Over the last few weeks the Jackson Hole Group has assisted three of our client organizations in selecting new leadership for their HR organization. Based on our knowledge of the companies and the current business demands on them, the request was to assist in both the selection process and the subsequent on-boarding of the new HR leader. While the companies are very different in their business activities and the candidate panels presented by the search firms were very diverse, there was an amazing consistency in what the clients wanted and needed out of the role.

Organizations have, over time, reached a point in the internal evolution of the Human Resource function where the historic fundamentals of the professional are given as a new base line. Experience in employee relations, staffing, benefits administration, compensation strategies and training & development are considered the tactical elements which serve as a foundation for candidate selection. What distinguishes top-tier candidates now are the more strategic drivers towards business results. There is a growing expectation that candidates possess a level of experience and working knowledge on more sophisticated tools in the strategic areas of employee engagement, talent management and organizational productivity.

There was a time when HR leaders spoke about “getting a seat at the table” or “speaking the business language.” That thinking evolved into wanting to be a “business partner.” Now the expectation from Boards and CEOs is that the HR leader is a business person who just happens to have HR in their portfolio. It is someone who truly understands the business model, can identify the leverage points which provide competitive advantage for the company and who knows how to drive a company culture which is results-oriented.

These new HR leaders must demonstrate a personal leadership dynamic which can influence the remainder of the executive team, understands the use of metrics to measure results and has a style which engages people at all levels. Successful HR leaders can directly affect business results by their skills in building executive teams, creating effective organizations within companies and by providing the correct talent base to meet not only today’s business needs but the future needs of the business.

Companies have done a poor job of developing HR leadership internally, so the fight in the marketplace for these individuals is growing daily. Those companies who see HR as purely an administrative function will continue to see an exodus of talent and will be at a competitive disadvantage in the years ahead. Similarly, those individuals who have a real zeal about creating business impact, who understand the leverage points of the HR profession and who truly have a passion about their work will see their career opportunities growing exponentially. There will have to be a real growth in the supply of such HR leaders to meet the accelerated demand the marketplace will have for them. It will be an interesting race.