By David Ducheyne — President of HRPro.be

Every few years, someone declares that HR is over. And yet, somehow, HR never seems to go away.

This time, it’s The Economist that sounds the alarm. Their recent article observes that HR has been on an impressive rise—both in numbers and influence. In the past decade, the number of HR professionals in the U.S. grew by 64%, far outpacing overall job growth. CHROs now earn about 70% of what other senior executives make (up from 40% in the early 1990s), and many are even moving into CEO roles.

The reason is clear: the world of work has been in constant flux.
A decade of turbulence has given HR a central role in helping organizations navigate it all—MeToo, the pandemic, hybrid work, wellbeing, DEI, and a flood of new regulations on everything from minimum wages to workplace conduct. The shortage of skilled talent and the relentless pace of change have only strengthened HR’s strategic position.

But The Economist sees storm clouds on the horizon.
Layoffs are rising again, enthusiasm for DEI is waning, and AI may soon automate a large share of HR’s administrative work. In a recent McKinsey survey, 22% of firms said AI had already reduced HR headcount—the largest decline across all business functions. If HR was once booming, the article warns, it may now be heading for a bust.

That’s where I disagree.

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What is it about?

  • The number of HR professionals has risen sharply. In 2024, American companies employed around 1.3 million HR specialists—up 64% in just ten years. The growth is most visible in white-collar industries, where HR has not only expanded but also gained influence.
  • This surge reflects shifting business realities: a growing struggle for skilled talent, ongoing workplace disruptions, and an ever-tightening web of regulations. Movements such as DEI and the transition to remote work have further reinforced HR’s central role.
  • Yet signs of a slowdown are emerging. With layoffs increasing and artificial intelligence taking over more administrative work, parts of HR may soon feel the pressure.

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The end of HR has been announced many times, but time and again it stayed put. Why?
Because as long as businesses are about people working together to create value for other people, there will be HR.

Yes, many transactional processes can and should be automated. But that is not what HR truly is. HR is the discipline that brings behavioral expertise to leadership. It is the function that helps organizations evolve as living systems — coaching leaders, designing architectures, shaping culture, and safeguarding values.

People are not algorithms. They learn, resist, collaborate, aspire, and fail. They bring energy or they take it away. And as long as organizations depend on that human dynamic, they will need people who understand it deeply.

AI may process the data, but HR will continue to interpret the human story behind it.

That is why I do not speak about HR of the future, but about HR for the future. HR will always be relevant, but only when it shapes the future that reinforces the human dimension of business.

Read the article here: https://www.economist.com/business/2025/11/10/how-hr-took-over-the-world