How can HR lead the change for more diverse boards?

In 2019, diversity at board level isn’t just a “nice to have,” – it’s a prerequisite to the success of a leadership team and an organisation as a whole. No longer can businesses afford to be led by homogenous teams held back by groupthink; no longer can leaders look solely to likeminded people for support in determining and driving the strategy. Today, a lack of diversity in senior management is not just damaging to the reputation of a firm, it represents a missed opportunity.

According to recent research from Cranfield University, the UK has made marked progress in its effort to improve gender diversity at boardroom level. Findings from their report show that 29 per cent of FTSE 100 directors are women: that’s an increase of 27.7 per cent since 2017. Today, all FTSE 100 companies have at least one female director, and at a third of them more than 33 per cent of the directors are women. These statistics certainly show a collective ambition to increase diversity at senior level – but the problem is far from being solved.

Research indicates that the number of minority ethnic leaders in Chair, CEO & CFO positions across the FTSE100 have reduced by 18%. It doesn’t take an expert to see that the barriers we talk so often about knocking down still prevent talented individuals from minority groups to rise to the top.

Of course, diversity doesn’t happen overnight. It takes more than just an announcement of an intention to rebalance the board – not to mention the workforce. In order for cultural change to take place, it must be woven into the fabric of the strategy itself.

Fortunately, executives have a secret weapon on their side: Human Resources.

Human Resources professionals are uniquely placed to influence senior management; their role in the business demands an awareness of the building blocks that form the company culture. Their success depends upon their ability to communicate issues within the business back to the leaders at board-level.

C-level executives have long looked to HR managers for insight into the inner workings of the organisation. Despite not sitting on boards themselves, HR professionals have historically played a pivotal role in shaping the talent strategy of the firm due to their close relationship with the day-to-day issues regarding people, opportunities and culture.

If there’s anyone who can lead the charge in improving boardroom diversity, it’s HR: their place in the business allows them to push the C-suite on initiatives such as leadership and management training – an essential element in the fight for diversity at senior level. By actively promoting equal opportunities through learning and development courses, HR can gradually encourage women, minority ethnic individuals and those of the LGBTQ+ community to reach for the top and take on more responsibility.

As well as influencing board-members, however, HR professionals are usually the go-to teams that act as a buffer between staff and senior management. Should employees feel there are certain barriers blocking them from climbing the career ladder in their organisation, it’s often easier for them to report this to HR than it is to tell the CEO, or even their line manager. HR professionals don’t just see the headlines, they see diversity issues on a deeper level.

Where there is a problem with the culture, HR should be the first to know. In conjunction with succession planning, HR professionals can pinpoint weaknesses within organisational processes and policies in order to bring about system change throughout the business. If, for instance, inflexible working practices are preventing women from applying to senior roles within the business or put themselves forward for a promotion, HR can work with the CEO to design a more inclusive approach, one that doesn’t force women to choose between their personal lives and professional careers.

While quotas may act as a quick-fix solution to boardroom diversity, retaining top talent from various backgrounds in a leadership team depends on behavioural change throughout the business. Working with senior leaders, HR must use their unique position to inspire a cultural shift within the organisation.