CHROs Belong in the Boardroom, and Here’s Why

What is the greatest asset for organizations? People—they are at the center of all changes, no matter how big or small. People are the driving force behind innovations and the most important component of the organizational structure. History has repeatedly proven that employee engagement and business performance are deeply intertwined. However, the talent agenda has been overlooked in boardrooms for a very long time. Organizations now realize that Chief Human Resources Officers (CHROs) deserve to be on company boards because they are the champions of talent and culture and bring a unique and ground-level perspective! 

CHROs offer unique insights into vital organizational aspects, including human capital, employee engagement, and ESG. They directly facilitate critical elements such as workplace culture and efficiency at all levels. As a result, companies need to start now to match their talent strategy with their business strategy. Let’s explore the role of CHROs in the boardroom and how they can navigate this role change. 

The Role of CHROs in the Boardroom

Policy changes, the impact of COVID-19, economic pressures, and social influences have prompted boards to take on a broader role in guiding organizations into the future. While these factors have increased the representation of CHROs on boards, there is still scope for further enhancement in board composition and diversity. Many boards still lack the presence of CHROs or fail to prioritize their input in discussions that influence organizational strategy and culture. There is still ambiguity on the exact role of a CHRO as a board member. Let’s explore a few ways in which CHROs can make a difference in the boardroom: 

1. CHROs as strategic assets in the boardroom: Businesses need to win internally in the workplace to win externally in the marketplace! Many company boards still lack representation for human capital expertise, but a CHRO can help bridge the gap. CHROs can help with insights on strategic workforce planning, succession planning, and organizational design. These are crucial aspects to consider for driving long-term growth and profitability. CHROs are also experts at navigating the changing sentiments and expectations of the workers and can bring a unique perspective regarding employee experience. Maintaining a positive employee experience will be essential for businesses to gain a competitive edge as the business landscape changes. CHROs can assist in identifying and addressing the gaps in employee experience designs since they are experts in creating employee experience journeys. 

2. Embracing continuous change: Businesses are undergoing massive transformations perpetually, and in such a scenario, change management has taken center stage. Organizations that fail to acknowledge the shifting dynamics don’t embrace technological advancements and ignore customer demands are bound to fail. CHROs are experts on this narrative. They can get teams to collaborate in the face of disruption and adversity. Boards can solve change management challenges by applying their insightful knowledge of workforce dynamics and people issues. CHROs can be helpful in M&A cases where company cultures merge. CHROs can assist with both the business and talent aspects of integration, which can increase success rates by avoiding common mistakes while navigating complex changes. This culture shock is the reason why most organizations fail. 

3. CHROs and the AI boom: The job titles and descriptions have changed and are still evolving due to AI. To keep a competitive edge, talent managers must assist with employee training, reskilling, and upskilling. Organizations that do not actively embrace this change will fall behind. CHROs have already navigated change during the pandemic with technological changes and the rise of hybrid models. Their role in managing employees is more crucial than ever, as AI disrupts our jobs as we know them. Ultimately, CHROs are adept at managing these kinds of shifts, and as AI develops, their expertise will be valuable. Boards need to consider not just the tech part but also ethical and strategic considerations with issues related to fairness, biases, and the role of humans in what is becoming an automated workspace. CHROs can provide a unique perspective that balances business and human interests to manage this tricky transition.

4. Integrating human capital expertise: To keep up with evolving business needs, boards must address gaps in workforce strategy. A diverse board that includes HR leadership ensures that talent and culture remain central to decision-making. Organizations can look at increasing HR representation in the following ways: 

   1. Evaluate Board Competencies: When a board position opens, assess existing skills and prioritize HR expertise if workforce strategy is lacking.

   2. Utilize HR Advisors: Boards can engage HR leaders as consultants to gain insights before making permanent appointments.

   3. Follow Industry Best Practices: Study companies that have added CHROs to their boards to understand how it benefits governance and business strategy.

Companies can improve their strategy at the board level by educating directors, expanding committee roles, and strengthening employee relations to make this change. 

Essential Skills for CHROs

CHROs need to reskill, upskill, and expand their skill set beyond traditional HR functions to make a real and lasting impact in the boardroom. They need to understand business dynamics and communicate clearly and should be able to navigate complexity to be successful. They should focus on: 

1. Sharpening business acumen: A CHRO’s perspective shouldn’t be limited to internal workforce trends—they must grasp the bigger picture. This means staying ahead of macroeconomic shifts, industry disruptions, and emerging market trends. Engaging with external networks, collaborating with industry leaders, and keeping a pulse on global developments can provide invaluable insights that shape strategic decision-making.

2. Mastering the art of storytelling and active listening: It’s not enough to present data—CHROs must bring numbers to life. By incorporating insights into compelling stories, they can build a rational and emotional connection with board members, ensuring that key workforce priorities are understood. Active listening is equally essential; CHROs can address complex business challenges with well-informed solutions by understanding unsaid concerns and reading between the lines.

3. Navigating complexity with confidence: The boardroom is a high-stakes environment where leaders juggle conflicting priorities, massive amounts of data, and rapidly changing business conditions. CHROs who thrive here adopt structured frameworks for analysis, leverage technology to streamline information and train themselves to view challenges from multiple perspectives. Recognizing personal biases and being open to alternative viewpoints ensures more balanced and effective decision-making.

4. Becoming a strategic advocate for people: CHROs bridge business priorities and employee well-being. They must champion a culture of productivity without compromising workplace health and engagement. This means advocating for employees while ensuring that decisions align with the company’s long-term goals. Striking this balance transforms CHROs from HR leaders into indispensable board members.

By honing these skills, CHROs can elevate their influence, drive business success, and ensure the workforce remains a company’s most significant competitive advantage.

Conclusion

A future-ready organization starts with a people-first board. Companies that overlook human capital risk falling behind as talent dynamics shift. Bringing CHROs into the boardroom isn’t just about filling a seat but embedding workforce strategy into core decision-making. Boards prioritizing talent will drive innovation, create lasting value, and gain a competitive edge. The future belongs to those who invest in their people at the highest level.