HR pros want a seat at the high table. What can they do to get there?
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By proactively investing in business-centric upskilling, HR pros can foster the deep institutional trust required to influence the boardroom, writes Nic Cola.
Traditionally, HR departments have been considered the quiet engine of Australian workplaces. They manage payroll, create policy, and settle office disputes. They are the ones that keep people happy so the business can run smoothly.
But while all these tactical functions are critical, HR professionals are also acutely aware of the strategic value they add to their organisations. Without an effective people function, no business can survive in the long term.
However, new research from HiBob has revealed a significant disconnect. Forty per cent of Australian HR pros said their leadership teams still view them as a mere admin department. What’s even more concerning is that while 74 per cent of HR leaders said their roles are now more focused on the bottom line, only 37 per cent felt they are treated as true strategic partners.
This admin stigma surrounding HR keeps those in charge of people away from leadership decisions that actually shape the business. That’s dangerous considering the strategic value senior HR pros offer. So to claim a permanent seat at the strategic leadership table, senior HR leaders must prove they are architects of business, not the administrators of it.
Mastering the business lingo
The reason HR remains pigeonholed often comes down to a fundamental misalignment in the skills brought to the table and training. Many professionals enter the field because they are exceptional “people people”, naturally gifted in empathy and advocacy. While these traits are essential to becoming a great HR leader, they might not be enough due to a historical lack of formal training in business management.
Without a background in the nuances of finance and operations, it is difficult to challenge the perception of being a cost centre. When leadership teams don’t see HR speaking their language, they subconsciously omit them from high-level planning, where they could provide the most value.
HR professionals can start by deconstructing how much people cost. For example, the $60,000 replacement cost for a single high-skilled role, which in leaders’ eyes directly hits the bottom line. By mastering commercial concepts like return on investment through targeted upskilling, HR leaders can translate their day-to-day tasks into the financial outcomes that resonate in the boardroom.
Capitalising on policy mandates
This year is also a critical moment for HR to get more strategic as the Australian legislative and economic landscape shifts.
The introduction of new gender pay gap laws requires employers with over 500 employees to select and commit to achieving three gender equality targets from 2026. This mandate turns what was once seen as a primarily people issue into a high-stakes compliance and reputation risk, which HR leaders can use as tangible leverage for a seat at the leadership table.
At the same time, with 34 per cent of Australian workers frequently feeling burnt out, integrating wellbeing into the broader business strategy will become an operational necessity. With that in mind, employee engagement will no longer be just about morale but also about maintaining productivity and reducing the high cost of turnover during tough economic times.
By positioning themselves as the experts who can navigate these legal requirements while protecting the bottom line, HR leaders prove their strategic necessity.
Upskilling as the new imperative
Earning a seat at the table requires a deliberate upgrade in commercial acumen. As 20 per cent of HR pros are calling for access to senior leadership training and professional development to bridge the gap between admin and executive, the solution to being pigeonholed is empowerment through education.
To build true executive presence, HR leaders must invest in specific strategy-heavy skills like financial modelling, data-driven workforce planning, and operational risk management. By grounding their advocacy in data-driven disciplines, HR can move from being operational policy implementers to architects who help design the very future of the organisation.
If the barrier between HR and leadership persists, the consequences for Australian businesses will be severe. Why? Without a strategic people input, organisations become less resilient and fail to adapt to economic volatility, leading to increased legal and financial risks. The human cost is equally high, as 73 per cent of HR professionals have considered leaving the industry due to extreme stress and a lack of support.
By proactively investing in business-centric upskilling, HR pros can foster the deep institutional trust required to influence the boardroom. When we equip our people leaders with the right strategic tools, we ensure that HR is no longer just a participant in the conversation, but a key architect in building leadership teams that are as commercially sharp as they are representative.
Nic Cola is the CEO of RMIT Online.