Why Should HR Be Part of Company’s Executive Leadership Team

The human resources department is one of the essential parts of any business. After all, the most important resource that any company in any industry will ever have is the workforce. And the HR department is at the very heart of management of this invaluable asset.

Despite having so much to offer the business, human resources departments are typically left out of the company’s executive leadership. These days, there are all sorts of executive officers, from chief executive officers and chief operations officers to chief financial officers and chief tech officers.

However, you will hardly ever hear of a post like “chief human resources officer” in most companies, which is truly a tragedy.

But why exactly is it essential for HR to be involved in a company’s executive leadership? Here are five answers to the question.


Advantages of having a Chief Human Resources Officer (CHRO)


Offers insight into the workforce’s capabilities and needs

More often than not, officers in a company’s executive leadership have little to no idea what their employees are capable of. They are even less aware of the specific needs that these same employees have.

Therefore, they are more likely to make decisions with very little consideration of how it will impact the human resources and the business’s bottom line by extension.

By having a human resources officer as a part of the executive leadership, the rest of the members of this leadership level will get a better understanding of the employees that make the business as successful as it is.


Creates a communication bridge between employees and leadership


In most companies, communication between employees and leadership goes through several levels of bureaucracy. The employee has to speak to their manager, who then has to speak to another manager, another, and a few more managers in large organizations before it reaches executive leadership.

With these channels, a lot is lost in translation, which means that employees’ plight or ideas may not always be well received.

By having a central figure like an HR officer at the executive table, the unnecessary middlemen are eliminated thus facilitating more efficient communication between both the leaders and the employees.


Better setting and implementation of policies and budget changes


It is easier to set realistic and implementable goals when the executive leader

rship understands the people required to implement the policies and work with the budgets made.

An HR officer in executive leadership will offer insight required to make decisions that consider the employee’s ideal work environment, skill levels, and general capabilities.


Improved competitive edge by offering insight on workforce trends


As earlier mentioned, there is no resource as valuable to a business as the workforce. A well-cared-for, adequately trained, and generally, motivated team will give a company a competitive edge unlike anything else.

Again, the inside understanding and information from an HR professional will help the executive leadership make appropriate decisions in this regard. The CHRO’s knowledge of workforce trends and upskilling needs, in particular, will prove invaluable when setting the company apart from others in the same niche.


Help with setting head-hunting strategies


When it comes to gathering crucial resources for a business, executive leaders like CFOs look for investors while CTOs find the best tech solutions for the company’s benefit. CHROs can bring just as much to the table regarding resources to help take the company to the next level. They do so by facilitating head-hunting operations to identify, attract, and retain the best talent in the industry.


Bottom line

With all these perks to look forward to, you should already be ordering a new seat for a human resources officer to set on the prominent executives’ table. This will help you better streamline all your essential business resources for a more successful company.