Successful organizations recognize the paramount importance of forging collaborative partnerships within the C-suite. Among these crucial alliances, the bond between the Chief Information Officer (CIO) and the Chief Human Resources Officer (CHRO) stands out as a pivotal driver of organizational success.
As HR software becomes increasingly sophisticated, encompassing every aspect of the employee lifecycle, the collaboration between IT and HR becomes more critical than ever. In this article, we explore the multifaceted ways in which a strong CIO/CHRO relationship empowers organizations to tackle challenges head-on, enhance operational efficiency, and nurture a culture of continuous growth and development.
By embracing a proactive and collaborative approach, CIOs and CHROs can pave the way for sustained triumph in an ever-changing business environment.
Empowering the Employee Lifecycle
“Not unlike the CIO/CFO relationship, the CIO/CHRO relationship is very important,” says Craig Hodges, CIO at Xanitos Inc., “More than likely, IT plays a key, if not the key role in the configuration, implementation, and support of the CHRO’s primary toolset.”
Today’s human capital management (HCM) software is more advanced, more complicated, and more comprehensive than ever, Hodges says. “It is no longer just tracking employees and payroll; it is also recruiting, onboarding, employee file management, employee evaluation, and employee engagement,” he says. “It encompasses—and automates—the whole employee lifecycle.”
All of the features and functions of the software are needed, Hodges says, “but they require we connect to external systems for recruiting job postings, external systems for employee background checks in onboarding, implementation of single sign-on and the installation and configuration of employee-based apps to access all this information,” he says. “IT bears the responsibility to make sure those connections are configured correctly and meet company standards for data access and security.
For the past year and a half, Hodges worked in conjunction with HR on the implementation of Xanitos’ new HCM software, which automatically creates a ticket in the company’s HR system when an employee is hired and needs hardware or account access assigned to them.
“We started with the basics and have moved on to more advanced features and functions,” Hodges says. “We store any technology assigned to that employee in the HCM system, so when employees leave, HR knows what equipment needs to be returned to the company. When employees leave, the HCM software automatically creates a ticket in our system to notify us we need to disable IDs and retrieve licenses.”
These capabilities have greatly improved the company’s responsiveness and enabled employees to hit the ground running with the right access, Hodges says. “In addition, it enhanced our security because we are notified when the employee leaves and no longer have to rely on being notified via email in a timely way,” he says.
The obvious downside of not working together closely is that neither HR nor IT can provide the organization with what it needs to grow and improve, Hodges says. The newer, more complex features and functions embedded in HCM software needed to grow high-performing organizations demand that IT and HR work together closely for the betterment of the organization, Hodges says.
A Crucial Ally in the War for IT Talent
IT organizations might have unique issues that HR can help resolve, says Bill Balint, CIO at Indiana University of Pennsylvania. “For example, the ability to recruit, retain, manage and develop IT employees could be more important than in some other jobs that do not have to change so quickly and need employees to upgrade skills and knowledge almost continuously,” Balint says.
Part of this process can involve tough personnel decisions and difficult conversations involving employee challenges with productivity, adaptability in picking up new skills, or cybersecurity shortcomings with their own activities, Balint says. “To achieve maximum effectiveness in such discussions with employees, HR expertise could be vital,” he says.
The university’s IT organization has “an incredible record of employee retention,” Balint says. “Employees often spent their entire careers in the organization, and those joining mid-career also typically stayed until retirement.”
However, the changes in the IT job market and work conditions brought on by the pandemic and by changes in the organization due to downsizing had a significant impact. Competitors could offer fully remote employment and big increases in compensation.
“This resulted in more resignations over an eight-month span than the IT organization had seen in probably a decade,” Balint says. “But because we had a great relationship with the CHRO, I had strong support to develop a market equity compensation plan that has provided critical salary upgrades for many IT employees. This, coupled with a common sense telework procedure supported by the CHRO, has had a noticeable positive impact.”
Fostering Collaboration
One good practice is to forge a strong relationship from the start. “Perhaps as a result of the mid-sized nature of our organization, or maybe because of our personalities and desire to be successful, we have worked together well from the beginning,” Hodges says. “When we decided to replace the HR/payroll software [more] than two years ago, we brought together representatives from every part of our organization, with IT and HR driving the process.”
A second best practice is to be flexible. “I think large implementations, when you make core changes to a company’s practices and procedures, are a lot like going into battle,” Hodges says. “You can rarely anticipate all the challenges that you will face. When we ran into challenges, we remained flexible; we discussed it and kept each other apprised of the implications of that challenge.”
In addition, the CIO and CHRO need to have a good understanding of their respective roles in the organization. “As it relates to our HCM implementation, for example, IT can help evaluate, configure, and design features and functions,” Hodges says. “But the rules and policies framing those items belong squarely with HR.”
Having been in the IT industry for 35 years, including 17 years of experience as a CIO, “my primary advice is only to ask for either special consideration or accommodation from the CHRO when it truly would make a systemic long-term improvement for the IT organization,” Balint says. “Not every IT personnel situation can be treated as a crisis, or the CIO will run the risk of lessening the impact of their requests.”
The other main suggestion Balint has is to provide common sense, practical proposed solutions to address the IT organization’s HR needs, when possible. “If done correctly and respectfully, it can convey the CIOs expectations as well as give the CHRO a solution that hopefully will need only minor adjustments,” he says.
The Wrap
Building a strong and collaborative relationship between CIOs and CHROs emerges as a pivotal driver of success for modern organizations. The alignment between IT and HR can empower organizations to effectively address unique challenges facing an organization and foster a culture of continuous growth and development.
Emphasizing the importance of a healthy working relationship, cultivating mutual understanding, flexibility, and proactive problem-solving, positions those for sustained success in an ever-evolving business landscape.
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