HR's Quest for a Seat at the Table and HR Compensation

Yes, there is a relationship here.

That is what crossed my mind when a copy of the white paper The Role of HR in the Age of Talent (based on research by Vurv and Human Capital Institute) found its way to me.

This is a report that every one of us in the profession should read.  The news is not necessarily good.  It tells us that while talent management has become a top level concern for organizational leaders and boards, the HR profession has not yet made the necessary strides - in business acumen, prestige and influence - to earn the right to own this concern.  In the words of the study: "... its almost as if corporate leaders have made a collective, unconscious decision that talent management is too important to be left to HR."

Other key findings from the study:

• Across multiple measures of business proficiency and knowledge, there is an alarming lack of expertise among senior HR leadership.
• Despite the impact and importance of globalization, HR is on the sidelines. It is regularly involved and consulted on global strategy less than one-third of the time, even where it directly effects the workforce.
• Respondents’ top current challenges are attracting and engaging talent, succession planning, and leadership identification & development. Over the next three years, respondents expect specific skills shortages, finding leaders and successors, and retaining & engaging top talent to be their main challenges.

The connection to pay?  I believe there is a real one.  I think our profession's inability to demonstrate a deep understanding of business and garner leadership respect is depressing HR compensation.  I see this play out in my work, at the micro level, way too frequently.  Often it takes the form of subtle resistance to, or questioning of, market rates for HR talent (Does it make sense for us to pay this much?  After all, our HR function is primarily an administrative one ...).  And it is a well-known fact to many in the field that top HR executives - typically - don't command the same pay levels as most of their executive "peers".  This lower market rate represents, among other things, the market's consensus on our value - which is an unfortunate obstacle to equitable treatment for the HR leaders (and I know several) who are engaged and appreciated at a strategic level.

If a transformation of the HR profession is what's needed, we'd best get ourselves into the driver's seat and make it happen.  Our compensation is at stake.

Update:  Check out what other bloggers have to say about the Vurv/HCI report - Kris at the HR Capitalist and Deb at 3 Hours and a Lunch.

Comments

[Almostgotit]

Interesting. I wonder if this might eventually be solved by adopting new nomenclature -- e.g., HR people who no longer want to be pigeon-holed by all that "HR" has come to mean to company power brokers may eventually choose to call themselves something else. I've never really liked the term "Human Resources" anyway, which I'm sure sounded enlightened to someone at some point... but always makes me think of the management book I once read with a chapter that lumped "human resources" (meaning "staff") and "other equipment."

[Carla]

Ann,

What would you recommend that HR people do to get a seat at the table?

Carla

[Ann Bares]

Almost:

This might be my cynicism popping through, but I think we HR folks have played around plenty with our nomenclature. Too much monkeying around with what we call ourselves is - to my mind - only applying whitewash to a bigger question of how we are approaching our work.

Carla:

I would point you to Kris Dunn's (the HR Capitalist) thoughts on the topic, at
http://www.hrcapitalist.com/2008/05/when-people-say.html

and

http://www.hrcapitalist.com/2008/04/can-you-get-a-n.html

In addition to developing a deeper understanding of business - specifically the business we are supporting - we must, as Kris says, be remarkable!

[Jessica Lee]

Hi Ann - I just wanted to compliment you on your blog. I think your topics and analysis of issues are fantastic. I really have been enjoying reading your posts. I'm contributing over at Fistful of Talent with Kris and am going to use you as a beacon for what a great HR bloggie can become!

JL

[Ann Bares]

Jessica:

Thanks for the compliment, and for reading!

Everyone - if you're not already reading Fistful of Talent, time to start. You'll find it at -

http://www.fistfuloftalent.com/