Is the term “HR” outdated?

February 8, 2023

A global survey conducted by Sage has found that the term “human resources” is seen as outdated by many HR professionals and senior executives.

Around three quarters of HR leaders and 85% of C-suite executives in small to medium businesses agreed that the term “human resources” does not represent the true nature of the role.

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Some organisations felt that naming the department “People and Culture” offers a more accurate description of the responsibilities of HR teams.

Responding to the survey, Eszter Lantos, Head of People at TCC Global, said “it’s an old-school view to look at people only as resources rather than as individuals with their own values, challenges and gifts”.

Over 80% of respondents stated that HR should be organised for speed, agility and adaptability. Almost all respondents agreed that the scope of HR roles has changed significantly over the past five years and a third believe it will need to evolve over the next five years.

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Two thirds of HR leaders are worried about the future of HR. The top challenges facing HR teams are felt to be the amount of work (92%), uncertainty (91%), the perceived value in organisations of the value of HR (90%) and a limited budget (90%).