HR must demonstrate its value to business, new CIPD chief says

The transition marks a significant shift in leadership for the UK’s primary professional body for people development. Carberry succeeds Peter Cheese, a veteran who steered the organization for 14 years, leaving behind a legacy of professionalization and advocacy. As the profession grapples with the integration of artificial intelligence and significant shifts in employment law, Carberry’s appointment is viewed by industry analysts as a strategic choice, leaning into his extensive background in labor market policy and trade advocacy.
A Career Built on Labor Market Expertise
Carberry’s pedigree in industrial relations and policy advocacy is extensive. Before his appointment to the CIPD, he spent over eight years as the chief executive of the Recruitment and Employment Confederation (REC), where he navigated the complex regulatory environment of the UK staffing industry. His tenure there was marked by his efforts to articulate the value of flexible labor markets during the turbulence of the post-Brexit era and the COVID-19 pandemic.
Prior to the REC, Carberry spent a significant portion of his career at the Confederation of British Industry (CBI). During his time there, he led high-level initiatives regarding labor market policy, skills development, and industrial relations. His work with the Low Pay Commission and his seat on the council of Acas—the Advisory, Conciliation and Arbitration Service—provide him with a nuanced understanding of the delicate balance between worker protections and business viability. This background was formally recognized in 2025 when he was awarded an OBE for services to business and the economy.
The Core Challenge: Connecting People to Performance
In his inaugural address to the profession, Carberry was direct regarding the current state of HR. He noted that while the rhetoric surrounding the importance of "people as assets" is common, the reality in many boardrooms remains disconnected. Business leaders continue to scrutinize the value proposition of HR departments, often viewing them as cost centers rather than strategic partners.
"There is nothing revolutionary about saying that people and skills drive performance," Carberry stated. "The challenge is that so many still haven’t acted as if they do, and that has consequences."

This disconnection is particularly acute in the current economic climate. With the UK facing a productivity plateau and a competitive labor market characterized by skills shortages, the ability of an organization to attract, retain, and develop its workforce is now the primary determinant of its survival. Carberry argues that the HR function must evolve to meet this reality, shifting focus from compliance to proactive organizational design.
Chronology of the Leadership Transition
The transition of leadership at the CIPD is a pivotal moment in the organization’s history.
- 2012: Peter Cheese is appointed as the chief executive of the CIPD, ushering in a decade of growth and focus on professional standards.
- June 2024: Peter Cheese officially retires after 14 years of service. Caroline Stockmann is appointed as interim CEO to manage the organization during the search for a permanent successor.
- Mid-2024: The CIPD board conducts an extensive search for a successor capable of navigating the intersection of technology, policy, and human behavior.
- September 28, 2024: Neil Carberry officially begins his tenure as chief executive.
- Late 2024 and Beyond: The organization begins a period of consultation under Carberry, aimed at aligning the CIPD’s strategic focus with the needs of its membership base and the broader economy.
Data-Driven Realities: The Productivity and Skills Gap
The urgency behind Carberry’s agenda is supported by compelling economic data. The UK’s productivity gap—the difference between the country’s output per hour and that of its G7 peers—remains a stubborn barrier to growth. Recent figures from the Office for National Statistics (ONS) indicate that while employment rates remain relatively stable, the quality of "good work" and the efficiency of labor utilization are inconsistent across sectors.
Furthermore, the integration of Artificial Intelligence (AI) has added a new layer of complexity to the human capital equation. While AI offers the potential for significant productivity gains, it also necessitates a radical upskilling of the current workforce. According to recent industry surveys, nearly a third of employees are already interacting with AI in their daily workflows, yet many organizations lack the structured HR support required to manage this transition ethically and effectively.
The "skills shortage" is no longer a localized issue; it is a systemic inhibitor. Employers are struggling to fill roles that require a blend of technical digital literacy and human-centric soft skills, such as complex problem-solving and emotional intelligence. For the CIPD, the implication is clear: the organization must provide the tools and standards to help members navigate this structural change.
Strategic Objectives and Organizational Priorities
Carberry has been careful to manage expectations regarding his "first 100 days." Rather than arriving with a predetermined, top-down strategy, he has expressed a desire to "listen, learn, and work with our members." This approach signals a move toward a more collaborative leadership style, aimed at ensuring that the CIPD remains relevant to the daily pressures faced by people professionals on the front lines.

However, his thematic focus is already established. Throughout his public appearances leading up to his appointment—most notably at the CIPD’s Festival of Work—Carberry has consistently hit three key notes:
- Professional Advocacy: The CIPD must act as a stronger voice in the boardroom and with policymakers. By representing the expertise of people professionals at the highest levels of government and corporate governance, the institute aims to ensure that labor market policy is informed by those who understand the workplace best.
- Evidence-Based Practice: HR must move away from "fads" and toward rigorous, evidence-based interventions. Carberry is a proponent of utilizing data analytics to prove the correlation between specific HR practices—such as performance management, talent development, and employee well-being initiatives—and bottom-line financial results.
- Community and Support: The role of the HR professional is becoming increasingly isolated as they deal with difficult questions regarding layoffs, disciplinary issues, and mental health. Carberry intends to strengthen the CIPD’s role as a support network, providing the practical resources that practitioners need to manage these sensitive issues effectively.
Implications for the Future of Work
The broader implications of Carberry’s tenure are significant for the UK business landscape. If the CIPD succeeds in elevating the status of HR to a true strategic partner, the impact could be seen in improved labor market participation and a more resilient, adaptable workforce.
Conversely, if the profession fails to bridge the gap between people management and business strategy, it risks being marginalized as companies automate more of their administrative processes. The rise of sophisticated HR tech platforms has already begun to automate the "transactional" aspects of the job, such as payroll and benefits administration. This creates an existential imperative for HR professionals to demonstrate their "transformational" value.
As Carberry noted in his message to the profession: "These are not secondary organizational issues. They determine whether strategy can be delivered at all."
Conclusion
Neil Carberry’s entry into the role of CIPD chief executive arrives at a time of profound transition for the world of work. By emphasizing the link between human capital and economic output, he is signaling a move toward a more business-centric model of human resources. His tenure will likely be defined by his ability to translate this vision into tangible support for members who are currently navigating a landscape of rapid technological change and shifting employee expectations.
The task ahead is substantial. The profession is being asked to solve some of the most intractable problems in modern business, from addressing the productivity puzzle to integrating new technology while maintaining a healthy organizational culture. As Carberry embarks on his period of listening and learning, the eyes of the business community will be on the CIPD, waiting to see how the organization will shape the next era of work. For now, the message is clear: the era of HR as an administrative support function is over; the era of HR as a core strategic driver must begin.







