CEOs want a new kind of CHRO. Only 1 in 4 fit the bill
CEOs want HR leaders who can redesign the workforce around AI. Fewer than 5% of current CHROs have the background for it.
As Artificial Intelligence forces companies to reassess various aspects of their operations, including job roles and workforce structure, Chief Human Resources Officers (CHROs) are increasingly being called upon to lead this transformation. CEOs are seeking leaders who can make informed decisions on automation, skill development, and workforce restructuring, all while maintaining productivity and growth.
However, the reality is that only one in four CHROs is currently capable of fulfilling this enterprise-level role, according to a study conducted by executive search firm Heidrick & Struggles.
Brad Warga, a partner at Heidrick & Struggles, highlights that fewer than 5% of existing CHROs possess backgrounds in strategy consulting, product development, or engineering. This lack of relevant expertise is a significant hurdle in meeting the evolving expectations of CEOs. Over the past decade, the number of skills sought in CHRO candidates has nearly doubled, according to Warga.
The new demands include the ability to identify which tasks and functions should be automated by AI, followed by reevaluating the workforce's structure.
To adapt to these changes, Warga emphasizes that CEOs are now looking for HR leaders who are innovative problem solvers, intellectually curious, and possess a product-oriented mindset. Heidi & Struggles' findings suggest that AI-native companies, like OpenAI and Anthropic, are already redefining the responsibilities of a CHRO. OpenAI appointed Arvind KC, a former Palantir CIO and former Google engineering vice president, as their Chief People Officer, while Anthropic hired Hannah Pritchett, a former Stripe product operations manager, for the same role.
The impact of this transformation extends beyond the role of a CHRO, affecting relationships within the C-suite. Heidrick & Struggles reports that enterprise CHROs spend an additional 10 hours per month collaborating directly with Chief Technology Officers (CTOs) on AI-related initiatives. To become enterprise CHROs, Warga suggests incorporating product and engineering talent into HR leadership teams and leveraging their expertise to gain hands-on experience with AI tools.
He advises CHROs to experiment with AI language models, as the process can yield valuable insights and knowledge.
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