How HR Took Over the World

Human-resources departments in American companies employed 1.3 million professionals in 2024, a 64% increase over ten years. Overall employment grew 14% in the same period. Professional-services and technology firms saw the number of HR workers double since 2014. Similar patterns have emerged in Australia, Britain and Germany.

Chief human-resources officers also gained ground financially. Their total compensation, which stood at 40% of the average director's salary in 1992, reached 70% by 2022, according to a Stanford University study. Mary Barra, who runs General Motors, previously held the carmaker's top HR position.

The expansion has followed several workplace disruptions, including the Me Too movement, the pandemic's shift to remote work, and the rise of diversity initiatives, Economist reports. Companies also faced more state regulations on employee relations and a jump in workplace complaints. The average number of discrimination or harassment allegations rose from six per 1000 employees in 2021 to 15 last year.

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