CHROs stay with their company longer and come to this role through internal Succession Planning!
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
?? Only 22 new CHROs/CPOs were appointed during the year 2023!
?? 91% of 2023 appointed CHROs/CPOs had prior experience in the Human Resources function prior to appointment of the top HR job.
?? 86% of the 2023 appointed CHROs/CPOs were new to the top HR job, having not previously served in a CHRO/CPO capacity prior to their appointment
?? 73% of 2023 newly appointed CHROs/CPOs came to the role via internal succession, a rate of internal succession not seen since 2017.
?? Also internally promoted CHROs/CPOs had a tenure of 15 years with the company prior to their appointment,
?? Consistent with prior years, the CHRO/CPO role continues to be predominantly represented by women, according to a new interesting research published by The Talent Strategy Group using data ?? from Chief Human Resources Officer (CHRO) and Chief People Officer (CPO) role of Fortune 200 companies and publicly available.
?CHRO Turnover is decreasing
?? Researchers noticed that there were the fewest appointments of Fortune 200 CHROs/CPOs in 2023 since this report’s 2017 inception. These 22 new appointments imply an 11.5% annual turnover rate.
However, an additional seven Fortune 200 CHROs/CPOs left their roles in 2023 with three of those roles remaining vacant as of March 1, 2024, and four receiving their new CHRO/CPO in 2024.
?Increased appointment of first-time CHROs/ CPOs.
Researchers have noticed a clear increase in the appointments of first-time CHROs/ CPOs.
?? 86% of the 2023 appointed CHROs/CPOs were new to the top HR job, having not previously served in a CHRO/CPO capacity prior to their appointment.
As compared to 2022, there was a 64.1% decrease in appointing a CHRO/CPO with prior top HR role experience.
This trend towards first-time CHROs/CPOs implies the ushering in of the next generation of HR leaders.
?Internal succession for the CHRO/CPO role has regained popularity
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Researchers noticed that 73% of CHROs/CPOs appointed in 2023 coming into the top Human Resources role through internal succession and this rate represents a significant rise from the lowest recorded rate of 41% in 2021 and 57% in 2022.
Conversely, when appointing an external CHRO/CPO in 2023, 50% of the time the appointed individual previously served as a CHRO/CPO in another company.
Researchers also discovered when appointing an internal successor, company tenure appears advantageous.
?? The vast majority of the 2023 CHRO/CPO appointments consisted of individuals that served in a HRBP role prior to their CHRO/CPO appointment.
?Women dominate CHRO representation
Researchers noted that in 2023, 69% of the Fortune 200 CHROs/CPO were female, nearing the highest rate of female representation since report inception. In 2023, this trend continued where 64% of the 2023 appointed CHROs/CPOs were female.
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Even if this interesting study only concerns the Fortune 500 companies, it is interesting to see the recruitment trends of CHROs as well as their profiles. Above all, this study once again highlights the importance of good management of succession planning for CHROs who are no longer just former HRBPs...
Thank you ?? The Talent Strategy Group researchers team for these insightful findings: Zac Upchurch Marc Effron
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6 个月interesting insights on chro/cpo appointments in 2023. internal succession rates are impressive. succession planning is crucial for top hr roles, right? Nicolas BEHBAHANI
Industry Veteran | Exploring Future of Work | Great Manager’s Coach & Mentor
6 个月Great share Nicolas BEHBAHANI. ??Strategic succession planning thrives when grounded learning shapes & engages a well-rounded incumbents. ? Absolutely, the title choice between Chief People Officer (CPO) & Chief Human Resource Officer (CHRO) can significantly impact perception & organizational focus. ? While both titles encompass the strategic management of Human capital - ??CPO tends to emphasize a more holistic approach, emphasizing the importance of people beyond just resources, further CPO deals with external people (CSR, Institutes, Courts, Govt. Offices, etc.) On the other hand, ??CHRO may convey a more traditional HR-centric role. ?Ultimately, the decision should align with the organization's culture, values, & strategic priorities. ?? “What’s in a name? That which we call a rose, by any other name would smell as sweet.”?? - William Shakespeare.
PhD, DBA- HR ?? | Aspiring CHRO/HR Director ?? | HRBP | CPHR, SHRM-SCP ?? | Ready for Strategic Leadership
6 个月The appointment trends for CHROs continue to evolve, emphasizing the importance of succession planning.
Human Resource Professional | MBA | Coporate Recruiting Professional- ASA | Ex-Wirtgen Group,A John Deere Company
6 个月Interest insights! Thanks you so much for sharing. When contemplating titles such as "Chief People Officer" or "Chief Human Resource Officer," it could be advantageous to opt for a title that mirrors the progressive aspect of HR leadership. The change in terminology indicates a broader strategic emphasis on attracting, developing, and holding onto talent, which better corresponds with modern organizational needs and priorities.
President, Talent Strategy Group; Harvard Business Review book author: One Page Talent Management & 8 Steps to High Performance
6 个月Thanks for highlighting our firm's research, Nicolas!