3 reasons why your HR manager belongs in your c-suite
Traditional c-suites are constituted of the CMO; chief marketing officer, CTO; chief technology officer, CFO; chief financial officer and the CEO; the chief executive officer.
Of course at my company we also have the chief medical director. But of course this particular c-level position only exists in health care companies not in regular corporate’s.
The C-level executives are responsible for the most important corporate functions. They are often form the inner circle of the company actively participating in all major strategy sessions, corporate retreats and offsites.
CEOs worldwide see human capital as a top challenge, however they rank HR as only the eighth or ninth most important function in a company-McKinsey & Co
The CHRO; chief human resources officer, is still gaining popularity in developed countries, but I believe that in Nigeria and many parts of Africa it’s essential for HR to be a C-level position for the following reasons.
1. Our education system is less developed
The endowment fund of Harvard University alone, could fund Nigeria’s entire tertiary education system. Today, no Nigerian university is listed among the top 500 universities in the world as ranked by the 2007 THES-QS World University Rankings. The University of Cape Town, South Africa is the only African university in the top 500. Many universities across Africa are not producing graduates with skills, exposure and knowledge comparable to their Western counterparts.
Private companies have to take more responsibility for bringing the skills of their new graduates up to date and ensuring that they continue to develop as professionals.
Due to the rise of several high quality learning platforms like Lynda.com, this is much easier and cheaper to do.
HR managers must understand the strategy of the company in depth to effectively develop the company’s most important resource; it’s people.
2. Expats usually cost a lot more than local talent
Most people that migrate from the Africa to the developed world to pursue career opportunities are called economic migrants. Generally seen as a problem for the countries that receive them, part of the ‘migrant problem’. They live in the worst neighborhoods, are paid very little and struggle to achieve legal status for themselves and their families.
On the other hand, most people that migrate from the developed world to Africa are part of an expatriate elite. They move with their families, their children attend the best schools, they drive the fanciest cars, hold exclusive events that very few locals are allowed to attend and live in the best neighborhoods.
The reason for this difference is skills!! Skills, skills, skills!
The talented CHRO with a deep understanding of the company strategy can save millions of dollars, by decreasing your companies reliance on more expensive expats and developing talent required as required in house where feasible.
3. For African companies to scale globally; they must have a markedly superior offering compared to their Western counterparts
There are many reasons that African companies find it so difficult to achieve global scale. There are huge financing constraints; Uber received more funding in 2016 than Nigeria’s entire tech industry! There are also political issues and currency risks that make business in Africa difficult.
Businesses don’t create value; people do
Your people are your only global sustainable competitive advantage. The CHRO is indispensable in development of your industry dominating people strategy.
Note: If you run a small company, I did not ask you to go and start forming ,recruit a HR manager and start paying N5m a month. You may go bankrupt. Do not come and meet me for compensation.
As a small business owner just be aware there should be a defined HR role whether it is part of the CEO function or another member of staff.
Dedication: This article is dedicated to my friend Subomi (@subomiplumptre) for highlighting the importance of HR and HR Strategy to me through her tweets.
