( I wrote this a few months ago but decided to publish it now. There has of course been a lot of turmoil in HR and DEI since then but this piece is looking at HR more generally in the light of specific criticism of it)
At the end of November 2024 a few press articles critical of the current state of HR resulted in a statement from the Peter Cheese CEO of the CIPD, defending the profession and the body itself. To my knowledge there were only three articles one by Pamela Dow, who headed up the Inclusion at Work Report, in the New Statesman and one by Iain Martin, the business and political writer, who wrote on it for Reaction and then again in the Times.
The criticism from the two writers were largely that HR departments had grown too fat, had too much power and were not improving productivity or profitability.
How times have changed. Historically HR has lacked much power and indeed a recent article by Richard Harpin, founder and CEO of Homeserve, pleaded for more HR specialists to be elevated to main boards in order to have more influence! In the late 1990’s I did some research at British Airways and the CEO, Bob Aisling was one of very few chief executives who had an HR background. But BA had a very people orientated business and culture and took HR seriously. All management had to rotate and do some time in HR.
So how is it that HR have too much power yet actually have very little formal power?
The accusation about it not contributing to business profits or even being a drain is not new. Twenty years ago certain very profit focused companies would pride themselves on keeping the HR department lean. As a support function its status was low, viewed as a necessity which caused problems and introduced obstacles to the smooth running of making profits . This low status cannot be separated out from its predominantly female profile- going into HR was an acceptable area of work for a young woman forty years ago whatever the sector. Received wisdom had it that women’s ‘natural’ ability to deal with people made them the most suited to the job.
“Every business is a people business, no matter its product or service, so you want the very best people-people at the summit — those who know how to strengthen organisations with positive, purposeful cultures, a clear identity and values that drive the overall strategy. Much of this is down to a great HR team that knows how to develop staff consistently, improve team dynamics, motivate people and bring them together around an agreed agenda. Perhaps if more HR executives — very often women — were given the right cross-business experience, the gender ratios of FTSE 100 bosses might be a little less imbalance” In general we need more cross business experience ( like as I mentioned above British Airways practised )
It has been the role of HR’s industry body, the CIPD to upgrade and professionalise the sector via its numerous courses and I think on the whole it has done a good job. It did however come under criticism in Dow’s piece for being too dominant, leading to a kind of groupthink among HR professionals. For instance it has a monopoly on training the Civil Service. This has made it vulnerable to attack.
The growth in the HR sector that Pamela Dow’s article illustrates in a graph may be explained by the increasing body of legislation that companies now have to contend with together with the increase in litigation risk
There is no doubt that HR’s brief has broadened, particularly with the growth over the past fifteen years of ESG (formerly CSR). The intention was to broaden the responsibilities of companies to be more than just about making profits for its shareholders. A lot of this has fallen on HR’s shoulders, particularly the DEI and employee welfare which is much more comprehensive than it used to be ( ie including understanding the menopause, mental health etc.) Many in the corporate world are now questioning their strong focus on ESG (environmental social and governance) as an investing principle given the harder economic ( and interest rate ) environment resulting in cutting back on some policies. Some of this backlash has inevitably been directed at HR and their part in DEI and other employee focused policies
It seems harsh to blame HR as the sector that has had to implement policies that are part of this broader approach taken by senior leadership. However the role of HR is to support management in its business strategy and to be the voice of employees and look after their welfare. These are often in tension. Ultimately in a restructuring or downsizing, it is HR which often has to do the unpleasant task of telling employees they are sacked. It always has to manage this tension. My guess is that in some companies the focus on wellbeing, wider social change and particularly DEI is contributing to this backlash.
I don’t think HR would have come under any such scrutiny and criticism if it hadn’t not been the home (in most cases) of DEI. When my colleague Sue Ollerearnshaw and I wrote the Business of Diversity Report in 2002, large organisations often place the Diversity and Equality function outside of HR – specifically because of the historic low status of HR that I mentioned above. Procter & Gamble, Barclays and Ford all kept diversity and equality out of HR “ This issue is far too important for HR!’ joked one senior director at P&G then “ so it has always been owned by the whole business”.
Mainstreaming as advocated by the EU was the name of the game then and we really believed that once embedded throughout the organisation the need for specialist D&E or D&I professionals would decrease. How wrong we were. The numbers of DEI professionals has accelerated hugely in the past ten years. What we didn’t see coming twenty years ago was the influence of identity politics on this area of work. Usually theories that abounded in universities stayed in universities. Certainly despite my PhD on gender and culture being informed by feminist theory, if I had used the word feminist in any work proposal I wouldn’t have got through the front door. So it was with some surprise that organisations public and private were so quick to embrace gender identity ideology – arguably a much more nefarious theory than feminism and has no material basis. And then it supercharged on critical race theory, an analysis of race relations which is grounded in US history of race and arguably not appropriate here. Perhaps it was because they thought it would only impact a tiny percentage of people and therefore not radically alter the way work was structured. Dow’s observation that the majority of HR professionals comes from the arts departments of universities, where social justice theories are much more likely to dominate may help explain the enthusiasm with which gender identity ideology and critical race theory is now infusing HR policies throughout organisations, is interesting.
The way the T was added to LGB gave the ideas a legitimacy it would not have had on its own. It still does not explain why so many resources have gone into the cause arguably to the neglect of other diversity strands like disability. Of course we now know the demands of the trans movement required change that impacted everyone not just a handful of employees and the confusion around how different characteristics within the Equality Act 2010 interact has led to many tribunal cases, with companies in some situations being found to act unlawfully. The equality lawyer Audrey Ludwig wrote a very good piece on this here.
It is this overreach of DEI that has led to a small revolt against the whole of HR. Unfair you may say. Well the CIPD has engaged quite heavily in some of this DEI overreach itself coming under criticism last year for its trans guidance, “Fury over official trans and non-binary guidance to HR staff: Gender-critical campaigners slam ‘impractical’ advice that says refusing transgender women access to female-only toilets at work may be discrimination” It has since revised that guidance in September this year without any prior announcement and it has not been made available to the public unlike previous guidance. This in itself was a strange move designed perhaps to fend off accusations that it got it so wrong the first time.
I do hope that HR professionals and DEI professionals can have a debate about these issues and defend good work whilst perhaps cutting back on some of the more overtly political aspects of their work. In the end HR does not have power.. it has stemmed from weak leadership feeling ill equipped to deal with issues about which they know very little and they have delegated to HR. The ultimate blame must lie with leadership.