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The role of chief human resource officer (CHRO) has evolved during the past five years to include an increasing presence in the C-suite and in boardrooms.
This is according to new data from The Conference Board, which found CHRO engagement with boards has increased over the past three years at nearly 70% of public companies surveyed. The study surveyed 55 corporate secretaries and interviewed more than 30 U.S. and European CHROs, CEOs and board directors.
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The report revealed that CHROs are increasingly expected to become fully integrated into the leadership team, including involvement in business and financial strategy, workforce and labor market strategy, operational efficiency, succession planning, support for mergers & acquisitions, and growth strategy.
“The pandemic was a pivotal moment in the evolution of the CHRO role, as companies were forced to rethink workforce management, employee wellbeing and organizational resilience,” said Diana Scott, U.S. human capital center leader at The Conference Board. “But longer-term economic and business shifts – the advent of AI, a fast-aging population, evolving employee expectations – have cemented the need for CHROs to become fully embedded in the C-Suite and boardroom.”
This is highlighted by the fact that 59% of CHROs report attending all or most board meetings, and 22% said they occasionally attend meetings, according to the survey.
The Conference Board said CHROs can deepen their influence with the C-Suite and board by building professional credibility and trust, demonstrating business acumen and financial expertise, fostering informal and ongoing engagement with board members, steering board discussions on human capital, and cultivating strategic alignment with the CEO before engaging the board.
Meanwhile, board directors should set and reinforce expectations with both the CHRO and the CEO to ensure human capital remains a strategic priority, said the report. CEOs can support CHROs by championing the people strategy to the board, building trust through open dialogue and empowering the CHRO as a genuine peer in the C-Suite.
All three should watch for common pitfalls that undermine CHRO board engagement and strategic impact, the report cautioned. These pitfalls include boards undervaluing CHRO and human capital expertise, friction over CEO succession planning, CEOs limiting CHRO interaction with the board, and limited commercial and financial acumen.
“Boards are crucial in legitimizing CHROs and empowering them as strategic partners,” said Andrew Jones, principal researcher, ESG center, The Conference Board. “CHROs can only maximize their influence in board discussions when directors clearly define their expectations and provide necessary support. Boards can empower CHROs by fostering a trusted partnership for candid workforce risk insights that inform high-level decision-making.”
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