Dive Brief:
- CHRO turnover is up among Fortune 200 companies, according to an April 8 analysis by Talent Strategy Group. In 2019, Fortune 200 companies experienced 36 CHRO turns, up by five from 2018, but holding steady with 2017.
- The majority of new CHROs were internal successors, but that recruiting method still saw a downward trend. Seventy percent of new CHROs came from within the company in 2017, followed by 61% in 2018 and 53% in 2019.
- Of the CHROs who stepped into their roles in 2019, 83% "had significant domain experience in Human Resources," the report found. Still, 17% moved into the role with limited to no HR expertise. All of the 36 CHROs stepping into new roles had bachelor’s degrees. Nearly two-thirds held advanced degrees, 22% of which were legal degrees.
Dive Insight:
As HR gained influence and earned "its seat at the table," the CHRO appears to have grown into a collaborative and innovative role — and one that may create a pipeline to the top of the C-suite.
Various reports have detailed how CHROs work closely with other executives to boost several facets of business. Only chief marketing officers and CEOs collaborate more closely with chief communications officers than CHROs, according to a November 2019 report from Page. This creates an opportunity for the executives to influence branding, Page said.
As CHROs and their departments tackle recruiting as a whole, the position itself may be a stepping stone that leads to the CEO role, according to Hanold Associates CEO Jason Hanold. CHROs make good CEO candidates due to their business acumen, strong leadership and high emotional intelligence, Hanold said.
When it comes to workplace transformation, CHROs may not have much influence, however, especially as compared to the CEO, who was cited as the most influential individual in driving a workplace transformation plan in a report by Infosys Knowledge Institute.
