Beyond Talent Acquisition: CHROs at the Boardroom Table - Aligning People with Purpose

Traditionally viewed as the custodians of employee well-being and paperwork, Chief Human Resources Officers (CHROs) are shedding their "HR department head" skin and emerging as strategic partners driving organizational success. This evolution finds its most potent expression in the boardroom, where CHROs are increasingly expected to contribute beyond recruiting and retention, becoming vital voices shaping an organization's future.

Expectation 1: Aligning People Strategy with Business Goals

Boards yearn for clear articulation of how the people strategy connects to and bolsters the overall business strategy. Gone are the days of siloed HR initiatives. CHROs must demonstrate how talent acquisition, development, and engagement directly impact bottom lines, market share, and brand reputation.

Case Study: CHRO of General Electric. Susan Peters, implemented a "talent mobility engine" program, mapping employee skills to business needs and fostering internal talent pools. This resulted in $1 billion in cost savings through reduced external hiring and improved talent utilization.

Key Factor: Quantify HR's impact. Use data-driven insights to illustrate how HR practices influence key performance indicators (KPIs) like employee productivity, customer satisfaction, and innovation rates.

Expectation 2: Championing Talent as a Strategic Asset

Board members expect CHROs to advocate for talent as the organization's most valuable asset. This translates to building robust talent pipelines, nurturing high-potential individuals, and fostering a culture of continuous learning and development.

Example: Microsoft, under CHRO Kathleen Hogan, launched "Leap," a leadership development program identifying and grooming high-potential employees from diverse backgrounds. This proactive talent management strategy ensures a future-proof leadership pipeline.

Key Factor: Shift from cost center to value center. Demonstrate how investing in talent development yields tangible returns, such as increased employee engagement, reduced turnover, and enhanced innovation.

Expectation 3: Navigating Risk and Fostering a Positive Work Environment

Boards prioritize risk mitigation, and CHROs play a crucial role in addressing people-related risks like harassment, discrimination, and low employee morale. By fostering a culture of inclusion, ethical conduct, and well-being, CHROs proactively mitigate potential legal and reputational risks.

Example: Unilever, under CHRO Leena Nair, implemented a global "Speak Up" program, encouraging employees to voice concerns without fear of reprisal. This proactive approach to addressing ethical concerns minimizes legal risks and enhances brand reputation.

Key Factor: Build a diverse and inclusive workplace. A company with a diverse workforce and a culture of inclusion attracts and retains top talent, mitigates legal risks, and enhances brand image.

Expectation 4: Shaping Organizational Culture

Boards expect CHROs to go beyond compliance and build a strong,?values-driven culture that attracts and retains talent,?drives innovation,?and aligns with broader social and environmental responsibilities.

Case Study: Patagonia's CHRO, Dean Carter, implemented a "Let My People Go Surfing" policy, granting employees flexible work arrangements to embrace outdoor activities. This fostered a culture of well-being and environmental consciousness, attracting top talent and solidifying Patagonia's employer brand.

Expectation 5: Leading Change and Disruption?

In a rapidly evolving business landscape,?boards expect CHROs to drive change initiatives,?navigate disruptions,?and build agile workforces capable of adapting to new technologies and market shifts.

Case Study: GE's Susan Peters implemented a "change acceleration program," equipping employees with tools and skills to navigate the organization's digital transformation. This empowered employees to embrace change and contributed to GE's successful shift towards new technologies.

Expectation 6: Value add to the business - being a Organizational Evangelist

Boards want CHROs not be just a Strategic partner but a Business and Growth Partner, they want each one in the board to add value to the growth of the business. The role for all especially for CHRO is to identify and bring in value adds that will benefit the business not just in cost saving but brining in business or helping to get a business or build the business growth.

Case Study: This one is a personal case study, when i was heading HR at eNoah Inc., a tech / Ites company, we were constantly having concerns from clients about the talent acquisition as well as talent retention. As you know IT/ITES industry had / have huge concerns in this area. My colleagues in the board always talked about how to we give confidence to the prospective client that our talent management will be great and we can attract, train, retain as well bring quick successions of talent when required. Me and my team worked on a tool "PCP" - People Continuity Program. PCP had 3 critical components:

1. TMS - Talent Mapping System - a tool which derives the key skills and requirements from the JDs and brings on the research on where, what type of talent and how much talent available in the market.
2. TES - Talent Enablement System - a tool which will clearly depict the required training in terms of skills, timelines, methodologies to upskill / reskill the talent so as to bring them into the projects.
3. PCS - People Continuity System - a tool which identifies people within the organization as the succession for the critical roles, train them priorly and also give them ample cross functional / role exposures, so that when there is an attrition these identified resources will move in and fill the gaps asap. This system will constantly work on attrition preparedness as well as act as a people continuity plan.

With the above PCP, every pre-sales client meetings we had a slot for ME (as CHRO) to present the "People Continuity Program" to give the confidence to client that we have all the preparedness for Effective and Efficient Talent Management systems in place. Just like the BCP, our PCP was always one of the presentation aspect for all sales pitches, rather it became a USP for us and resulted in appreciations and business growth.

Hurdles and How to Overcome Them:

• Lack of Understanding:?Educate board members on the evolving role of HR and the strategic value it brings. Leverage data and case studies to illustrate HR's impact.
• Metrics Obsession:?Move beyond traditional HR metrics like headcount and retention. Develop and quantify people-centric metrics like talent agility, employee engagement, and innovation capacity.
• Communication Gap:?Speak the language of the board. Focus on financial impact, risk mitigation, and strategic contribution. Tailor presentations to board members' interests and priorities.

Making the Case for CHRO's Criticality:

• Board composition:?Advocate for including HR expertise on the board. This ensures a more holistic perspective on human capital and its strategic importance.
• Succession planning:?Highlight the CHRO's role in identifying and developing future leaders, contributing to organizational sustainability.
• Competitive advantage:?Showcase how a robust people strategy drives competitive advantage and attracts top talent in a tight market.

The Future of CHROs in the Boardroom:

With AI and data analytics transforming businesses, CHROs will need to:

• Leverage Data-Driven Insights:?CHROs must interpret workforce data to predict skills gaps,?identify high-potential employees,?and tailor learning and development programs.
• Partner with AI:?AI can automate routine HR tasks,?allowing CHROs to focus on strategic initiatives like workforce planning,?talent analytics,?and employee experience.
• Become Chief Design Architects:?CHROs will be responsible for designing future-proof organizations,?shaping culture,?and fostering agility in the face of constant technological advancements.

In the boardroom of the future, CHROs will not only be guardians of talent, but also architects of organizational success. By exceeding expectations, leveraging data, and embracing technological advancements, CHROs can secure their rightful place at the table, guiding organizations towards a thriving future in the age of AI and disruption.

Conclusion:

CHROs at the boardroom table are no longer a novelty; they are a necessity. By aligning people strategy with business goals, championing talent as a strategic asset, and navigating risks while fostering a positive work environment, CHROs become invaluable partners in shaping an organization's trajectory. By overcoming hurdles and effectively communicating their criticality, CHROs can secure their rightful place at the table, ensuring not just employee well-being, but the organization's overall success.

By

Dr. V P Rajkumar

• Case studies quoted are all information collected from different publications, interviews and books and also from real experiences.

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