CHROs Emerge as Strategic Partners Amid Workplace Changes

CHROs and their peers in comparable positions have increasingly been elevated to a more critical strategic role following years of dynamic workplace transformation.

They are navigating rapid change and complexity as they align people strategy with business strategy while remaining flexible enough to meet fast-shifting conditions. In addition to attracting, retaining, and developing future-ready talent, HR executives must stay current with changing compliance regulations, evolving employee work behaviors and expectations, and emerging workplace technology.

“Absolutely the role is changing, and the past few years have accelerated that change,” said Laura Coccaro, chief people officer at iCIMS, a recruitment technology company in Holmdel, N.J. “The function has been evolving for quite some time, but we’re in the midst of a seismic shift, and CHROs are poised to be the strategic partner to help the C-suite navigate the road ahead.”

The role most definitely is changing, agreed Margie Harris, executive vice president and chief administrative officer overseeing HR at Tellurian, a liquefied natural gas (LNG) company in Houston.

“Five years ago, I would not have thought that my role would be so diverse,” she said. “Since then, I’ve managed through the pandemic; I’m managing hybrid and remote work styles, changing generational behaviors about work itself. And we still need to make sure that the workforce is prepared to execute to meet business goals.”

Vivek Arora, chief administrative officer and general counsel at SAM, an Austin, Texas-based geospatial services firm, said he managed the large disruptions of the past few years—COVID-19, wild swings in the labor market, the remote-work revolution—the best he could.

“There is no perfect way to address these types of situations,” said Arora, who is responsible for legal and IT as well as leading HR. “But I think one practice that helped me was taking a very thoughtful approach, gathering perspectives from all parts of the organization, and being very candid with our people about making mistakes and adjusting from those mistakes.

“Having that more honest approach was really helpful in building trust so we could navigate the challenges together.”

Another guiding principle was not overreacting to situations and instead letting things settle before making a decision, Arora said.

Jacqui Canney, chief people officer at ServiceNow, a workflow technology company in Santa Clara, Calif., said the more-elevated CHRO role means more responsibility, but also greater opportunity. 

“As HR leaders, we have a once-in-a-lifetime opportunity to redefine work,” she said. “We must use AI and emerging technologies to help our people thrive and grow, personalize their experiences, and boost overall performance and productivity.”

To be successful, Canney said, CHROs will need three critical strengths:

• The ability to foster business and organizational change.
• The capacity to develop the skills and talent for the future.
• The agility to provide employees with the tools and experiences they will need to stay fully engaged and productive.

Business leaders have realized the impact that HR has on the business, Arora said. “HR is closer to the CEO now, and that has led to some who are thriving and some who are struggling,” he said.

“HR leaders need to communicate regularly with the CEO, the CIO, and the CFO to tackle key challenges and drive growth,” Canney said. “If the CHRO works in partnership with members of the C-suite, they will see the results in enhanced productivity and teamwork, the ability to attract talent, better decision-making, higher revenue, lower costs, and increased profitability.”

Harris said she loves serving in her HR leadership role. “Every day is different, being faced with new challenges. And I love to solve challenges,” she said. “To be a CHRO, you must like solving problems and have the curiosity to improve processes. And be able to adapt to change.”

A Range of Priorities

Top priorities for CHROs in the next 12 months include investing in and implementing artificial intelligence, enhancing employee development, strengthening retention, and optimizing workforce planning, according to an iCIMS survey of more than 1,000 HR leaders in the U.S.

CHROs are also focused on the organization’s bottom line, looking for new ways to measure business impact and deliver more value.

“I’m thinking through how we leverage AI, not just within the function of talent, but throughout the organization,” Coccaro said. “I find myself leading conversations about how AI is going to change our demands as an organization, the skill sets that we look for, the way that we think about our workforce, the way that work gets done, and how we engage with our employees.”

AI is also a key focus area for Canney at ServiceNow. “We have two key priorities: Use AI to accelerate business growth, and develop our people so they have the skills needed for today and in the future,” she said. 

“Leveraging AI effectively requires a winning talent strategy, not just a stellar technology strategy. We must stay ahead of the evolving job market by adopting a product mindset, keeping people at the center of everything, and concentrating on strategic workforce planning. We also need to prioritize continuous learning and skills development to prepare our employees for the jobs of the future.”

Developing talent at Tellurian is a top priority for Harris. So is figuring out how to retain talent in a highly competitive industry. “LNG is very competitive,” she said. “And we have to make sure we have the right talent ready and in place.”

Arora wants his team to focus on workplace culture and employee engagement, ensuring that employees know “that they have a voice, and we care about them. We’re making sure that we are doing all the things we can to let them know that they are a primary focus for us.”

Workforce planning is also paramount for HR leaders, and a core component of that planning is around skills.

“We’re thinking proactively about what critical skills and competencies are going to help us in the future, where we can refine skills internally, where we can find them globally, and how to best invest in our employees,” Coccaro said.

Talent acquisition has taken on greater importance over the last few years. More than half of CHROs spend more time in their role on talent acquisition today than they did two years ago, according to the iCIMS study.

Talent acquisition priorities include improving analytics and reporting, enhancing employer brand, improving diversity of talent pools and hires, and increasing recruiter efficiency.

“A lot of us have been thinking about talent holistically for a long time,” Arora said. “Everything you do in the talent space has to be connected to the business strategy. You have to fully understand where the business is forecast to be to properly execute a talent strategy. Business strategies will evolve and change as the market changes, so you have to build a talent strategy that is able to adapt and change with it.”

Harris said she has seen two types of talent acquisition professionals. “There are those who want to connect talent acquisition to talent development and understand the long-term vision of an organization, and there are those who just want to fill open roles,” she said. “You can have a mix of both, but you need the first type to succeed with workforce planning that takes a holistic look at headcount, compensation growth, human capital expense, and the long-term profitability of the organization.”

Challenges Abound

When asked to choose the top business challenges that concern them the most, HR leaders spread their focus across many different areas, according to the iCIMS study.

Top challenges include compliance with changing regulations and laws, reduced workforce budgets, and labor market volatility. People leaders are also concerned about integrating AI into HR processes, the lack of qualified candidates in their talent pipelines, and retaining top performers.

“The scope and magnitude of the things in front of us continues to remain a challenge,” Coccaro said. “How is economic uncertainty going to impact our workforce? How do you stay ahead of unexpected hiring swings and fluctuations? How do you step in to the talent-advisor role while still hitting budgets and meeting compliance requirements? CHROs wear a lot of hats.”

Maintaining a high growth rate is the biggest challenge for Arora at SAM. “We were [at] 1,100 employees a couple of years ago, trying to get to 2,000 by the end of this year, and have projections to triple in size by 2030,” he explained. “So, we have to make sure we are an employer of choice. We also have to create an environment where people want to stay that goes beyond just paying more than someone else. Our competitors know we have top talent and are always trying to poach from us.”

Harris said the looming impact of AI is a major consideration for organizations and the HR role itself. “If you don’t stay current in your role and understand how AI is changing your role, you are becoming archaic,” she said. “It’s really important that we understand the benefits of technology and implement ways to use AI and other technology in HR as we progress on this journey.”

There are real concerns about AI’s impact on jobs that can’t be ignored, Canney said. “But I truly believe that generative AI is ushering in a human renaissance. Companies now have a choice: They can automate people out of jobs or choose to bring employees along on the journey,” she said. “Those who focus on building skills and automating mundane work so employees can focus on work that matters will build a more engaged workforce, drive new revenue streams, improve margins, and accelerate growth.”