The Wrong Focus of HR in the Last Decades

Human Resources (HR) is supposed to be the bridge between employees and business success, but for decades, it has often focused on the wrong priorities. Many HR departments have prioritized rigid policies, cost-cutting, and excessive performance tracking rather than truly investing in employee growth and engagement.

“A company’s greatest asset is its people. When HR focuses more on policies than employees, success becomes harder to achieve.”

1. Overemphasis on Compliance and Policies

HR has traditionally focused on ensuring strict compliance with laws and company policies. While compliance is necessary, excessive focus on rules can make HR seem more like a policing department than a support system.

The Problem:

• Employees feel HR is about control, not support.
• Rigid policies discourage creativity and flexibility.
• HR is seen as an obstacle rather than an enabler.

The Solution: HR should balance compliance with employee well-being, ensuring that policies help, rather than hinder, company culture.

2. Prioritizing Cost-Cutting Over Employee Well-Being

Many companies have used HR as a cost-cutting tool, reducing salaries, benefits, and staff while expecting higher productivity.

The Problem:

• Employees feel undervalued and overworked.
• High turnover rates lead to expensive recruitment cycles.
• Short-term savings harm long-term business growth.

The Solution: HR should advocate for better compensation, mental health support, and employee well-being programs to improve productivity and retention.

3. Prioritizing Hiring Over Retention

Many HR teams focus more on attracting new talent rather than keeping existing employees engaged and satisfied.

The Problem:

• High recruitment costs due to constant turnover.
• Lack of career growth leads employees to leave.
• Onboarding new employees is expensive and time-consuming.

The Solution: HR should invest in career development, mentorship, and training to retain top talent.

4. Over-Reliance on Performance Metrics

HR departments often rely too much on data-driven metrics rather than focusing on actual employee contributions.

The Problem:

• Employees feel pressured rather than supported.
• Performance reviews often lack real feedback.
• Rigid metrics discourage creativity and innovation.

The Solution: HR should focus on real-time feedback and personalized development plans instead of just numbers.

5. Neglecting Workplace Culture and Engagement

HR has often overlooked the importance of a positive company culture, leading to disengaged employees.

“A strong company culture is not a luxury—it’s a necessity for success.”

6. Ignoring Mental Health and Work-Life Balance

Many HR policies have focused on productivity without considering the mental health and well-being of employees.

The Problem:

• Employees experience high stress and burnout.
• Work-life balance is often ignored.
• Absenteeism increases due to mental health issues.

The Solution: HR should implement mental health programs, remote work options, and wellness initiatives to support employees.

7. Resistance to Change and Innovation

HR teams have been slow to adopt modern work trends, such as remote work, digital transformation, and agile HR practices.

The Problem:

• Outdated HR policies no longer align with today’s workforce.
• Lack of flexibility makes companies less competitive.
• Employees expect modern tools and work models.

The Solution: HR should embrace technology, remote work, and continuous learning to stay relevant.

📖 Further Reading: Understanding HR’s Role in Business

To understand the importance of HR in business and how it should evolve, check out this article: Understanding the Unique Roles in Business .

• Put employees first—engagement and well-being matter.
• Invest in retention—career growth boosts loyalty.
• Foster a great culture—workplace happiness drives success.
• Embrace change—modern HR must evolve.

🚀 Conclusion

HR must shift from a rule-based function to a people-first approach. When companies invest in employee well-being, retention, and engagement, they drive long-term success.