Firstly, thanks to everyone who read, liked, commented, shared and got in touch following the first blog in this series, we look forward to further interaction as we work our way through “How HR can add value to your Business”.

Too often HR people are recruited onto management teams as a token gesture. They are not at the right level that the business needs, and they do not know the key drivers that make that business tick. They are seen as the ‘People Issues’ Manager rather than being able to add to the conversation or the business. Below is what a HR person needs, to have a meaningful seat at the table:

1. Subject matter expert in Human Resources – the HR person needs to know what they are talking about and have a good grasp of most things in the HR field. It is not good enough when it is decision time to say “I will come back on that” or “I do not know.” The person must have a broad grasp and can speak to all matters HR, from OD through to ER.

2. Understand the key drivers – they need to not only understand the key levers to pull from a HR point of view but they need to understand what the key drivers are in the business itself, the levers to pull to add more money to the top line and the key levers to pull or pull back on to increase the bottom line.

3. Know what is happening in the business – they need to know the issues that are effecting productivity or issues that if not addressed could harm the business in some way. This is not about rumours, this is about knowing what is, or could potentially impact the business in some way. Then the key is knowing/choosing when to act on something.

4. Commercial Nous – they need commercial nous and to understand the financials of the business. Understanding the key lines of revenue and the key areas of cost in HR but more importantly in the business and how you can add value to these areas. They need to know when something is a good deal at a good price or just a nice thing to have that adds no substantive value to the business. Most of all the HR person, like all others sitting around the table, needs to know what is good business and what is not. Just because something is bright and shiny does not mean it is a good thing to have.

5. Solid Relationships – HR needs to have solid relationships with all colleagues around the Management table. To be involved in the key decision making processes and to be leading the decisions of the business rather than implementing decisions, the HR person needs to have their colleagues’ respect so they are involved rather than a bystander.

6. Business First thinking – They need to think business first and HR second. The good HR people class themselves as being business people first. These people place the most importance on what is best for the business and not simply what is the best for the employees – albeit these things are not necessarily mutually exclusive.

7. Be in the inner circle – within all Management teams, there is the Management team and then there is the inner circle of that team which is where the decision making really gets made. The HR person needs to ensure they are in this inner circle and the trusted advisor to the leader of that team. The finance person may be the leaders right hand, HR needs to be the left hand.

8. Know when to speak, act and listen – ensure you only speak when you have got something to add to the discussion. Act only on issues that are of major importance, you cannot act on everything and listen all the time.

9. Contribute to decision-making – being part of making the decisions is one thing, but the HR person also needs to contribute. Simply agreeing or disagreeing is not contributing. The HR person needs to give their opinion on business matters, no matter what the issue. They must seek to understand the issue if they do not understand it and then can discuss where they sit on the issue and why.

10. Common sense thinking and keeping it simple – they need to not over complicate matters, just use common sense and keep things simple and avoid the fluff. At all times they must think what is the best outcome for the business and then work back from that.

The above are just some of our thoughts on some critical areas for how HR can have a meaningful seat at the table. There are more areas that a person needs to be proficient in to be a valuable member of the Management team but they are a discussion for another day.