The pandemic pushes the ‘reset’ button for CHROs

Now more than ever, this key role is a function of the C-suite, however, this HR leader is challenged with stemming the tide of resignations.

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Chief Human Resource Officers (CHROs) are facing a host of new challenges, a new survey from Executive Networks has found. Data from the new study, “Global CHRO of the Future Research,” finds talent retention and attraction are key priorities during a time of historic worker dissatisfaction.

The report surveyed 112 CHROs from Global 1000 organizations and also conducted one-on-one interviews with global CHROs. “Our research shows a clear growing importance of the CHRO role as HR issues are increasingly expanding onto the agenda of business leaders and the board of directors,” the report said.

“HR leaders are under pressure to stem the tide of resignations and help companies re-think what will make employees want to stay,” says Jeanne Meister, executive vice president for Executive Networks. “Recruiting new talent isn’t the only answer. In many cases, employees are re-evaluating their priorities and purpose and employers need to better understand how to provide employees with success by staying put.”

Disruption from the pandemic and the “great re-evaluation”

In the aftermath of the COVID-19 pandemic, the business world has been rocked by the “great resignation” – here described as the “great re-evaluation.” However the problem is labeled, employers are seeing increased dissatisfaction among workers, leading to huge challenges for retention and attraction of employees.

The report found that 50% of CHROs report they are dealing with a significant talent retention problem overall, with 83% of CHROs identifying a significant retention problem for in-demand skills. The top factors for this include stress and employee burnout; lack of visibility into career advancement and development; dealing with work life balance issues; and requests for increased compensation,” the report said.

The reasons for employee turnover are varied, with the survey listing stress and burnout tied with lack or advancement or development opportunities, both at 19% as the top contributing factors. These were followed by work-life balance issues (18%), wanting more compensation/benefits (18%), and feeling underappreciated (8%).

New strategies for the new challenges of attraction and retention

The study listed areas of key focus for 2022 for CHROs, these included: talent attraction and retention (18%), diversity, equity and inclusion (12%) employee wellbeing and mental health (11%), management of a remote/hybrid workforce (10%), and leadership development (10%).

It also outlined new strategies being considered by employers. These included creating internal talent marketplaces to expand opportunities for workers outside their initial skills and roles. Employers are also trying to clarify work-from-home rules and expectations. Increasing employee referral bonuses and reducing barriers to jobs (such as requiring a college degree), now referred to as skills-based hiring, are two other strategies.

New approaches by HR departments

Many HR leaders are also reporting that they do not expect increased budgets to go along with these new challenges, so they will have to be creative in dealing with the issues they face.

When asked where they would put resources if budgets were increased, CHROs listed the following priorities:

The report concludes with an acknowledgement of the growing role of HR departments in dealing with the most pressing issues that employers face today.

“As more HR issues become business issues, the CHRO role has expanded to be a central C-suite player as nine out of 10 survey respondents report that HR is now as important to the success of the organization as finance,” the report said in conclusion. “HR Leaders who anticipate their organization’s future are not only in a position to outperform competitors, but also can position HR as a strategic driver to the business.”

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