Transformation of the role of HR
Following Cappelli & Nehmeh (HBR, 2024), the role of HR is shifting under the influence of dominant economic and management theories. Historically, internal talent cultivation dominated from the post-war era to the 1980s; crises from the 1970s onward repeatedly pushed organizations back toward austerity on personnel. After Covid, HR services increasingly attend to people's mental and physical health, burnout prevention and well-being, and roll out new compensation, training and talent-development programs.
Leaders rank talent and its acquisition as the most important factor affecting business, yet real recognition lags. The remedy is a transforming HR role: dashboards tracking turnover, absenteeism, reasons for leaving, illness and engagement; flexible restructuring that unlocks employee potential; and internal corporate labour markets.