

That considered, is it time for HR’s big rebrand?

According to Sage’s The changing face of HR in 2024 report, 73 per cent of HR professionals and 85 per cent of C-suite executives believe the term “human resources” is outdated.

A further 86 per cent of HR professionals and 81 per cent of C-suite executives said the role of HR today is more organised for speed, agility and adaptability than it was in the past.

“There is a move away from ‘human resources’ and what that originally meant,” said Eszter Lantos, head of people at TCC Global.

“A more appropriate name would now be a ‘people function’. It’s an old-school view to look at people only as resources rather than as individuals with their own values, challenges, and gifts.”

A similar sentiment was echoed by Daphne Logan, senior vice-president of people and culture at Start Early.

“I’ve shifted away from ‘human resources’. I use ‘people and culture’ now because that is a truer description of who we are and our work,” she explained.

That being said, there are some challenges likely to impact the “rebrand” of HR. This is particularly evident when considering HR’s perceived value in an organisation.

The report showed 92 per cent of C-suite executives believe a major challenge facing HR teams’ success is the perceived value of HR’s worth in the organisation – 90 per cent of HR professionals agree.

“HR leaders still have some way to go to convince organisations of their value, and the power and flexibility of the modern people function,” the Sage report noted.

“Sixty-three per cent of C-suite leaders admit to still seeing HR’s role as administrative, and many business leaders don’t expect HR to play a leading role across key areas that would traditionally sit in their wheelhouse, such as workforce planning and company culture.”

Ms Lantos said the onus is on HR professionals to prove their worth.

“HR people need to have more confidence,” he said.

“Their understanding and empathy and other soft skills that HR leaders usually have are key today. Ultimately, HR are going to help companies become winners.”

Jat Bansal, director of talent at Funding Circle, agreed, adding: “HR needs to be close to their CEO and leadership team, and show that they’re planning for the future.”