Effective communication with shareholders about talent strategy can make or break a company.
Group vice president at Gartner, Brian Kropp, spoke at Gartner’s 2018 Reimagine HR conference to HR professionals. According to Kropp one of the key differences between the companies that survived and those that didn’t was how they managed talent.
Investors and shareholders are beginning to grow accustomed to this, even if they’re not sure the best way to go about it.
In today’s knowledge economy CEOs now want CHROs and HR to help them determine their talent plan. Part of this process is communicating the value of talent to shareholders. Communicating this message in the wrong way can result in unhappy shareholders and plummeting stock values, as American Airlines’ CEO discovered.
Understanding an organisation has a talent plan puts investors at at ease, as does communicating that these initiatives will deliver revenue and profit growth.
Girard Dorney on HRM online explains how good communication with shareholders is key:
Rather than just insisting that paying staff more would improve the business Parker should have explained how exactly his talent initiatives would deliver revenue and profit growth.
That way the shareholders might not have seen the move as them losing cash, but rather the organisation making a wise investment resulting in future profits.
It is important for HR leaders to talk to CEOs about communicating the link between talent and business performance, dedicated resources and enhancing employer branding.
Source
3 things CEOs want from HR right now
Girard Dorney
HRM Online