25 April 2023

HR needs to be at the Board table

Supporting cust9omer journey

Recent news of high-profile companies who have been hit hard due to not having HR representation at board level should serve as a warning to organisations who still view HR as an administrative function.

Without HR contributing to the strategy and driving the business of a company, you can overlook the centrepiece of an organisation’s culture – its people. This is where you will create the culture you need to win, internally and externally.

HR should be central to every organisation. It is responsible for recruiting, training, developing, and retaining employees, which directly impacts the organisation's success. Despite this, HR has traditionally not been given a seat at the Board table, but time and again, it has been proved that HR should be working alongside their finance and executive-level counterparts.

  1. People are the most important asset of an organisation. With recruitment and retention a critical issue, HR can provide valuable insights to the Board regarding employee engagement, talent management, and succession planning to engage and motivate employees.
  2. HR has a direct impact on the bottom line with decisions, such as hiring and retention strategies. HR can help the Board make informed decisions that align with the organisation’s strategic goals and objectives.
  3. HR can provide a unique perspective: HR deals with employees daily, and as a result, they have a unique perspective on the culture, employee morale, and productivity of the workforce. This is valuable to the Board when making decisions that impact the overall direction of the organisation.
  4. HR can help mitigate risks: HR is responsible for managing compliance issues such as employment laws and regulations. HR can provide guidance and support to the Board on these issues, which can help mitigate risks and prevent legal issues from arising.
  5. HR can promote diversity and inclusion: In today's global marketplace, diversity and inclusion are essential for any organisation's success. Here HR can provide the Board with insights on how to create an inclusive work environment, which can help attract and retain top talent.

It’s vital that HR sit at the Board table because they are responsible for managing the organisation's most valuable asset: its people. HR can provide valuable insights to the Board, help mitigate risks, and promote diversity and inclusion. By including HR in Board discussions and decisions, organisations can make informed decisions that align with their strategic goals and objectives.

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Emma Isichei

Emma Isichei

Emma Isichei is Chief Marketing Officer at MHR. 

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