Chief human resources officers (CHROs) are playing an increasingly pivotal role in shaping business success – with 88% of CHROs stating that their influence in the workplace is at an all-time high, according to a new report from International Workplace Group (IWG).
The study of more than 1 000 CHRO leaders revealed that 81% work more closely with the C-suite of their company than ever before. This shift reflects the evolving business landscape (84%), where priorities such as employee well-being and happiness (64%), attracting top talent (64%), boosting productivity (58%), and a greater focus on policy compliance and enforcement (53%) have become critical areas of focus for business leaders.
Supporting evidence has found that CHROs are increasingly recognised as trusted advisors to CEOs, shaping business strategies by aligning talent management with organisational goals – as observed in a McKinsey report which noted that top CHROs are working closely with CEOs to drive company direction.
Similarly, research from Harvard Business Review (HBR) also revealed that CHROs are now seen as potential CEO successors due to their enterprise-wide perspective and leadership skills. Their ability to manage talent, culture, and strategy positions them as critical C-suite players.
IWG’s research underscores the indispensable role of CHROs in today’s corporate environment. Nine in 10 (89%) CHROs consider themselves trusted senior advisers to their CEOs or business leaders – and a similar amount claim that their role strongly influences profitability (96%), productivity, talent recruitment, and long-term employee retention (all 95%), as well as employee culture (94%), all driving factors to creating and maintaining a successful business.
With quality candidate recruitment, long-term talent retention (both 58%), and workforce wellbeing (56%) becoming increasingly important objectives for the C-suite, it is evident that CHROs’ top priorities are directly linked to business goals.
CHROs also clearly believe that flexible working has a significant role in creating a productive and loyal workforce – with four in five (81%) say that flexible working is key to retaining top talent. Further research by IWG supports this, with 72% of company executives who offer flexible working seeing productivity increases in 2024.
Without flexible working options, 66% of CHROs predict a significant decline in talent retention if a company does not offer flexible working as a further 86% identified flexible working as the most in-demand benefit prospective employees are seeking. Conversely, organisations that embrace greater flexibility anticipate uplifts on talent retention – with 70% expecting improvements in this area.
“Hybrid and platform working is no longer just a perk – it is a strategic necessity for businesses aiming to thrive in today’s competitive landscape,” says Mark Dixon, CEO of IWG “By embracing flexible working models, companies can unlock greater productivity, attract and retain top talent, ultimately building a happier workforce. CHROs are at the forefront of this transformation ensuring that hybrid working not only supports employee well-being and progress, but also drives long-term business success.”