The role of the chief human resources officer (CHRO) is becoming increasingly complex and is continuously changing due to a wide range of factors, including increased M&A activity, the growing use of technology, artificial intelligence, automation, the changing profile of the workforce and new ways of working. The profile of a CHRO has shifted from a traditional HR professional narrowly focused on his/her function to a well-rounded leader who can contribute meaningfully in all areas of the business.
So, who is today’s CHRO? For the past few years, Spencer Stuart has analyzed the backgrounds and demographics of CHROs in Fortune 100 and FTSE 100 companies. Our research dates back to 2016,* allowing us to see trends in several key areas:
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Female representation
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Non-traditional routes to the top
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Experience outside HR
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Internal appointments
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International exposure
*The percentage increases and decreases reflect changes from 2016 to 2018. All other data is 2018.
The appointment of more female CHROs
While companies continue to struggle with gender diversity across the C-suite, organizations continue to appoint more females than males in the CHRO role. HR is uniquely positioned to help remove obstacles for gender diversity and develop a pipeline of female executives.
Non-traditional routes to the top
A number of recently appointed CHROs in the U.S. come from a non-traditional HR background, with a substantial portion of their work experience from outside of HR. With the pressures facing organizations today, the CEO and the board are looking for HR leaders with diverse expertise, such as running a P&L, to help deliver a competitive advantage. However, we see a difference in the UK, where far fewer CHROs came from non-traditional backgrounds and a growing percentage have spent at least half their careers in HR, which we define as “HR specialists.”
Non-traditional routes to the top
HR specialist
Decline in experience outside HR
The number of HR leaders who have experience outside of HR has dropped, which is worrying. Aspiring CHROs should try to gain diverse experience if they want to develop a well-rounded skill set for the top role and be seen as a valued partner.
The mix of internal appointments varies across geographies
In the U.S., the trend has steadily moved toward more internal appointments over the past three years, indicating that organizations have been able to build strong pipelines of potential successors. In the UK, where there have been a number of CHRO refreshes in the past few years, the majority remain external hires. The concern for many of these organizations is that there are not enough skills in-house to weather the business transformation journey, so they have been looking outside for seasoned HR leadership talent. We anticipate more demand for HR leaders with a strong track record of leadership development in order to build a pipeline within the function.
Drop in international exposure
We’re seeing a decline in the percentage of CHROs with international exposure, i.e., a different country of origin than the one in which they’re working, and education and work experience abroad. The drop has been more dramatic among U.S. companies.
To learn more about CHRO trends over time:
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