The evolving role of Chief Human Resources Officers (CHROs) in 2024 highlights a pivotal shift in the integration of technology and human-centric approaches within HR practices. As organisations navigate the complexities of modern work environments, CHROs are increasingly tasked with fostering innovation while ensuring that human elements remain at the forefront of HR strategies. This dynamic necessitates a balance between leveraging technological advancements and nurturing a culture of empathy, resilience, and agility within the workforce.

At People Matters TechHR Pulse Mumbai recently, a panel comprising Deepika Banerjee; MD; Head Human Capital Management; Goldman Sachs, Manjul Tilak; CHRO; Piramal Enterprises, Pallab Mukherjee; CPO; Equitas Small Finance Bank, and Ruhie Pande; CHRO; Sterlite Power said that the modern-day HR needs to have financial acumen, agility, influencing skills, and the ability to balance technology with empathy.

The panelists said that these skills underscore the importance of understanding and adapting to industry-specific challenges, driving change, and making strategic decisions that align with both short-term initiatives and long-term organisational goals.

Given a more complex environment, Ruhie explained in detail why some of these skills are especially critical.

“Every industry is different and a one-size-fits-all approach no longer exists. Hence every CHRO needs to be agile. They also needed to be aware of the financial statement of their organisation. Another skill that HR leaders must possess is influencing which is very complex. However, understanding what your stakeholders are like and being able to influence them to be champions of your agenda is very critical,” said Ruhie. Besides, she also spoke about balancing tech and empathy.

“Empathy is an essential skill. In a post-Covid world of work, personalisation has become of utmost importance. How does HR connect with the multi-generational workforce to balance technology at the right place and to get empathy and a personal touch? Industries and businesses are evolving. How does HR change whether it's a change of products, whether it's innovation, how does HR stand at the forefront and be the change agent for the entire organization is important,” Ruhie explained.

AI to boost the experience

The adoption of AI and HR technology plays a crucial role in the delivery of HR services and analytics, presenting both opportunities and challenges in enhancing employee experiences and operational efficiency. Successful implementation of HR tech requires a thoughtful approach that prioritises human interaction and personalisation, ensuring that technology serves as an enabler rather than a substitute for meaningful human connections.

Highlighting the central role of technology and data, particularly artificial intelligence and Generative AI, Manjul pointed out that while these technologies offer a new world of opportunities, the greatest challenge lies in enabling people to understand and utilise these platforms effectively.

Manjul emphasised that the ability to harness the potential of AI and data is currently confined to a select group, including product managers, tech professionals, and data analysts.

He underscored the importance of broadening this expertise to include human resources (HR) professionals, enabling them to collaborate seamlessly with data teams. “This collaboration would involve HR professionals articulating their data needs clearly and understanding how to structure their data to facilitate meaningful insights and solutions from the data team,” said Manjul.

Reflecting on his experience in financial services, Manjul shared that they have begun taking initial steps toward leveraging AI by presenting several business use cases to top management, which has been approved. “The next steps include disseminating these cases to senior leaders and other business functions, coupled with extensive training and awareness programs conducted through various mediums to sensitise employees. While acknowledging the journey ahead is long, Manjul expressed optimism about the progress and potential for widespread adoption and understanding of AI technologies across the organisation.

Culture is one of the bastions of HR

Cultural transformation remains a cornerstone of HR's mandate, with a focus on fostering micro-cultures that align with overarching organisational values. Initiatives that promote internal mobility, reward systems, and career advancement are critical in engaging and retaining talent, highlighting the need for CHROs to champion a culture of growth and opportunity.

“Thanks to their significant contribution made by them, top performers are always taken care of by any organisation. However, it is important to focus on the entire workforce, especially the middle 70%, where strategic interventions are needed for substantial improvements in performance and engagement,” said Deepika.

According to her, the middle 70% workforce must be taken care of for development and impact. Deepika emphasised a widespread understanding and connection between employees and organisations’ purpose to foster engagement and keep employees motivated to contribute to organisational growth.

Deepika also called for a systematic approach to support performance across all levels by having effective reward systems, and equitable advancement processes. To sustain long-term career development within the organisation, she suggested promoting internal mobility as it leads to enriching the employee's experience and benefiting the organisation.

Cultivating a culture that celebrates internal mobility, rather than viewing it as a loss, managers must be encouraged by incentivising development of talent that can contribute to the organisation.  To understand employees' needs, aspirations, and concerns, maintaining a robust feedback loop with employees is essential.

“This approach ensures that the organisation remains responsive and adaptive to its workforce's evolving expectations,” Deepika added.

Culture has to be evolved

Any organisation can not stagnate in the past when it comes to culture. Leaders were of the view that it has to be evolved.

Deepika, representing Goldman Sachs with its rich history spanning over 150 years, underscores the significance of core values in shaping the firm's enduring culture. Recognising that culture is dynamic and must evolve without losing sight of foundational principles, she highlighted the challenge of ensuring new generations not only understand but also embody these enduring values.

Highlighting the critical role of CHROs in striking a balance between leveraging technology and maintaining a human touch within the organisation, especially in industries like power.

Ruhie underscores the importance of not blindly adopting every new trend or technology that becomes popular but rather carefully evaluating its relevance and potential impact on the organisation.

Ruhie advocated for a strategic approach where the HR team collaborates with business leaders to develop a roadmap for the future, aligning with the company’s ambitious goal of achieving 100% internal mobility, except for roles requiring specialised skills.

Alignment among top management is crucial

Manjul advocated for a holistic transformation approach, stressing that disruption within the industry and alignment among top management are crucial for meaningful change. This perspective challenges CXOs to extend their ambassadorial roles beyond their specific functions to encompass the entire organisation, including HR. This is a departure from a mindset where some CXOs might delegate the responsibility of their team's motivation to HR or another function, effectively outsourcing a core leadership duty.

Moreover, the role of CHROs extends beyond internal HR transformation to influence the broader C-suite and organisational strategy. By advocating for HR's strategic importance and aligning HR initiatives with business objectives, CHROs can drive comprehensive organisational change and position HR as a key contributor to overall success.

As we look toward 2024 and beyond, the CHRO's mandate encompasses a strategic blend of technology, culture, and people management, emphasising the need for a holistic approach that champions innovation while preserving the human touch in HR practices. Engaging employees, embracing change, and building a resilient and agile workforce are central to the evolving role of CHROs, setting the stage for a future where human-centric and technology-driven strategies coalesce to drive organisational success.