FROM BACK-ROOM TO BOARDROOM: How “Human Resources” is Evolving within Consumer-Facing Organizations

At Herbert Mines Associates, we partner with our clients across consumer-facing industries to help them navigate changes with executive leadership and human capital trends. The consumer-industry is facing dramatic disruption which has caused a ripple effect across business models, channels of distribution and product categories – no part of an organization is left unaffected by the macro changes within the industry. As we continue to monitor trends, we have seen an evolution of the Human Resources function in response to radical business transformation. Within our firm specifically, we have seen an increase in the Human Resources related search work, and, regardless of scale, sector or ownership structure, forward-thinking consumer organizations are now leveraging Human Resources as a strategic partner to support organizational development and overall growth.

THE EVOLUTION:

Long-gone are the days where Human Resources was a back-office “personnel function”. We have seen the evolution from “personnel” to “Human Resources” and are now seeing the advent of a new wave of Human Resources focused on People, Culture and Engagement. Forward-thinking organizations have recognized the need to create a strategic human capital function to serve as a competitive advantage. Winning organizations are relying on people, more than ever before, to impact the bottom line – whether it is the people on the front line creating great experiences for customers or creating positive work environments where senior leadership is impassioned and emboldened to drive success. 

STRATEGIC PARTNERSHIP:

In a recent conversation with a private equity client, they described the “leadership golden triangle” as having a great CEO, CFO and CHRO. This signals a major paradigm shift away from Human Resources being seen as a support function, to Human Resources truly having a seat at the strategic table. As the perception of Human Resources has changed from a back-room to a boardroom function, the People leader can play a bigger role than ever before in impacting business strategy along with the other C-Suite leaders.

EMPLOYEE ENGAGEMENT:

Multiple studies have given rise to the concept that employees, particularly the younger talent force, are just as interested (if not more interested) in quality of life, engagement and fulfillment in their job, as they are in collecting a paycheck. Given that company culture has become so important, the role of the People leader has also become more critical so that positive, engaging, “people-centric” cultures can not only attract, but retain top talent.

INNOVATION AND LEVERAGING TECHNOLOGY:

As technology has played a critical role in the evolution of businesses in general, best-in-class organizations are also leveraging technology to enhance all facets of human resources. The HRIS (Human Resources Information Systems) function has continued to utilize technology to create efficiencies but we are now seeing organizations transforming the way they recruit, train and communicate with employees to increase engagement and promote culture. 

CONSIDERATIONS FOR SUCCESS:

We see the following as critical to having a successful People function:

1.      Reporting Structure: To impact change and truly serve as a strategic partner, the top People leader must report to the CEO.

2.      Upgrade the title: Innovative companies are now changing the name of the top People Leader. Moving away from “Human Resources” to include ‘People’, ‘Culture’ and ‘Engagement’ in the title are common ways to upgrade the function and denote the importance of the role, both internally and externally.

3.      Addressing Your Workforce: Similar to changing the title of the people leader, consider changing how you address the people within your organization – ‘Partners’, ‘Team Members’ or ‘Associates’ are commonly seen titles within best-in-class organizations.

4.      Leverage Creative Solutions: Forward-thinking companies are strategizing ways to enhance employee productivity, culture and retain top talent. With some organizations considering flexible work hours, four-day work weeks or working remote options. Don’t be afraid to create the solution that is best for your organization. 

5.      FIT = CRITICAL: Human Resources executives are no longer just functional experts – they are truly brand champions and culture stewards. While getting someone with strong technical expertise is still valuable, consider hiring a People leader that is, first and foremost, the embodiment of your desired culture.