Suzy Walther, seasoned HR executive.
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HR leadership has never been more important than now. It’s wonderful that the world finally values and appreciates the skills and expertise of their HR executives. Finally, CEOs are realizing that the success of their organization comes down to the people who work there. Business opportunity begins and ends with having the right people in the right seats to get the job done. Doing so incredibly well is a strategic advantage that the most enlightened CEOs and boards understand.
As a result, the competition for HR executives is fierce. Dan Kaplan, a Korn Ferry senior partner in the Human Resource Officers practice, said in an article titled "Today's Hottest Job? The HR Executive" that "the demand for chief human resources officers is at historic levels." Boards are increasingly seeking independent directors with HR experience. I have never understood why boards put executives who have no HR experience on their compensation committees. That committee should be ensuring performance and incentives are properly aligned in addition to challenging human capital strategy. A recent report found that, between 2017 and 2021, the number of appointments of HR leaders to corporate boards increased by 300%.
So, the good news is that the corporate world is realizing how vital it is to have strong HR leadership as a critical executive function. The bad news is that HR professionals are being asked to perform miracles and many aren’t properly equipped to be executives. We are being asked to hire unicorns in the hottest market ever recorded, lower attrition when attrition has never been higher, steady engagement scores when post-pandemic talent seeks new and different—and do all of that while keeping spending under control. It’s a tall task for sure, yet there is a recipe for success.
So, for all of you CEOs—and people leaders—out there on the edge of your seat contemplating serious talent problems and wondering how to attract and retain world-class chief people officers, here are a few tips:
Make 'help' real.
Make the time for a catch-up with your people exec and ask how things are going. Then ask how you can help. Don’t stop with one open-ended question. They might need help getting to the answer. Some questions you might ask include: What roadblocks are you hitting where you could use the CEO muscle to get something done? Offer suggestions/ideas for how they should think about leveraging you, including getting creative with the balance sheet. Most HR leaders are so used to being asked to work miracles under the “less is more” and “live within constraints” that they fear asking for financial support to achieve goals. Help them communicate what they really need.
Move fast.
Don’t suggest a 10-page PowerPoint to pitch an idea or ask for money. We don’t have time or the energy for that. We are in a battle, meaning we have to think on our feet and make sound arguments and decisions quickly. If you don’t have an HR leader capable of that, find a new one. If you do, don’t waste their time on useless decks. Just sit down and have a conversation. Good HR people have so much data and insight in their brains you’ll have enough to make an informed decision.
Trust your HR exec.
The relationship between the CEO and the HR leader requires the utmost vulnerability to be truly magical. On this point, I want to be very clear. This is not work the CEO must do on their own. This is work both colleagues must do to find the equilibrium that yields true candor and reflection of both parties. I use the word “colleagues” here to intentionally imply that they are equals. The CEO has to drop their title and think of themself as the person they were before they were a CEO, and the HR exec has to step up as a colleague, not a direct report. That is hard for both parties, and I don’t make light of the challenge. But when the power dynamic is removed you find two colleagues who want to help each other be truly successful. When the guard is let down and when fears and challenges can be truly voiced, you can work together to solve them.
Put some of your best operators in HR.
If you were thinking about HR as a back-office cost center, it’s time to start thinking differently. If you have an entire group of HR professionals with zero operating experience, you should take a closer look, fast. The best HR teams are those with a mix of operators and deep HR experts. That is what diversity looks like in the HR space. Look into any of the HR leaders of the most successful companies. Chances are they have significant operating experience. They know how to run a company and how to make HR a front office, strategic function.
The role of the HR exec as a credible (and critical) leader in the C-suite and on your board is here to stay. I hope these tips will help you think about how to position yourself as an influential partner (and colleague) to your people person. The strategic value they can add can directly impact your bottom line in so many ways. Take them seriously.
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