Thumb-rules of a good relationship between the CEO (or promoter) and the HR head of a company

Posted by PeopleStrong under Thought Leadership

HR often has been caught in ‘what is the coolest program’ and ‘what is the most innovative practice’. The question is not about ‘what’ but about ‘How’. Focusing on the basic rules of Business is what would drive HR from backroom to boardroom.

1. Productivity: HR’s focus on productivity with getting the basics right will be key to drive the organizational success. HR will act as the facilitator to create balance by keeping the focus on both task and people. Also economic downturn helped the corporate world to get the focus of HR back on productivity.

2. Bottom-line orientation: Tie everything to Business objectives.

• Turn performance management into productivity enhancement;
• Turn training to capability building
• Compensation management to talent pool cost
• Hiring to quality of hiring
• HR operations to Shared Services

Make every sub-function of HR measurable and driven through metrics which tie outcomes to Business results. Understand SG & A (selling, general and administration) expense, since HR is a part of it and understanding it will help in driving returns on every non direct or un-billable resource.

3. Understanding the Business deeply: HR might be making everything measurable and building fantastic Cost benefit Analysis (CBA). But if the organisational operational objectives are not aligned with what HR are presenting, it’s bound to get knocked off in the first instance. What gives HR credibility is astute understanding of Business facts.

4. Employee advocacy: Business view is a must for HR however how HR relays the employee perspective to management is equally important. Can HR provide this fair and firm view without losing sight of business is the question which wins trust and confidence of the management?

5. Finally you have to be best at your core function. All the above is achievable if you have build your credibility by delivering and over-achieving your objectives.

The business of business is after all BUSINESS and every stakeholder must understand it.

-Pankaj Bansal, Co-founder and CEO