Human resource departments have gotten a bad rap. Actor portrayals in shows like The Office and The Drew Carey show have fueled stereotypes like:
Fortunately, more and more CEOs and C-suite leaders are recognizing that HR professionals should be viewed for what they actually are….
The role of HR is changing, and CEOs are taking note
Technological advances in human capital management (HCM) streamline much of the administrative burden felt by HR professionals: applicant tracking, onboarding, time & attendance, payroll, benefits administration, and more. With these tasks out of the way, HR professionals can dedicate more time to collaborating with management. Fortunately, upper management is embracing the role of HR and the idea that is a necessary part of the strategic leadership of an organization.
In an article in the Harvard Business Review, Ellie Filler, an executive recruiter specializing in placing chief human resources officers (CHROs) made this observation: “This role (HR) is gaining importance like never before. It’s moved away from a support or administrative function to become much more of a game changer and the person who enables the business strategy.”
Are you making the most of HR?
HR can help with your greatest concern: Talent Management
According to PWC’s 20th annual CEO survey, talent tops the list of things that keep CEOs up at night. 77% of the CEOs surveyed were concerned that a skills shortage could hinder their organization’s growth.
Talent management is more than putting bodies in open positions, it’s about:
- sourcing and selecting outstanding talent who fit within the culture
- creating an engaging employee experience
- developing employees’ skills and roles
- retaining valued employees, and
- gathering and interpreting data to make strategic business decisions
To be successful there must be collaboration between HR and the CEO. Here are the roles that HR can play:
HR can align talent resources with corporate strategy – When goals are clearly communicated and HR understands the direction in which the company wants to go, they are in a position to make recommendations on the resources needed to get there. Headcount impacts the bottom line, therefore each position and new hire must be strategically considered. HR can gather and interpret this data, and work with the CEO to ensure that the organization’s workforce is as efficient as possible.
HR can attract qualified talent – HR can help position the company in a way that attracts the best talent in the industry, in essence, acting as marketers. Michael Brenner, CEO of Marketing Insider Group articulates it perfectly “HR has been forced to adopt strategies that look, well, very much like marketing. These days, HR develops campaigns to grow employer awareness, to build the employer brand as a ‘great place to work,’ and to retain top talent. All traditional marketing objectives.” CEOs should recognize this and provide the resources to support these efforts.
HR can create a compelling employee experience – A great employee experience can help attract and retain top talent, while building a deeply engaged workforce. HR is responsible for many of the things that go into developing that experience—applicant tracking, onboarding, benefits management, coaching, developing, and supporting the staff, and maintaining an open line of communication.
The above practices are instrumental in developing a superior workforce. By collaborating with HR, your organization can put an effective talent management strategy in place that will build your A-team while you catch some Zs.
Dive Deeper With Your Free CFO Guide To HCM
Want to take a more strategic approach to managing your workforce? This guide will give you what you need to for better collaboration with HR, attracting and retaining talent, and identifying soft costs, and of course several other key topics for CFOs.