Organizations looking for board directors with HR skills

Those around the board table traditionally have backgrounds as CFOs or CEOs, but the Great Resignation is increasing the number of human resources professionals seated at the table, CNBC reported March 10. 

In 2020, the share of board directors with human resources skills in the S&P 1500 was 11.3 percent. This January that figure rose to 19.4 percent according to data from Institutional Shareholder Services ESG. These roles are also bringing younger talent to the boardroom, with 29 percent of HR-skilled directors being under 55 years old, compared with 11 percent in 2016. 

This increase in HR savvy board directors is representative of the challenges placed upon organizations to recruit and retain top talent during the wave of issues presented by the Great Resignation. As boards face pressure from their employees and investors, as well as the SEC for transparency on workforce issues, HR skilled professionals offer help. 

"The issues around workforce metrics and human capital management are becoming more complex," Bonnie Saynay, global head of ESG investor research and data strategy for ISS ESG told CNBC. "Boards are really seeking HR knowledge and expertise to better grasp what's happening and how it affects the decisions they're making."

 

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