Welcome to the cutthroat world of the C-suite, where CEOs reign supreme and survival is the name of the game. But for HR leaders, it’s a particularly rough ride. A recent Xpheno study has revealed a shocking truth: CHROs (Chief Human Resources Officers) in India Inc. are abandoning ship at an alarming rate! We’re talking a staggering 20 per cent churn, compared to a sleepy 11.6 per cent for CEOs and a snooze-worthy 5.6 per cent for CFOs. Why are HR leaders jumping ship at such a frenetic pace?
There be a two-headed monster at the helm of this mutiny. First, there’s a fierce talent war raging on the high seas of HR. Top CHROs, with their strategic savvy and talent-wrangling skills, are like coveted gold pirates in this ruthless market. These HR rockstars know their worth and are charting their own course, seizing opportunities left and right.
But there’s another, less flattering reason for this musical mayhem: performance, or rather, the lack thereof. Let’s face it, some companies may still be clinging to CHROs who are more like anchors than captains. The modern business landscape demands a new breed of HR leader – one who speaks fluent digital, embraces disruption like a long-lost friend, and seamlessly aligns HR strategy with the company’s grand vision.
The message is clear: CEOs need CHROs who think like CEOs. They need captains who can chart a course for the future, aligning HR strategy with the company’s long-term voyage.
Gone are the days when HR departments were synonymous with dusty policy manuals and overflowing stapler drawers. Today’s CHRO is a strategic architect, a growth engine, and a champion for change. These tech-wizards navigate complex business models with a steady hand and the foresight to predict and weather any storm.
This reality hits non-tech companies undergoing digital transformation like a rogue wave. They desperately need HR leaders who can not only survive the automation storm but also harness it to build a future-ready crew. The days of the tech-timid CHRO are numbered. Companies are casting their nets wider, seeking seasoned HR pirates with diverse industry experience, not just those siloed and tenured HR experts.
The high churn rate could also indicate a dissatisfaction with current CHROs. Perhaps they’re like rusty cannons – slow to fire and missing their mark altogether. Stuck in the HR department of yesteryear, they’re focused on paperwork instead of building a strong crew. Or maybe they simply lack the vision to align HR with the company’s compass.
The data paints a clear picture: companies are increasingly looking outside their own ranks for CHRO talent. In 2020, over half of CHROs in India were promoted from within. Today, that number has plummeted to a mere 36 per cent, according to Spencer Stuart.
But performance issues go beyond a lack of technical skills. Some CHROs operate on a deserted island, their focus on immediate squalls blinding them to the vast ocean of opportunity. These leaders struggle to translate the captain’s grand strategy into actionable plans for their teams. Talent acquisition, retention, and company culture? More like afterthoughts on their tattered treasure map. These folks are glorified cabin boys, not strategic partners. They’re order followers, not innovators!
Imagine a lookout who only sees the storm clouds directly above the ship and ignores the clear horizon – that’s what a transactional CHRO is like. They lack the agility of a pirate ship, unable to adapt to changing tides and build a crew that can pivot on a dime. Stuck in the doldrums of the past, they’re a drag on the company’s future prospects.
The same fate awaits CHROs who cling to outdated practices like barnacles on a ship’s hull. They’re afraid to challenge the status quo or unfurl the sails of innovation. Content within their bureaucratic bilge, they’re oblivious to the evolving needs of the business and its workforce.
This lack of business savvy proves fatal. Siloed CHROs are clueless about the captain’s goals and aspirations. They have no interest in the company’s cargo or its value proposition. They’re blind to the vast ocean of opportunity, content with their cramped, transactional HR world.
The message is clear: CEOs need CHROs who think like CEOs. They need captains who can chart a course for the future, aligning HR strategy with the company’s long-term voyage. The CHRO churn is a symptom of a larger problem – a mismatch between the HR leadership of today and the demands of tomorrow.
So, the question remains: are you ready to step up and become the future of HR? Are you prepared to be the CHRO who navigates the stormy seas and leads your company to calmer, more prosperous waters?
7 Comments
It is a fantastic column. All hr whether working for small, medium or large needs to go through this article which opens new avenues or new way of looking at a function.
Kudos to u sir.
Over 80% of Indian companies are ownership driven, do they even know as to what a CHRO does? Some take CHRO for status quo, the other repents after taking them because the owner does not know what he should be utilized for. I recently came across a CHRO who submitted his proposals to the main stakeholder but no action was taken on them and he left in only a year.Further if CHRO & CEO should coordinate CHRO must be empowered. Overall HR as a department suffers badly from non empowerment across organizations.
Over 80% of Indian companies are ownership driven, do they even know as to what a CHRO does? Some take CHRO for status quo, the other repents after taking them because the owner does not know what he should be utilized for. I recently came across a CHRO who submitted his proposals to the main stakeholder but no action was taken on them and he left in only a year.Further if CHRO & CEO should coordinate CHRO must be empowered. Overall HR as a department suffers badly from non empowerment across organizations.
Totally agree with your viewpoint. If a CEO/promoter does not know what to do with a visionary and competent CHRO, it speaks volumes about how they wish to run the business vis-a-vis competitors. They will eventually be at the bottom of the race!
It is a fantastic column. Must read by the people who is working in corporate or small industries. This article is related to open new avenues and new way of better function of HR.
It’s truth if the CHRO is visionary it will help CEO to build the road map for better tomorrow.
The CHRO is really the one that can make or break the organisation (one option is that they themselves ‘break-away’!)
It is ONLY the human BRAIN that would help us survive in the future.
If the CHRO is on top of the game – handling personnel properly, equipping them with required learning skills – would ensure smoother sailing
A well articulated article covering the finer aspects of current trend in business for the CHRO. CHRO’s role is evolving with changes are manifested at much quicker space than before. Thus, the leadership attributes, must keep pace with the needs of the hour. This requires constant unlearning, learning and putting into practice the new knowledge and ready to follow it up over again and again with the changing businesses environment. Some of the leaders who fail to maintain this process apart from their routine business fall in the wayside. Further, on many occasions the misalignment with organisational set-up, top leadership, lack of freedom to operate with professionalism can be the reason for change. Thanks for sharing your views.