Preparing HR Professionals to Be Board-Ready

The Human Resources function aims to be increasingly recognized as a key strategic partner of sustainable business success in our organization’s boardrooms. Achieving this requires not only that boards have HR expertise but also that HR leaders are ready to step up to having board-level discussions and get onto board roles. The need for board-ready HR leaders has never been greater.

For HR professionals, being “board-ready” involves developing a skill set that goes beyond traditional HR competencies to encompass strategic planning, risk management, and financial acumen. Likewise, boards must look beyond their conventional candidate pools to include HR professionals who bring unique insights into workforce strategy and organizational culture. Here’s some ideas on how HR leaders can prepare themselves for board service and how boards can support this transition to having more HR expertise among their members.

The Value of HR Expertise in the Boardroom

Board-ready HR leaders, along with HR-ready board leaders, bring a distinct advantage to governance. They understand how to align workforce planning with corporate strategy, mitigate human capital risks, and foster cultures that support ethical behavior and performance. With skills in talent management, organizational development, and employee engagement, they can help the board navigate complex people issues that impact long-term strategy.

However, recent data on director competencies show that HR is still one of the areas where board members are least equipped. This gap underscores the opportunity for boards to actively recruit HR professionals who can fill this need and bring a valuable perspective to board discussions on strategy, culture, and risk.

Practical Steps for HR Leaders to Become Board-Ready

For HR leaders looking to contribute at the board level, here are some key areas of development:

1. Gain Financial and Strategic Acumen: Boards require HR professionals who can translate people metrics into strategic and financial outcomes. This means HR leaders should familiarize themselves with financial statements, key business metrics, and how these relate to human capital decisions. One approach is to shadow finance teams, take courses on corporate finance, or work closely with a mentor who has strong financial expertise. Understanding how people investments affect profitability and risk will enable HR leaders to contribute meaningfully to board discussions.

2. Develop Risk Management Skills: Risk management is a fundamental board responsibility, and HR professionals who can identify and mitigate human capital risks are very valuable. HR leaders should be able to assess risks related to succession, culture, retention, and compliance, and understand how these risks fit into the broader organizational risk landscape. Attending risk management seminars or partnering with risk officers can help HR leaders strengthen these competencies, enabling them to present human capital risks with clarity and strategic relevance.

3. Broaden Knowledge of Corporate Governance: To be effective in the boardroom, HR leaders need a solid grounding in corporate governance principles. This includes understanding the roles and responsibilities of the board, the regulatory environment, and how board committees function. Many HR leaders enhance their governance knowledge by participating in director training programs, such as those offered by the Singapore Institute of Directors, or by gaining experience on nonprofit boards, where they can learn the governance process firsthand.

4. Cultivate an External Perspective: Board members must be able to look beyond the organization to understand how industry trends, economic forces, and competitive dynamics impact strategy. HR leaders can prepare for this by staying informed about industry trends, networking with leaders in other fields, and contributing to industry roundtables or conferences. Developing this external viewpoint enables HR professionals to bring broader insights to board discussions on workforce strategy and organizational resilience.

Real-World Example: Transitioning an HR Leader to the Boardroom

A growing technology firm recognized that its ambitious expansion goals depended on a strong HR strategy. The board decided to appoint the company’s CHRO to a newly created human capital committee, where she could directly contribute to strategic discussions. To prepare for this role, the CHRO worked with the CFO to enhance her financial skills and spent time with the risk committee to understand the organization’s risk appetite. Within two years her insights on talent strategy and workforce planning were key to implement the organization’s strategy. Her deep understanding of human capital helped the board anticipate and mitigate workforce risks as the company entered new markets. She also pursued board-level training, which made her better prepared to address board discussions, and positioned her to sit on external boards.

Why HR Leaders and Boards Need to Partner on Board Readiness

For boards, bringing in HR professionals is about gaining a partner who understands the people dynamics essential for sustainable growth. By recruiting board-ready HR leaders, or developing existing HR talent, boards position themselves to make better-informed decisions about talent strategy, culture, and employee engagement.

For HR leaders, preparing for board roles requires a commitment to broadening their strategic skill sets. Board service can be a powerful way for HR professionals to deepen their impact, gain a wider perspective, and influence the organization’s future.

In upcoming posts, I’ll address other dimensions of HR as a strategic asset, and I’ll discuss actionable steps boards can take to integrate HR expertise more fully into boardroom governance. Meanwhile, HR leaders should continue building the competencies that will enable them to contribute at the highest levels of organizational oversight. The future of board effectiveness depends on it.