HR is one of the most undervalued business units within a company.
I’m not quite sure when the shift took place, but it’s apparent from my experience that Human Resources is operating at a diminished value within most companies. Transactional at best, and often abused.
Think about it, they are looking after the greatest assets within a company, and they architect the policies, procedures, and programs that have the greatest impact on those assets. They hold everyone to a standard and call things out when they don’t align.
It’s no wonder why we have witnessed an increase in dejected employees. The governing body that is supposed to be looking out for them has become an afterthought by many business leaders, leveraged only when it’s convenient.
Case in point; I was recruiting an executive leadership role for a customer of mine late last year and there was a candidate who had entered into serious contention for the role and had received good reviews internally amongst key people. Being the astute leader that he is, he noticed that HR was not amongst the decision-making cabinet and that worried him. Perhaps a sign of other issues within the organization according to him…
Why does Human Resources in some cases fall under the leadership of the finance department or CFO of a company when the interests & functions of these 2 business units are completely different?! Both are working towards the success of the company, but the goals are distinct. Those lines shouldn’t be crossed.
Investing in Human Resources should be intentional & consistent.