It is evident that Human Resources (HR) professionals form an important part of any business, with 82% of global leaders agreeing that the HR function is more critical now than ever before.
Recent data from HR Magazine shows that the number of HR professionals has grown by 42% in the past decade, compared to just 10% for the general workforce, suggesting a demand for HR professionals and the skills they bring to the table.
Despite this, HR is still often considered an operational function, meaning it is often dismissed by senior professionals, and rarely receives the recognition it deserves at board level.
Throughout my career, I have witnessed many professionals discount HR as a function, claiming it does not generate revenue. This is a huge misconception.
People are a business’ biggest asset, and it is HR professionals that nurture, develop and often source the talent that is key to any organisation’s success.
With over 20 years’ recruitment experience, 15 of which have been spent specialising in sourcing HR talent, I truly believe that investing in people is key to any business strategy. While HR may not directly drive revenue, people ultimately determine the success of a business – get the people strategy right, the engagement, culture and retention right, and everything else follows.
There is clearly a demand for HR professionals, and securing the right talent will continue to be a crucial ingredient to a company’s success, so how can the HR function claim its seat at the table, contribute to important conversations, and drive key decisions?
Here, I share some of the reasons why HR representation at board level can lead to greater company growth, and how professionals can work to increase visibility of the HR function.
HR representation enhances communication
HR leaders are well placed to act as mediators between what is discussed by executives in the boardroom and what is discussed by employees in the workplace. Any problems team members are experiencing can be brought to the attention of board members, and then appropriate action can be taken.
This creates transparency and clarity, creating loyalty and trust amongst employees. It helps employees feel engaged and can increase communication within board meetings.
It provides data-led insights
In recent years, HR managers have introduced automated systems that have significantly improved productivity and streamlined day-to-day processes. These systems are used to measure data within the workplace on issues such as retention levels, absence trends, productivity measures, employee satisfaction and wellbeing. These figures can then be brought into the boardroom to ensure decisions are made based on reliable data rather than intuition and assumption.
HR professionals can help businesses plan ahead
Whilst the contribution of executive leaders is valuable, they can’t always predict how such changes will impact employees’ day-to-day working life. Developing long-term strategies such as organisational structural changes and training and development isn’t easy. Because HR professionals have their finger on the pulse when it comes to the priorities of the workforce, they can provide insights as to how these strategies should be developed and implemented most effectively.
HR professionals help attract new talent
HR leaders have a good understanding of what top talent is looking for, so it is advantageous to include HR in your recruitment process. You can do this by asking for their advice when developing applications and job specifications and involving them in the interview process.
HR teams can also help to keep CEOs’ minds open when it comes to hiring employees who may have a different set of preferences and priorities. This can ensure the hiring process is fair and equitable for disabled, neurodiverse, and minority group candidates.
It assists with corporate compliance and Corporate Social Responsibility (CSR)
Labour laws are constantly changing, from which questions are permissible at interview, to how employees should be treated based on EEO categories.
Since HR professionals are the ones who stay on top of these changes, they need to be involved when CEOs make decisions about processes such as hiring or employee development. This will ensure companies adhere to the roles and stay compliant.
HR leaders can also make contributions when it comes to CSR policies ensuring decisions align with the priorities of employees as well as potential new talent entering the company. With CSR becoming an increasingly large part of a company’s employee value proposition (EVP), this is a huge benefit.
To conclude, it is clear that HR plays an important role in the functioning of any business. By being at the helm of a company’s human capital, HR leaders possess the right skills and knowledge needed when making critical business decisions. They play a key role in enabling organisations to be on the right path to success in a way that satisfies everyone, and therefore should be included when key decisions are being made.
If you would like to hear more thoughts from the GRG Executive Search team, do visit our insights. Hear our Managing Director Daniel Yates’ thoughts on the journey to becoming a Non-Executive Director, or explore whether the move from permanent to interim leadership and whether it is the right move for you.