As the economic landscape has changed over the last four years, so too has the typical profile of an HR director in the third sector.
Historically, in some circles, the industry was regarded as a bit of a backwater – a pleasant environment in which to work, but not at all ‘cutting edge’ from an HR perspective.
Although there were certainly individuals who had a particular focus on, and a desire to work in, the charity world, it was previously not regarded as a move that would ‘add’ significant value to your CV or increase your market ‘worth’.
HR in this industry was historically viewed as rather traditional, very administrative and not particularly leading edge. The function tended to be rather unwieldy, disconnected from the business and was not regarded as a ‘partner’ to other business lines or functions.
Unsurprisingly, therefore, it was not considered unusual for HR directors to be excluded from senior management teams as well as overall business discussions and decisions.
However, as the economy has contracted, the skill sets required by third sector HR directors have changed considerably and, as a viable career option, it is now very much seen as an environment in which HRDs can make a huge impact.
Changing requirements
It is no longer perceived to be a ‘cushy number’ where you go to end your career once you are tired of the cut-and-thrust of corporate life. With the unprecedented, growing and genuine commercial demands on the sector today, it is one of the toughest environments in which to thrive.
While a typical senior HR director looking to move into, or develop their career within, the charity world may well have become disillusioned with the ‘lack of values’, the pursuit of ‘shareholder value’ or the bottom line obsession of corporate life, they quickly realise that the situation is not as simple as exchanging a fat pay check for a better quality of life and more ‘rewarding’ career.
Although this certainly plays a part, it is also about having the skills to provide a progressive and commercially effective HR service – skills that are becoming increasingly in demand.
While there has not really been a ‘typical’ HR director within the third sector to date, not least because there have been no barriers to progression for professionals from all backgrounds, there are ‘typical’ or identifiable characteristics among the ‘new’ breed of HR director who are starting to come through.
The best are very commercial individuals, who are committed to developing people and the organisations that they work for on an ongoing basis. They are, first and foremost, business people.
As third sector bodies themselves start to recognise the role of the HR function in helping to stimulate growth and encourage managers to respond to change in the marketplace more effectively, they require an HR director who can identify and implement innovative processes, be flexible, encourage open thinking, seek out new business opportunities and generate new ideas.
Forward-thinking HRDs
A lot of HRDs who are relatively new to the charity world have previously worked in the private sector. They have cut their teeth in major blue chip organisations, beginning at the junior level and moving up until they reach a certain level of seniority.
Many have reached a point in their career where they begin to question the values of the company for which they work and are looking for an employer that visibly and tangibly contributes something positive to society as a whole.
More often than not, third sector organisations have been perceived as being behind the curve in terms of implementing organisation design and development concepts, undertaking performance management and introducing KPIs.
For example, it is only within the last few years that they have begun to consider moving to the Ulrich model, whereas many private sector organisations are now evaluating whether to move to new business models in order to adapt to changing imperatives.
This scenario means that the charity world is proving fertile ground for forward-thinking HRDs who can spot the opportunities and are prepared to take calculated risks in terms of making bold hires and bold decisions.
And a lot of third sector organisations are now starting to benefit from the experience and expertise of high-flying HR directors who are bringing new ideas and expertise from the private sector to help revitalise and reinvigorate the business.
Kate Mulhall is a managing consultant at specialist HR recruitment consultancy, Digby Morgan.
One Response
Hurrah!
How refreshing to read an open minded perspective on third sector HRD roles. Having worked across all sectors and headed up HR in a couple of charities, I can certainly endorse both the challenge and satisfaction of such roles. The creative pace may feel slower at times but that is due to the multiple stakeholders who need to be engaged in key decisions made. Monies don’t flow freely for initiatives (but does it in the private sector??) – a well reasoned business case will however garner support. Being able to craft and argue a robust case is a core transferable skill – the stakes are high and can literally be expressed in terms of ‘if we spend money on X then that means a service user doesn’t get the benefit of the charity’. Long working hours and a heavy workload are a feature of the sector, particularly if your organisation utilises volunteers or has an extensive outreach/fundraising agenda. Working as part of a third sector management team is hugely satisfying – I very much draw on both my wider operational knowledge and MBA. Tightly framed roles tend not to be much in evidence.
The main down side for me has been the potential negative view of recruiters so to read Kate Mulhall’s comments is very encouraging.