Globally, the role of the Chief Human Resources Officers (CHROs) and HR leaders has evolved from being a strategic partner to senior leadership, helping to drive organisational success through effective management of human capital, to creating a supportive and inclusive workplace culture. Additionally, now when an HR leader is appointed, they may also join the company's board, whether it be executive or management. But, the debate surrounds what HR should do after gaining a seat on the board or management board. What value should they bring to the company as CHROs, and how should they contribute to HR function and the management board?

Essentials for HR leaders joining the company board 

While delivering a keynote at People Matters TechHR Pulse Mumbai 2024, Yashwant Mahadik, CHRO at Lupin, said, ‘The recent tech shake-up has made CHROs on the company board essential.’ Therefore, to effectively represent the HR function on a company’s executive team or management board, HR leaders must bring the following essentials to this role:

#1 Building additional capabilities 

HR leaders should build additional capabilities to grasp not only the ins and outs of business but also to excel in various business sectors like marketing, sales, or operations as they progress to a CHRO position. This skill is crucial as it will distinguish HR leaders once they reach the company board. Future CHROs joining the company board will likely emerge not just from HR backgrounds but also from HR experts who have gained experience in business roles.

#2 Business transformation skills

The second aspect of HR leaders on the company board is their ability and skill in business transformation, beyond just HR. Nowadays, HR is leading business transformation efforts in many companies, which has become a distinct skill set. To excel in this, HR leaders need to learn about changing business models, redesigning operating models, simplifying processes, and building new ones. Some companies have complex processes that need streamlining, while others lack strong processes and require reinforcement. Business transformation is essentially about changing and improving the organisation, its business model, and operating methods to stay relevant and create more value. This has become a crucial role for CHROs.

#3 Business networking skills

The third aspect of HR leaders joining a company board is how well-connected they are. As a CHRO or a member of the management board, HR leaders can't rely solely on consultants for benchmarking. They should be able to reach out to senior leadership people working in various companies seeking a prompt feedback to address a problem their company may face. HR leaders with good networking skills help create value in their organisation. For instance, when checking references on consultants, if they have a great network, the senior leadership will find them valuable for seeking insights on certain consulting firms. If HR leaders on the company board lack this networking skill, then the senior leadership team might reconsider their position on the board. Moreover, networking isn't just about attending conferences and socialising for career progression; it's about knowing people, even if it means attending conferences like the CIO level or the WEF level to build that network. After that, leveraging this network becomes important for the company or the team. For example, when assisting the HR team in digitising HR processes, CHROs should not only provide their opinion but also recommend top HR tech companies from their network that can assist their HR team. Networking can be effectively leveraged for the benefit of the company, CEOs, and the HR team. Furthermore, CHROs and HR leaders should also be capable of assisting their network, such as helping a small medical tools company connect with CEOs, CFOs, or other senior leadership contacts.

#4 Commitment to continuous learning 

The fourth aspect is about how adaptable and dedicated HR leaders on the company board are to their own learning. CHROs or HR leaders should also learn the essentials of operations, manufacturing, and sales functions within their company. Additionally, they should acknowledge their weaknesses, especially in embracing new technologies and digitisation. It becomes crucial to be open to learning about different industries and how they operate, even if it's outside their comfort zone. Learning about new technologies like gen AI bolsters their HR expertise and ensures they stay relevant and valued by the senior leadership team and management board. Being involved in decision-making beyond HR matters, where the management team seeks their opinions and critical reviews, makes them an integral part of the board.

You may also like:

• HR Trends 2024: Essential elements for a truly engaged workplace
• 6 essentials for Middle East HR leaders to shape the future workforce
• Beyond pay & bonus: How rewarding your employees with non-monetary benefits is more lasting?
• Red flags in a workplace - Are you addressing these signs of toxic culture?

#5 Flexibility and openness to new opportunities 

The fifth aspect is — being willing to move and embrace new experiences. When an opportunity to take a leadership role and relocate to a new place arises, HR leaders need to be open to it. Denying any opportunity that requires relocation can hinder their learning and experiences, and the company board may reconsider someone more flexible for that position. By being mobile, HR leaders can gain exposure to different environments and experiences, showcasing flexibility and willingness to their management board.

If HR leaders focus on these five essentials, they’ll not only become a successful professional and a CHRO, but they will also become an effective board member in their company.