Executive Summary

HR under strain but more influential than ever

The 2025 inaugural edition of HiBob’s HR Health Check Report reveals an HR function at a crossroads increasingly powerful but facing rising strain.

As organisations continue to grapple with economic pressure and leaner teams, HR has moved to the heart of business decision-making. Yet that influence comes at a cost: 59% of HR professionals report higher emotional strain and pressure than last year, and 46% warn that burnout and lack of wellbeing will be the biggest business risk in 2026.

At the same time, HR’s voice is stronger than ever. Over half (53%) now report directly to the CEO, and 89% say leadership views HR as essential to organisational success.

What this means:

• For HR professionals, the data reflects both progress and pressure as the function is now central to business strategy but carrying a heavy emotional and operational load.
• For businesses, this is a warning sign: influence without adequate resourcing risks unsustainable workloads and talent drain within HR itself.
• For the HR profession, it’s a pivotal moment — to redesign processes, clarify priorities, and protect the people who protect everyone else.

The Evolving Role of HR

HR has never been more powerful or more stretched. 63% of professionals say they’re leading “the biggest workplace shift in decades” despite shrinking teams, and 65% admit they’re expected to “protect culture while enforcing decisions that can damage it.”

For individuals, HR professionals are walking a fine line between empathy and enforcement often caught between leadership’s cost pressures and employees’ wellbeing. This constant balancing act is testing their resilience, emotional boundaries, and ability to stay connected to their own sense of purpose.

For businesses, HR’s growing influence offers a powerful strategic advantage — but only when it’s backed by the right support. To translate influence into impact, leaders must equip HR with the resources, autonomy, and tools needed to turn strategic vision into meaningful action.For the HR function, the outdated view of HR as purely operational is disappearing. Today’s HR leaders act as strategists, coaches, and crisis managers, guiding both people and business outcomes — a role that now requires greater recognition, support, and investment in their wellbeing.

Bracing for the ‘Do More with Less’ Era

The report signals an era of leaner operations. 58% of HR leaders expect to run smaller teams in 2026, even as 90% already manage others.

 Top business priorities include:

• Improving productivity while managing burnout (47%)
• Upskilling for future needs (40%)
• Integrating AI for efficiency (38%)

For individuals, HR professionals are being asked to lead major organisational transformation while operating with shrinking teams and finite resources. This pressure to “do more with less” means they must become experts in prioritisation, focusing their energy on initiatives that deliver the greatest long-term impact. It also highlights the growing importance of personal sustainability finding ways to protect their own wellbeing and maintain resilience amid constant change. Without space to recharge and reflect, even the most capable HR leaders risk burnout, undermining their ability to support others effectively.
For businesses, it’s crucial to recognise that running “lean” teams should not translate into limitless expectations. When resources are stretched without the right support, burnout statistics can quickly shift from an individual challenge to a systemic problem that affects performance, culture, and retention. To prevent this, leaders must invest in the right infrastructure, smarter technology, streamlined processes, and realistic workloads, ensuring HR teams have the capacity to focus on strategic priorities rather than constant firefighting. Sustainable performance depends on giving HR the tools and space to operate effectively, not endlessly.

For the HR function, the next phase of efficiency will go beyond automating tasks — it’s about empowerment. True progress means giving HR clarity of purpose, defined strategic scope, and tools that amplify their impact rather than overwhelm teams with complexity. When technology is intuitive and aligned with business goals, it frees HR to focus on higher-value work: driving culture, trust, and long-term people strategies that strengthen the entire organisation.

Culture, Connection, and What Will Help HR Thrive Next

When asked what would most improve their ability to drive business success, HR professionals prioritised:

• Better HR technology and data tools (57%)
• Clearer strategy and goals (57%)
• More time for long-term strategic work (46%)

For individuals, the strong demand for smarter systems and clearer strategy underscores HR’s growing desire to move from reactive, day-to-day problem-solving to truly strategic work. Many professionals recognise that constant fire-fighting limits their ability to focus on the aspects of their role that drive long-term success, building culture, strengthening trust, and connecting with people. With leaner teams and rising expectations, HR leaders increasingly view clarity, data, and intelligent automation as essential tools to create the space and stability needed to think ahead rather than just keep up.

For businesses, investing in modern HR technology and analytics is no longer a “nice-to-have”  – it’s a strategic imperative. Organisations that leverage technology to streamline operations and surface actionable insights see measurable gains in engagement, retention, and performance. Smarter systems allow HR to spend less time gathering data and more time applying it, translating insights into initiatives that directly improve the employee experience.

For the HR function, the next few years mark a profound shift in focus. More than half (52%) of respondents expect AI to take over administrative tasks by 2026, signalling a transition from process-heavy operations to people-centred leadership. As automation handles routine work, HR can devote more energy to shaping culture, fostering trust, and guiding organisational change. This evolution positions HR not as a back-office function, but as a driving force for innovation, connection, and long-term business health.

With 42% of HR leaders expecting higher budgets in the coming year, the function stands at a pivotal moment of renewal. This increased investment provides the opportunity to redesign HR’s structure for long-term sustainability, one that blends data-driven precision with human connection. By channeling resources into better technology, clearer strategy, and wellbeing support, HR can shift from reactive management to proactive leadership. The focus should now be on building systems that empower people, not just streamline processes, ensuring that the next phase of HR growth strengthens both operational resilience and organisational culture.

From Burnout to Balance

The data paints a clear picture of emotional fatigue:

• 63% describe HR as the company’s “crisis hotline”
• 61% say that after supporting others, they have little energy left for themselves
• The most emotionally demanding aspects include supporting wellbeing (42%), managing change (40%), and balancing business needs with employee care (37%)

For individuals, HR professionals are under immense emotional and operational pressure, often serving as the bridge between organisational demands and employee wellbeing. Many act as counsellors, mediators, and enforcers — all at once — leaving little room to recover from the emotional toll of supporting others. To sustain their effectiveness, HR practitioners need stronger support systems, clearer boundaries, and permission to prioritise their own wellbeing. Professional empathy cannot come at the expense of personal health. When HR professionals are exhausted or overextended, their ability to lead with compassion, make balanced decisions, and model healthy workplace behaviours diminishes, creating a ripple effect across the organisation.

For businesses, HR burnout is not just a human issue — it’s a strategic one. When HR teams are stretched too thin, the entire organisation feels the impact: culture weakens, employee engagement drops, and change initiatives slow down. Treating HR wellbeing as a business-critical priority, rather than an individual responsibility, is essential for long-term performance and retention. Investment in wellbeing programmes, manageable workloads, and meaningful recognition signals that leadership values the people who make the business run.

For the HR function as a whole, this moment calls for a fundamental mindset shift. HR cannot effectively champion wellbeing across the workforce unless it experiences that same care internally. Building resilience within HR requires a combination of recognition, community, and smarter technology that automates the repetitive, freeing space for reflection and connection. When HR teams are supported, equipped, and well-resourced, they set the tone for a healthier, more sustainable workplace culture — leading by example in the movement toward truly people-first organisations.

The Future of HR: Trust, Flexibility, and Connection

The fundamentals of great work are being rewritten:

• 65% believe flexibility and wellbeing will decide who wins the talent race.
• 62% say culture will be their biggest competitive advantage.
• 61% agree that trust will matter more than pay in retaining employees.

For individuals, the future of HR lies firmly in empathy over enforcement. As work becomes more fluid, diverse, and purpose-driven, HR professionals will need to lead with adaptability, compassion, and clarity of vision. The challenge ahead is not only to manage change but to humanise it — creating environments where people feel valued, supported, and connected to something bigger than their job. This requires emotional intelligence, active listening, and the courage to champion policies that prioritise wellbeing and inclusion. HR leaders who cultivate empathy as a core skill will play a crucial role in shaping workplaces that people genuinely want to join and stay in, turning culture into a powerful recruitment and retention tool.

For businesses, the findings are clear: competitive advantage in 2026 will be built on culture, trust, and flexibility — not cost-cutting or rigid control. Organisations that adopt people-first strategies will see higher engagement, innovation, and loyalty, even amid uncertainty. By empowering employees with flexibility, transparent communication, and trust, companies create the psychological safety that fuels collaboration and creativity.

For the HR function, this marks a redefinition of success. HR is no longer just evolving — it is rewriting its purpose. The most forward-thinking HR leaders will measure success not only through compliance or productivity metrics but through indicators of trust, inclusion, and connection. These human-centred assets will increasingly determine an organisation’s resilience and long-term performance. By embedding trust and empathy into their strategies, HR leaders can transform their function from a service department into a strategic engine of cultural and business growth.

The Power of Community

HiBob’s In Good Company initiative was created in direct response to one of the most pressing insights from this year’s HR Health Check Report — that HR carries an immense emotional and operational load, often with limited outlets for support. In a profession defined by care for others, HR leaders and teams frequently find themselves without the same care structures they work so hard to build for their organisations. In Good Company seeks to address that imbalance by creating a space for HR professionals, people managers, and business leaders to connect, share experiences, and learn from one another. It brings together a global community united by a simple belief: that putting people first — not just in words, but in practice — is what drives meaningful, lasting success for organisations.

The data shows a profession under pressure but not without hope. In an era of isolation, hybrid work, and constant change, HR professionals need peer connection as much as any other form of support. When HR teams come together to exchange ideas, validate shared experiences, and discuss practical strategies, they not only build resilience but also prevent burnout by realising they are not alone in the challenges they face. Shared learning helps shift the narrative from endurance to empowerment — from silently coping to collectively problem-solving. By fostering community, In Good Company helps transform HR from a group of isolated practitioners into a network of allies who can sustain each other, champion best practice, and create healthier workplaces from the inside out.

Ultimately, connection is one of HR’s most powerful antidotes to burnout. When professionals are able to collaborate openly and draw on the wisdom of their peers, they rediscover the purpose and human connection that inspired them to enter the field in the first place. In Good Company is more than a community — it’s a reminder that HR doesn’t have to carry the weight alone, and that shared strength can be the key to creating more sustainable, people-first organisations.

Conclusion

The 2025 HR Health Check Report UK makes one thing clear: HR is both the heart and the backbone of modern business. As organisations continue to adapt to change and economic pressure, HR stands at the centre, driving culture, guiding transformation, and safeguarding people. Influence has never been higher, but neither have the demands. HR teams are being asked to balance strategy with empathy, resilience with resource constraints, and innovation with care.

Yet, amid these challenges lies opportunity. With the right combination of technology, strategy, and support, HR can move from simply surviving to actively shaping the future of work. By embracing smarter tools, clearer priorities, and sustainable working models, the function can unlock its full strategic potential — empowering not just the HR community but entire organisations to thrive. The path forward is clear: invest in HR’s capacity to lead, care, and connect, and the benefits will cascade across every level of the business. HR’s strength has always been its humanity — and that, more than ever, is what will define its success in the years ahead.

Methodology

Survey of 600 UK-based HR professionals in October 2026. Respondents represent a cross-section of company sizes, sectors, and seniority levels.