HR need to remember why they suddenly have a seat on the board

HR need to remember why they suddenly have a seat on the board

Research by the HRD Pathfinder Club among senior UK HR directors has revealed a picture of HR promotions and growing status as trusted advisors to boards.

In the last three months of the year in particular there was found to be a rise in the numbers of female HRDs being moved to more senior positions. 47% of those involved in the survey said they now had a better working relationship with their CEO, and 35% with their CFO.

Virtuous circle

“I am speaking to more HRDs who, as a result of the current turmoil and crisis, have a direct line to the CEO and are seeing a virtuous circle of cause and effect,” said Peter Ryding, founder of the HRD Pathfinder Club, which is campaigning to increase the number of FTSE CEOs who are HRDs from 2% to 20% by 2030.

“They are given more support and budget, enabling them to put into practice people initiatives that deliver improved commercial results and enhance the business, allowing for further investment in the workforce. HRDs can use Covid as an opportunity to be a businessperson first and the people-expert second….HR now has a chance to move where it belongs – to the centre of the organisation, ensuring that decisions are guided by the right HR KPIs. That is how to win the support and confidence of your CEO and to become their most trusted advisor.”

The foundation of workplace wellbeing

EAPA UK chair Eugene Farrell said: “It’s positive news that senior HR professional are being given more of a say at higher levels within organisations. It can only mean more awareness of the importance of ‘good work’ and the ways to create hard financial returns from having better workplaces and working environments. “But it’s also important that HRDs don’t lose sight of exactly why they have been drawn close into the heart of decision-making discussions and thinking. Without a strong understanding of the value of employee wellbeing, how it’s been affected by the Covid-19 pandemic and the most effective methods for mitigating the serious problems and stresses involved, then any HR leader becomes less relevant to the core organisational challenge of ensuring resilience.”