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HR is at breaking point – now it’s leadership’s turn to step up

HR teams are stepping up to play a bigger role in the modern workplace but many are feeling the strain as leadership support falls short, according to new research from PayFit.

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In a survey of 302 senior HR professionals, nearly all (98%) have had new strategic responsibilities added to their workload in the past 12 months, with mental health support (57%) and AI employee usage policies (56%) topping the list.

 

With these business-critical priorities joining the day-to-day operations they already manage, nearly two-thirds (64%) say they’re now working beyond their limits, with 88% admitting at least one area of their role has suffered as a result.

 

Forced to make difficult trade-offs, mental health support (28%), DEI (25%), and employee experience and engagement (25%) were found to be the first initiatives to slip when workloads become unmanageable.

 

The emotional toll is also a cause for concern, with more than half (53%) reporting increased stress levels, almost a third (32%) experiencing reduced work-life balance, and 29% saying their job satisfaction is declining. One in five (20%) are also looking to exit the profession altogether, revealing a HR exodus could be on the cards.

 

While the statistics are worrying, Marie-Alice Tantardini, Chief People and Fulfilment Officer at PayFit suggests leaders now have the chance to step up and help ease the strain.

 

“HR teams have earned their seat at the table, driving some of the most meaningful changes in business today,” she comments. “New initiatives - from mental health and inclusion to AI adoption - are landing on HR’s desk. While this reflects the growing trust and influence they hold, it comes at a cost. At the current rate, something - or someone - might suffer unless the right resources and support are given. This is not about taking responsibilities away, but recognising that HR and leadership should work hand in hand and ensuring the right tools and team capacity is in place to make people-led change sustainable. Leaders should see this as an opportunity to lighten the load while amplifying impact, giving HR teams the space they need to focus on what really matters without feeling overwhelmed.”

 

The data from PayFit shows there is room for improvement, with 42% saying their managers expect them to handle the new responsibilities without additional resources. While only 31% of leaders have increased HR headcount and 30% have provided extra budget for technology to handle core operations, many HR teams are already turning to automation to create breathing room. Digitisation is now common in payroll (62%), time and attendance tracking (44%), recruitment and applicant tracking (42%) and benefits administration (39%).

 

Vickie Graham, Managing Director at Reward Strategy, adds: "These findings from PayFit highlight a pivotal moment for payroll, reward and HR professionals. While the strain is undeniable, the expanded scope of responsibilities signals a growing recognition of the strategic value these professions bring to an organisation. From shaping AI policies to leading on mental health and DEI, payroll, reward and HR are driving critical business outcomes. The opportunity now lies in cementing this influence, but it must be matched by leadership support. With the right resources, those working within payroll, reward and HR can move beyond firefighting to become architects of meaningful, people-first change."

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