Today, the Human Resources department is no longer an administrative function. They are transitioning into core business areas and taking up strategic roles. Any new initiative to improve workplace culture and engage employees would imply alignment between the Chief Human Resources Officer (CHRO) and the Chief Executive Officer (CEO) to make a lasting change at the organization level.
CHRO's impact the overall organisational culture as they possess incredible power of building a great environment within the organization. They also participate in brainstorming sessions with the board and are involved with corporate planning. CHRO's manage all people policies and operations for a company, from attracting top talent to retaining them and everything in between. They are the ones responsible for effective implementation of policies throughout the company.
How relationship between CHRO's and CEO's can help to enhance workplace & business
Human Resource Department, as a function, is being held accountable for compliance which encompasses things like payroll and benefits. But there is so much more to what HR leaders do today. With more companies putting culture first, we’re likely to see more HR roles working closely with CEO's. The CHRO's can now pinpoint precisely why an organization might not be performing well or meeting its goals. In today’s world, CEO's seek such analysis from their CHRO's instead of looking for external consultants to find the issues for under performance.
CHRO's may directly not be responsible with producing results but these are the people who get to the crux of issues, re-frame ideas, create informal bonds that encourage collaboration, and make the organization healthier and more productive.
The CHRO's are becoming experts at diagnosing the various parts of the social system and are systematically looking for activities causing bottlenecks for productivity. There is great value in having CHRO's diagnose problems and put issues on the table, as they would have an insider view of the organisation. Some CEO's look the other way rather than tackle conflicts in turn draining energy and making the whole organization indecisive. CHRO's who bring dysfunctional relationships to the surface and also help in their resolution are worth their weight in gold.
Triad of True Partnership:CEO,CFO & CHRO
To make the CHRO a true partner in corporate planning, the CEO should create a triad at the management level including CFO & CHRO. Creating such a team is the best way to link monetary and emotional benefits with the employees interest at the forefront. This consortium signals to the organization that the CHRO’s contribution will be analogous to the CFO’s. This kind of structure would further help in realigning organisational goals by looking at the big picture without falling into day-to-day operational monotony. It is this triad that ensures the link between the people and performance.
New HR Leadership Channels
Some CEO's might be holding back on uplifting their CHRO's by stereotyping a HR’s business judgment and people acumen. There is a notion that head HR’s aren’t prepared to discuss issues beyond hiring, firing, payroll, and benefits. Giving them more exposure to the business side through meetings among the other revenue centers will help them enhance their business skills.
It is important to create new career paths for HR leaders to cultivate business smartness. Those who begin their careers in HR leadership should go through training in domains like business analysis.
In addition, any CEO who believes people are the ultimate source of sustainable competitive advantage in the organisation must focus on elevation of the HR function. Creating an instrument that brings the CFO and CHRO together will improve the business. Affirming the new expectations from the CHRO and the human resources function is a good place to begin. But it will not be fruitful unless the CEO personally embraces this challenge, make a commitment, and starts executing.