Why HR Has So Little Power – And How That Can Change

Influence Without Authority

HR departments operate between executives and employees. They advise, support, and mediate – yet rarely hold formal decision-making power. This leaves HR influential but powerless.

Structural Disadvantage

In many organizations, HR remains a support function. While Sales, Finance, or Operations sit at the strategic core, HR is often sidelined. As a result, its contribution to business value remains invisible.

Trust Deficit

Employees often see HR as loyal to management, while executives doubt HR’s strategic value. This double mistrust weakens the function further.

Trend-Focused, Low Impact

Buzzwords like “Agile HR” or “New Work” create attention but rarely link directly to business outcomes. Without clear impact, HR risks being dismissed as chasing fads.

Consequences for HR Professionals

HR teams report high stress, low recognition, and limited influence. Even at senior levels, HR leaders are rarely considered for CEO roles – despite people management being critical to business success.