DNA OF A HR DIRECTOR What aspiring HR professionals need to make it to the top hays.ie CONTENTS Introduction 1 Findings 2 Survey results 5 Conclusion 12 INTRODUCTION At Hays, we’ve spent decades working with thousands of HR professionals as both clients and candidates. Human resource management is taking an ever-increasing role in the boardroom and more and more HR directors have a greater strategic role in their companies as they seek to add value. However, for the aspiring HR student or generalist aiming for the top, what choices should they make to get there? Or the HR manager wanting that next step, what does it take to become a director? This report provides an insight into the path that Ireland’s HR directors have taken in their careers and will hopefully give some guidance to the future leaders of the sector. Rationale So what does it take to become a HRD? There is no straightforward answer, every company is different and their requirements are varied. Equally, every HR professional is different, whether it’s their qualifications, their experience or their personality. However, we were interested to find out if there were any common traits in the make-up of a HRD. Could we decode the DNA of the HR director? Methodology We surveyed 75 HR professionals from the position of HR director or above, asking them about their qualifications, their experience, their inspirations, their interests and their opinions. A full list of the questions and their responses can be found in the survey results. DNA of a HR Director | 1 FINDINGS We wanted to discover if there was a DNA of a HR director and if their composites were similar across the board. Our survey responses were diverse, but ultimately they created a picture of what attributes you need to be a HRD. Profile Education Experience Ambition is a core feature of our HR directors as the majority had their eye on the top from an early stage. This ambition, combined with a strategic approach, is the recipe for success. The majority of our HR directors studied for a HR qualification early in their career. Combining this degree with a strong mentor is a sure fire way to progress. It is clear that the position of HR director is achievable if you have the talent and the ambition – a high proportion of our survey respondents made the journey to the top in a relatively short period of time. The majority came from multinationals but there was a strong showing from SME HR directors, with the common trait being a broad level of experience. Equal opportunities (p.5) This is one area of the boardroom where there are equal opportunities for males and females with our respondents being an almost equal gender split – 52% male and 48% female Be driven (p.10) 3 in 5 HRDs always had an ambition to get to director level A broad knowledge is a bonus (p.5) Whilst a HR qualification is of great value, 92% of the HRDs surveyed also hold a third level degree outside of HR It pays to qualify (p.5) If you’re studying for a HR qualification, you’re on the right track, joining 87% of the survey respondents Broaden your base (p.6) If you want to get to the top, you need to move around. 63% of our HRDs have worked in at least three industries It’s not just multinational (p.5) It stands to reason that there will be more HR directors working in multinationals, however 38% of our respondents work in SMEs or large nationals Interests Our HR directors enjoy a strong work life balance. The vast majority of respondents highlighted the charity work that they are involved in, with family and sport being two of the most popular ways to unwind outside of work. 2 | DNA of a HR Director Vocational by nature (p.10) 95% of the HRDs interviewed cited family as one of their main interests outside of work, whilst almost a third enjoy charity work Be a sport (p.10) Almost two thirds (61%) of our HRDs enjoy sport as a hobby Career path is quick (p.6) 1 in 5 of our HRDs have between 5 and 10 years experience. So the opportunity to progress quickly is evident Experience can travel (p.6) Over half (53%) of the HRD respondents have worked overseas Broaden your skillset (p.9) 3 in 5 HRDs have worked on all aspects of the HR function, so a wide skill base is beneficial DNA of a HR Director | 3 HRD PROFILE Donal Prior Diageo Donal’s survey answers... How many employees are you responsible for? 1,000+ employees Which category best describes your company? Multinational What is your current title? HR Director What was your previous title? HR Director Manufacturing How many years’ experience in HR do you have? 5-10 years What qualifications do you hold? National Diploma in HR, Masters Degree in Strat. HR. Chartered Fellow of the CIPD Did you study a third level degree? Yes, Brewing Science What industries have you worked in? FMCG Have you ever worked outside of Ireland in a HR position? Never When did you make the decision to pursue a career in HR? Whilst working outside of HR. 4 | DNA of a HR Director During your time working in HR, what disciplines have you been a key stakeholder in? Operations Have you held a management position in any other discipline other than HR? Yes, Operations Who was the biggest influence on your career and why? HR is an area I was always interested in, but I realised it could be the right career choice for me after a close friend challenged me to ‘make the leap’. I was also lucky to be working in a great business like Diageo, where cross-functional moves are possible – indeed, are encouraged, for those who are ‘up for it’. SURVEY RESULTS One-on-one with Donal Gender? What HR qualifications do you hold? What are the challenges of being the HR Director of a multinational like Diageo? I suppose the key one is navigating successfully, the shifting shape of the organisation and the patterns within it, as it changes locally and grows rapidly globally. It is understanding how best to manage from a HR perspective, key imperatives like talent within this dynamic. It is all about change. Almost every area that I touch upon, such as talent, engagement, reward, industrial relations – is impacted by this cycle of ongoing change – one that is accelerating. Key questions are: How do we align everything we do from a HR perspective behind the business strategy? And how do we influence the business strategy? HR should help the business to get to where we need to be – faster, and in a more efficient way, whilst also taking the time to analyse and influence the strategy itself. Considering the HR industry is female dominant, it might seem surprising that 52 per cent of the directors surveyed were male. While it was not possible to find a breakdown on all employees within the HR industry in Ireland, a 2011 survey of 5,335 HR professionals by XpertHR in the UK, found 75.8 per cent of the HR industry to be female, while 57.5 per cent of the HR directors were male. These results show how important it is to have a HR qualification if you want to succeed in the industry. Nonetheless, 13 per cent of the respondents do not hold a HR qualification and that rises to 25 per cent amongst the youngest HR directors (with 5-10 years’ experience). Consequently there are opportunities to succeed without HR qualifications. Is HR viewed as an enabler? HR is expected to be at the table, expected to be influential. We are not just strategy takers but strategy shapers too. HR is there as an equal partner with other functions and has influence on the business and within the business. Now, like every other function, your influence comes ‘out of the barrel of performance’. The level of HR influence in Diageo across the globe is typically high. Executing brilliantly is the key enabler – opening the door to the strategy bit. What activities do you take part in outside of work? My family are my priority, so a lot revolves around them. I like to keep fit, mainly in the gym. I read quite a bit and am interested in current affairs and politics. I have recently started to give talks to Leaving Certificate students. Inducing belief in people about their potential to exceed their own and others’ expectations of what they can achieve is a big part of HR’s and my role. I think that there is an opportunity to apply this approach with young people – to help them to develop to their full potential. What interests do you have outside of work? Family, sports and reading Shape, drive and execute strategy. HR strategy should be business strategy. Was it always your career goal to get to HR director level? Yes How do you think the role of the HR director will change in the future? HRDs will increasingly become drivers of business performance. They will be less focused on managing transactional services and will spend most of their time attracting, growing and developing great talent What advice would you give to a HR professional who wanted to become a HR director? Learn to navigate the space between strategy and operational details comfortably and effectively. 52% 48% Which category best describes your company? It was not surprising to find the vast majority of HRDs were based in multinationals as this is where most opportunities arise. However, it is encouraging to note that 38 per cent of HRDs work outside of multinationals, so there are certainly director level positions in domestic organisations. SME Large National Multinational 13% 62% 25% None 13% Third level degree in HR 31% Masters level degree in HR 29% CIPD level 3 (Foundation) 5% CIPD level 5 (Intermediate) 2% CIPD level 7 (Advanced) 18% Other 32% What other courses did you study at third level? Results later in the report highlight how HR professionals need to have a working knowledge of other departments in their company. This is supported with the statistic that 2 in 5 of our HRDs studied for a business degree. Yet 57 per cent of our respondents studied other subjects away from HR and business. This suggests an individual can start their education outside of HR, yet still become a HR director. None 8% Accountancy & Finance 8% Arts 21% Business Science 7% Other 21% 42% – ensuring that the right people are in the right roles at the right time, delivering the performance outcomes required to deliver business strategy. “Over 70 per cent admitted that they had a mentor” “My dad was a HRD so I followed his career path.” DNA of a HR Director | 5 HRD PROFILE Survey results continued How many years’ experience in HR do you have? It is heartening for the individuals at the start of their HR career to know that 1 in 5 HRDs made it to director level in 5-10 years and this increased to 22 per cent when we filtered on female only, which would indicate that women are reaching director level quicker than men. 20% 5-10 years 11-15 years 16-20 years 20+ years Over half of our HRDs (53 per cent) have worked overseas. Conversely, 92 per cent of individuals with 5-10 years’ experience have spent their career based in Ireland. This would suggest that it is difficult to move from country to country while progressing your career in HR, which would make sense considering the variance in the laws across the world. However, the good news is that the survey suggests the more experience you have, the easier it is to work abroad. 43% Never 1-2 years 3-5 years 5+ years 21% 21% 16% 47% 10% What industries have you worked in? Accountancy 3% Banking/FS 24% Business Services 13% Construction 2% Contact Centres 5% Education 13% Energy 8% Central/Local Government 5% Charity 5% FMCG 23% Health 10% IT31% Legal 5% Distribution/Logistics 11% Pharma 16% Leisure 7% Manufacturing Retail 23% Oil & Gas 8% Telecoms 16% Other 10% 6 | DNA of a HR Director Sarah’s survey answers... How many employees are you responsible for? 1,000+ employees Which category best describes your company? Multinational 22% Almost half of our respondents have worked in the manufacturing industry. There is also a wide spread of HR experience across other industries. However, 23 per cent have worked in only one industry compared to two thirds (63 per cent) who have worked in at least 3 industries. Therefore, if you want to get ahead, ensure you get experience across a number of industries. Sarah Abbott EMC Have you ever worked outside of Ireland in a HR position? If yes, for how long? What is your current title? Senior Director HR Ireland When did you make the decision to pursue a career in HR? These results suggest that HR is not a career people think of early in their lives, like medicine or accountancy. A slight majority of our participants were already working in another profession before they made the decision to move into HR. This is great news for anyone who originally embarked on a particular career path but would like to get into HR. Again, it supports the notion that experience outside of human resources is valuable for a career in HR. At school At college/university Whilst working outside of HR 5% 52% 47% 43% What was your previous title? HR Leader How many years’ experience in HR do you have? 20+ years What qualifications do you hold? MA Training and Performance Did you study a third level degree? No What industries have you worked in? FMCG, IT and Manufacturing Have you ever worked outside of Ireland in a HR position? Yes, 5+ years During your time working in HR, what disciplines have you been a key stakeholder in? IT, Operations and Sales Have you held a management position in any other discipline other than HR? Yes, IT systems and I set up the sales division for 11 countries Who was the biggest influence on your career and why? One was the previous BP in Apple who was Steve Jobs’ protégé, who taught me never to settle for second best. Another was Bernard Cronin who taught me to understand that I needed to stand on my own two feet. What interests do you have outside of work? Family, music, food/cooking, volunteer/charity work Was it always your career goal to get to HR director level? No What advice would you give to a HR professional who wants to become a HR director? You need a top qualification. Get your foot in the door, even if it’s not at the level you initially want. Don’t stay in one job for more than 5 years, within 5 years you should have made your impact and then it is time to make your mark somewhere else. One-on-one with Sarah You have worked in many different industries. Do you think this is important? I think it really helps to have a different set of lenses, you can bring different ways of working and providing different solutions that you may not have thought about before. I have experienced similarities in HR, manufacturing and retail that I hadn’t expected to see. You can use all that experience in very different ways. You don’t need to have worked in all industries but it is good to have exposure. It rounds out the number of options you can pull from and solutions you can give. When I worked in recruitment it was a SME and I worked in all areas, from marketing, sales to payroll to recruitment itself. So you really did understand a P&L, a healthy forecast and how to think of the future of your business. So when you join a multinational, you may not have responsibility for the organisation’s P&L but you bring a mind-set of connecting your work to that of the overall vision of the company. You worked outside of Ireland for a number of years, would you recommend that to other HR professionals? Yes, if you work outside of Ireland for a considerable period of time you are able to look in at Ireland and get a different perspective of how we work and how we lead. I found the view was different in that I could see how our leadership style and culture played out versus other cultures. From a learning perspective what countries are most relevant for HR professionals? There are progressive HR practices in India, China is a very progressive labour market with associated universities and Israel with engineering and R&D. Ireland has been used as a model for many, we have had considerable success around developing global leaders – particularly in the industrial age. We now need to apply the same passion and wisdom to the next generation of leaders as the ask is going to be very different. How important is a mentor to your career? A mentor is crucial. You need mentors who are in a different industry to you and someone in your organisation who is a couple of steps ahead of you, you need to find people who tell you how it is. Mentors always made a huge difference for me because they gave me that light bulb moment. How do you think the role of the HR director will change in the future? For public services, they are struggling to change, but for private, look at HR within operations. Also, I have noticed that HR is becoming more frequently female dominated. I would be concerned if this shift continues, merely from a balancing viewpoint. DNA of a HR Director | 7 HRD PROFILE John Gorman Two Sisters Food Group, Frozen division John’s survey answers... How many employees are you responsible for? 1,000+ employees Which category best describes your company? Multinational What is your current title? Head of HR What was your previous title? HR Manager How many years’ experience in HR do you have? 5-10 years What qualifications do you hold? Masters in Training Performance Management Did you study a third level degree? No What industries have you worked in? FMCG Have you ever worked outside of Ireland in a HR position? Never When did you make the decision to pursue a career in HR? Whilst working outside of HR. I then moved from operations into training. 8 | DNA of a HR Director What aspects of HR have you been involved with during your career? Corporate Restructure During your time working in HR, what disciplines have you been a key stakeholder in? Operations Have you held a management position in any other discipline other than HR? Yes, Operations Who was the biggest influence on your career and why? Tony Fay is the reason I wanted to work in training. The values, approach and impact he had on people, getting results from people. What interests do you have outside of work? Family Was it always your career goal to get to HR director level? No What advice would you give to a HR professional who wants to become a HR director? You need to be business focused, understand business. Decisions made are business related. On occasions some Survey results continued One-on-one with John Who was the biggest influence on your career and why? Would you encourage HR professionals starting out on their career now to stay in Ireland or leave and get international experience? Business is becoming global, it is a disadvantage only having experience in one region. In relation to myself, it was one of the reasons I took on 5 Star Fish in the UK because I wanted that multinational piece. If you can get experience in any of the English speaking countries, US, Canada, UK, Australia, pack up and go, if it suits your circumstances. That experience will stand you in good stead. If you have a second language, go and use it. Companies want that. Our business is very diverse, having that experience will really help culturally. Mentoring is a valuable part of HR career development. Many of our respondents view a mentor as a formal part of their progression. Only five per cent of the respondents didn’t have any mentors. Over half of our HRDs referenced specific managers or MDs while a few mentioned friends and family. What occupies your time outside of work? Family. I work very hard and when I am not working I want to go home. I play squash twice a week to keep fit. I sit on the IITD (Irish Institute of Training and Development) council. I was Education Officer, then Treasurer, then Vice President, then President and then back into Vice President. I had great support at home and I reached a stage where I wanted to spend more time with my family. I make a point of dropping the kids to school and when they were younger I made a point of putting them to bed. What is the biggest challenge you faced moving from operations to HR? Not knowing what you don’t know is the biggest challenge at the start. I always found someone in my network to help me out. I wasn’t afraid to ask for advice. Ultimately I got involved in study and just kept going. I became fascinated with learning more and more. Then I got into teaching and rolling out training programmes. I went off and did a Masters in training and really loved it. I want to influence the business around employee engagement and how we can get our people to contribute. The results here support other stats in this report that a broad skillset and being multi-disciplined can aid a HR career. Only 23 per cent of our respondents have been focusing entirely on the HR function during their time in the profession. Mary O’Driscoll – Head of Training at EBS – she had amazing knowledge and expertise in the field of training. Myself, I made it happen for me. Ex Head of HR for Europe in Intel – he gave simple advice and made sense of everything he said – everything was always straight. Frank Scott Lennon because he encouraged me in the belief that Human Resources is a key business discipline. Store Manager in Retail – made me think about my career, helped me realise that HR does not operate in isolation, can’t presume managers have HR as top of their agenda. None 23% IT 20% Operations Marketing 16% Sales 18% Other 8% 39% What aspects of HR have you been involved with during your career? It is perhaps not surprising to find that our HRDs have embraced most aspects of the HR function during their career with 3 in 5 (58 per cent) having covered all aspects. It’s clear that any ambitious HR professionals should look to broaden their skillset as much as possible. All of the below 58% Health & Safety 44% Redundancies 43% Employee Relations 39% Performance Evaluation 39% Employee Engagement 38% Implementation of new systems 38% Recruitment38% Corporate Restructure 36% HR Budget 36% Strategic & Operational 36% Learning & Development 34% Training 33% Facilities Management 31% Industrial Relations 28% International HR 26% Payroll 25% peers come across as focused on theoretical HR and they need to be more business focused. How do you think the role of the HR director will change in the future? The last 3-5 years have been about finding the best people and retaining talent. The next 5-10 years will be about driving performance. During your time working in HR, have you been a key stakeholder in any of the following disciplines? “I admired my mentor’s ethos and their values. What they said, happened and they brought employees along with them.” DNA of a HR Director | 9 Survey results continued What advice would you give to a HR professional who wanted to become a HR director? Was it always your career goal to get to HR director level? This was an open-ended question designed to give personal advice to those seeking to reach HR director level. It was clear from an overwhelming amount of responses that knowledge of the business and having a commercial mind was very important. In addition, the importance of gaining experience in a variety of roles was highlighted. Put your hand up for everything even if this means making sacrifices. Learning new skills isn’t easy, but it’s not supposed to be. Getting a breadth of experience in HR is essential then, you should look for that niche – get your strength and you will get noticed. Be brave. Be trusting and trustworthy. You need to build a personal brand, be very self aware and know what you can do. Deliver or you lose credibility. Work in the core function of the business i.e. work as a store manager/retail manager. This will help you understand what your people go through. Find yourself someone influential that will make a difference to you – have a mentor, someone that will tell you as it is. Watch what other people do, be the owl, sometimes HR people are the sheep. Don’t be the one to take the minutes at the meeting – not for HR to do, anyone in the room can do that. 59% 41% With the majority of our HR directors achieving their ambition of reaching director level, this suggests they have tremendous drive. What interests do you have outside of work? With 95 per cent of our HRDs citing family as one of their interests outside of work and such a variety of other interests chosen, it would indicate that they value a positive work life balance. Three in five enjoy sports which would support their ambitious nature, whilst 29 per cent enjoy charity work continuing the vocational theme into their spare time. Family Sports 61% Music 47% Film/TV 37% Outdoor activities 34% Reading 34% Food/Cooking 29% Volunteer/Charity work 29% Education 16% Theatre 13% 95% How do you think the role of the HR director will change in the future? When it comes to the future, HR directors see their roles becoming more entrenched in the strategy of their business as their importance to the bottom line grows. Similar to most professions, the area of Human Resources is experiencing the same movement towards globalisation and a reliance on technology. With these changes taking place in the near future many HR directors stressed the point that talent management is still central to their roles. The role of HR director has already changed, from admin to strategy. The HR director must better understand the business, they have become key stakeholders. The HR director needs to be involved in all aspects of the business. I feel HR is more progressive in Ireland than in some other European countries. People are forming opinions in the world nowadays using a myriad of different media and this makes the role of HRD more complex – i.e. social media makes things that were once confidential/in-house available for public consumption. The next 5-10 years in Ireland will be about performance, ensuring that you have good people in the business. You should have the ability to identify and retain talent and have the best people working with you. There is more and more expectation of the HRD role every year. The world is getting smaller and you are expected to have a broader geographical scope. HRDs will be expected to lead multiple sites across countries where as before you may only have had one plant. With the introduction of HR services to the corporate world, the role of the HRD becomes much more strategic and high level, so you must be able to demonstrate strategic capabilities. Ireland is in the infancy stage with HR at the moment, we are a generation away from taking off – we need to be resilient and show our own value – this can be developed. HR directors will have a higher profile within the overall business, taking a seat at board level. You must know the business you are working in, know the nuts and bolts of it and what the business requirements are, drive the business and add value – identify good people in the organisation and ensure you have good line managers. “Think business and then HR. Think strategically, talk the business language not the HR jargon. Build relationships and alliances. Keep the standards high.” 10 | DNA of a HR Director DNA of a HR Director | 11 CONCLUSION It is clear that a wide skill and knowledge base provides a distinct advantage if you are aiming to reach the level of HR director. The majority of our HRDs have worked in many industries, studied subjects in addition to HR and worked in all aspects of Human Resource Management. In addition, entering the industry at a later stage of your life can be advantageous as you bring your broader knowledge to the job. The over-riding sense is that the profession is going to become more strategic and HR representatives will play a bigger role in the boardroom. As the recognition of the industry increases, we should see more opportunities for aspiring HR professionals to reach director level. Acknowledgements We’d like to thank the 75 HRDs who participated in our survey. The information you have provided has been invaluable. We’d also like to thank Donal Prior, Sarah Abbott and John Gorman for giving up their time for more in-depth interviews. It has been a huge help. 12 | DNA of a HR Director DNA of a HR Director | 13 CONTACT US If you require any advice on your career strategy, salaries, CV advice, interview tips or you’d like to find out about hiring someone, contact your local expert on one of the numbers below: Dublin 01 662 7291 Limerick 061 435 750 Cork 021 464 8197 Galway 091 533 417 hays.ie © Copyright Hays Specialist Recruitment Limited 2013. HAYS, the Corporate and Sector H devices, Recruiting experts worldwide, the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc. The Corporate and Sector H devices are original designs protected by registration in many countries. All rights are reserved. 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