The role of Chief Human Resources Officers (CHROs) is becoming increasingly important as organisations navigate through the complexity of a rapidly changing business environment. Five year after the pandemic, directors expect CHROs drive strategic initiatives to align human capital with business objectives.
Boards are looking for CHRO leadership in several key areas by 2025.
Manager and Leadership Development
As organisations face increasingly complex global challenges, it is crucial to develop skilled managers and leaders. This imperative is undermined by the shrinking leadership pipeline. According to recent data, half of Gen Z professionals actively avoid middle management positions, and nearly 70% view these roles as “high-stress, low-reward.” This growing reluctance narrows the pool of future leaders.
The boards are well aware of the emerging risks and expect CHROs take action. They expect robust leadership programmes to be implemented to identify and develop high-potential employees and provide them with the experience, tools and support they need to succeed.
These programmes should emphasize continuous learning, flexibility, and resilience, while also redefining leadership’s narrative to emphasize its impact, purpose, and long-term benefits. This is the only way to build a pipeline for leaders who can navigate uncertainty and drive sustainable growth.
Strategic Workforce Planning
Aligning talent strategy with long-term goals of the business requires a proactive, strategic approach to workforce management. Directors expect CHROs not only to anticipate future talent requirements, but also to identify critical skills gaps and implement targeted strategy to close them.
The strategic workforce planning has been a priority for HR leaders around the world. According to a recent Gartner Survey, which surveyed nearly 1,500 CHROs in 60 countries about their top priorities for 2025, strategic workforce management was one of the five most important. CHROs no longer rely on headcount-based models but instead are adopting a capability-driven model that identifies essential skills needed to meet future demand and determines whether to hire or develop them.
By integrating this capability-led plan into the wider business strategy, CHROs enable their organisation to remain agile and resilient and better equipped for responding to changing market dynamics and operational requirements.
Organisational Culture & Employee Experience
Today, a strong organisational culture as well as a positive employee experience is seen to be essential for attracting top talent and retaining them. Boards are increasingly focused in building cultures that inspire and engage all employees, not just those at the top.
In a survey by IESE Business School, board members identified trust, transparency, collaboration, and meritocracy as the most important cultural traits for achieving business success. Board members identified trust as the most critical cultural trait for achieving success in business.
CHROs must enhance the employee experience by implementing initiatives like flexible working models and recognition programs, as well as targeted development opportunities. These initiatives boost employee engagement, improve retention and create a culture in which people feel empowered to make a contribution to the organization’s goals.
Change Management
Effective change management is becoming a key capability as organisations undergo rapid transformations, driven by new technologies, evolving work models and external disruptions. CHROs are now expected to be the frontrunners in preparing employees and leaders for change.
Gartner reports that 73% of HR leaders say their employees experience change fatigue. This underscores the urgent need to build resilient workforces. McKinsey Research also shows that 26% employees worldwide now consider adaptability, a core component of resilience, as one of their top skills.
Boards want their CHROs, to combat fatigue and resistence, to promote clear and consistent communication, which conveys the benefits and impact of changes initiatives. HR leaders who cultivate a culture that encourages resilience, openness and psychological safety can help their employees embrace change, maintain momentum and preserve the cohesion of an organisation during times of uncertainty.
Analytics and HR Technology
Adoption of advanced HR technology and analytics is essential to optimising processes, and enabling data-driven decisions. Boards expect CHROs adopt tools that improve operational efficiency and provide deeper insights into employee trends and performance.
This change is already taking off. The number of HR leaders who are piloting or plan to implement Generative AI has doubled between June 20, 2023 and January 20, 2024 . This shows the increasing recognition of AI’s transformative power within the HR function.
It is important for CHROs to stay informed about the latest developments in AI, and understand how other organisations are using these tools. AI has become a key strategic tool for workforce agility and organisational efficiency. It automates administrative tasks, generates predictive talent analytics, and delivers more personalised experiences to employees.
The strategic importance HR
Boards’ expectations of CHROs in 2025 highlight the strategic importance that human resources play in achieving success in business. CHROs who focus on strategic workforce planning and organisational culture can help their organizations achieve sustainable growth and be competitive.
