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Why the CMO should run HR

Table of Contents

  1. Summary
  2. HR is falling behind modern work
  3. To fix HR, move it under marketing
  4. Near-term recommendations
  5. About Lydia Loizides

1. Summary

Research and opinion literature is littered with ways to drive innovation, increase customer and employee engagement, and create innovative cultures. Despite the high decibel level of all this shouting, the American workforce remains unengaged and the U.S. loses an estimated $450 billion to $550 billion every year from unproductive and unengaged employees.

Even while facing a shortage of skilled labor, senior execs are watching their modern workforce rapidly outdistance the capabilities of traditional human resources departments.

  • HR has fallen behind on connecting employee engagement with customer engagement at the cost of corporate performance.
  • Employee and executive surveys show that HR is falling short on trust, efficacy, and use of the social technologies driving marketing and collaboration today.
  • For companies that understand the relationship between employees, customers, and long-term profitability, the CMO should run HR, or at least work with HR managers to transfer core skills needed to transform the department from resources management to talent development.