What Will It Take For The C-Suite To Value HR?

• The growing disconnect between C-suite executives and HR teams is a multifaceted issue that has been highlighted in Lattice’s 2024 State of People Strategy Report.
• While 83% of HR professionals believe they can significantly impact overall company productivity, only 61% of C-suite executives recognize this.
• The disconnect between the C-suite and HR is driven by a combination of confidence gaps, misaligned perceptions of HR’s strategic value, and a lack of recognition from the C-suite regarding HR’s contributions to key business outcomes. 

It’s no secret that the modern workplace is evolving at a breakneck pace, with technological advancements and shifting market dynamics creating new challenges and opportunities. But amidst this whirlwind of change, a persistent issue has been thrown into the spotlight: the widening chasm between those at the helm of companies — the C-suite executives — and the teams responsible for the human element that runs those companies: HR.

The growing disconnect between C-suite executives and HR teams is a multifaceted issue that has been highlighted in Lattice’s 2024 State of People Strategy Report, which reveals several key findings that illustrate the root causes of this divide.

First, there is a significant confidence gap among HR leaders when it comes to linking HR initiatives to revenue generation. Only a quarter of HR leaders feel “very confident” about their ability to connect HR and revenue when engaging with the C-suite. This lack of confidence can hinder effective communication and advocacy for HR’s strategic value within the organization.

Secondly, the report indicates that there is a misalignment in perceptions between HR leaders and the C-suite regarding the impact of HR on business outcomes. While 83% of HR professionals believe they can significantly impact overall company productivity, only 61% of C-suite executives recognize this. Similarly, there is a disparity in views on HR’s influence on avoiding costs, customer satisfaction, revenue, and product quality, with the C-suite consistently undervaluing HR’s contributions.

The report suggests that HR teams are not seen as strategic partners within their organizations. This is compounded by the fact that only 27% of HR leaders think the C-suite recognizes the impact that HR has on business bottom lines. Additionally, just 48% said that the C-suite takes data from employee surveys seriously, and only half acknowledge that a positive company culture directly impacts business outcomes.

To address this disconnect, several strategies have been recommended: 

1.HR leaders are encouraged to learn the business and speak the CEO’s language to ensure strategic alignment. Successful HR teams that exceed their goals are often those that confidently connect their work to business outcomes.

2.Companies must engage in meaningful actions such as investing in and learning from frontline workers, encouraging employee-led innovation programs, and establishing mentorship opportunities where frontline employees can guide executives. 

3.Employ a concerted effort to align HR initiatives with business outcomes, improve leadership communication and responsiveness, and foster a culture of inclusivity and innovation that values contributions from all levels of the organization. 

“First and foremost, HR leaders should get to know the rest of their C-suite team — especially their CEO,” Cara Brennan-Allamano, CPO of Lattice, told Allwork.Space. “Some key questions to consider, and make sure you have answers to: How do your organization’s leaders view talent management? What matters to them? How do they view performance and the drivers behind it? What is their primary ask of the people function?”

“And importantly — how progressive do your CEO and other leaders want to be in their people practices? Are they looking to lead the pack, or just get the basics absolutely right? Make sure you really listen and take in their perspectives,” Brennan-Allamano added. “This will help you not just shape but communicate around your goals and programs in a way that is more aligned with your leadership team’s expectations.”

In essence, the report isn’t just a wake-up call; it’s a blueprint for building bridges. By recognizing the gaps, misalignments, and undervaluations, and by implementing recommended strategies, organizations can begin to transform the dynamic between the C-suite and HR into one of mutual understanding and respect. 

After all, in the high-stakes game of business, it’s the human element that can tip the scales toward success.