In today’s rapidly changing corporate landscape, boards of directors face increasingly complex challenges in navigating issues related to workforce management, talent acquisition, and employee well-being. The need for human resources (HR) expertise at the board level has never been more critical.
Having an HR expert on the board of directors brings a unique and indispensable perspective that goes beyond traditional financial and strategic considerations. From fostering a strong organizational culture to mitigating legal and ethical risks, the presence of an HR expert can significantly contribute to the overall success and sustainability of a company in today’s competitive landscape.
Below, 13 Forbes Human Resources Council members share the reasons why having an HR expert on the board is essential for modern businesses, how it impacts decision-making processes and the long-term benefits it can bring to the organization and its employees.
1. HR Experts Lead To Success
The right people are critically important, offering competitive advantages for organizations. Despite the proliferation of artificial intelligence, this will remain true. Boards sharpen this advantage as they consider human behavior relative to the business’s objectives, goals and plans. Key success factors include the presence of HR experts that appropriately connect and apply HR and business strategies. – Phyllis Wright, Ph.D., Vendor Resource Management
2. HR Experts Ensure You Are On The Right Track
Having someone with HR expertise on your board will ensure your people practices and strategy are aligned with current and future work trends. An HR practitioner can also provide guidance to the board in terms of its own makeup and effectiveness. HR experts can often provide coaching and assist with board dynamics and team cohesiveness, ensuring the board is operating at peak performance. – Tracy Dodd, Tracy Dodd
3. HR Experts Can Bring Women Into The Boardroom
With the majority of HR professionals being female and the majority of directors on boards being male, adding HR not only brings women into the boardroom but also brings HR expertise. This one shift demonstrates the interest in diversity and inclusion, and with increased diversity, you also add new viewpoints essential for modern business practices. – Jessica Wallen, Marten Law
4. HR Experts View Through The People Lens
Boards love to talk numbers, but it’s people that produce the results. If your board isn’t thinking about talent, improving culture and pushing the business to invest in the team, they aren’t doing their full job. Chief human resources officers are uniquely qualified to view the business through the people lens, and the time is long overdue for more HR leaders to sit on boards. – Tracy Cote, StockX
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5. HR Experts Focus On Corporate Governance
What is certain is that the fundamental concept of having an HR leader at the board level is to focus on corporate governance of strategic and operational activities. Human capital planning and people excellence are critical components of any business strategy. HR experts add value by leading discussions on talent management, organizational development and culture and act as strategic business partners. – Dr. Nara Ringrose, Cyclife Aquila Nuclear
6. HR Experts Offer Insights Into Culture
An HR expert can offer insights into organizational culture, which is a critical component of business. Without a thriving corporate culture, organizations can see productivity and employee retention decline. A culture that keeps employees satisfied, engaged and motivated to work will also generate better results. – Niki Jorgensen, Insperity
7. HR Experts Bring Effective Skills To The Table
Having an HR expert on the board of directors brings a people-centric perspective, expertise in workforce management, retention strategies, risk management knowledge and organizational development. These qualities are essential for boards to effectively address people-related challenges while creating a positive work environment and aligning the organization’s strategy with its people strategy. – Domonique Revere, Ph.D., Adjaye Associates
8. HR Experts Bring Vital Insights Into Talent Acquisition
The value of top-tier talent in driving organizational success can’t be overstated, and HR experts can bring vital insights into talent acquisition, retention and development strategies. Furthermore, an HR expert can align human resources strategy with the organization’s short-term and long-term objectives, creating a coherent approach toward achieving business goals and success. – Siddharth Sharma, JP Morgan Chase & Co.
9. HR Experts Offer A Holistic Approach
A holistic approach is essential to navigate the complexity of the new normal. People strategy plays a pivotal role in organizational success more than ever before, on par with financial, product and marketing strategies. Neglecting human resources at the board level might yield partial or even counterproductive outcomes. Boards should embrace HR expertise, ensuring their decisions are comprehensive. – Sudhir Singh, Sound Agriculture
10. HR Experts Provide Balance
Each board member will likely have a different view of certain situations. Many are focused on marketing, fundraising, business development or technology. Adding an HR expert provides balance to ensure that HR has a voice in the company. They may bring up points that other members of the board wouldn’t consider. This expert could advocate for diversity, metrics and other important HR factors. – Erin ImHof, CertiK
11. HR Experts Enhance Business Results
Incorporating a CHRO onto the board offers more than HR expertise. CHRO’s presence enhances board effectiveness, bolsters governance, facilitates superior succession management and aligns executive compensation with business outcomes. This move signifies a comprehensive approach to addressing strategic challenges and driving improved business results while promoting superior governance standards. – Bala Sathyanarayanan, Greif Inc
12. HR Experts Drive DEI Initiatives And Compliance With Labor Laws
Having an HR expert on the board is crucial for today’s companies. They provide insight into talent management and organizational dynamics, ensuring a people-centric approach. HR experts contribute to strategic workforce planning, employee engagement and compliance with labor laws. They also drive diversity, equity and inclusion (DEI) initiatives, fostering a positive work culture. – Kshitij Jain, Joveo
13. HR Experts Can Anticipate Future Needs
HR experts can anticipate future talent needs and key positions and develop succession plans to ensure a seamless transition of leadership. This proactive approach ensures a steady pipeline of skilled individuals ready to take on critical roles. By recognizing the strategic importance of human capital, organizations can achieve long-term success and remain agile in a rapidly evolving landscape. – Cally Stanphill, PainTEQ LLC
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