The state of the workplace is always changing — and with it, expectations among the C-suite. Yet there is still disconnect at the top around the full scope of the CHRO role. While the majority of CEOs (53%) view CHROs as people and culture leaders, 46% of CFOs said they consider CHROs to be strategic business partners.
This perception gap indicates the potential for HR executives to increase their visibility and elevate their strategic influence, especially if they work more collaboratively with their organization’s CFO.
These findings originate from Navigating the C-Suite, a new SHRM Thought Leadership report based on surveys of 116 CEOs, 143 CHROs, and 157 CFOs that offers a snapshot to better understand the latest C-suite trends.
“Workforce costs are one of the largest and most impactful expense categories for any organization. SHRM data shows that salaries and wages account for roughly 45% of operating expenses, highlighting the strategic weight of workforce investment,” said Jane Hadley, CFO at SHRM. “CHROs are uniquely positioned to guide conversations around cost, investment, and workforce strategy in a way that directly impacts financial and operational outcomes.”
Here are the report’s key takeaways that CHROs need to know:
CHROs are Valued More for Workforce Decisions Than Enterprise Strategy
HR leaders’ impact is primarily tied to workforce-related decisions. About 93% of CHROs report being “often” or “always” included in workforce decisions, whereas only 54% report being “often” or “always” included in broader business decisions.
This gap signifies the potential for CHROs to expand their influence into overall business strategy, as evidenced by how some HR leaders are expanding their teams into AI.
For example, Valerie Capers Workman, CHRO at Empower Pharmacy, recently created two new tech-based roles on her HR team: HRIS Manager and Director of HRAI. These roles report to her and are working to build an AI-powered HR tech stack to improve HR functions.
“CHROs bring a necessary enterprise lens that connects people strategy directly to business strategy, ensuring decisions are informed by both workforce realities and long-term organizational goals,” Hadley said. “Organizations that consistently apply this perspective are better positioned to navigate change and drive sustainable performance.”
CHROs Who Spend More Time on Strategic Planning Are More Likely to Be Included in Early Executive Conversations
Among CHROs who invest above-average time each month on strategic planning, 96% say they are included early enough in executive decisions to influence outcomes. This decreases to 73% if CHROs only invest an average or below-average amount of time per month on strategic planning.
The message: HR leaders who want to have more strategic influence should invest more time in planning.
“My ability to clearly articulate the connection between employee engagement, productivity, and ultimately profitability has enabled me to become a trusted strategic partner, influencing key business decisions at the executive level,” said Aka Ali-Kerr, director of human resources at Andaz West Hollywood, a Hyatt hotel.
How to Build Trust Across the C-Suite
Gaining visibility as a strategic planner who makes enterprise-wide decisions ultimately comes down to trust. The data reveals that CHROs can build trust in their recommendations by:
- Communicating clear alignment with business outcomes.
- Demonstrating a deep understanding of team dynamics.
- Aligning recommendations with the leadership agenda and priorities of the CEO and CFO.
At the end of the day, building trust among your C-suite is all about fostering strong relationships.
“As a director of human resources, I foster trust by investing time to establish an authentic relationship with each member of the leadership team. ... I build psychological safety by listening to understand, rather than to respond, maintaining confidentiality, and ensuring transparency in HR decisions,” Ali-Kerr said. “Every decision I make is grounded in data and aligned with the overall health and strategic objectives of the business.”
CHROs already bring deep understanding of people and culture. The next step is connecting that expertise to the top organizational priorities of their CEO and CFO.
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