The Vice President of Human Resources so rarely included in a company’s group of most powerful vice presidents

Full Answer Section

However, it's important to note that this trend is changing. As companies increasingly recognize the strategic importance of human capital, the role of the VP HR is evolving. A skilled HR leader can significantly impact a company's success by:

• Attracting and Retaining Top Talent: A strong HR function can help attract and retain top talent, which is crucial for a company's long-term success.
• Improving Employee Engagement and Productivity: Engaged employees are more productive and innovative, leading to increased profitability.
• Managing Risk: HR can help mitigate legal and reputational risks by ensuring compliance with labor laws and promoting a positive workplace culture.
• Driving Organizational Change: HR can play a critical role in managing organizational change, such as mergers and acquisitions or digital transformations.

As the strategic importance of HR continues to grow, we can expect to see more VP HRs becoming influential members of the executive team.

Sample Solution

The Vice President of Human Resources (VP HR) often sits outside the inner circle of most powerful executives for several reasons:

1. Perceived Role: HR is traditionally seen as a support function rather than a profit driver. While this perception is changing, the traditional view often limits the VP HR's influence.

2. Lack of Direct P&L Responsibility: Unlike executives in finance, operations, or sales, the VP HR doesn't typically have direct responsibility for a profit and loss (P&L) statement. This can make it harder to quantify their impact on the bottom line.

3. Focus on People, Not Products: HR's primary focus is on people, which can be seen as less tangible and less immediately impactful compared to tangible product development or sales.

4. Less Visible Impact: The results of HR initiatives often take time to materialize. It can be challenging to attribute specific financial gains to HR's efforts, making their impact less visible in the short term.

5. Historical Role: Historically, HR has been seen as an administrative function, focused on transactional tasks like payroll and benefits. This perception can linger, even as the role of HR has evolved.