The evolution of the HR department

How the role of the HR department is shifting

Human Resources (HR) has traditionally been seen as a support function within organisations. In recent years, the role of the HR department has evolved, becoming a key strategic partner that helps businesses grow and succeed. This shift has been driven by changing workforce needs and a growing emphasis on employee experience.

Where does HR sit in the organisation?

The placement of HR within an organisation can vary depending on its size, industry, and specific needs. HR departments have gone beyond the administrative to playing a critical role in talent management, shaping organisational culture. But what does this look like in practice?

Here are several common models:

• Standalone HR department: In smaller organisations, HR may be grouped in a traditional standalone department with a limited number of staff.
• HR business partner: In larger companies, HR professionals may be assigned to specific business units as HR business partners, working closely with managers and senior leadership to align the company's people strategy with their business strategy.
• Shared services model: This model involves centralising HR functions such as payroll, benefits administration, and recruitment to improve efficiency and cost-effectiveness.
• HR as a strategic partner: In some organisations, HR is seen as a strategic partner that contributes to the organisation's overall goals and objectives. Their remit can be expansive, across building a strong employer brand for attracting top talent, driving innovation to help rapidly evolve the business environment, fostering a positive and holistic employee experience, and managing risk and compliance.

Evolving roles and responsibilities of HR professionals

As the HR function continues to evolve, so do the roles and responsibilities of HR professionals. Some of the key areas where HR is playing a more prominent role include:

• Employee experience: Focusing on creating positive employee experiences that drive engagement, productivity, and retention.
• Diversity, equity, and inclusion (DEI): HR plays a critical role in promoting DEI within organisations, ensuring that all employees feel valued and respected.
• Talent acquisition and management: Taking responsibility for attracting, recruiting, and retaining top talent to meet the organisation's needs.
• Learning and development: Supporting employee growth and development through training programs, coaching, and mentoring.
• Organisational development: Helping teams to adapt to change and improve their performance through initiatives such as culture change and organisational restructuring.
• Legal and Compliance: HR professionals must stay up-to-date on employment laws and regulations to ensure compliance and mitigate risk.

If you are growing your team or looking for your next job, download our 2025 Salary Guide to learn the most in-demand HR roles for 2025.

Get your salary guide

Skills for senior HR professionals

To succeed in today's evolving HR landscape, senior professionals need a diverse range of skills, ones which job seekers and hiring managers alike should be on the lookout for, including:

• Strategic thinking: The ability to think strategically and align HR initiatives with the organisation's overall goals.
• Business acumen: A strong understanding of the business and its industry, including financial metrics and market trends.
• Change management: Understanding how to effectively manage organisational change and transition.
• Data analytics: Using data to inform HR decisions and measure the impact of HR initiatives.
• Technology proficiency: Familiarity with HR technology systems and tools.
• Communication and relationship building: The ability to forge strong connections and be influential with employees, managers, and other stakeholders.

Preparing for the future of HR

As HR continues to evolve, it’s essential for professionals – whether employee or employer – to stay informed about industry trends and develop the skills needed to succeed in this dynamic field. Continuous learning by investing in development and leveraging technology tools to improve efficiency and effectiveness will be key.

Need support?

The role of HR has never been more important. As organisations navigate a rapidly changing business landscape, HR professionals are playing a critical role in driving growth, managing talent, and creating positive employee experience.

If you're looking for a rewarding career in HR, find your next HR job with Michael Page’s help.

If you are looking for great HR talent, our skilled HR recruiters can help you find the right candidates to match your needs.

Get in touch today