Today’s employees want to be validated for what they bring to the company. They want to learn and grow professionally, want more life-work balance, and a manager they can respect.
Importantly, they want to know they are making a difference and contributing to something larger than themselves.
Employees are far more open about their needs and will turn off or turnover if those needs are not meant. To meet these challenges, CEOs must look at the HR function differently. A supportive role is no longer acceptable. HR must have a seat where the strategic decisions are made.
HR is a supporting role if:
- Your website identifies the key executives without including the head of HR.
- Remote branches are “doing their own thing.”
- HR is blamed for an increase in the employee turnover rate.
- HR reports to the accounting or legal department.
- Managers say, “we would have hired better if HR had gotten us better candidates.”
- HR is not involved on the front-end of the company’s strategic decisions.
- An executive drops a resume in HR’s desk and says “can you get the paperwork going? We just hired him/her, and they start in two weeks.”
If you answer “yes” to four or more, your company is at a significant disadvantage. One way to gain a competitive advantage is by splitting the HR department.
- Vice President – People and Culture – this includes the recruiting, leadership and talent development and onboarding. This is an executive level position with the person reports directly to the President/CEO.
- Human Resources – Administration – reports to the CFO and includes the important support functions like benefits, payroll, compliance, etc.
Hiring is the front door to your future success. Make sure it is working properly for today’s business environment.