HR has evolved from a function expected to keep organizations compliant to one expected to impact business performance. Even as HR leaders have risen to the challenge — earning a seat at the table and raising the function’s profile — many struggle to wield their influence once there.
A recent survey by Insperity and HR Dive’s Studio by Informa TechTarget found that the majority of C-suite executives (87%) agree that HR influences an organization's profitability, yet only 14% view HR as a strategic growth partner. Additionally, although 44% say HR is very influential in major business decisions, nearly as many (40%) describe its influence as only somewhat influential.
For Maria Jugin, HR consultant services at Insperity, closing that gap begins with communicating like a business leader.
“If I’m an HR leader who goes into an organization only focused on my compliance knowledge or my knowledge of how to manage employee relations, then that’s how I’m going to be seen,” she explains. “But if I’m an HR leader who sees myself as a business leader and communicates as one, then I have a real opportunity to become that strategic partner.”
As an HR leader, you already have a valuable view into the people side of the business. To turn that insight into influence, translate it into the language of the business.
Can you speak the language of your business?
“The most successful HR people are business people at their core, because HR is a business function,” argues David Wayner, vice president of service operations, HRScale at Insperity. Embracing that position requires moving from traditional HR communication to business communication.
To assess where you stand, consider how confidently you can answer these questions:
- Do I know how to read a P&L?
- Do I know how to look at an income statement?
- Do I understand customer acquisition costs for my business?
- Do I understand how my business makes money and loses money?
- Do I understand what it takes for the business to be successful?
If you’re stumped by one or more, treat that as an opportunity to grow your business fluency and increase your influence as a leader.
5 practices to strengthen your business communication
1. Get closer to how the business actually works
HR operates at its best when it’s ingrained across different units of the business and propels those units forward, says Wayner. Begin by taking the time to learn how various functions within your organization generate revenue, spend money and measure success. “HR leaders need to understand how every function they’re managing affects the business on a day-to-day basis,” adds Jugin.
This background knowledge gives you valuable context, helps you build deeper relationships with fellow leaders and expands your business vocabulary. It also enables you to personalize your messaging, increasing the chances your message is well received.
2. Engage business leaders proactively
HR has traditionally had a compliance-focused mentality, but taking a more active role can help change how the function is perceived. Rather than going to leaders when there’s an issue, bring them solutions before a problem arises. This is where you get to lean on your expertise and the business context you’ve been building.
Wayner explains this by saying, “It adds value to those functional units when you listen to them and identify things they might not be thinking about based on the knowledge and infrastructure you have… If HR leaders proactively reach out and add value beyond the traditional compliance aspect of HR, it will change how business leaders view future engagements.”
3. Make your case with data-driven insights
People analytics can help align HR output with key business initiatives while showcasing your strategic chops. For example, “If you have a system that truly captures the entire talent picture of your employees, you can leverage that data to understand the talent at the table and where their resources can best be used to focus on business results,” Jugin says.
You can also use people analytics to spot early signals of where your organization may be struggling and where it’s particularly thriving, enabling proactive communication from practice #2.
As for what data to focus on, the survey identified four metrics that both executives and HR leaders agree HR should prioritize over the next year:
- Employee engagement and productivity
- Employee retention
- Quality of hire
- Cost per hire
4. Lead with the bottom line impact
When speaking to executive audiences, Wayner suggests leading with business outcomes, then providing supporting context. As an HR leader trained to be thorough and people-focused, it can feel natural to walk through the background of a challenge first. While context is important, it can delay the message. “Once leaders understand the stakes, they're more receptive to the context and people-related factors that explain the issue,” Wayner notes.
For example, rather than starting with, "We're seeing higher turnover, declining morale and several workforce challenges that we need to address," an executive-focused approach would begin with the business impact: "We have an opportunity to reduce turnover by X%, which could improve productivity, lower hiring costs and strengthen retention." This also strengthens your data storytelling muscle from practice #3.
5. Use AI to develop your communication muscles
“If you’re trying to develop your ability to communicate as a business thinker, utilizing AI tools can be very beneficial,” argues Jugin. The key is to use it to strengthen, not supplant. For example, rather than using AI to write your email or create a deck from scratch, use it to improve your communication. Try prompting for feedback or digging into the data to look for other signals — and do it all faster. As Jugin notes, AI isn’t used to replace a person, but to enhance a person’s ability to be successful in a more timely manner.
AI can also help you increase your capacity for other strategic initiatives, a common barrier for many HR leaders. According to our data, three in ten HR leaders (29%) say the biggest roadblock to maximizing HR’s impact is operational demands limiting their ability to do strategic work.
Use your tech stack to increase your impact
By understanding the business lexicon, engaging leaders proactively and leading with what matters, you can wield your influence and help drive decisions. That will come with challenges, but technology shouldn’t be one of them.
The tools you have — from talent management to workforce analytics — should enable you to communicate with confidence and step into that strategic seat a little more seamlessly. Yet our data shows fewer than 50% of HR leaders are extremely or very satisfied with their tech stacks. Audit your existing tools to ensure you have tools that will help you thrive.
If you find you’re not satisfied with your tech stack, download the full survey report and check out Insperity.com to learn how you can drive your function forward and strengthen your influence at the table.
