"Who should the Head of People report to?" Want a thriving company with happy, engaged employees? 💥 Put your Head of People in the CEO's inner circle. The best people leaders will only report to the CEO. Think your People team belongs under Finance or Legal? 😬 Think again. That's like keeping your top talent strategist on the bench. I understand why companies make this decision when trying to protect the CEO's time or limit the number of direct reports the CEO has. But be aware that this decision signals to the company that the people function is not a valued part of the organization and could also signal to employees that they aren't valued too. Here's the rub: Your people are your superpower. A Head of People who reports to the CEO sends a powerful message: "Our people are the change agents who drive our success, not just a line item on a spreadsheet." The best people leaders know their worth. 😉 They won't settle for less than an equal seat at the executive table. Want to learn more best practices on building and scaling your people team? Check out my People Team Hiring Guide linked in the comments below👇
The new one I’m seeing a lot is sitting under the CCO / CMO, ultimately treating people teams as an internal comms function versus a strategic business partner. I’ve pulled myself out of interview loops where people was rolling up under anything except the CEO. Having worked in several orgs where that reporting line was wonky, I know it’s an internal battle I am no longer interested in fighting. Either the people function is valued or I’m out. I don’t have time to fight against my main stakeholders while also doing the job of 6 people anymore…
If you put your Head of People under Finance, it signals you're treating People as a cost center. If you put it under Legal, it means you're treating them as a liability. If you put it under your CEO, you're signaling People is a strategic asset. Simple as that.
I read your first line and immediately thought “CEO”! Unless you’ve got a Chief People Officer and this role sits under them. If your people team is under finance, or legal, it’s not a people team.
If people are the core of what makes an organization run, the C-suite should have a direct line to the pulse of the people.
Beautifully said, Shelby! The reporting line for Head of People speaks volumes about how people are really valued in an organization.
A CEO should want their people leader to report into them 💯💪🏼
If you can't put them under the CEO, I'd put them under a COO before I put them under Finance or Legal (both of which, ideally, should also report to the COO), because your ability to deliver on your company's strategy is directly tied to your ability to motivate, lead, and reward your people.
This is arguably true for typical corporate structures, though it's an overly rigid and traditional perspective. There are many models in which it is not necessarily true. For instance, holding company structures can place HR fully within business divisions, staffing firms may not even need a traditional HR role, and in some heavily regulated businesses it makes sense to closely align HR with another function. Further, making such a claim presumes that traditional hierarchy is the only viable method of distributing authority and accountability and that work should continue to be determined by traditional power dynamics, ignoring other models of organization and motivation. Your anecdotal experience should not be presented as a universal norm.
HR Advisor to Series A-C Companies
2wCheck out the People Team Hiring Guide 👉 https://www.shelbywolpaconsulting.com/product-page/people-team-hiring-guide-1