Minutes
HR
Published on
October 19, 2022

Why aren't HR managers CEOs?

Making the case for HR on a strategic C-level; let's promote our HR managers to CEOs
Contributors
Line Thomson
Founder & senior People Partner
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Times are changing, not the products, not the machines, but our human capital is our unique selling point. So why then is the most important function in a company not occupied by a HR-professional?


In this blog I want to open a new discussion. The highest functions in companies are often occupied with professionals who often have their specialization in a certain occupation, these are often specialities in: sales, productivity, the product itself, and sometimes even finances.


However, it is very rare that we see an HR professional on the highest seat of a company (read: never). Why is that? I would argue that HR has the most important role in a company in the 21st century and therefore it only seems natural that somebody with HR-affinity holds the highest office.  


The highest office – a brief history


Historically the highest functions in previous societies were either ranked by ‘birth right’ or age. A prince was born to be a king and a farmer’s son was born to be a farmer. Additionally, the elder brother (because in those times we are not even talking about equality between genders) often held the highest regard in the family.


When we transformed from a feudal society to a capitalist society our order of who holds the highest function and why also changed. Birth right and age made place for private property and capital. In the beginning of our capitalist society, it was the people who were most skilled in their profession (artisans, craftsmen and guildsmen) who held the highest offices in their organizations.


With the industrial revolution in full force, these professionals had to make place for the people who knew most about machines and production. After the second world war these mass-producing professionals had to make place for productivity professionals. Average output and efficiency became the drive of many companies to outperform the competition.


Shortly thereafter the golden age of capitalism required professionals who knew how to handle flows of money. The highest occupation became related to financial specialization. Fast forwarding to current day, the highest office is often related to specialization in terms of sales, productivity, the product itself or finance. CEO positions are, more often than not, occupied by somebody who has a technical skill.


What is important?

Let’s do a recap, what have we had so far; we picked our leaders based upon: birth right, age, artisanry, skills related to production, productivity, finance, sales and the product itself. Are we missing something? Well, I believe we do.


Now in the 21st century human capital seems to be the most important asset for most companies. The people who walk in our hallways, sell and produce our products, facilitate finance, logistics and purchasing, it’s the people who are the beating heart of an organisation. They are our unique selling points. That has not gone unnoticed. More and more companies are busy trying to retain and develop their talent, and more and more companies are started to provide the means of doing so. Especially in niche industries, any industry remotely dealing with software and industries which require specific skills (I think this captures our entire economy), employers know how important it is to retain and develop their talent.


From this I can only conclude one thing, the most important focus of our companies now should be the people working in them. This means that we need leaders and CEO’s who not only understand HR, but who are also proficient in the HR world.


Shifting focus


Why would you go through the trouble of finding a CEO who has a focus on HR? Why do we require such emphasis? Well, because every time before us also required change and new ideas based upon what was important at that time. Now we entered the era wherein the most important part of our company is based on our people and their, often irreplaceable, talents. Society is focussed on letting each and everybody develop their talent to maximise our output. Schools, universities, training centres, they all know the importance of a development focussed approach. Therefore, it is time that companies adopt the same focus, which requires the same type of leaders.


It is therefore important that our future CEOs not just understand a recruitment process, but that they are able to build up an entire talent acquisition strategy. That they are not only able to see the value of teambuilding exercises, but that they understand how to shape and create cultural change. That they are not only concerned with training their employees to stay up to date with technologies, but that they can shape trajectory and development plans to provide opportunities for growth.


In short, it does not suffice anymore that our leaders know and do the basics. It is time that HR takes its rightful place in the centre of a company whose main unique selling point is its people. It is time that we accept that the centre stage of our time belongs to HR and development, but that also means that it is time for our HR professionals to step up to the plate. It is not enough to stand in line and to ‘offer service when asked’, HR departments need to transform themselves from administrators to proactive managers.


We need to find value which we can contribute to our employers. Find cultural problems and solve them, develop training and development strategies and empower our co-workers to be co-champions. It is only by doing so that HR will be lifted to strategic importance and that we get leaders who understand and are proficient in the realm of HR.


In conclusion


For me it is only clear that the next generation of new leaders has a background in HR. We are broadly agreeing that our human capital is in the widest sense the most important aspect of our company. We are recruiting, coaching, training and developing our employees, but to truly stand out for our employees, HR needs to be lifted to strategic importance. Therefore, I believe that we need leaders who understand this importance and have the capabilities to do so.

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Calle Engström
February 5, 2024
What if the perfect candidate never seems to show up?

Most people see recruitment as a necessary means to an end and perceive the process with a clear starting point (the internal hiring need) and a clear end (the hired candidate). However, in contrary to popular believe, recruitment is a never-ending process. In previous blog I have already explained why recruitment does not stop after you have found the right candidate. But what if you are already stuck before that stage? What if the perfect candidate never seems to show up? In this blog I will discuss 6 tips which help you to find your future candidate and transform your recruitment operations into a continuously developing process.  


Knowing yourself is important to know what you want


Firstly, we are going to start with the basics. Whenever you are looking out for people, you need to make sure that you know what you as a company stand for. In this sense you need to have a thought-out vision and mission of what you aim to achieve with your company. Furthermore, you need to know what kind of internal culture you have and what values are shared in this culture. This is important because most people nowadays are not convinced by just a pure salary raise anymore. Most people are motivated by companies with whom they can identify with and who share their personal values. Now that you have identified your vision, mission, culture and values, it is time to work with them, which brings us to the second tip.  


Translate and communicate your message


Now that your vision, mission, culture and values are set up, it is important to display them. First and foremost, you should of course display this on your website and LinkedIn, but besides that there are also other target group focussed forums. You can think of websites, conventions or breakfast seminars which your potential candidates often visit. Don’t be afraid to be creative, in this sense it is better to be too active than too passive. Have you ever heard of guerrilla marketing? Well, that just might catch the attention of your future employee, against often budget friendly costs. Besides this, your recruiters also need to be well-trained in understanding, translating and identifying your own vision, mission, culture and values. It is therefore important that they work together with staff from your marketing department to gain those skills and to set up the right messaging towards your potential candidates. Furthermore, they are also the ones that need to identify the candidates whose values align with your own.  


Expand your network and nurture candidates


Another thing that you can start to do tomorrow is to get in touch with different recruiters or HR employees from other companies and start making them part of your network to increase the possibilities of a referral. Go to conventions, breakfast seminars and conferences to get in touch with them. In this sense it is important to know that a strong way to expand your network is to do favours for others before you can reap the rewards. This might sound like you are getting more work on your hands, but who knows; what may seem like an impossible profile for somebody else, might just be floating around in your talent pool. When talking about talent pools it is also important to remember to nurture the candidates who you have not hired. An applicant with the wrong profile for a previous vacancy might be the perfect candidate for a new vacancy. You should therefore regularly nurture their excitement for your company and go through your talent pool to see if you can find that hidden gem that you might forgot about. One way to continuously increase your talent pool is to open up ongoing vacancies where people can list their open application.  


Promotion and internal hiring boards


Did you just lose an incredible manager/team leader/senior team member and are you wondering how you will ever fill his or her position? Perhaps an internal promotion is a possibility. Maybe one of the team members is ready to step up and, if he or she is provided with training, be your new amazing superstar. Internal promotion has three advantages over external hiring: it’s cheaper, it’s faster, and the candidate already knows your company/product. Of course, the fact remains that there will be a gap in the team if you promote one of its members, but this, in most cases, is an easier recruitment than the incredible superstar that you lost. If the team members are not an option or if there is not even a team to speak of in the first place, then internal hiring boards could be an option. Internal hiring boards are basically vacancy boards of internal vacancies that not have been externally published yet and where only internal employees can apply for. A lot of managers are cautious for this, because they fear that their best employees might leave their department and they say that this is just a way of moving the problem. I would argue that this is the wrong way of thinking. Firstly, yes, your employee might move from your department, and yes, that moves the problem to your department. However, you should always realize that people are looking for ways to develop themselves, so letting them develop themselves within the company benefits the company as a whole. Again, it might be easier to find somebody for the new gap in your department as it is to find for the gap your company is experiencing right now (there is most likely a very valid reason that somebody is reading this blog right now). Furthermore, I would argue that this shows your employees that there will always be possibilities to develop themselves, which can motivate them to stay instead of leaving for a possibility to develop themselves at another company.  


Internal training and development


Continuing on the previous note, it is important to plan out what your employees are capable of right now and where they want to be in five to ten years. In this sense development plans should be one of the key priorities for any HR department. Firstly, because it simply keeps your employees happy and loyal if they have a sense of development and, secondly, because you can prepare and train them for the more specific and hard-to-fill vacancies which are upcoming in the future. This again intertwines with the first point, that you should know who you are as a company and strategically plan ahead for the future. So organisational charts need to be drawn up, both from the present and where you expect to be. Then you need to identify who can fill the potential upcoming (senior) positions and what he or she needs, in terms of training, to be able to fulfil that position. Actively be engaged with your employees and take them with you on this journey of development. The backend developer of today can be your architect of tomorrow.  


There is a truth in numbers


As with most things in life, there is a certain truth in numbers. The bigger your pool of candidates, the larger the odds that the right candidate is in there. In this sense it might be a good idea to try quantity over quality and expand the parameters that you’ve got from the hiring manager. When you are searching for people the pool of potential candidates increases if you decrease the hiring manager’s requirements. Maybe the candidate does not require a full five years of experience? Maybe experience in a related industry can be equivalent to experience in your own industry? Maybe managing twenty people requires the same type of management skills as it does when managing ten? Try to send through some candidates and resumes with the expanded parameters and see what works for your individual vacancy. It is in this sense also the recruiter’s job to push back a bit on the requirements of the hiring manager, because too often we see that hiring managers are looking for a unicorn that is fluent in five languages, has four degrees, and more than twenty years of experience in the industry. The reality is that unicorns do not exist, but it is our job to show them that and to come with a viable alternative.  


In conclusion


When looking out for your future candidates you should start with the basics and have a good story on who you are as a company and what you are trying to achieve. Then you need to get your message out there, both through online and conventional ways; be creative! After that you need to work with your network, most predominantly: expand it. Find ways to get in touch with fellow HR colleagues in the field and see if you can use their network. Furthermore, don’t forget about internal hiring and promoting your employees, and last, but not least, try to push back on the requirements for the profile and expand the parameters of your search to get a bigger pool of potential candidates.    

Line Thomson
October 19, 2022
Why and what you should learn from the people that leave your company

Companies and managers alike are always looking for ways to improve. Feedback conversations with employees are being held on the regular, but often they forget to utilize one group that is very important; the people who leave.

In the world of progress, nothing is as important as reflection. You need reflection to look back and see where there is room for improvement. Many managers and companies are already capitalizing on this by holding regular feedback meetings and one-to-one meetings, where both employees and managers openly speak about their experiences. If you are not doing this, then start doing it. Tomorrow. Seriously. The easiest way to improve your company is by tapping into the knowledge of your employees, so don’t let their talents go to waste. In this blog I will not pay attention to that, however. In this blog I will go into the importance of the feedback of the people who will actually leave your company and show you what you can learn from them.

Let’s start with: why?

Well, firstly, people who leave your company have nothing to ‘lose’, so they will be very forthcoming with what they think. In normal feedback meetings, employees are encouraged to be as open an up-front as possible. Although this sounds great, experience teaches us that employees can be a bit hesitant into saying everything that is on their mind in fear of retribution. This factor of retribution is not present at an ‘exit interview’, so your ex-employee will be open and honest.

Secondly, it is important to note that you can learn a lot from the reason why the employee is leaving. It might be possible that this new information helps you to prevent others from leaving for the same reasons as well. Often managers make assumptions as on why employees leave, instead of actually asking and understanding why they leave. This way they cannot effectively deal with possible problems in the internal organisation. Therefore, it is important to find out the true reasons in an exit interview.

Thirdly, it is important for your employer branding as a part of the employee experience. In an exit interview you can take up all sorts of matters which require closure before the employee leaves. Perhaps there are conflicts that need to be settled, equipment which has to be returned, or ongoing confidentiality clauses which have to be signed. Most of all it is a moment for your employee to reflect and express their thoughts and feelings. It is always good to give your employee the feeling that they are being heard, but it is even more important to actually listen (and act).

Still not convinced that it is important to have these exit interviews? Here are ten more reasons.

What to ask?

As said before, the main goal is to find out what the motivations are of the employee who leaves, but it is also good to unravel other possible problems in your organisation. So don’t be afraid to ask creative questions. Don’t make turn the interview in a acquisition and the atmosphere light-hearted to get your ex-employee to really open up. When having these exit interviews, then it is good to keep the questions uniform. Make sure that you are asking everybody the same questions, so that you can actually use the results. More on that later.

Here are some examples of questions that you might want to use:

  • What is the reason you are leaving us? (obviously)
  • Could you list a top three of reasons why you are leaving us?
  • Is there anything we can improve as a company? Performance or cultural wise?
  • Is there anything that your own department could improve?
  • Is there anything that your manager can improve?
  • If you would be owner of this company tomorrow, what would be the top five changes that you would make?
  • If you would go back to the beginning of your time at our company, then what would you have liked to see differently during your time with us?

What’s next? Data.

Now that you know why it is important and which questions to ask, it is time to get to the interesting part: the data. To get an organised set of data, you will need to try and standardize the answers given by the ex-employees to get a clear picture. For example, if you ask the question “Why are you leaving us?” then you can get a very variety of answers as it is an open question. However, you can label the answers given so you can detect patterns. Answer labels for this question could include: “Atmosphere within company, Development possibilities, Prospect of better benefits, Personal reasons” etcetera.

One or two exit interviews will not give you enough information if you are dealing with possible internal problems. That is because it could just be that the couple ex-employees that you have interviewed might hold a grudge against you. However, if a certain pattern appears when more and more ex-employees point to the same problems, then you cannot hide behind the excuse of a coincidental common grudge anymore. So, volume is key here.

After having the right labels and enough volume, you are ready to analyse the data and draw the right conclusions to improve your company and tackle possible problems.

In conclusion

You should always hold exit interviews, not only because it adds to the employee experience, but you can also actually learn from them. This information can be valuable to retaining your future talent, tackle possibly hidden problems, and improve your company performance.

Do you need help with holding exit interviews, analysing the data, or implementing solutions to newly discovered problems? Get in touch with us and see what we can do for you.

Line Thomson
October 8, 2022

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