UK firms ‘misallocate £10bn’ on HR departments, report says

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EDI has led to billions in misallocated capital, research has suggested. The UK’s human resources sector is twice the size of the EU’s and has led to firms misallocating as much as £10bn in capital, ...

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The UK’s human resources sector is twice the size of the EU’s and has led to firms misallocating as much as £10bn in capital, ...</p>\n\n<a href=\"https://www.cityam.com/uk-firms-misallocate-10bn-on-hr-departments-report-says/\">Source Link</a>\n\n</div>\n","source":"cityam_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>UK firms ‘misallocate £10bn’ on HR departments, report says</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUK firms ‘misallocate £10bn’ on HR departments, report says\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-24 06:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityam.com/uk-firms-misallocate-10bn-on-hr-departments-report-says/><strong>cityam</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>EDI has led to billions in misallocated capital, research has suggested. The UK’s human resources sector is twice the size of the EU’s and has led to firms misallocating as much as £10bn in capital, ...</p>\n\n<a href=\"https://www.cityam.com/uk-firms-misallocate-10bn-on-hr-departments-report-says/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"HR","symbol_name":"医疗保健房地产信托","start_time":0,"source_url":"https://www.cityam.com/uk-firms-misallocate-10bn-on-hr-departments-report-says/","article_id":"2613534137","we_media_id":null,"thumbnails":["https://www.cityam.com/wp-content/uploads/2026/02/job-centre-plus-e1771256898113.jpg?w=824&h=463&crop=1"],"rights":{"source":"cityam_highlight","url":"https://www.cityam.com/uk-firms-misallocate-10bn-on-hr-departments-report-says/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2613534137","pubTimestamp":1771885860,"columns":[],"sourceInfo":{"source_id":"cityam_highlight","name":"cityam"},"weMediaInfo":null,"summary":"EDI has led to billions in misallocated capital, research has suggested. The UK’s human resources sector is twice the size of the EU’s and has led to firms misallocating as much as 10bn in capital, new research has suggested.A paper on the cost of diversity and equality agendas on businesses has argued that HR departments have grown at a disproportionate rate, with the UK having one of the highest share of people employed in HR anywhere in the world.Policy Exchange researchers have found that 1.6 per cent of the UK workforce is employed in HR, compared to one per cent for the US and around 0.8 per cent for the EU.Analysis suggested that the extra cost incurred by UK businesses from hiring more HR workers amounted to some 10bn a year.“Not only is this a direct cost on firms, but there is also an opportunity cost associated with this, and it leads to a misallocation of resources within these firms,” analysts at the think tank said.","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"HR":"医疗保健房地产信托","BK4203":"医疗保健房地产投资信托","BK4225":"医疗保健房地产信托","EDI":"Stone Harbor Emerging Markets To"},"translate_title":"报告称，英国公司在人力资源部门“错误分配了100亿英镑”","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EDI":1,"HR":1.5},"content_text":"EDI has led to billions in misallocated capital, research has suggested. The UK’s human resources sector is twice the size of the EU’s and has led to firms misallocating as much as £10bn in capital, new research has suggested. A paper on the cost of diversity and equality agendas on businesses has argued that HR departments have grown at a disproportionate rate, with the UK having one of the highest share of people employed in HR anywhere in the world. Policy Exchange researchers have found that 1.6 per cent of the UK workforce is employed in HR, compared to one per cent for the US and around 0.8 per cent for the EU. Analysis suggested that the extra cost incurred by UK businesses from hiring more HR workers amounted to some £10bn a year. \n\n“Not only is this a direct cost on firms, but there is also an opportunity cost associated with this, and it leads to a misallocation of resources within these firms,” analysts at the think tank said. \n\n\n\n\n\n\nNews Updates\nStay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n“It is money which cannot be spent on hiring people to work in more productive roles which would help to increase the profitability of their firm.”The report, which focused on the effects of equality, diversity and inclusion (EDI) policies on business costs, received the backing of shadow business secretary Andrew Griffith and Baroness Cash, the former commissioner at the Equality and Human Rights Commission (EHRC). Griffith said: “[EDI] makes businesses more risk averse, slower, less likely to take a chance on recruiting new staff and focused upon ticking bureaucratic boxes rather than delivering for their customers.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2613534137","isCrawlerRequest":true}