Why is HR One of the Most Undervalued (or Neglected) Department, Bordering on Hate?

Imagine this: A fast-growing startup, led by a charismatic founder, is scaling rapidly. Sales are booming, product innovation is at its peak, and funding rounds are closing faster than they can celebrate. But HR? Oh, HR is an afterthought—relegated to payroll, admin tasks, and the occasional office party.

In many promoter-led companies and medium-sized businesses, HR is often treated as a secondary function—sometimes even entrusted to a family member with little to no HR expertise. If a founder’s wife, mother, or a close relative can “handle people,” why bother hiring a professional HR leader?

And that, right there, is the root of the problem.

HR: The Least Respected Business Function?

The HR Problem in Startups & Promoter-Led Companies

• HR is the last CXO to be hired.

Finance, marketing, and sales leadership? Essential from Day 1. But HR?
"We’ll hire an HR Head later."

• HR is often reduced to payroll & compliance.

Instead of being a strategic enabler, HR is boxed into an admin role— sorting resumes for business managers, processing salaries, handling paperwork, and organizing the occasional team lunch.

Founders don’t see HR as a business function.

They see it as an expense, not an investment.
And then they wonder why:

1. Employees are disengaged.
2. Culture is toxic.
3. People are leaving faster than they can hire.

By the time they realize HR’s importance, it’s already in damage control mode.

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Culture Building Starts at the Top

I was fortunate to work with great companies like ITC Hotels, Sodexo, i-flex Solutions, Oracle, and IIFL, where HR was respected, empowered, and treated as a critical business partner.

But I also saw the other side during my consultancy days—places where:
❌ HR had no decision-making power.
❌ Founders saw HR as a compliance function.
❌ Employees had no real voice because internal HR was too weak to advocate for them. 

It indeed was/is a hard task changing the mindset of such Founders/ Promoters... but I am glad that many are tuned and aware of the benefits of having a strong HR. 

But, the hard truth?

• HR can’t build a strong culture unless the founders & leadership want one.

HR professionals can educate startup founders & promoters—but only if they’re willing to listen and learn.

Because culture isn’t built in HR—it starts at the top.

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How Do We Fix This?

      ✅ HR needs a seat at the table.

• Not just an execution role, but a strategic partner in decision-making.

      ✅ Founders need to stop treating HR like admin work.

• It’s about people, culture, and business growth—not just sifting resumes and payroll.

       
✅ HR leaders must speak in business numbers.

• Stop talking only about just engagement scores—talk about cost savings from reduced attrition, productivity gains, and retention strategies.

                                                    HR isn’t a cost center.
                                                    HR isn’t an admin job.
                                                    HR isn’t just about policies and compliance.

                                                            HR is a growth engine.

But until more companies realize that, they’ll keep bleeding talent.

In startups, HR is often the last function to be taken seriously. The focus is on product, sales, and funding. But here’s what gets ignored:

• Chaotic Hiring: “Let’s just get people onboard fast” leads to bad hires. No proper job descriptions, no cultural alignment, and then—high attrition.
• Toxic Work Culture: Employees are expected to work 24/7 because "we’re a startup". Burnout is inevitable, but hey, free pizza on Fridays should fix everything, right?
• No People Strategy: Employee engagement? Career growth plans? Leadership development? "We’ll do that once we’re bigger.” By then, it’s often too late.
• Nepotism in HR: HR roles are handed over to relatives or non-experts, reducing it to an administrative job rather than a strategic function.

So, What’s the Solution?

Founders Need to See HR as a Business Function

• HR is not an “expense”; it’s an investment in sustainable growth. No matter how great a product is, bad people management will tank the company. 

 HR Leaders Must Speak the Language of Business

• Stop talking only about employee engagement scores. Instead, talk about cost savings from reduced attrition, productivity gains, and retention strategies.

Stop Making HR the Punching Bag

• HR is NOT just an enforcement team for management’s unpopular decisions. They should be partners in decision-making, not just the ones communicating bad news.

Move Beyond "HR as Admin"

• If HR is only seen as the function that processes payroll and plans team lunches, something is deeply wrong with how the company views its people strategy.

Professionalize HR in Owner-Driven Businesses

• If a relative is in charge of HR, ensure they undergo formal HR training or hire an expert / Consultant to guide them. Managing people is not a hobby—it’s a skill.

Final Thoughts: HR Needs a Brand Overhaul

HR needs to reposition itself within organizations. It’s time to shed the image of being just a policy enforcer and embrace the role of a strategic enabler.

Because let’s be honest - companies that truly respect and invest in HR outperform those that don’t.

HR isn’t just about hiring, firing, and policies. It’s about people, culture, and growth.

And if businesses don’t see that, they’re setting themselves up for failure.