Recognize This! – HR must provide strategic value to claim a place on the executive team.
What’s the reporting structure for HR in your organization? Do you have a CHRO or similar that reports directly to the CEO? Or does HR report up through operations (the COO) or finance (the CFO)?
Workforce Management recently featured research showing a trend for HR to report up through the CFO more often.
This corresponds to research (full white paper available for download) we conducted in 2008, finding:
1. Human Resources must take a more strategic role in the business.
2. Employee recognition improves employee engagement, which increases retention and productivity, thereby positively affecting company performance.
3. Business leaders believe creating a universal recognition platform for global companies is difficult.
4. CFOs are not aware of how much they are currently spending on recognition programs.
5. The Chief Talent Officer (CTO) and the CFO must work together to chart the course for the future.
I’m curious what you think. Should HR stand alone as a strategic function in the organization and, as such, report directly to the CEO as part of the executive team? Or should HR be part of the Finance department (or another department)?