The Josh Bersin Company, a global leader in human capital advisory, has unveiled groundbreaking research on the evolving role of the Chief Human Resources Officer (CHRO). As CHROs move into strategic leadership roles, their importance within the C-suite continues to rise. However, the increasing complexity of the role leaves many organizations struggling to find the right CHRO for their needs. This research highlights the career trajectories, essential skills, and new trends shaping the future of CHROs.
Insights from the Research
1. The Rise of the CHRO in the C-Suite
- 53% of HR leaders are now C-suite members, reaching parity with CFOs and CIOs.
- In high-performing companies, this number increases to 60%.
- 13% of senior HR leaders rank among the top five highest-paid executives.
2. External Hiring and Non-HR Backgrounds
- 73% of new CHROs come from outside the company due to a lack of internal development programs.
- 10% of CHROs are from non-HR backgrounds and deliver higher organizational impact.
- CHROs with consulting and technology experience correlate with better business performance.
3. Key Characteristics of High-Performing CHROs
- Multi-disciplinary backgrounds in political science and economics are common among successful CHROs.
- 75% of high-performing CHROs have international experience.
- Leaders over 50 are 36% more likely to excel, emphasizing the value of experience.
4. Career Paths for CHROs
The research outlines four distinct CHRO career paths, each suited for different organizational needs:
- Career CHRO: Broad HR experience across multiple domains
- Company CHRO: Promoted internally with deep company knowledge
- Business CHRO: Background in operations, sales, or other business functions
- Operations CHRO: Expertise in finance, risk management, or administration
The Evolution of the CHRO Role
The role of CHRO has evolved significantly since the early 2000s. Initially focused on payroll and compliance, CHROs have taken on strategic responsibilities, such as:
- Performance management and leadership development
- Diversity and inclusion (DEI) initiatives
- Managing global workforces and adapting to remote work
- Leading AI transformation and skills development
Challenges and Opportunities
While CHROs are more influential than ever, many still lack access to executive-level training and resources. The Josh Bersin Company aims to bridge this gap with data-driven insights, career strategies, and its CHRO Insights Program.
The CHRO role has transformed into one of the most strategic positions in the C-suite. Organizations must carefully assess their needs and select the right type of CHRO to navigate today’s business challenges. Meanwhile, aspiring CHROs must adopt a systemic HR approach, focusing on strategy, business impact, and continuous learning.
