The evolution of HR: Everything HR and People leaders need to know Exclusive research about the evolution of HR from Sage reveals how HR is changing, and whatbusiness leaders and employees are thinking. HR and People teams have grappled with so much change. There has been an evolution of HR. To thrive in anever-changing workplace, you need to be able to balance new and unexpecteddemands—all while keeping a cool head during times of crisis. With insightsfrom HR leaders, business executives, and employees, explore how the worldof HR has changed, how it continues shifting today, and what HR can expectnext. Changing expectations and perceptions of HR during the evolution of HR Recent changes mean expectations and perceptions of HR have evolved. Wepolled over 1,500 HR leaders, executives, and employees to understandhow—and the role technology is playing. Here’s what we found. What HR and People leaders said about the evolution of hr “HR has become more influential, but at the expense of a bigger workload.” say HR teams have had a vital role to play in the pandemic 65% report crisis has helped increase understanding of HR’s role 72% are now delivering a more influential leadership role 59% Up to 60% have experienced an increase in both admin and strategic tasks 60% What business leaders said about the evolution of hr “Changes in HR have accelerated, but HR is still too admin-focused.” say the pandemic has accelerated changes in HR 87% view HR as largely still an admin function 57% don’t think HR’s workload is unmanageable 76% think recent changes in HR are just temporary 52% What employees said “HR is more people-focused and responsive.” 60% think HR’s role has become more strategic and people-focused 54% have improved knowledge and understanding of HR’s role and value 34% say HR has adapted to become more responsive 57% see the pandemic as a catalyst for HR driving more people-related decisions HR’s accelerated digital transformation “Increased focus on digital transformation.” 59% 59% of business and HR leaders think HR is even more focused on digitaltransformation thanks to the pandemic Hover to read more “A need for more tech – but the lack of investment is a challenge.” 67% 67% of HR leaders see the lack of investment in HR by the company as abarrier to innovation and new ways of working Hover to read more “There’s a confidence gap.” 63% 63% of business leaders are fully confident that HR can bring theorganization into the new world of work, compared to 52% of HR leaders Hover to read more To understand more about the evolution of HR and how your organization can get ahead in a worldwhere disruption has become the new normal, download the full report. HR inthe moment: changing expectations and perceptions of HR. Download the research Download the research Impact through insights How can HR use analytics to create greater value and increase businessimpact? We polled 500+ HR leaders and business leaders to find out howthey’re using analytics to drive decision-making. Here’s what they said. How aligned is HR with business priorities? “HR is aligned to business goals, but isn’t leading enough. “ of business leaders feel HR priorities are aligned to those of the overallbusiness 81% still don’t feel HR is playing a leading role across the business,however… 59% The future of HR analytics “HR data and analytics are widely available, but there is a lack ofsufficient actionable insights.” of business leaders have access to some form of people data from HR.However… 94% …62% of HR leaders said they’re unable to use the data to spot trends andmake business-related predictions. 62% 68% of business leaders don’t rely heavily on HR data, and 38% aren’t fullysatisfied with HR’s ability to provide insights and recommendations. 68% A clear gap between what HR data business leaders want and what theyare getting Percentage of business leaders who say it is useful to have data on theseindicators versus those who say HR provides data on them. Hover for more info It would be useful to have data on this indicator HR currently provides data on this indicator Headcount Employee productivity rate Vacation days taken Revenue per FTE Cost of labor per FTE Promotion rate Diversity percentages External time to fill Absenteeism rate Diversity hire ratio Grievances Vacancy rate Employee net promoter score Number of candidates interviewed per hire External hire rate % Gender pay gap New hire failure rate Average tenure Cost per employee Turnover rates Employee engagement Training rates HR to FTE ratio Cost per hire Headcount The role of HR technology in the evolution of hr “HR tech has helped organizations to adapt, and contributes to businessgoals. “ of business leaders say HR technology has helped assist with businesspriorities understanding the importance of the evolution of hr 90% of HR leaders say that cloud HR helped them to operate effectively duringthe pandemic 81% of HR leaders acknowledge limitations of their current HR systems, and arenot fully confident that their HR tech is ready for the future 63% Download the full report HR in the Moment: Impact through insights, to seehow HR management can be insight-driven business leaders, deliveringgreater value to business leaders and impacting business priorities Download the research Download the research What’s next for HR? What’s really next for HR leaders in the evolution of hr? We spoke to business and HR leaders tounderstand their views on the future of work, based on their recentexperiences during the pandemic. This is what they told us. New ways of working: Reimagining the hybrid work future “Previously, health and safety and HR were very separate departments. Now,I think they’re so close that you can’t really separate them as departmentsanymore.” General Manager (HR), Life Sciences, Australia Flexible working 60% of HR teams are spending more time on flexible working policies 63% of HR teams say flexible working has become more of a priority Business transformation, culture and experiences Creating truly people-focused companies “The expectation of employees now during this evolution of hr is they want to work for an employer thatis equal, inclusive and diverse.” CEO, Professional Services, UK This is a tabs that you can click to navigate between multiple slides Culture 60% of employees were considered highly engaged when their organizationacted on today’s social issues – up from 40% Culture Purpose Diversity, equity, and inclusion (DEI) 25% of global companies with more gender diversity in executive teams are morelikely to have above-average profitability than companies without suchdiversity Employee mental health and well-being 96% of HR leaders are more concerned about employee well-being today thanbefore the pandemic “People are working so much. We are stressed. We are burned out, and we’restarting to feel negative about our work, our teams and our organization.” Professor Tsedal Neeley, Harvard Business School Successfully competing for talent Building irresistible organizations “There is a whole new battle for talent now. Although historically, we’velooked to recruit people who could work from one of our offices, this is nolonger the case. Through COVID, we have shown that people can be veryeffective working from home.” CEO, Professional Services, UK “If employees are not proud of who they work for, or they aren’t engagedwith us as an employer, they’re generally going to deliver poor ornon-responsive advice and service to our customers.” CEO, Professional Services, UK How to get ahead Click to open the popup Find how everything you need to know about HR’s role in the new world ofwork by downloading the research report HR in the moment: What next for HR? Download the research Download the research Be ready for what’s next with HR tech Get ahead in the new world of work and keep up with the evolution of HR with Sage. Take care of all your HR andPeople needs with one of our HR solutions. Member Masterclass: Talks from the world’s leading experts Learn how to find and keep great people. All Sage customers and partners have automatic access to Sage Membership, which includes Member Masterclass. For a limited time, this member resource is open to everyone. Explore Member Masterclass Subscribe to our Sage Advice Newsletter Get our latest business advice delivered directly to your inbox. Subscribe Browse more topics from this article HR and Payroll HR software Explore more wisdom Recommended August 17, 2026 15 min read Performance management systems: A practical guide Performance management systems help organizations set goals, track progress, provide feedback, and get the best performance from their employees. 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Recommended August 17, 2026 15 min read Performance management systems: A practical guide Performance management systems help organizations set goals, track progress, provide feedback, and get the best performance from their employees.
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