New HR Role in Growing IT Firm: Should They Report to Business or HR Head?

Dear All,

In our organization, we have introduced a new role due to our company's expansion. It's an IT firm with nearly 2000 employees, expected to grow to 5000 in the next 2 years.

I would like to gain insights into this role's responsibilities and determine the reporting hierarchy. Should this individual report to the Business Head or the HR Head?

Please share your perspectives promptly as we are finalizing the role, duties, and reporting framework for this position.

As per our current understanding, this role is anticipated to manage various HR functions such as performance management, employee engagement, mobility, compensation, etc., excluding recruitment.

Your prompt input is highly valued.

Thank you,
Ashu

Given the scope of responsibilities and the organizational structure, the new Business Unit-HR role in your growing IT company is crucial for effectively managing the human capital and ensuring organizational success. Here are some key points to consider:

1. Responsibilities:
- Performance Management: Developing and implementing performance appraisal systems, setting objectives, and providing feedback to employees.
- Employee Engagement: Creating initiatives to enhance employee morale, motivation, and satisfaction within the organization.
- Mobility: Handling employee transfers, relocations, and international assignments if applicable.
- Compensation: Managing salary structures, bonuses, incentives, and benefits to ensure competitiveness and fairness.

2. Reporting Structure:
- Considering the nature of the responsibilities, this role should ideally report to the HR Head. This ensures alignment with HR strategies, policies, and practices while also fostering collaboration with other HR functions.

3. Collaboration:
- While the reporting line is crucial, fostering collaboration with the Business Head is equally important. This ensures that HR initiatives are aligned with the overall business objectives and strategies.

4. Communication:
- Clear communication channels should be established to ensure that the Business Head is informed of HR initiatives and their impact on business operations.

5. Training and Development:
- Investing in continuous learning and development for the individual assuming this role is essential to keep up with evolving HR practices and industry trends.

By defining the responsibilities clearly and establishing a robust reporting structure, your organization can leverage this role to drive employee engagement, performance, and overall organizational success in line with its growth trajectory.