To which extent HR leaders are helping to strengthen the growth of their organizations and what relationship they have with c-level executives. These are the questions a survey of the world's leading publisher of economic analyzes Economist Intelligence Unit (EIU) in collaboration with Oracle and IBM focused on. The study titled CEO perspectives: How HR can take on a bigger role in driving growth involved 235 top management representatives of companies from 38 countries (47% from North America, 40% from Western Europe, 8% from Eastern Europe, 4% from the Middle East). 57% of the respondents were directly CEOs.
It turned out that even though the strategic importance of human capital in companies rises, senior HR leaders must still work hard to get into the top-level debates. Building relationships with CEOs and CFOs plays the key role here.
What CEOs think
70% of CEOs would like greater involvement of HR in the top management of companies. 56% see the key problem which can harm the company financially within the next 12 months in an insufficient amount of talent. Only 55% of the CEOs surveyed, however, consider HR directors as key players in corporate strategic planning.
What CFOs think
75% of CFOs would like greater involvement of HR in the top management of companies. Only 30% of the CFOs surveyed, however, consider HR as a key player in corporate strategic planning. 37% of CFOs believe that HR does not understand how business works at all.
What HR directors should do
If HR is to shift from a supporting to a strategic role in the top management of companies, HR directors need to enhance their influence in the following areas:
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Developing personal relationships with the CEO.
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Taking an active responsibility for ensuring that the entire team of top managers works well as a team.
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Persuading colleagues with suggestions on how to better prepare the organization for implementation of the strategy, which calls for understanding of the company's business operation.
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Putting pressure on integrating HR into the c-level management negotiations.
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Focusing on topics that are crucial for the CFO.
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Taking initiative for making HR a part of the strategic planning.
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