October 23, 2024
Corporate Boards Today — from the CHRO’s Perspective
Before we convened more than 100 human resource leaders for a discussion about the 2024 U.S. Spencer Stuart Board Index, a pre-event survey of the CHROs who joined the meeting offered some interesting insights on the state of boards today from the perspective of HR leadership.
HR leaders offer a unique view on boards and the multitude of talent and HR-related issues on board agendas today. More than 92% of the 187 survey respondents reported that they attend their company’s board meetings; about one-third of respondents serve as independent directors on a different corporate board themselves.
An open-field question at the end of our survey asked our respondents what issues are top of mind their companies’ boards. Below we look at the most common HR- and talent-related answers we saw in these open-field responses — and what it means for HR leaders.
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Succession planning. The vast majority (87%) of respondents say that they are involved in CEO succession discussions with the board. This lines up with recent trends we’ve seen in which the CHRO is a trusted partner in CEO succession — and often the lead architect in developing a strong pipeline of candidates. CEO succession is perhaps the most critical job boards do, and the CHRO is key to ensuring a strong plan.
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Board governance and composition. CHROs assist with board composition and director succession planning. HR leaders are frequently asked to partner with the board on creating strong board assessment programs, ensuring the right mix of skills and expertise on the board, and developing effective director onboarding processes.
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Talent management and retention. Talent is a board-level concern today, particularly as Gen Z enters the workforce and the nature of work continues to evolve. How do you attract and retain great talent? How do you build a strong internal culture in an era of hybrid and remote work? CEOs and boards are increasingly turning to their CHROs as trusted confidantes to address these critical questions.
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Technology, growth and innovation. New technologies and a push for innovation are top of mind for most boards today — and pose unique challenges for CHROs. How do you train and prepare your people for massive technological change? How can technology like AI improve internal processes, including in HR? How do companies’ growth strategies align with their human capital strategies?
Conclusion
The focus on succession planning points to boards’ desire for leadership continuity and readiness; the talent management and technology challenges reflect concerns about maintaining effective teams amid changing business landscapes. The CHRO plays a key role in helping boards fulfill their duties providing direction and oversight to their companies.