HR chiefs are moving to the head of the executive table

If you look at the resumes of Australia’s top chief executives you’ll see previous human resources experience is something of a rarity.

If you look at the resumes of Australia’s top chief executives you’ll see previous human resources experience is something of a rarity.

We’re yet to see the appointment of our first local human resources chief executive.

Executives with a financial or technical background are much more favoured and account for more than 70 per cent of the top role at ASX 50 companies.

There are certain soft signs this may be about to change.

Internationally, we’ve seen Mary Barra move from HR into the top position at General Motors. Others such as Samuel Allen at John Deere and James Smith at Thomson Reuters have followed a similar path.

They may be the first of many. The latest Harvard Business School graduating class included 19 per cent of students from an HR or social sciences background.

Australian studies also have shown HR professionals increasingly are interested in assuming more senior strategic counsel of the business.

This could be beneficial for businesses. Hay Group research shows HR executives consistently outshine senior colleagues with other backgrounds in areas such as influence, inspirational leadership, coaching and mentoring.

In times of constant disruption, when an organisation’s ability to change relies heavily on its ability to transform people’s behaviours, these qualities are vital in leadership. Given the chief executive is the key role model for and driver of transformation, the qualities HR executives excel in are of critical importance in the C-suite and preferably at the top.

Traditional leadership will not cut it any more. Traditional career paths won’t either.

HR professionals wanting to make the move to chief executive still face hurdles, including a significant perception problem. Among the senior business ranks, HR can still be seen as an enabler rather than producing someone who can run the company. Executives from financial backgrounds still often view HR activities as removed from “real business”.

There are a couple of ways HR executives can overcome this tag.

The first is building closer relationships with the extended executive team.

A couple of years ago Libby Sartain made headlines at Yahoo! when, as chief people officer, she instituted weekly meetings with her chief operating officer.

Such moves help ensure a ­better alignment between HR and the business, closer relationships with the executive team and a chance to prove credentials.

It’s important that HR shares common goals, measures and strategies with the rest of the business. It’s easier for the broader business to understand the contribution of HR and the executives who lead if you’re speaking the same language. HR is a highly technical role often poorly understood even within the organisation. An education process is critical if HR staff want to establish leadership credentials.

The journey to the corner office is rarely straightforward. At GM, Barra spent four years working in operational roles before being selected as chief executive.

A slightly alternative route may be adding board experience to one’s resume with other organisations to demonstrate broader business acumen and capability.

It’s critical that HR professionals deal themselves a seat at the table. In the past few years, I’ve seen many talented HR directors leave their own names off succession planning documents, only to be mystified why they’d been overlooked for roles.

It may be a couple of years until Australia produces its own Barra, but the soft signs suggest the time of the HR chief executive is definitely coming.

Heleen Cocu is a director of the Hay Group.