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The Increasing Responsibility of CHROs Proving Strategic Value

The Increasing Responsibility of CHROS: Proving Strategic Value

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The Increasing Responsibility of CHROS: Proving Strategic Value

Much has been written about HR’s emerging role as strategic business partner. But, a study involving over 100 directors reveal that executives still view HR as a highly transactional support function that usually does a great job with compensation and benefits – but not as an influential strategic player in the boardroom. Consequently, chief human resources officers (CHROs) must often demonstrate their value as a true strategic partner.

Executive Perceptions of HR and CHROs

According to the Harvard Business Review, research shows that although CEOs worldwide view HR as a top challenge, they rank HR as the eighth or ninth most critical aspect of an organization. A survey by People + Strategy and the National Association of Corporate Directors concluded that 71 percent of directors rank the CHRO as an excellent or good leader of the HR function. But, less than 31 percent reported that the CHRO has a good or great amount of influence on board decisions.

Interestingly, the CHRO is reportedly one of the top earners in the C-suite. The Harvard Business Review reported in 2014 that CEOs and COOs are the highest-paid executives. CHROs are next, earning an average annual base salary of $574,000. If salary ranking is any indication, the CHRO is an important aspect of operations.

Redefining the CHRO’s Role

The CFO’s role is defined by the board, external auditors, regulators and investment communities. This is not the case for CHROs, whose role typically is defined by the CEO. Therefore, CHROs must ensure that the CEO has a clear view of potential contributions this C-suite position is capable of making, such as:

  • Improving business outcomes through strategic HR management

Organizational performance largely depends on the fit between individuals and jobs. A poor fit can severely damage the bottom line, which the CHRO can prevent by identifying gaps in skills or behavior. A consistent collaboration with the CFO can ensure that assigned jobs, key performance indicators and budgets will produce desired results. Of particular value is a CHRO who is able to make meaningful predictions about the competition by examining established and potential competitors.

  • Evaluating problems

The CHRO is in a unique position to detect why the organization may not be meeting objectives or performance goals. Instead of hiring outside consultants, the CHRO, CEO and CFO should work together to examine underlying external factors – such as economic slumps or falling interest rates. The CHRO can link external factors data to the company’s social system – that is, how employees are behaving or how they’re working together – to uncover areas causing unnecessary friction.

More Transformational, Less Transactional

To reshape their board’s traditional view of HR, CHROs must become increasingly involved in planning efforts, for example:

  • Leverage technology to engage your people. By measuring performance and providing feedback, you can empower your colleagues with information and give them the opportunity to accomplish tasks.

 

  • Listen to your people and be prepared to develop strategies with the board that take action and resolve key problems. Surveying your people is a great method to show your employees that 1) you are listening and 2) you care.  However, if you are going to listen, be prepared to take action.

 

  • The CEO and C-suite succession process – from identifying and developing candidates, to choosing successors, to supporting the new executives.

 

Studies show that most CHROs have some work to do before their board views them as the top influential strategic partner. But, CHROs can make headway by exhibiting their value to the CEO and becoming advisors to the board.


Chad Raymond

by Chad Raymond


Author Bio: With over 19 years of experience in employee engagement, benefits administration and government compliance, Chad has unparalleled knowledge in the fields of leadership and human resources. Chad has worked in several different capacities with Paycom including leading our product development team and HCM initiatives as well as the former director of Paycom’s service department. Chad’s vision and execution helped empower executives and their teams to reach their full potential, ultimately leading to his role as Paycom’s vice president of HR.

Why HR and PR Need to be Friends

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Why HR and PR Need to be Friends

Today’s tech has created an environment with 24/7 access and instant communication. Anyone, anywhere, at any time can share live company updates, photos and videos to countless followers, media outlets, investors and competitors.

This live and on-demand style of communication directly impacts your HR department, since employee actions and consumer satisfaction can be shared in seconds. Your employees, who directly engage with the brand, instantly can become either a champion or a liability.

Trending for the wrong reasons

Consider the recent heightened awareness around the airline industry’s customer service. With the average flight carrying an estimated 230 passengers, a flight crew may have a few hundred citizen journalists on any given flight. The environment has evolved into a “neighborhood watch” under which every employee action is open for documentation, praise or scrutiny.

Overnight, one of your employees – if not your entire company – can make headlines. Another example is last year’s viral video of an upset Michael’s customer claiming mistreatment at the register. The smartphone footage of the store manager remaining calm and composed through the customer’s anger quickly gained national media attention. The store employee received a wave of positive public support and the attention prompted Michael’s corporate office to release an official company statement on the incident.

Benefits of linking HR and PR

In some cases, like a recent incident with a national airline, once HR relates sensitive information to the PR team, it’s often too late to circumvent less-than-desirable online and media attention. Establishing early lines of communication between the two departments is an advantage not only to the general health of a business, but also to a company’s crisis plan.

Media attention is often generated by unexpected circumstances such as:

  • local and national awards and accolades
  • campus emergency
  • fatality or injury
  • consumers organically praising the brand a.k.a. employer brand lift
  • illegal employee activity
  • successful marketing campaigns going viral
  • destruction from natural disaster, power outage

With the speed and convenience of today’s communication, every interaction with a company can be immediately shared. Because of this, HR and PR should be closely intertwined within the fabric of a company. Individuals often are raised to learn that integrity is what you do when no one is watching. Now, everyone is always watching.

 Empowered employees are the best ambassadors

How can companies better prepare employees to understand the vulnerabilities of this emerging climate? By strengthening the relationship between your HR and PR departments and empowering your employees with the right training, which proactively educates your workforce on potential pitfalls of mobile technology. Your employees, properly trained on the dos and don’ts of online conversations, are now ambassadors instead of liabilities.

In the not-too-distant past, CHROs had little visibility into the market insights of the CCO and CMO. But now, with the growth of social media, today’s savvy executives recognize that their PR and marketing counterparts have a front-row seat to product feedback and how employees are performing in real time.

In order to avoid being tomorrow’s headline fodder, ensure that your HR and PR departments are developing social media and public relations training for your employees. Everyone, from the receptionist to the CIO, needs to be aware that their actions could be displayed to a public audience and even go viral.

We will discuss how HR and PR can join forces to communicate an organization’s value, culture and personality, which plays a key part in company branding and policy in part two of this blog, titled What Happens When HR and PR are BFFs.

Be sure to check out the latest episode of our HR Break Room podcast “Fight or Flight: What HR Can Learn from the United PR Disaster” to learn more about how HR can help prevent negative incidents by working closely with their PR and legal teams, and how to create policies that empower employees to mitigate tricky situations.

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Posted in Blog, Employment Law, Featured, Talent Management


Author Bio: A writer, speaker and business leader, Jason has been the communications pulse for a number of organizations, including Paycom where he is the director of public relations and corporate communications. A featured writer on human capital management technology, leadership and the Affordable Care Act, Jason launched Paycom’s blog, webinar platform and social media channels, helping empower organizations around the nation. Jason is attuned to the needs of businesses and helped develop a tool to aid organizations in their pursuit to comply with the ACA; one of the largest changes in healthcare the country has seen. While working in athletics for ESPN and FoxSports, Jason learned the importance of hard work and branding. In his free time he enjoys adventuring with his family, reading and exploring new areas to strengthen his business acumen.

reverification

Best Practices for Utilizing Section 3 of the Form I-9

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Best Practices for Utilizing Section 3 of the Form I-9

Employers are used to filling out Section 1 and Section 2 of Form I-9 because it’s required for every employee. However, Section 3 – otherwise known as the reverification process– can be a bit mystifying.

Who should be reverified?

Employees with expiring employment authorization or documentation should be reverified to ensure continued authorization to work in the United States. The need for reverification is determined by looking at the List A and List C documents that were presented when the I-9 was initially completed. The work authorization expiration date entered by the employee in Section 1, if any, also should be taken into consideration.

When should the reverification process be completed?

The reverification process should be completed prior to the expiration date of the employee’s authorization or documentation. The expiration date is found in two places: the date provided by the employee in Section 1, and the date recorded under List A or List C in Section 2. If these dates conflict, employers should use the earlier date to determine when reverification is necessary.

The United States Citizenship and Immigration Services (USCIS) recommends reminding employees that their documentation will expire at least 90 days ahead of the expiration date. This gives them time to present a List A or List C document or receipt showing continued work authorization. Paycom’s Document and Task Management system helps to ease the burden on employers by providing reminders 90 days prior to an employee’s reverification date.

When should the reverification process NOT be used?

Knowing when you cannot reverify an employee is important, too. U.S. citizens and noncitizen nationals should not be reverified. Additionally, lawful permanent residents should not be reverified if they provide a Form I-551, Permanent Resident or Alien Registration Receipt card for Section 2. An employee’s citizenship status is found in Section 1, as well as at the top of Section 2. Also, List B documents – even if they expire – should not be reverified.

How do you complete Section 3?

To complete Section 3, simply examine the unexpired documents presented by your employee to determine if they appear to be authentic and relate to your employee. Then, record the document title, document number and expiration date, if there is one. Lastly, sign and date this section. You must use Section 3 from the most recent Form I-9, even if the employee’s original form is an older version.  Likewise, if you previously have completed Section 3 for the employee, you should use Section 3 on a new version of the form and attach it to the employee’s original I-9.

 Other instances in which you can use Section 3

Employers also may complete Section 3 when an employee is rehired within three years of the date that the Form I-9 was originally completed. To complete Section 3 for rehires:

  • Confirm that the original I-9 relates to the employee.
  • Determine if the employee is still authorized to work or if reverification is required by reviewing Section.
  • Enter the date of rehire in Section 3 if the employee’s work authorization is still valid.
  • If expired, request the employee’s valid List A or List C document and complete a Section 3 reverification.
  • Sign and date Section 3.

 

Name Changes

You also can use Section 3 to record when your employee has a legal name change. You are not required to update Form I-9 for name changes. However, the USCIS recommends maintaining correct information on an employee’s Form I-9. Similarly, you are not required to request documentation of a name change from an employee, but it is recommended in order to be reasonably assured of your employee’s identity if the government ever asks to audit the Form I-9.

Paycom’s Document and Task Management solution automates employment verification from within the Paycom system to help ensure compliance and reduce your exposure to audits and penalties from Form I-9 violations. Employees and employers can complete the Form I-9 online, including Section 3, utilize electronic signature verification, and securely store completed Form I-9s and supporting documentation within the Paycom system.

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Posted in Blog, Compliance, Document Management, Featured

Alyssa Looney

by Alyssa Looney


Author Bio: As a compliance attorney for Paycom, Alyssa Looney monitors laws, rules and regulations to ensure that the Paycom software is up to date, specifically regarding immigration law and state law developments in the Western United States. She holds a JD and an MBA from Pennsylvania State University, as well as a bachelor’s degree from Texas A&M University. Outside of work, Alyssa enjoys cooking, being active, playing with her puppy and exploring Oklahoma City.

May the 4th

Disturbance in Your Workforce? May the 4th Be With You

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A short time ago in an employee suggestion box not far, far away, this note from a disengaged employee was discovered.

Dear Management,

Being a real trooper, I’ve faithfully served this empire for many parsecs. But lately, morale here is in the trash compactor. I’m close to “storming” out of here! Here’s why:

  • We don’t feel valued. It’s challenging to work for someone who acts like a dictator. (The black cape? A bit much.)
  • We want a comfortable working environment. These uniforms don’t exactly help. (I have to plan bathroom breaks 30 minutes in advance.)
  • We want to contribute, but we’re afraid the boss will choke us from across the room if he doesn’t like what we say. A little two-way constructive feedback could make a death star-sized difference. 
  • I find our lack of training disturbing. With the literal universe at our fingertips, why do we not have an online learning management system?

A disengaged staff is a real phantom menace. Don’t let this happen; awaken your workforce today with our “What Employees Want” toolkit to help you keep the force in your workforce as strong as possible.

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Posted in Blog, Employee Engagement, Featured, HR Management, Learning Management, What Employees Want

Rod Lott

by Rod Lott


Author Bio: As Paycom’s Creative Services Manager, Rod Lott brings more than two decades of experience in marketing, advertising, branding and journalism. A published author and a graduate of the University of Oklahoma, he has worked with such brands as Blue Cross Blue Shield, Sonic Drive-In and OU.

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