The Value of Collaboration for Success
Human Capital Management (HCM) committees on boards are gaining prominence as boards recognize the strategic importance of talent and workforce management in driving long-term value. These committees, often expanded from existing compensation committees or created as dedicated units, focus on overseeing the company’s human capital strategies, with a growing set of new areas. Adding to succession planning, inclusion, and employee engagement, the committees now must address employee roles in the age of AI, organizational culture, skills growth for new employee roles, and the use of new tools and systems, and address the workforce’s changing expectations.
Attention to Key Updates for the Human Capital Management Committee
Sound collaboration between the committee and HR is vital to success. Topics to understand and work on together are:
- HR’s Role in Redesigning Employees’ Work. AI creates both the deconstruction of work and roles and the reconstruction of new work for employees. HR leaders are now the Stewards of Work, as they reinvent it and find wise ways for all to enjoy change rather than having change fatigue. Integrating AI effectively is a challenge for the Committee and HR to explore. Either they will shape it together, or AI will end up shaping the board and management by default.
- Moving from DEI to Inclusion. With legal changes underway, organizations are changing to work on creating inclusive work cultures. This requires a fresh approach to define the Committee on ways to build a healthy culture for value to employees and business success overall. Leaders will need to show they are resilient and dynamic and can support ways to create high-performing teams and meet organizational goals.
- Refining Organizational Culture. In current research* healthy work culture stands as the most important intangible asset of a company. The shareholder value of this asset runs high. While the goal is understood, the work ahead is to come. The Committee and HR need to work on moving their organization from “intentionality of the culture” to adopting ways to bring it to life. Some companies today say they have values but are not living them as much as they wish. Working together, the Committee and HR are responsible for creating ways to handle culture in organizations in engaging ways. It is a special challenge for companies undergoing major operational change.
- Workforce Expectations. Employees are more open and willing to state what they expect and require to remain employed. They evaluate areas including benefits offered, compensation, promotional opportunities, job security, work-life balance, professional development support, and training on new technology. The Committee and HR should work together on clear, understandable practices to address these factors in hiring and retaining talent. For organizations with unions, there are more changes to address in finding interest-based bargaining to address respectful solutions for worker needs and choices.
When HR and the Human Management Committees come together to work on strategic scenarios, options, and creative initiatives, companies are more successful.
*Study conducted by Professor Donald Sull, MIT Sloan School of Management, who directs the Strategic Agility Project and the Culture 500 index.
Advice and Support
If you seek advice or assistance, reach out to our HR team and our Board Governance Practice Group. The CHRO Division brings clients guidance in strategic talent management, organizational development, leadership development, performance optimization, and innovative HR solutions. The Board Governance Practice Group offers comprehensive support for best practices in governance, director talent, independent board evaluations, CEO assessments, and board certification.
Donna Hamlin brings her HR expertise together with her governance experience to assist clients holistically. As Board Governance Practice Group Leader, she is certified for global governance by Harvard University and the National Association of Corporate Directors in the U.S. The International Association of Top Professionals awarded Donna and her team as the top governance team for 2025.
For your Talent needs in direct hire, full-time or part-time contract staffing, contact Executive Recruiter, Leesa Meintzer at leesa@2gorecruiting.com.
Leesa Meintzer is an executive recruiter with more than 20 years of experience in talent acquisition. She excels in partnering across various business functions and brings a comprehensive perspective to talent acquisition. She works with Engineering, Healthcare, Product, Finance, Accounting, Business Operations, Sales, Legal, Human Resources, Learning & Development, and Talent Acquisition for corporate and high-growth start-ups.
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