As the northern hemisphere summer draws to a close and with year-end on the horizon, the ChapmanCG team has observed that it has become an extraordinarily complex time for Chief HR Officers. Their roles are evolving. Many are growing into broader or more varied roles than in the past. Others are finding the degree of difficulty increasing, without a corresponding increase in budget or resources. Meanwhile, HR technology and artificial intelligence remain very top-of-mind with HR teams. In our searches, ChapmanCG continues to experience a high demand for certain pockets of expertise—notably total rewards professionals in all regions. Below is a brief discussion on some of the dynamics that we are observing.
The Role of the CHRO is Expanding and Evolving
CHROs are taking on a wide array of responsibilities that extend beyond the traditional realms of HR. They are not just concentrating on leadership and culture; they are also delving into strategy, change/transformation, technology, internal communication, ESG initiatives, and property. These shifts mirror the changing nature of workplaces and underscore the essential role of individuals in propelling organizational success.
We are also observing that CHROs are expected to own and drive the total workforce management strategy which is much more multi-faceted than in the past. Today’s work now gets accomplished by a blend of full-time and part-time workers, teams of contractors, consultants, and contingent workers. Added to this is the complexity of having five generations in the workforce, each with vastly different preferences on how it wants to interact with HR and receive HR services and support. Compounding this equation is digital work, with AI deployed to augment human efforts. Due to the all-encompassing nature and complexity of today’s total workforce management strategy and its planning process, it has shifted away from silos of specialists and into the arms of the CHRO.
While this spells “opportunity” for many HR leaders, others are feeling the stress of being in the “hot seat” seat due to the higher degree of difficulty of their roles and the expectation that they deliver similar levels of engagement and employee positivity with less true investment in the function. This year we have certainly seen a back-to-basics approach to HR by many companies driven in part by perceptions of disappointing ROI from initiatives launched during COVID-19 days. This coupled with tighter business conditions in many sectors has led to the need to do more with less for many senior HR practitioners.
Future of Work Discussions are Back
Future of Work discussions are back, but with AI and HR technology now firmly at the fore. The role of AI is still limited in the HR function, with discussions revolving around whether this means more opportunity to cut costs, optimize or both. We do hear that part of what has slowed efforts to date is a lack of investment and we wonder whether we will see this shift in a positive direction in upcoming HR budget cycles. ChapmanCG is seeing a lot of interest in AI related topics in our HR networking meetings across all regions. We are also noticing increasing interest in training and development programs related to upskilling and re-skilling employees for AI readiness.
Also currently being discussed under the future of work umbrella topic is “back to the office.” Back to the office conversations have not gone away or even quietened this year! The consensus seems to have landed on hybrid working being optimal for the majority. However, many companies and leaders sit firmly at either end of that, with a substantial group opting for 4-to-5 days in the office and with a firm belief that cultures are stronger and teams more effective when they are together full-time.
Roles and Skills in Demand
This past quarter we have seen the greatest demand for total rewards professionals across the board—global compensation, executive rewards, and benefits in addition to overall total rewards leadership. Reward professionals with deep knowledge of compensation practices in the technology sector are desired by companies looking to transform and hire more tech talent. We have also seen consistent demand for strategic HR business partners, talent professionals, and learning and development leaders.
Across all the above, especially HR Business Partners, there has been a heavy requirement for change/transformation and M&A experience.
Over the past year or two the role of the HR COO has become more popular, driven by the convergence of technological advancements and a heavier focus by companies on culture and engagement. Added to this, stretched CHROs are also needing more representation in areas requiring specific pockets of expertise (e.g., HR tech, project management, communications).
The efficiency brought by an HR COO empowers HR teams to focus on strategic initiatives, which in turn fuel organizational growth and maturation. The HR COO's influence extends across all HR CoEs and business partners. By collaborating with these specialized teams, the HR COO ensures alignment with strategic objectives, promoting a culture of innovation and inclusion, and optimizing the overall employee experience.
Keep up with the latest HR trends
