A human resources expert, Mr. Joel Omeike has warned that inefficiencies within HR departments are costing organisations up to 15% of their annual profits.
Speaking during a P4PE Talks webinar held on Zoom on 31 March 2026, Omeike said many HR teams remain active but fail to deliver measurable business outcomes, creating a widening gap between effort and impact.
Presenting poll results from the session, he noted that only 36% of participants believed HR was adding value, while 64% felt the function could perform better. He said this reflects a reality many CEOs face, where HR is heavily involved in activity but struggles to influence performance, execution, and growth. “HR is busy, but not effective,” he said, stressing that CEOs measure results, not effort.
Omeike, , known as The HRGodfather and author of Fire Your HR, explained that HR’s core mandate is to “deliver results through people”, adding that the function must connect talent directly to business strategy and performance. He outlined CEO expectations of HR, including driving business results, building strong leadership pipelines, enabling faster talent decisions, aligning HR strategy with organisational goals, and strengthening execution across teams.
He observed, however, that many HR teams fall short of these expectations. “CEOs want partnership, but HR often provides support. They want insight, but HR brings reports,” he said, noting that most HR data is historical and does not support forward-looking decision-making.
According to Omeike, HR’s limited influence is also evident in executive engagement with the function. He said HR is often among the last to be informed about critical business decisions, unlike finance teams, which typically maintain closer working relationships with CEOs.
Omeike identified structural issues undermining HR performance, including disconnected systems, siloed functions, limited data-driven insight, and weak alignment with business strategy. He noted that recruitment, performance management, training, and compensation frequently operate independently, reducing overall effectiveness.
He added that HR is “structured to manage, not to lead”, explaining that traditional HR models were designed for stable environments, whereas today’s business landscape requires speed, adaptability, and precision. Failure to evolve, he warned, has turned some HR functions into organisational bottlenecks.
The expert also highlighted capability gaps within HR, arguing that many professionals lack the business and financial understanding required to influence executive decision-making. “We have a seat at the table, but we are not heard,” he said, adding that influence is rooted in competence.
Omeike stressed that weak HR systems carry significant financial consequences. He said productivity losses and high employee turnover linked to poor talent systems can erode a company’s bottom line by nearly 15%. “HR inefficiency is not soft, it is expensive,” he stated.
He further explained that weak talent pipelines often result in unprepared employees being promoted into senior roles, while some organisations recruit overpaid talent who disrupt existing structures. Poor emphasis on internal development, he added, limits growth and reduces returns on talent investment.
Omeike outlined five warning signs of failing HR systems: strategy changes without HR alignment, high activity with low measurable impact, persistent leadership gaps, slow talent decisions, and ineffective performance management. He said organisations experiencing three or more of these indicators are likely facing serious HR misalignment.
He also pointed to leadership challenges that compound the problem, including unclear expectations of HR, a lack of shared performance metrics between CEOs and HR teams, and misalignment among executives. HR discussions, he noted, are often treated as an afterthought in meetings, restricting strategic input on people-related issues.
“Many executives still see HR as a support function, not a performance driver,” Omeike said, adding that this mindset creates organisational blind spots and weakens performance. He advised CEOs to define clearly what success looks like for HR and ensure alignment across leadership teams.
He urged HR professionals to shift from activity-based work to outcome-driven delivery, from reporting to insight generation, and from functional expertise alone to stronger business and commercial understanding. He also called for integrated HR systems that connect all functions and align with overall business performance.
Omeike recommended a structured transformation approach, including independent assessments, system reviews, capability evaluations, and alignment of HR metrics with business goals. Organisations, he said, must manage HR transformation deliberately, as they would any major change initiative.
“At the end of the process, you have clarity, not assumptions,” he said, adding that organisations can then determine whether to fix, outsource, or restructure their HR functions.
Omeike concluded by warning that delaying action could deepen the problem. “You cannot fix what you don’t understand,” he said. “If HR is central to your performance, then understanding it is non-negotiable.”
