"A company management must be able to inspire employees" - Career / Working World - Elektroniknet

Gunther Olesch, who has long been the senior HR manager at Phoenix Contact, explains how HR managers can turn from a professional administrator into an inspiring designer and strategist on the executive board.

In the mid-1970s, many HR managers moved into the boardrooms of larger companies. This was supported by Section 33 of the Codetermination Act. The Labor Director was appointed as an equal member of the company’s management. He carried out his duties in close coordination with top management. Many companies, particularly those involved in the coal and steel industry, joined the trend. The former head of personnel administration was to become a designer and corporate politician with a far-reaching strategic orientation. Participation in the management predestined the Labor Director to make HR policy decisions in the interests of the company and the employees. In the 1980s, his function was partly transferred to medium-sized and private companies.

Then the step backwards

At the end of the 80s and beginning of the 90s one can observe a clear regression of this development. The position of labor director partially disappeared. Where a labor director retired or left the company, his role was taken over by another member of the board of directors or management, or human resources were often subordinated to the member of the company management who was responsible for finances. Especially with the chief financial officer of a company, human resources counts as the primary cost generator. The strategic direction of human resource management was not that important. It was less about how to develop the quality and motivation of employees, but more about how to keep personnel costs low. Funds for staff development, training and investment in the workforce were treated more restrictively.

In the mid-1990s, some HR managers developed the strategy of being primarily available as a consultant to managers in the company on all HR issues. To underline this role, they viewed themselves as a business partner in the company. At many congresses, this focus of HR managers was postulated as the future trend.

The aspect and the risk that a consultant or business partner never has the entrepreneurial influence like a top manager were not sufficiently taken into account. This approach partially catapulted oneself out of the former top management position and gave up the corresponding entrepreneurial influence.

Useless detailed knowledge?

Another factor also contributed to the weakening of the Labor Director. Many HR managers saw themselves as specialists in their field. You are constantly qualifying yourself through new know-how, be it with regard to personnel development, work flexibility or work life balance. At the corporate management level, however, detailed knowledge in the respective specialist area is not required, but general, entrepreneurial and strategic knowledge and action.

In the company management there is often the opinion that they can competently have a say in the subject of human resources. In contrast, HR managers have hardly acquired generalist know-how in order to be available to other management colleagues with advice and action. Only those who have an interdisciplinary role in the management of the company will be able to successfully fill a position in this most important body.

Another factor complicates the role of the HR manager in corporate management. The sales colleague can e.g. B. report positive figures such as sales growth and market growth. The production colleague can talk about reducing lead times and increasing productivity. All aspects that are generally accepted in a company under cost pressure. The HR manager, on the other hand, can usually only present costs, since the efficiency of his work to create value for the company can hardly be proven in numbers. However, some aspects such as added value through lower fluctuation, sick leave and faster recruiting of new, highly qualified employees can be conclusively proven.

Objective and sober is not enough

HR managers often want to appear professional, objective and sober. That is certainly necessary, but it is not enough to hold a strong position in the company management. It is not uncommon for them to be referred to as personnel administrators behind closed doors, even if they see themselves as designers.

On the other hand, if you look at sales or marketing managers, you can see that they often have more enthusiasm and esprit, precisely because, apart from their technical competence, they win over and inspire customers for the company. It takes an inspiring personality to win over both colleagues from management and employees for yourself and your actions.

So what can the HR manager do to win a management position?

First of all, he has to be assessed by his colleagues as highly competent. He can only achieve this by performing his work with above-average success and receiving appropriate recognition for it. A high level of performance is a prerequisite for advancing to management. In addition, he should distinguish himself as a leader, generalist, missionary and enthusiast.

The HR manager as a steering partner
The HR manager should be satisfied not with the role of a consultant for the company management, not with the status of an officer, but with the position as captain. From the position of company management he can implement successful concepts for human resources that bring the company forward and secure and expand its future. Of course it takes a lot of courage. Courage to make important corporate strategic decisions and to represent them to strong members of the company management and management.
The HR manager as a generalist
An essential requirement is to have know-how in other management topics. The HR manager should familiarize himself with topics such as production, development, marketing and sales. No detailed knowledge is required of him here, but he must have knowledge of the topics that affect general corporate management. He should focus on generalist know-how and distance himself a little from his detailed personal knowledge. Initiative and courage are also required in order to competently shape corporate strategies with other members of the company management. It is important to look with your head above the clouds and to stand with your feet on the ground.
The HR manager as a visionary
Many attempts have been made to quantify the added value and return on investment of HR performance. HR departments were confronted with cost-intensive analyzes that lasted for weeks. The realization from this is mostly that a dedicated validation of various personnel issues is extremely time-consuming. Prove an increase in returns through leadership training! It is hardly possible.
The best way to convince with personnel issues is if you believe in success yourself and represent this conviction in a credible manner. Here I am speaking of the HR manager as a visionary. He should act like a good salesman. Even if the customer shows no interest the first time, he stays on the ball and will eventually win over the customer again by believing in his product. Like a good company management that never gives up when the wind blows in your face and always keeps an eye on the future and your own vision.
The HR manager as an enthusiast
A company management must be able to motivate, to be carried away and to inspire. Only then will the employees follow and work efficiently. This is also the challenge for a HR manager who wants to join the company management and be successful there. HR managers are not infrequently more sober, matter-of-fact types. You should orient yourself towards good sales and marketing colleagues and develop your personality in such a way that you have a high level of enthusiasm. The best arguments have little effect if the heart is not addressed in addition to the head. In addition, you can take measures for personality development, such as B. Coaching. You can only convey enthusiasm if you have the courage to believe in your visions and your own abilities.

Future opportunities for HR managers

The opportunities for HR managers to move up to the top of the company are there. Digitization, demographic development, globalization and changing values pose enormous challenges for our companies. From 2030 the number of skilled workers in Germany will decrease sharply. In ten years we will have almost 10 million less working people. With such facts, HR managers who take on these challenges in good time can score points in the company. Our employees are the driving force behind the company. Without them, we will not be able to maintain our strong global export position. Thanks to intelligent and advance personnel strategies for digitization and their successful implementation, we, the HR managers, can play a decisive role in shaping the success of our companies. With your head above the clouds and your feet on the ground.

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