By M Muneer
The recent endorsement of renaming the ministry of human resource development (HRD) the ministry of education in India reignites long-standing debates about the relevance and reputation of human resources (HR). This shift seems symbolic of the broader scepticism surrounding HR’s role, mostly caricatured as bureaucratic, inefficient, and excessively self-serving.
Yet, in a country poised to become the world’s third-largest economy, the debate isn’t whether HR is necessary but rather how it can be reimagined to drive growth, inclusivity, and strategic transformation.
HR has long been the favourite target of workplace grievances. Over two decades ago, Fortune editor Tom Stewart provocatively argued HR should be “abolished” rather than improved. Fast forward to today, and similar criticisms persist globally, albeit in more nuanced forms. HR is accused of being excessively process-oriented, resistant to innovation, and more aligned with corporate compliance than employee advocacy. Several surveys reveal only about 40% of Indian employees believed HR genuinely addressed their concerns.
One of the most glaring examples of this scepticism emerged in 2019 when The Atlantic highlighted HR’s failure to address workplace sexual harassment adequately. Critics pointed out how HR departments keep protecting the organisation’s reputation over safeguarding employees. This concern is not theoretical — India’s own history, such as the handling of harassment allegations against high-profile figures, reflects systemic flaws in workplace grievance mechanisms.
Despite its shortcomings, HR’s potential to shape corporate success is undeniable. The nation stands on the brink of a demographic windfall, with the number of working-age individuals set to cross 90 crore by 2030. Yet, this advantage can quickly turn into a liability. According to the National Association of Software and Service Companies, nearly half the Indian workforce will require reskilling by 2025 to stay relevant in a rapidly digitalising economy. Coupled with an attrition rate of over 20% in the organised sector (Deloitte), the stakes for effective HR practices are higher than ever.
For example, a leading IT firm, when faced with a significant attrition challenge, doubled down on HR instead of side-lining it, and established a leadership institute. Through structured programmes in leadership and data-driven HR practices, they built a culture of continuous learning, reducing attrition rates and bolstering employee engagement.
HR’s importance extends beyond talent management. In India’s uniquely diverse workforce, spanning multiple languages, religions, and socioeconomic backgrounds, HR is critical in driving inclusivity. Through its diversity initiatives and mental health programmes, Tata Steel has created a culture of belonging, contributing to its recognition as one of the top employers in 2023.
The role of HR during crises highlights its indispensability. Mahindra’s HR function demonstrated this during the pandemic by addressing not just operational disruptions but employee mental health too, through virtual counselling and interactive townhalls. While technology can automate routine tasks, the human aspect of HR — empathy, conflict resolution, and cultural alignment — is irreplaceable.
The rise of HR tech platforms like Darwinbox and ZingHR has fuelled debates about whether technology could render HRD obsolete. These tools have undoubtedly streamlined processes like recruitment, payroll, and appraisal, but they cannot replicate the human interactions that are the most critical aspects of HR. For instance, during Flipkart’s rapid expansion, its HR team played a crucial role in onboarding thousands of employees without diluting its core culture of innovation — a feat that required both technology and human insight.
The argument for eliminating HR overlooks the risks in it. Inconsistent policies, poor grievance handling, and weak employee engagement are common pitfalls for organisations that outsource HR functions. The backlash faced by Uber India over allegations of workplace harassment and HR mismanagement emphasises these risks.
A McKinsey report underlines that enterprises integrating HR into strategic planning are 2.5 times more likely to succeed in managing change. In India’s fast-paced industries like IT, e-commerce, and fintech, this adaptability is essential. Reliance Industries is an example for this integration. By leveraging data analytics in HR, it identifies skill gaps and nurtures future leaders, ensuring alignment with its long-term objectives.
HR in India stands at a crossroads, notwithstanding the name change of the ministry. To unlock its full potential, it must evolve from a compliance-driven function to a strategic enabler in many organisations. The path forward involves embracing innovation, driving inclusivity, and championing employee advocacy. Here’s what the future of HR could look like:
Emphasise employee advocacy: HR must transform from a compliance enforcer to an employee champion. Transparent grievance mechanisms and proactive support systems can bridge the trust deficit. Instead of siding with the accused, it should be open to drive employee interests in harassment/discrimination issues.
Leverage technology: Automation and artificial intelligence (AI) should be harnessed to eliminate repetitive tasks. Tools like Workday and BambooHR can optimise workflows and enhance decision-making. AI-humanoids can automate recruitment and selection at lower levels with the least human intervention.
Drive continuous learning: With the shelf life of skills shrinking, HR should lead upskilling and reskilling initiatives at all levels. India Inc can draw inspiration from global giants like Amazon, which plans to upskill 100,000 employees by 2026.
Enable trustworthy hybrid work: Gen Z prefers the hybrid model and is averse to working long hours — certainly not 72-hour weeks. So finding the right key performance indicators for monitoring their output makes more sense in the new era, so that employees can work from anywhere without fear of delivering results.
Measure impact: Metrics like employee engagement, retention, and productivity must be at the forefront of HR’s strategy. Demonstrating tangible outcomes will solidify its value proposition.
By reimagining itself, HR can reclaim its reputation and position itself as a cornerstone of our economic aspirations. In a nation as dynamic and diverse as India, the case for HR isn’t just about managing resources — it’s about empowering people to drive progress. Far from changing its name, the HRD ministry could have made it indispensable for driving the complexities of managing a new era of young India.
HR isn’t dead; it’s just evolving — either as the architect of thriving workplaces or as the dinosaur that tech will fossilise.
The writer is Fortune-500 advisor, start-up investor, co-founder, Medici Institute for Innovation.
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