There are now 476,000 people working in HR roles in the UK, an increase of 68 percent since 2010, according to figures from the Office for National Statistics. HR staff make up nearly 1.5 percent of the workforce — a larger proportion than in almost any other Western country except the Netherlands — and there are more people working in the sector than doctors or lawyers.
Observers say the rapid growth of the profession is the result of major social, legal and economic changes, including greater regulation, rising numbers of employment tribunals and heightened emphasis on diversity, inclusion and employee wellbeing.
But as HR’s remit grows, so too does scrutiny, both from those who believe it is a positive force for inclusion and better workplaces, and critics who question whether its reach is undermining productivity and creating new sources of workplace friction.
A sector in transition: from welfare to strategy
Historically, HR — once known as “personnel” — handled core functions such as hiring, payroll and managing disputes, often operating as a back-office function. But in recent years, HR leaders have been called upon to shape business strategy, drive culture change, deliver on legal compliance and wellbeing and navigate issues from remote work to mental health.
The Chartered Institute for Personnel and Development (CIPD), the industry’s professional body, acknowledges the evolution of HR from “welfare workers” to “change agents” sitting at the board table. Speaking to The Sunday Times, chief executive Peter Cheese said the profession has faced “testing times”, first with the shift to remote working during the pandemic and, more recently with demand for more flexible, inclusive workplaces.
But not everyone agrees HR’s growing influence has been entirely positive. Critics, including some employment lawyers and business owners, say the proliferation of policies, training and compliance initiatives risks diverting attention from core business objectives. There is concern too that complex HR-led processes for investigating disputes can increase stress for all parties and lead to protracted legal battles — employment tribunal claims rose to 42,000 in 2024, up from 28,000 in 2018.
Landmark case puts HR in the spotlight
The growing complexity of HR’s role was illustrated by the case of Carl Borg-Neal, a Lloyds Bank line manager who was dismissed for gross misconduct after using a racial slur as an example in a workplace training session. An employment tribunal ruled that Lloyds Bank’s HR team failed to account for Borg-Neal’s dyslexia and did not handle the investigation fairly, awarding him £473,000 in compensation. The case sparked debate over how far HR should go in enforcing policies versus exercising judgement and support for staff.
Cases like this, as well as high-profile investigations into workplace behaviour at other large employers, reflect the legal and reputational risks that HR teams are tasked with managing. According to the CIPD, the main priority remains delivering “social impact by tackling the barriers to better, inclusive work”, but many businesses now question where to draw the line between compliance and culture, and how to balance business needs with employee wellbeing.
Does more HR mean better workplaces?
There is widespread agreement that workplaces have become more inclusive and professional in the past 25 years. Training and policies on discrimination and harassment have made offices safer for many, and HR teams are often praised for supporting employees through illness, family crises or disputes. But some leaders say the focus on training and engagement surveys can be “decadent and indulgent”, potentially reducing productivity and distracting from delivering goods and services.
Others point out that the industry’s rapid growth has sometimes blurred the boundaries between HR and legal advice, with HR professionals now handling disputes that previously would have been managed by lawyers.
Business owners report that attempts to manage underperformance or resolve disputes are increasingly complex, with some staff using grievance processes to delay exits or secure settlements. Meanwhile, some HR teams have been criticised for failing to de-escalate workplace disputes quickly, instead escalating matters to formal investigations that can disrupt teams and drain resources.
Practical solutions for employers
With HR’s influence only likely to grow, experts say organisations must focus on getting the balance right. Among the recommendations:
Clarify the remit of HR: Ensure HR teams have a clear mandate focused on business needs, supporting line managers and building inclusive workplaces, rather than simply increasing compliance.
Invest in quality training: Focus on evidence-based training that addresses real skills gaps and supports business objectives, rather than “tick box” sessions.
Streamline investigations: Provide training for HR staff on informal resolution, mediation and proportionate approaches to workplace disputes.
Prioritise productivity: Use engagement surveys and performance reviews to identify and remove barriers to getting work done, not just to meet policy requirements.
Support line managers: Equip managers with the skills and confidence to handle people issues informally and sensitively, reducing the risk of disputes escalating.
As employment legislation continues to expand and employee expectations rise, HR will remain a vital function in every UK organisation. But as the debate over its impact continues, the challenge for business leaders is to ensure HR remains a positive force for both people and performance.
