Strategic Human Capital Insights

Where is HR's Seat at the Table?


3d stainless human social network and leadership as conceptCurrent literature and corporate pronouncements continually state that Human Capital is a key business issue. Yet the current research data suggests that there is a significant disconnect between corporate pronouncements and reality.  The logic would assume that if human capital is indeed one of the top business issues, then HR, where that functional responsibility must reside, needs to be the strategic voice of human capital AND MUST have a seat at the strategic planning and implementation table.  Right now, the research data suggests otherwise.  Until HR is included in the organization’s business strategy discussions, we are all living in the comfortable but dangerous state of denial. 

There are many reasons for this alignment disconnect that we will explore in our HR as a Business Accelerator blog seriesbut it is necessary to evaluate two critical pieces of recently released research.  The research suggests that globally a deep organizational alignment disconnect exists between the business and HR.  And now is the time to address this situation, before this misalignment becomes a chasm too deep and wide to close.  If HR does have insights on the current state of the workforce, they are not being heard at the appropriate level.  Here’s the data:
 

  1.   Current State of Strategy & HR Alignment
  • The importance of human capital to corporate strategy is NOT reflected by HR’s role in the C-Suite & Boardroom
  • Impact: Severe
    • HR is not in the information loop 
    • Perception - HR lacks insights & status to be truly strategic

Overall:  Companies are not making progress toward meeting workforce goals.

The Result:  Business Performance Suffers.

                         

  1.   HR’s Seat at the Table

“Problems start at the top, or more accurately, with lack of access to the top.” Oxford Economics, 2014

Statements that CEO’s responded to:

  • Workforce issues drive strategy at the board level
  • HR advises the C-Suite, but does not have a voice in decision making
  • HR is not consulted at all about business planning
  • Workforce issues are an afterthought in business planning; HR is consulted after high-level decisions have been made.

CEO responses:

  • 22% - Workforce issues drive strategy at the board level
  • 28% - HR advises C-Suite, but does not have a voice in decision making
  • 26% - HR is not consulted at all about business planning
  • 24% - Workforce issues are an afterthought in business planning; HR is consulted after high-level decisions have been made.


We would like to get your thoughts on the source of these issues. Please submit your views in our survey to establish what you think HR should start with.

Take the Business of HR Survey>>

 

Topics: Human Resources

Posted by Joanne Flynn

Joanne Flynn

Joanne T. Flynn heads up the human capital advisory group, Phoenix Strategic Performance, Inc. Previously, she was a Managing Director with Phoenix Group International and was Vice President / Director of Global Learning and Development at Goldman, Sachs for nine years. Joanne works with organizations as they face global growth and competitive challenges. She works with her clients to be both externally focused and internally responsive. With her unique background, she aligns competitive strategic efforts with related internal organizational leadership challenges. With the benefit of her career-long focus, Joanne contributes the unique insight of aligning strategy to internal organizational structure and process. She focuses on human capital relative to strategic initiatives, accelerated business growth, value creation, and business development. Joanne holds a Master of Arts degree in Business Management from the University of Oklahoma. In addition, she holds a double degree major in History and German from St. Elizabeth University, as well as certificates from a variety of leading universities and professional training and development organizations. Joanne has recently published her latest book, Accelerating Business Success, The Human Asset Management Strategy.

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