Despite boards consistently ranking human capital as a top priority, two thirds of HR professionals believe the chief HR leader is undervalued by the CEO, and almost half believe the HR leader is considered less important to the board than the top financial leader such as the CFO.
This is according to the fifth annual Harvey Nash Human Resources Survey, representing the views of 1,253 HR leaders from over thirty countries.
When assessing how HR is seen by the wider business, beyond the board, two-thirds of HR leaders are happy with the image and reputation of their function, suggesting that whilst operationally HR is performing well, its strategic value is not being fully seen by the top tier of the organisation.
The survey reveals differences in approaches between the HR leaders who feel valued and undervalued by the board, with the valued leaders being more likely to:
Interestingly, despite the majority of HR leaders rating data / management information as an important tool within the HR function, HR leaders who felt valued by the board were less likely to believe this (59% vs 53%) suggesting that gaining board buy in isn’t solely about presenting KPIs and metrics.
Robert Grimsey, Director, Harvey Nash Group said: “There is no doubt that boards see the people agenda as a key priority, however many CEOs are making important human capital decisions without the involvement of HR, because it is seen as an ‘engine room’ function. Things are changing though and over the five years we have conducted the Harvey Nash HR Survey the HR function has become increasingly influential.”
Further findings according to the Harvey Nash Human Resources Survey 2016:
Image credit: thehrteam.com