What CEOs Want from CHROs!

Introduction:

In today's rapidly evolving business landscape, organizations recognize that their most valuable asset is their people. To effectively harness the potential of their human capital, companies require skilled and strategic leaders in the realm of human resources. Chief Human Resources Officers (CHROs) play a pivotal role in shaping a company's culture, attracting and retaining top talent, and driving organizational success. This article explores what CEOs want from CHROs and highlights key areas where CHROs can add value, backed by data points and insights.

1) Strategic Alignment

CEOs expect CHROs to be strategic partners in achieving organizational objectives. According to a survey by the Society for Human Resource Management (SHRM), 68% of CEOs believe that CHROs should play a key role in shaping corporate strategy. CHROs must have a deep understanding of the business and industry dynamics to align HR initiatives with the company's strategic goals. Data shows that organizations with strong alignment between HR and business strategies outperform their peers. A study by Harvard Business Review revealed that companies with strategic HR practices had higher financial performance, increased revenue, and greater market value.

2) Data-Driven Decision Making

In the age of big data, CEOs expect CHROs to leverage people analytics to drive evidence-based decision making. A report by MIT Sloan Management Review revealed that companies utilizing people analytics outperform their peers by 2.6 times in revenue growth, profitability, and talent acquisition.

CEOs want CHROs to use data to identify patterns, make predictions, and provide actionable insights regarding talent management, employee performance, and workforce planning. By utilizing HR metrics and analytics, CHROs can optimize recruitment processes, identify skill gaps, and align HR initiatives with business outcomes.

3) Talent Acquisition

CEOs place a premium on attracting and developing top talent, and they expect CHROs to lead the charge in this area. A PwC survey highlighted that 93% of CEOs believe they need to change their talent acquisition strategies. This emphasizes the need for CHROs to be adept at identifying, attracting, and retaining the right people who align with the company's values and long-term vision.

During talent shortages, CEOs emphasize the need for a strong focus on recruitment. More than 55% of CEOs set availability and recruitment as a top priority in the Chief Executive survey. CHROs must ensure their team of recruiters knows how to find and attract top talent.

4) Talent Development

Furthermore, CEOs recognize the importance of upskilling and reskilling their workforce. In the latest State of HR report, HR Exchange Network found that employee engagement and experience (EEE) is of the utmost importance to respondents. CEOs prioritize talent retention and upskilling, with nearly 60% stating it as their top priority.

To address these needs, CHROs should invest in learning and development platforms and create a culture of lifelong learning. By providing opportunities for career growth and fostering continuous learning, organizations can equip their employees with the skills necessary to adapt to advanced technology and changing business needs.

5) Focus on Managers

SHRM research has shown that the five-year cost of turnover from toxic managers exceeds $230 billion. Therefore, it is no surprise that about 55% of CEOs said CHROs could add more value by helping people be better managers, according to Chief Executive. Training people to be better managers is paramount to building a happier workplace.

Strong managers set the tone for the culture, motivate employees, and improve business outcomes. By investing in leadership development programs, CHROs can create a strong management team that supports HR's goals and influences the caliber and number of recruits attracted to the company.

6) Building a High-Performance Culture

CEOs rely on CHROs to create an environment that promotes employee engagement, productivity, and well-being. A Gallup study revealed that companies with engaged workforces experienced a 17% increase in productivity. CHROs play a crucial role in driving employee engagement initiatives, fostering a sense of purpose, and ensuring a healthy work-life balance.

CEOs also expect CHROs to develop and reinforce a strong organizational culture. A study by Bain & Company highlighted that companies with strong cultures outperformed their competitors by a staggering 4 to 1 margin. CHROs must shape the culture by establishing core values, implementing diversity and inclusion initiatives, and promoting ethical behavior throughout the organization.

As the business landscape continues to evolve, the role of CHROs becomes increasingly vital in driving organizational success. CEOs expect CHROs to be strategic partners who align HR initiatives with business objectives, attract and retain top talent, develop a culture of continuous learning, and build effective management teams. The data points provided emphasize the importance of these areas and highlight how CHROs can add value to their organizations.