The Chief Human Resources Officer role has changed dramatically. Today’s CHROs are architects reshaping organisational structures, championing ESG initiatives, and orchestrating AI adoption … all whilst navigating wholesale workforce transformation. This evolution of the CHRO from administrative overseer to strategic powerhouse represents one of the most significant shifts in executive leadership over the past decade.
Research reveals that CHROs have experienced a 23% rise in unique skill requirements over the past five years, the largest increase amongst all C-suite roles.[1] This expansion reflects a fundamental reimagining of what boards and chief executives expect from their ‘people’ leaders.
From Administration to Strategic Necessity
The CHRO mandate evolution has been propelled by successive waves of disruption.
- The pandemic exposed the critical importance of agile workforce planning.
- The acceleration of artificial intelligence created urgent questions about re-skilling and organisational readiness.
Each challenge reinforced a simple truth: workforce challenges have become existential business issues.
Call out – The New CHRO Toolkit
The numbers tell the story of executive HR transformation. Organisations now actively seek CHROs with capabilities in business management (64% of postings in 2024) and business strategy (49%). Analytical skills requirements have grown by 60%, whilst compliance skill demand has surged by 90% as this function transitions from policing to strategic enablement.[2]
The CHRO in the C-Suite: Expanded Influence
This broadening skill set reflects the CHRO’s expanding influence across enterprise decision-making. Leading organisations are merging HR and technology functions, recognising that talent and technological advancement are inseparable drivers of business value. The boardroom provides perhaps the clearest evidence of this transformation. Nearly 70% of companies report increased CHRO engagement with boards over the past three years, with 38% of S&P 500 companies now having directors with human capital expertise.[3]
The future of the CHRO role demands leaders who can navigate several key priorities:
- Investing in people for lasting business impact by connecting employee wellbeing to enterprise performance
- Tracking emerging capabilities as skill half-lives shrink to five years (or just 2.5 years in fast-moving fields)[4]
- Building intellectual flexibility across functions to balance technical expertise with the soft skills needed to engage workforces
- Championing human sustainability and belonging, which research shows makes organisations 1.4 times more likely to achieve strong business outcomes
Call out – Risk and Governance
Effective boards now integrate human capital measurement into governance processes. Health and safety tops the risk list for board members, followed by data loss and cyber attacks, all factors directly connected to human capital governance and employee wellbeing.
Asia Pacific – a CHRO case study[5]
Asia Pacific has emerged as the global leader in strategic CHRO implementation. Three years ago, 24% of Asia Pacific CHROs were already digitising elements of the employee experience, compared with 21% in Europe and just 4% in North America. Furthermore, 33% emphasised creating exceptional employee experiences, versus merely 12% in North America.
This strategic focus has delivered substantial outcomes. 67% of Asia Pacific CHROs say their employee experience surpasses competitors, compared with 54% in North America. They are significantly ahead in building workforces that meet future business objectives (43% versus 26% in North America). Their focus on advanced technology that fuels collaboration and engagement has delivered lower attrition rates and further elevated CHRO positioning within the C-suite.
What This Means for CHRO Search and Selection
The transformation of the CHRO role demands a fundamental reassessment of search criteria. Boards must identify enterprise leaders who happen to have deep people expertise, looking beyond traditional HR career paths to candidates with P&L responsibility, operational leadership, or strategic consulting backgrounds.
Trying to spot red flags means rethinking recruitment panel experience. Candidates who speak exclusively in HR terminology rather than business outcomes, who cannot articulate ROI of people programmes, or who position themselves as service providers rather than strategic partners are likely unsuited for the modern CHRO mandate. And interview panels who can’t spot these flags are putting the organisation at risk.
Defining Questions for Boards Evaluating CHRO Candidates
- Can this candidate quantify the business impact of people initiatives with financial precision?
- Do they have demonstrable experience partnering with technology leaders on AI adoption and digital transformation?
- Can they credibly present to investors about human capital strategy as a value driver?
- Have they successfully led workforce transformation during periods of significant business disruption?
Taking Action Now
For boards and chief executives, the imperative is clear. If your current CHRO lacks the strategic capabilities outlined here, you face a choice: invest significantly in their development or begin succession planning. For organisations recruiting a new CHRO, resist the temptation to prioritise cultural fit over strategic capability. Expand your search beyond traditional HR executives to include operators, consultants, and general managers who demonstrate genuine passion for unleashing human potential.
Most critically, examine how your organisation positions its CHRO today. Are they included in strategic planning from the outset? Do they report directly to the chief executive with equal standing to other C-suite leaders? Are they regularly engaging with the board on matters beyond compensation? If the answer to any of these questions is no, you have not yet created the conditions for a truly strategic CHRO to succeed.
The modern CHRO is a business strategist who happens to specialise in people. CHROs who master their workspace today will not simply adapt to the future of work; they will create it. For the boards and chief executives who recognise this transformation and act decisively, the reward is a strategic partner who can turn workforce capability into sustained competitive advantage.
Sources
[1] https://www.forbes.com/sites/johnbremen/2025/05/29/why-are-more-chros-in-board-rooms-today-people-risk-and-more/?ctpv=searchpage
[2] https://www.forbes.com/sites/johnbremen/2025/05/29/why-are-more-chros-in-board-rooms-today-people-risk-and-more/?ctpv=searchpage
[3] https://action.deloitte.com/insight/4738/from-people-leader-to-organizational-leader-the-evolving-role-of-the-chro
[4] https://www.forbes.com/sites/johnbremen/2025/05/29/why-are-more-chros-in-board-rooms-today-people-risk-and-more/?ctpv=searchpage
[5] https://www.servicenow.com/content/dam/servicenow-assets/public/en-us/doc-type/analyst-report/chro-apac.pdf
