The duties of HR bosses look critical right now. The covid-19 pandemic makes “people analytics” more relevant
is making some of its most important coverage of the covid-19 pandemic freely available to readers ofWHEN THE financial crisis rocked the business world in 2007-09, boardrooms turned to corporate finance chiefs. A good CFO could save a company; a bad one might bury it. The covid-19 pandemic presents a different challenge—and highlights the role of another corporate function, often unfairly dismissed as soft. Never before have more firms needed a hard-headed HR boss.
Once derided as “pay and parties” managers, by the early 1990s HR chiefs turned to compliance, keeping firms out of the courts . A subsequent string of corporate imbroglios elevated their status, notes Patrick Wright of the University of South Carolina. In the wake of executive-pay scandals at companies such as WorldCom and Tyco in the 2000s they became more involved in remuneration.
A higher profile entails new expectations. HR was once the domain of history graduates and masters in labour relations; nowadays plenty hold business degrees. Although most firms recruit them from HR jobs, more are choosing outsiders or unconventional candidates. According to Russell Reynolds, an executive-search firm, HR heads appointed to Fortune 100 companies between 2016 and 2019 were around 50% likelier than earlier hires to have worked abroad, in general management or in finance.
The pandemic makes such “people analytics” more relevant. Beth Galetti, Ms Gherson’s opposite number at Amazon, an engineer with no HR experience before joining the e-commerce titan, oversees 1,000 developers working exclusively on HR software. Amazon’s pre-outbreak investment in digital induction for fresh hires is paying off. “We on-boarded 1,700 new corporate employees on [March 16th] alone,” Ms Galetti reports.
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