The challenges for the HR Director
A decade ago, the average tenure of a FTSE CEO was 10 years; this length of time has fallen drastically with reported estimates now in the region of four years. What is less widely diffused is how frequently a change at the top means a change of HR Director.
As more and more HR professionals are reaching the boardroom, increasingly they are becoming aware of how difficult it can be to stay there, particularly if their appointment coincides with that of a new CEO.
Expertise in senior HR jobs
A new CEO is often recruited in a blaze of glory - and then leaves in a hurry, by the backdoor! The background to the appointment of a new CEO can be varied, but frequently as soon as he/she is appointed, they set about putting their own stamp on the business's culture and inevitably that means looking at the HR function. This can subsequently lead to the appointment of a new HRD.
Our senior appointments team has more experience than most when it comes to finding out why HR Directors move on, and why an organisation can suddenly find themselves looking for a new HR Director.
Typically an incumbent HRD will share the values and objectives of the CEO, and when the CEO departs, this strong association is invariably the driving cause of the exit of an HRD.
The arrival of a new CEO is not the sole reason for an HR Director to change jobs. In the past, the HRD was one of the most settled of senior corporate positions, but this is no longer the case. Reasons include internal barriers, outsourcing of the HR function, or simply work/life balance issues.
Catalyst for change
An HRD is often recruited as a catalyst for change, particularly where a major cultural shift or organisational restructure is required. When the tangible (and often most painful) elements of the change process are completed, the HRD can often find that his/her services are no longer required.
We frequently meet HR professionals who have been employed with a very clear brief and yet when it comes to the execution of the their task they find that, beyond the "quick wins", the support and backing promised at interview is simply not there.
As the HR function becomes ever more prominent and important within organisations, many companies who previously managed with little or no HR expertise, seek to appoint to the newly created position of HRD. Often the senior executives within the business have no clear idea what their HRD will actually do other than be a repository for all the HR related 'problems' that they perceive the organisation has.
In these circumstances, it can be very difficult for the new appointee to harness the support needed to do their job, as every initiative has to be debated and 'sold' to the senior team. Although this can prove a stimulating and ultimately very satisfying challenge for many, for some the frustrations eventually lead them to move on, usually to an organisation where HR is a more valued business partner.
Sticking points
Many HR roles now take on global responsibilities, and while this provides great opportunity and challenge, it can also be the source of grievance. One senior HR Director who reported into an overseas Vice President (VP) of HR became increasingly frustrated as the VP totally lacked appreciation of their local operating conditions, making unrealistic demands – the constant travel eventually grinding their reserve.
For some the buzz and responsibility of an international role is worth the demands on one's time, but for others it calls into question their work-life balance. The marginalisation of the HR function has been the spur for a job change for some HRDs - where the HR Director loses the battle to influence at board level, or where HR issues are not on the CEO's agenda, the time to move is clearer than mud.
It can take as long as 12-18 months for an HR Director to secure a similar position. An increasingly common way for senior HR professionals to explore options and gain further experience is to work as an interim. Working as an interim HRD offers many advantages and none more so than avoiding the risk of following the departure of a CEO.
Interim option
Working at interim HRD level will keep your skills sharp, enable you to extend your experience and networks, and often you will work closely with an incumbent HRD or CEO. It's a fact that if people feel they are paying by the day for your advice then, psychologically at least, they feel more inclined to take it.
As an interim HRD you can focus on the 'here and now' challenges without becoming bogged down in, say, the five year plan. You have a 'warts and all' chance to see how the organisation really operates and if you don't like it you can move on quickly with a clear conscience.
For those who are starting to get itchy feet after the average four-year tenure as HRD, or for those who are becoming frustrated by internal barriers; there is light at the end of the tunnel! And an interim HRD is just that light.
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