HR has long been seen as a function bound by rules, policies, and processes. But the true visionaries in the space are the ones who challenge the status quo and rethink work from first principles (a concept celebrated in business and innovation circles). Leaders like Richard Branson, founder of Virgin Group, have shown that questioning industry norms and focusing on people can lead to transformational change. When HR professionals strip down workplace norms to their core assumptions, they can reshape how people experience work, creating environments that put people first.

HR leaders such as Patty McCord, Laszlo Bock, Mari Sefo, and Debra Corey have proven that challenging traditional approaches to benefits, flexibility, and recognition leads to workplaces that are more empowering, human-centric, and ultimately more successful. Their work demonstrates that by questioning the way things have always been done, HR can create a lasting ripple effect on employees’ lives, far beyond the time they spend at any one company.

This is especially important today; employee expectations are higher, talent competition is global, and well-being is tied directly to performance making this mindset isn’t just progressive and essential. Forward-thinking HR leaders who reimagine how people are supported at work are building cultures that attract top talent, drive engagement, and help their organizations adapt in times of uncertainty and change, and future-proof the business.

How to apply First Principles in HR to create lasting impact

Great HR leaders think like first-principles innovators.

Instead of tweaking the status quo, they ask: “What is the fundamental goal we are trying to achieve? And if we started from scratch, how would we design the best solution?“

1. Benefits: Rethinking what employees actually need

Traditional benefits are often designed based on what other companies are doing, rather than what employees truly need.

Debra Corey questioned this approach when she was revamping a global benefits program. Employees wanted support for well-being, but well-being meant different things to different people. Instead of forcing a one-size-fits-all program, she introduced a well-being allowance — a stipend that employees could use for whatever mattered most to them, whether that was therapy, a gym membership, or a food intolerance test.

“The wellbeing allowance was a specific sum of money (around $500 annually) based on employees’ locations that could be used on ‘anything’ that could improve overall wellbeing. Employees simply had to provide their goal, how they would reach it, and the cost of the chosen activity or equipment.” – Debra Corey, Getting Personal

And the results? Employees felt more valued, and engagement increased.

Research backs this up too: a 2025 Morgan Stanley at Work study found that 91% of employees say they’d feel more invested in staying with a company that offers financial benefits tailored to their specific needs, underscoring the power of personalization

Another HR disruptor, Patty McCord, co-author of Netflix’s famous Culture Deck, pushed against traditional benefit models, advocating instead for radical transparency and treating employees as adults. McCord helped shape one of the most influential HR cultures by focusing on autonomy and freedom, ideas that have since become mainstream.

“You’re not a kid who needs a policy. You’re an adult who can have a relationship with the company, and if you mess up you get a conversation, not a form to fill out.” – Patty Mccord, How She Built Netflix’s Culture

As McCord put it: “We said, ‘What is the work, and what do people really need to do it? Forget the policy book.’” That’s first‑principles thinking; building HR from the ground up.

Building work from the ground up has become increasingly important in today’s work landscape, with AI rapidly transforming the nature of work itself. AI adoption is widespread, permeating nearly every sector. Studies show that up to 30% of U.S. jobs may be impacted by AI by 2030, making the demand for human skills like creativity, empathy, adaptability, and prompt engineering grow as fast as the technology itself.

HR is now managing the workforce, and proactively participating in re-writing the rules. As the workplace gets quickly reshaped by AI, offering flexible AI stipends is emerging as the best benefit companies can provide in 2026. Reason being, these stipends allow employees to choose how they skill up, experiment, and integrate AI tools into their work, helping them succeed, stay relevant, and thrive.

2. Recognition: Rewarding the many, not just the few

Employee recognition has traditionally focused on high performers, which are a select few who receive large bonuses (think President’s Club) while the majority of employees get little to no recognition at all. But Debra Corey flipped the model upside down, asking: Why spend 80% of our recognition budget on just 5% of employees?

Instead, she created a Recognition Pyramid, where more budget went toward frequent, everyday recognition for all employees, rather than saving it for annual awards. This approach aligns with research from Gallup, which found that employees who receive frequent recognition are five times more likely to feel connected to company culture and four times more likely to be engaged.

Laszlo Bock, former Chief People Officer at Google, took a similar approach. He introduced peer-to-peer recognition programs, believing that top-down awards weren’t enough. Instead, he championed public appreciation platforms and spot bonuses distributed by teams—not just managers.

3. Flexibility: It’s about listening

When companies rushed to embrace flexible work post-pandemic, many simply mirrored what others were doing, without considering or asking what their employees actually needed.

First-principles thinkers in HR start by asking: What does flexibility truly mean to our workforce? For some employees, it means remote work. For others, it means the ability to adjust hours to accommodate childcare, caregiving, or mental health needs.

Laszlo Bock led Google’s shift toward data-driven HR decisions by listening to employees and analyzing work patterns before making sweeping changes. His team discovered that small tweaks, like giving employees more control over their calendars, improved productivity and satisfaction more than fully remote work policies. Similarly, Debra Corey encountered pushback when suggesting employee focus groups to determine benefit needs. A leader once told her, “That’s what I pay you to do.” But she knew better, with data from Qualtrics showing that companies that listen to employees and act on feedback are 12 times more likely to retain top talent.

Why Challenging HR Norms Matters: The Ripple Effect

As Kat Kibben pointed out in a recent article, the best HR leaders don’t just change policies; they change lives.

Debra Corey recently heard from a former employee who thanked her for encouraging them to join their company’s 401(k) plan at 21. That small moment of guidance set them up for financial security years later.

HR leaders often don’t see the long-term impact of their decisions, but their influence extends far beyond a paycheck. Whether it’s enabling financial security, supporting mental health, or giving employees the recognition they deserve, small changes today can create ripples for decades to come.

HR enforces policies, and shapes workplace experiences that allow people to thrive.

By questioning traditional norms, rethinking benefits and recognition, and truly listening to employees, HR leaders can drive real change that lasts far beyond their tenure.

If we embrace first principles thinking in HR, we move beyond “best practices” and start designing workplaces that actually work for people.

And when we challenge everything, we create the kind of impact that outlives us.