More than half (56%) of CxOs, defined as C-suite leaders reporting to the CEO, (excluding CHROs) are likely or extremely likely to leave their current role in the next two years, according to Gartner.
The October 2024 Gartner survey of 200 CxOs reveals that 27% reported they are likely or extremely likely to leave in the next six months.
The survey also found that executives are reporting an increase in workload compared to two years ago:
- 67% agreed they are asked to do more in their role;
- 58% agreed their organisation relies more heavily on their function/business unit; and
- 44% agreed they are more stressed by their work responsibilities.
“Heightened executive turnover is a challenge for organisations as a less-tenured executive team typically means lower enterprise growth, which is the most important metric organizations rely on to track enterprise performance,” says Alexander Kirss, senior principal in the Gartner HR practice.
“Compounding the issue, more tenured executives are more likely to leave within the next two years than executives who are newer in their roles.”
Companies where executives have an average tenure of five years or more outperformed on revenue, customer experience and other key metrics, compared to companies with executive teams that have less than five years average tenure, according to the Gartner survey.
“CHROs have a key role in mitigating CxO attrition, however they face headwinds,” says Kirss. “Fewer than one in four CxOs say their CHRO is effective at strengthening the C-suite’s ability to function as a cohesive team. On top of that, just 23% of CxOs report their CHRO is effective at managing tension between C-suite members.”
Despite these challenges, there are CHRO-led solutions that can address the key causes of CxO turnover, such as:
- Take on Role of Career Coach – CHROs can step in as executive career coaches for CxOs, and collaborate with CEOs on workforce development and succession plans for the C-suite. With a better understanding of the value of leadership skills and ownership over learning and development, CHROs are best positioned to connect CxOs to both internal and external development resources, and to do so in a way that is tailored to CxOs’ unique needs.
- Build Trust and Strengthen CEO Relationships – CHROs can help CxOs build trust with the CEO by ensuring executives understand the CEO’s priorities and regularly engage in candid communication with the CEO, including opportunities to showcase their expertise. Building trust with their CEO is essential for CHROs due to the sensitive nature of the topics they must address. Actively sharing with peer CxOs what has worked well – or less well – in building CEO trust can help CHROs accelerate trust across the C-suite.
- Support Mental Health and Work-Life Balance – CHROs should serve as executive mental health champions, help peers identify sources of work stress, and provide coaching on ways to improve work-life balance. CHROs must model ideal well-being practices for their executive colleagues and employees at large. Many CxOs find it hard to share with their peers when they are struggling with mental health or other well-being concerns. By transparently communicating their efforts toward maintaining well-being, however, CHROs will help remove the stigma and apathy surrounding such conversations.