HR Leaders: Time to Take Stock of your Influence with The Board
As organizations continue to move forward, navigating the unknown driven by global supply chain challenges, the rising costs finding talent, ballooning inflation, hybrid workplaces and a growing gig economy, the ability to influence points of view and contribute to Board decisions is critical for Chief Human Resources Officers.
Today’s most effective CHROs must balance a wide array of roles and responsibilities: driving business results by understanding strategy, ensuring top talent for critical roles, providing trusted advisor coaching, leading enterprise change, aligning outcomes and expectations, and being the Board-Level expert on Human Capital Strategy and Culture. While this last role is critical, most Boards lack an understanding of how HR contributes to each of these critical elements to successful people-management which are critical to achieving business outcomes.
A 2021 Gartner Board of Directors Talent Survey indicates that more than 75% of Boards share they have a “Good” or “Very Good” understanding of CEO Performance, Leadership, Executive Compensation, Ethics/Compliance, Organizational Strategy, and Executive Performance. However, when asked about Human-driven elements like, developing High Potential Talent, Diversity, Equity & Inclusion, Employee Engagement, Employee Value Proposition, and Workforce Planning, those same Board members have less than 60% confidence in their knowledge. Board understanding drops even lower to 30% when Environmental, Social, and Corporate Governance (ESG) is discussed.
The opportunity for HR Leadership to provide insight and influence Board decisions is present with every interaction. But how?
Demonstrate Competence: CHROs have an opportunity to influence a Board of Directors’ understanding of the critical elements of Human Capital and its impact on a business. Data indicates most CHROs attend Board meetings quarterly (or less), while only 20% attend monthly (or more). It’s critical to convey expertise during these interactions but, equally important are the informal interactions CHROs have with Board members.
By conveying how external trends impact objectives and place key people in jeopardy, CHROs can ensure the Board understands the changing labor market along with the importance of opportunistic talent investments, regardless of economic outlook. HR should embrace every opportunity to highlight the importance of strong leadership during times of transformational change because strong Human Capital guidance will ensure resilience and agility.
Demonstrate to the Board the value of culture and purpose in the context of business growth and goal attainment and continuity by helping them understand impacts of hybrid work including employee and management expectations.
Increase the Board’s Understanding of Human Resources: CHROs have an opportunity to increase the Boards’ understanding of HR by consulting other leaders (CEO, Associates, Trusted Partners) to understand each Board Director’s current understanding of HR.
Clearly – yet succinctly – connect people-related challenges and impacts to each company objective/strategy.
Dedicate time during Board meetings for open dialogue about people-related decisions by encouraging conversations vs. presentations.
Be Strategic: Present data to show how HR is effective and improving the employee experience (tech and process improvements) and how people strategy is aligned and contributing to business strategy.
Share relevant data that supports a talent strategy: Be sure data is shared within the context and priorities of decisions the Board is making and the data communicates the talent-related implications and risks of the decision.
Don’t present surprises in the Board room. Ask key executives, leaders including the CEO or General Council for input in advance.
Have a plan. Prior to your next Board interaction, take these 3 steps to begin to improve your Board influence:
1. Ask yourself how much influence do I have with the Board?
2. Ask trusted Senior Leaders for feedback about your Board relationship and influence
3. Design a plan to improve your Board influence, leveraging data, content and consider a change to your presentation style
And remember, every interaction is an opportunity to influence change.