The Lack of HR on Boards: A Missed Opportunity to Leverage Diversity and Insight

In today's rapidly evolving business landscape, corporate boards face increasing challenges and complexities which require diversity of thought and expertise to navigate successfully. Surprisingly, one often overlooked group that possesses valuable insights and skills yet is significantly underrepresented on boards is the ex-Chief Human Resources Officer (CHRO).

Recent studies show that only a small percentage of board directors are former HR executives. Although there’s been a positive uptick since the pandemic, ex-CHROs remain woefully under-represented on company boards. This is even more concerning as a joint survey conducted in the Fall of 2022 by i4cp and EWOB asked corporate directors about the top three topics (excluding the financial condition of the company) most deserving of more attention from the full board in the year ahead and, 4 out of top 7 cited were HR related:

In short, there’s a missed opportunity to leverage ex-CHRO expertise and experience by companies looking to improve their culture, talent management, succession planning, and diversity and inclusion efforts.

Here are five compelling reasons why ex-CHROs should be an addition to boards today:

1. Strategic Leadership in People and Culture Ex-CHROs have developed and led people strategies to drive organizational performance. Their expertise can help board align talent strategies with corporate goals, enhance employee engagement, and foster a culture of innovation and inclusion.
   

2. Insightful Talent Management Ex-CHROs bring a wealth of experience in talent management, including succession planning and building high-performing teams. They can help boards make informed decisions on executive appointments, succession planning, and critical talent gaps.
   

3. Driving Diversity and Inclusion Ex-CHROs have championed diversity and inclusion initiatives to drive innovation, employee satisfaction, and business performance. They can guide boards in implementing effective diversity and inclusion strategies, creating inclusive cultures, eliminating biases, and developing diverse leadership pipelines.
   

4. Risk Mitigation and Compliance Ex-CHROs have navigated complex employment laws, regulations, and corporate governance. Their presence on boards can strengthen oversight, ensure compliance, and mitigate legal and reputational risks while fostering a culture of ethical conduct.
   

5. Future-Proofing the Organization Ex-CHROs understand emerging workforce trends such as remote work, flexible benefits, task automation and their impact on the organization. Their perspective can help boards make informed decisions about talent acquisition, reskilling initiatives, and organizational agility to thrive in a rapidly changing business environment
   

Additionally, ex-CHROs’ expertise can be vital for the Remuneration and Nomination Committees – two key meetings which rely heavily on HR guidance and occur on almost every board.

In brief, the under-representation of ex-CHROs on corporate boards is a missed opportunity for companies. By leveraging their unique experiences and perspectives, boards can make more informed decisions, drive innovation, and create sustainable, people-centric organizations that thrive in the dynamic business landscape of today and tomorrow.

It's time to unlock the untapped potential of ex-CHROs and invite them onto boards!