8 signs that your HR department is in need of an upgrade (and how to go about it)

If your HR department were a car, it would be sputtering on the highway right now. Time for an upgrade? In a world where change happens faster than your coffee cools, your HR team can't be left behind. But how do you know when it's time to adjust the engine and get it running smoothly again?

Here are 8 signs that your HR department needs revamping - and how to do it smartly.

Why your HR department makes a difference

A strong HR department is like a good team behind the scenes of a top sports game. They are indispensable to the performance of the players - or in your case, the employees. But when your HR team struggles, you feel it everywhere: vacancies remain open, workloads mount, and talent leaves faster than you can replenish.

How do you recognize it's time for an upgrade? These are the signs you should look out for.

1. Vacancies remain open for more than 60 days

Problem: Job openings that remain open for months are a sign that you are struggling to attract the right candidates. Perhaps it's due to unclear job postings, an inefficient process, or a weak employer brand.

Impact: An open position costs an average of €5000 per month in lost productivity. And if it's a key position, that amount can be much higher.

Solution: Start with the basics: take a critical look at your job postings and employer branding. Engage employees to share authentic stories and use tools such as LinkedIn Recruiter to expand your reach.

2. Employees leave within a year

Problem: New hires leave faster than expected. This often indicates a mismatch in expectations, a lack of guidance, or limited opportunities for advancement.

Impact: The departure of an employee within a year costs on average 30% of the annual salary. In addition, it causes instability in teams.

Solution: Create a structured onboarding process in which new employees know what to expect. Tools like Appical can help you do this. Also, make sure you do regular check-ins in the first few months.

3. HR uses outdated tools (or no tools)

Problem: If you're still using Excel to track vacation days, you're falling behind. The lack of modern tools hinders automation and oversight.

Impact: Time-consuming, manual processes slow down everything - from recruitment to payroll.

Solution: Invest in HR software such as Workday, Greenhouse or HiBob. These tools give you insight into data, help automate processes and provide clear reporting.

4. You have no insight into HR data and KPIs

Problem: Without data, it's like driving with a blindfold on. You don't know where bottlenecks are or where you can improve processes.

Impact: You can't make strategic decisions if you don't understand metrics such as time-to-hire, turnover rates or employee satisfaction.

Solution: Make use of tools such as Tableau or Google Data Studio. Start with simple dashboards that provide instant insight into your key KPIs.

5. The workload on HR is too high

Problem: If your HR department is constantly putting out fires, they don't have time to think strategically. This leads to exhaustion and frustration.

Impact: Operational pressures displace strategic projects, such as employer branding and internal culture programs.

Solution: Take a critical look at the tasks of your HR team. Which tasks can be outsourced to interim HR professionals or automated? That way you create space for strategic work.

6. Low employee engagement and satisfaction

Problem: Employees don't feel heard or valued, resulting in lower productivity and higher turnover.

Impact: Research shows that organizations with low engagement are up to 21% less profitable.

Solution: Regular employee satisfaction surveys (e.g., via Typeform) are a good start. But above all, make sure you do something with the feedback you receive.

7. HR does not have a strategic position

Problem: HR is seen as executive, not strategic. This means they are often not involved until the problems already exist.

Impact: Your organization is missing opportunities to grow long-term and build a strong culture.

Solution: Have HR report regularly to management. Use data to show how HR directly contributes to business goals.

8. Your HR team is mostly reactive, not proactive

Problem: Many HR teams operate in survival mode. They solve problems instead of preventing them.

Impact: Without a proactive approach, you will continue to lag behind - from recruitment to culture.

Solution: Invest in talent pools and strategic workforce planning. Make sure your HR team has time to think ahead and plan for future needs.

What next? Time for action!

Do you recognize these signs? Then it's time to give your HR department the upgrade it deserves. Consider implementing new tools, reviewing processes and investing in the growth of your HR team.

At People&, we believe in powerful HR teams that make real impact. From interim HR professionals to strategic consulting - we help take your team to the next level.