CFO or CEO: Who Should HR Report To?

a question mark placed on an office chair asking who HR should report to

Outside the walls of the human resources department, there’s been talk of splitting the HR function in two. According to the Harvard Business Review, companies would then be left with their compensation and benefits team on one side, and a team devoted to managing and developing talent on the other. The reasoning behind this idea is that the traditional HR function lacks the perspective and insight to “relate HR to real-world business needs.”

While this split is not likely to be widely accepted any time soon, it does beg an interesting question, one recently addressed in SHRM’s weekly #NextChat forum: Who exactly should HR report to?

There’s no question that employee recruitment, engagement and retention initiatives can be a massive driver of organizational innovation often spearheaded by the CEO. But should these priorities take precedent over the compensation management and administrative responsibilities overseen by the CFO?

Learn what the #NextChat community had to say by going inside their discussion.

 

What About the CMO?

With all the talk about HR finding ways to impact real-world business results and improve people capabilities across the organization, maybe companies should look in a different direction entirely. How about at the department responsible for driving people to take actions that add to the bottom line?

Read our white paper to learn why some organizations are starting to integrate HR with marketing.