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CHROs have been toiling in the shadows for quite a while.
They’ve often been tasked with fixing problems while having limited power, shut out of board meetings, paid less than their C-suite colleagues, and excluded from the executive inner circle.
But COVID changed that, according to reporting from Coins2Day’s Paige McGlauflin. When the pandemic struck, CEOs looked to their HR chiefs for help handling everything from remote work pivots to mental health support for struggling workers. Soon after, CHROs were asked to help companies navigate a racial reckoning in the U.S. Following the murder of George Floyd.
And as the pandemic slowly recedes, HR chiefs have been tasked with bringing reluctant workers back into the office, navigating a major labor market upheaval, and negotiating with employees who have new expectations from their workplace.
“Every big issue on the CEO’s agenda, basically, is a people issue, and that has made the CHRO role more prominent,” Jennifer Wilson, who leads Heidrick & Struggles’s global human resources officers practice, tells Coins2Day.
CHROs still have a long way to go before they’re paid the same as CFOs, but a dawning awareness that the role is strategically important to business has led to a mad dash for CHRO talent, higher salaries, and a power shift within the C-suite. The rise of AI will make the position even more important, as companies look to incorporate the technology in their operations and increase productivity without alienating their existing workforce.
“It’s not just that HR is kind of the fun crew, organizing picnics and engagement surveys,” Tom Wilson, managing director at Frederickson Partners, an executive search firm, tells Coins2Day. “They’re doing real, proper business work.”
But will CHROs be able to hold onto their new power? To keep a seat at the table, they’ll have to do three things, according to Steve Patscot, leader of Spencer Stuart’s human resources practice: Stay on their CEO’s radar, continue to learn new aspects of business, and deliver on the AI revolution. But that’s a tall order.
“If you took a survey of who thinks HR is blowing it away right now, I think the results would be reasonably mixed,” he says.
You can read more about the rise of the CHRO here.
Azure Gilman
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Around the Table
A round-up of the most important HR headlines.
The labor market is cooling down slightly. The unemployment rate rose to 3.9% in April as U.S. Employers added fewer jobs than expected. Wall Street Journal
Tech companies are walking away from trying to get their workers green cards because the process has become so tough. Business Insider
AI engineers are more in demand than ever, but they're also working long hours and getting burned out. CNBC
Watercooler
Everything you need to know from Coins2Day .
Wrong move. A judge ruled that Amazon CEO Andy Jassy broke the law when he made some anti-union remarks in 2022. —Josh Eidelson, Bloomberg
See you in court. More than 10,000 black cab drivers in London are suing Uber for around $313 million in damages, claiming that the company improperly got its license to operate in 2012. —Ryan Hogg, Coins2Day
Tough luck. Tesla has slashed its summer internship program as CEO Elon Musk looks for any way to cut costs. The company rescinded offers to people just weeks before they were scheduled to start working. —Dana Hull, Kara Carolson, Bloomberg
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