News Spotlight

HR admits that employees don’t like them. Since the pandemic occurred, HR has been seen as bugging employees and managers about administrative work (New York Times).

AI tools can benefit disadvantaged workers globally. AI enables workers to access knowledge, optimize resources, and enhance efficiencies, allowing those with low levels of education and disabilities to compete (World Economic Forum).

Companies have paused hiring. Macroeconomic uncertainty has resulted in businesses lacking confidence to make big decisions around hiring (Bloomberg).

Stat of the Week

​In a study of U.S. employees recently recruited, 50% reported that organizations had learned about them through an online professional networking site, such as LinkedIn, up from 39% in 2015. After online professional networks, 31% were referred by a friend, colleague or former colleague, and 21% were referred by recruitment agencies.

Online professional networking sites have become the top recruitment tools for companies due to their efficiency, reach, and data-rich environment. These platforms offer a vast pool of potential candidates, allowing recruiters to quickly search for specific skills, experience, and qualifications. They provide detailed professional profiles, often including endorsements and recommendations, giving recruiters a comprehensive view of candidates before initial contact. The sites' algorithms can match job postings with relevant candidates, streamlining the search process and they centralize the recruitment process, making it more cost-effective and time-efficient for companies to find and attract top talent in a competitive job market.

Deep Dive Article

How HR Can Finally Get a Seat at the Table

Historically, HR has struggled to secure a seat at the executive table due to several factors. One primary reason is the perception of HR as a primarily administrative function rather than a strategic partner. Traditionally, HR was seen as responsible for managing personnel records, payroll, and compliance, which, while essential, were not viewed as critical to the company's overall strategy. This perception was often compounded by a lack of quantifiable metrics demonstrating HR's impact on business outcomes, making it difficult for HR leaders to argue for a more influential role in strategic decision-making. Additionally, HR's focus on employee welfare and compliance sometimes contrasted with the business-centric focus of other executive functions, leading to a perception that HR was more of a cost center than a driver of value. As a result, HR was often excluded from key strategic discussions, limiting its influence and visibility within the organization.

But everything changed during the pandemic, which significantly elevated the role of HR within companies, transforming it into a central, strategic function. As organizations faced unprecedented challenges, such as managing remote work, ensuring employee health and safety, and navigating rapidly changing regulations, HR became crucial in guiding companies through these complexities. HR leaders were tasked with developing and implementing remote work policies, maintaining employee engagement and morale, and facilitating communication across dispersed teams. Additionally, HR played a vital role in addressing mental health concerns and supporting employees' well-being during a time of heightened stress and uncertainty. The need for rapid adaptation to new working conditions and the emphasis on maintaining a positive organizational culture amid the crisis highlighted HR's strategic importance. This shift has led to greater recognition of HR as a key player in shaping company strategies and ensuring business continuity, earning HR leaders a more prominent and influential seat at the executive table.

In today's rapidly evolving business landscape, HR's role is expanding to encompass strategic initiatives that drive organizational success. A recent survey of senior business leaders found that the HR department today has significant influence over purchasing: HR is seen as one of the top five decision-making functions by half (49%) of executives, putting it ahead of marketing, tech, legal, and procurement.

For HR to gain a "seat at the table" and be recognized as a vital part of the executive team, HR professionals must demonstrate their ability to contribute to the company's strategic goals and show how their initiatives directly impact the bottom line. Today, I explore how HR can transform its role from a support function to a strategic partner and gain the influence it deserves within the executive suite.

Understanding the Business

To be seen as a strategic partner, HR professionals must deeply understand the business, including its goals, challenges, and competitive landscape. This knowledge enables HR to align its strategies with the overall business objectives. HR professionals should:

• Learn the Business Model: Understand how the company makes money, its key products or services, and its customer base.
• Study Financials: Gain proficiency in reading financial statements, understanding key performance indicators (KPIs), and recognizing what drives profitability.
• Engage with Other Departments: Build relationships with leaders in other departments to understand their goals and challenges, which will help HR create strategies that support their needs.

According to a report by Deloitte, HR professionals who understand the business are more likely to be involved in strategic decision-making processes and can better align talent strategies with business outcomes.

Leveraging Data and Analytics

Data-driven decision-making is crucial in today's business environment. HR can leverage data analytics to provide insights that drive strategic decisions. By analyzing workforce data, HR can identify trends, predict future needs, and measure the impact of HR initiatives. Key areas where data and analytics can be applied include:

• Talent Acquisition: Use data to identify the most effective recruitment channels, predict hiring needs, and reduce time-to-hire.
• Employee Engagement: Analyze engagement surveys to identify areas for improvement and measure the impact of engagement initiatives on productivity and retention.
• Performance Management: Use performance data to identify high performers, understand skill gaps, and create targeted development programs.

A study by the Harvard Business Review found that companies that effectively use people analytics outperform their peers in terms of profit, sales, and employee productivity.

Developing Strategic Talent Management Programs

HR must develop and implement talent management programs that align with the company's strategic goals. This includes initiatives such as leadership development, succession planning, and workforce planning. Effective talent management ensures that the company has the right people in the right roles to achieve its objectives. Key strategies include:

• Leadership Development: Create programs to identify and develop future leaders within the organization. This ensures a pipeline of capable leaders who can drive the company's strategic initiatives.
• Succession Planning: Identify critical roles and develop succession plans to ensure continuity and minimize disruption in the event of key departures.
• Workforce Planning: Align workforce planning with business strategy to ensure the company has the necessary skills and capabilities to meet future demands.

A report by McKinsey highlights that companies with strong talent management practices are more likely to outperform their competitors and achieve better business results.

Demonstrating Impact and ROI

To gain a seat at the table, HR must demonstrate the impact of its initiatives on the company's bottom line. This involves measuring and communicating the ROI of HR programs. Key metrics to track include:

• Recruitment Metrics: Time-to-hire, cost-per-hire, and quality of hire.
• Engagement Metrics: Employee engagement scores, turnover rates, and retention rates.
• Performance Metrics: Productivity levels, performance ratings, and progression of high performers.

By providing data-driven evidence of the value that HR brings to the organization, HR professionals can build credibility and influence within the executive team.

Building Relationships with Senior Leaders

Building strong relationships with senior leaders is essential for HR to gain influence and be seen as a strategic partner. HR professionals should:

• Engage in Regular Communication: Maintain open lines of communication with senior leaders to stay informed about business priorities and challenges.
• Seek Feedback and Input: Involve senior leaders in the development of HR strategies and seek their feedback on key initiatives.
• Showcase HR's Contributions: Regularly report on the progress and impact of HR initiatives to demonstrate how HR supports the company's strategic goals.

According to a report by the SHRM, HR professionals who build strong relationships with senior leaders are more likely to be involved in strategic decision-making processes.

Embracing Technology and Innovation

HR must leverage technology to streamline processes, improve efficiency, and provide valuable insights. Key technologies include:

• HR Information Systems (HRIS): Implement HRIS to manage employee data, automate administrative tasks, and generate reports.
• Talent Management Systems: Use talent management systems to support recruitment, performance management, and learning and development.
• People Analytics: Leverage people analytics to gain insights into workforce trends, predict future needs, and measure the impact of HR initiatives.

Organizations that effectively use HR technology are better equipped to make data-driven decisions and achieve their strategic goals.

For HR to gain a seat at the table and be recognized as a strategic partner, HR professionals must demonstrate their ability to contribute to the company's strategic goals and show how their initiatives directly impact the bottom line. By understanding the business, leveraging data and analytics, developing strategic talent management programs, fostering a culture of innovation and agility, enhancing the employee experience, building a strong employer brand, demonstrating impact and ROI, building relationships with senior leaders, embracing technology and innovation, and advocating for DEI, HR can transform its role and gain the influence it deserves within the executive suite. As HR continues to evolve and adapt to the changing business landscape, its strategic contributions will become increasingly essential to organizational success.

Thanks for reading — be sure to join the conversation on LinkedIn and let me know your thoughts on this topic!

Quote of the Week

“Individual commitment to a group effort—that is what makes a team work, a company work, a society work, a civilization work."
​Vince Lombardi