What should I include in my HR report to the board?

I was asked this recently by a client. My first thought was ‘ask your board’ but that might not be the best thing to do. You are, as HRD, the subject matter expert. It does however beg the question, if you are not sure what to include, what sort of relationship do you have with other members of the leadership team and how do they perceive the HR function?

Working as an HR consultant has given me the opportunity to see some very good board reporting by HR and some poor reporting too, guaranteed to frustrate the most reasonable board member.  In my previous HRD roles I tried to focus reporting on KPIs, business critical content and brevity, aiming for engagement and decision making by the board on key people issues.  However, I know I lapsed into narrating mundane operational matters either because the Board asked for it, or worse still, to justify my existence and that of my wider team. 

if you are not sure what to include, what sort of relationship do you have with other members of the leadership team and how do they perceive the HR function

If I had more time to prepare better reports they would have been shorter and with more impact. Illustrate KPI trends with graphs and pictures, use text to highlight the key issues only such as specific concerns, areas of strength and what we should do about them. Report what people in the business think as well as feature best practice, benchmarking and market trends. Avoid covering everything except core KPIs in each board report. You need to establish a reporting timetable, focussing on relevant issues throughout the reporting year; such as pay review, performance review, benefits value versus costs, corporate responsibility, equality, diversity and inclusion, development spend and ROI, etc.

Content will also depend upon a host of immediate things which will be reactive. Are we in steady state or consolidating, in acquisition and growth mode, re-sizing to address rapidly growing or shrinking market share etc? Such matters will dictate the agenda but it pays to avoid being totally reactive at the cost of ignoring critical core issues such as succession planning and leadership development.

I expect your business strategy will include some high-level people objectives. The words may look different but at their core it is probable they will focus on finding the right people, keeping them, ensuring they are highly motivated and performing, constantly developing relevant skills, ensuring an internal talent pipeline, everyone having a strong sense of purpose and having clear values. Easy, right?  If that is what your organisation needs, how is HR helping deliver these outcomes and who are they working with to make it happen?  The longstanding HR shorthand for this is we need to be ‘strategic business partners’ but it's worth reminding ourselves what that bit of jargon means in practice. 

The HR team must establish common priorities about the people in the business with the leadership team, focus on these priorities, then report to the board on progress and results.

Having an employee value proposition (EVP) is important. That means stating clearly and consistently to employees, customers and other stakeholders your values, your culture and what you do that makes your organisation a great place to work. Revisit this at least every other year and refresh it, consulting with your people and the leadership team to get their input. 

I would expect the business strategy of any organisation to include high-level people objectives.

Enlightened Boards seek input from HR in respect of risk management. This must go beyond ensuring the application of ethical employment practices. It must include an understanding of how equality, diversity and inclusion (EDI) are addressed in your business in a proactive way. Also, do you have a well thought out approach to employee wellbeing and is this communicated effectively throughout your organisation? As HRD you should be a stakeholder in defining your organisation’s approach and effectiveness in terms of Corporate Responsibility too, including local community engagement.  Enron and other high profile melt-downs and the furore over executive pay in many sectors have created a move away from the board being run and directed almost exclusively by the CEO. Structures and membership should ensure greater independence of thought, including a Remuneration Committees dealing with Executive pay. The HRD should be a participant in wider business decision making, coming up with progressive suggestions and constructive challenges, backed up with facts, reasoning and commercial awareness. None of this stops you being a key adviser to the CEO.

There are essential basics in reporting at board level. Circulate papers on time, keep it clear and avoid HR jargon. Be careful the board don’t drag you too far into the operational space. If the wheels come off something operational, fix it straight away, then report briefly on what went wrong and why it cannot happen again.  You do need to demonstrate you can get service delivery right.

Let’s assume your board meets 6 times a year. Focus on a handful of KPIs that mean most to your business right now, report on them each meeting and refresh them periodically. In addition, stick to one or two main themes at each board meeting in the substance of your report. This gives board members the opportunity to engage with important topics properly, helps shape people priorities and ensures the board takes ownership of decisions. Otherwise you’ll end up producing a lengthy document each month which people ignore.

In the final analysis, it a matter for you and your board what to focus on, talk about and change. Don’t try to do it all at once, engage with your key stakeholders and good luck!