4 Key Reasons CEOs need to include HR in the Boardroom Meeting

Recall the last time when your management team consulted the company’s HR department or its head to discuss about business strategy. Finding it difficult to recall, isn’t it? Yes, because chances are quite high that no such collaboration takes place in your organization or it might have been too long for such a discussion, maybe years.

While some organizations do favor when it comes to including the HR at key board-of-directors or management meetings, several are yet to realize the importance or rather I should say the seriousness of making human resources a key aspect of the management squad.

One of the primary reasons to do so is that no business can function without human capital or its employees, which also are a company’s biggest asset and HR is the only entity in the organization that looks after its employees. Long story short, HR sits at the heart of both a company as well as its employees bridging the two.

Contrary to the old-school belief, businesses should understand that HR ought to be an integral aspect of day-to-day business operations. In fact, a strongly collaborated HR and management is a huge win for an organization. This is because such a constructive collaboration leads to positive business results while fortifying the trust and ties between both the departments.

Most important of all, HR feels heard and valued when they offered with equal stakes in the game, which they would eventually pass onto the employees in the company thus, making them feel home and valued too.

Here are few critical reasons or areas to why CEOs need to include HR in their boardroom meetings:

1. Statutory Compliance

For any CEO or entrepreneur, statutory compliance is undoubtedly the topmost priority, because compliance errors often lead to expensive amendments and damage beyond repair. Further, as we know that tax and employment laws undergo frequent and rapid changes, it becomes difficult for businesses to keep up with the same. On the other hand, it would be plainly illogical for the HR manager to walk up to his/her CEO to learn about any change in employment or tax laws/regulations.

Now here comes the cache! Since most of the HR departments are powered by intelligent software or systems, statutory compliance pertaining to employment laws and taxes is no more a nightmare, since these HR solutions automate and help keep a tab on changing laws and regulations without fail. This is the reason having your HR manager in your management meet-ups will assist your business stay compliant minus the risks.

2. Communication

Creative indifference is one of the common problems most of the executive teams showcase. Nevertheless, leaders when heard and empowered well enough by their subordinates tend to speak out more and often. CEOs and business leaders should understand the fact that HR is not meant to initiate a war or make things go complicated or pick sides. In fact, HR professionals are there to kick-start and develop harmony in an attempt to bring all the employees together.

Thus, involving your HR manager in those strategic boardroom meetings will not only aid the management to communicate effectively, but will also provide your employees with critical information thereby, promoting a healthy and transparent communication across the organization. Lastly yet importantly, don’t forget that transparent communication is one of the greatest means to boost loyalty among employees.

3. Growth

Remember, HR is one of the key players when it comes to achieving consistent growth for your company. Reason being, HR professionals are the ones who look out and hire new employees, train them and build a pool of talent that would work towards the company’s bottom line.

HR people also manage and take care of the repercussions when employees quit. They are the ones who conduct exit interviews in order to find out the root causes that make employees to resign followed by bringing up strategies and solutions to help keep employee attrition in check.

4. Alliance

HR professionals ensure that everyone in the company stays on the same page when it comes towards a common business objective. Since most of the human resource professionals today are powered by HR software that offers them with intelligent workforce analytics at the click of a button, involving your human resources manager in your strategic meeting will help him/her stay abreast with evolving responsibilities and roles of various departments.

This would not only help them to better align their strategies with business goals, but will also place them in a better position to offer their inputs when it comes to improving operational efficiency across the organization. Once your human resource manager is well aware of the break-even points pertaining to every department in the organization, he/she can offer the required assistance in terms of development, engagement and training.

Takeaway

Human resource professionals are the ones who spearhead solutions to tackle the hurdles a business faces by maneuvering talent acquisition strategies, organizational strategies, training and development of employees while hotfooting to maintain a sound and positive work environment for all.

So having your human resource manager at the boardroom meeting when brainstorming about business goals should be a priority and not just a formality. If you haven’t yet, it’s high time to free up your human resource with routine tasks by arming them with an intelligent human resource software so that they can focus on things that matter the most.

1 COMMENT

  1. Hi Anwar,

    I agree with what you wrote here. The sad thing is, companies sometimes disregard HR as a vital role in company. They think of HR as merely a department tasked to hire employees and I have been a part of a company like this. What business owners realize is that HR is the one that has direct communication from employees and from them, the owners, that means that the HR plays a vital role as you said. Great read!

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