More than half the CHROs struggle with aligning HR strategy with business strategy and find it difficult to measure return on investment of HR initiatives.
Having monitored the CHRO function and its evolving trends for over five years, we at People Matters decided to carry out an annual research-based story on the State of the CHRO. With this edition being the first-of-its-kind, we were thrilled by the tremendous response we received from the community. As the biggest research to be carried out in India on the evolving role of the CHRO, we saw a participation of over 300 professionals who significantly contributed in shaping our understanding of the role.
Our research uncovered three current trends that have influenced the State of the CHRO in India.
CEO – CHRO Widening Gap
There is a widening gap between CEO expectations and what the CHROs have to offer. CEOs demand strategic acumen and business orientation; they would like their CHROs to have a stint or two in business roles. While CHROs are well aware of the growing importance of their role and what the CEO demands, only a handful of the CHROs have build capabilities and experiences outside of HR. The State of the CHRO reveals that 97 per cent of the CHRO respondents believe that HR function is critical to business today. As many as 64 per cent agree that leading a non-HR role is a necessary part of their career progression. This gap extends to reveal the second trend.
Falling short in experience
What is being preached is not being practiced because 55% have not led a function outside of HR in their career. For those who have, only 10 per cent have led sales function (one may argue that sales is the function closest to business drivers in many ways). As high as 37 per cent of respondents, confess that they have not actively sought opportunities outside of HR. Further, almost 80% of the CHRO participants in this year’s Study hold their professional degree in HR itself. CHRO’s lack of exposure to business hints towards low business acumen competency.
What is accelerating the CHRO crunch
What is accelerating critical conversations on this function is the challenges that organizations face today, that are critical for its growth and success. More than half the CHROs struggle with aligning HR strategy with business strategy and find it difficult to measure return on investment of HR initiatives. Almost 70 per cent CHRO respondents admit that they find it challenging to design an engaging organizational culture that aligns to the business needs. Further, more than half the respondents disclose that they find it difficult to create sustainable ways to attract and retain key talent for the organization.
CHRO talent demand-supply in India is widening. Our Study reveals that a cross-functional career progression will create a talent pipeline of HR leaders that business demands—Leaders that can have 360 degree understanding of business problems and deliver impactful results. The question is how do organizations accelerate the exposure to CHROs to business?
Get the full coverage of the State of the CHRO 2015 through the links below: