Allies in leadership: The strategic role of CHROs

As India’s economy surges, the competition for top talent is fiercer than ever. 88% of professionals in India are looking for a new job this year and in this high-stakes environment, chief human resource officers (CHROs) are becoming indispensable in the fight to secure and retain the best people. In an engagement with a CHRO of a large European building materials company, they emphasised the critical need to retain top talent in sectors dominated by unorganised players. By aligning organisational goals with effective people strategies, CHROs play a pivotal role in ensuring companies stay ahead.

From administrator to strategic ally: The evolution of the CHRO

The role of the CHRO has undergone a significant transformation over the past decade, particularly in the last few years. Once relegated to administrative tasks, CHROs are now recognised as strategic partners to CEOs. They are crucial in the ongoing war for talent and maximising global employee engagement. A recent conversation with the Group CHRO of an Indian conglomerate revealed that as large Indian organisations explore new ventures and businesses, CHROs must expand their thinking beyond the traditional scope of their role. This now requires the ability to scale operations, manage new expansion projects and ventures, and navigate mergers and acquisitions.

Today’s CHROs collaborate closely with CEOs to guide strategic direction, leveraging their expertise in talent management to make decisions that create value for investors and customers. By focusing on leadership development and strategic workforce planning, CHROs ensure the company has a robust leadership pipeline and the right skills to meet current and future needs – enhancing product value and preparing for evolving external conditions. In this expanded role, CHROs cultivate trust with key stakeholders, lead and sustain organisational change, and foster a strong company culture.

A long-term vision: CHROs as strategic partners

CHROs today are expected to be key business leaders who bring a broad, long-term perspective on the organisation. They are among the few who work across all functions and geographies, providing crucial insights into how the business operates to meet its objectives. Their role has shifted from managing administrative tasks to becoming a true partner to the CEO, on par with the finance function. Just as CFOs manage financial resources, CHROs are responsible for cultivating and deploying talent—particularly key individuals—while unleashing organisational energy, which fosters a dynamic and productive work environment. As strategic partners, they support CEOs in steering the organisation, offering insights on challenges that span across business units that may impact talent management strategies.

Successful CHROs often have experience beyond HR, enabling them to align people strategies with wider business goals. Whether through time spent in other business functions or within dynamic environments like start-ups, CHROs cultivate resilience and a deep understanding of organisational dynamics, essential for navigating the complexities of today’s business landscape. These qualities are invaluable for developing effective talent strategies, fostering employee engagement, and ensuring the organisation has the talent needed to thrive.

Securing a seat at the executive table

In today’s volatile, uncertain, complex, and ambiguous (VUCA) environment, talent has become one of the most valuable assets for organisations. Top candidates must be agile and adaptable, making a responsive workforce essential for achieving business goals. CHROs are increasingly taking their place at the executive table, where they advocate for and recommend flexible talent strategies that unlock or create value. While capital reallocation remains important, it is the redeployment of people, alongside capital, that truly pushes companies forward.

This underscores the growing importance of attracting, retaining, developing, and deploying talent. As a result, strategic human resources have become integral to business success, elevating CHROs to key members of strategy teams. CEOs are increasingly recognising that the success of their companies depends as much on their people as it does on their operations.

What the future holds for CHROs

In the next few years, several emerging trends will continue to shape the role of CHROs. Companies are beginning to realise that their future success hinges on talent, brand value, and resources—and they are responding by including more HR leaders on both listed and advisory boards.

Organisations that want to foster the development of their CHROs should also encourage strong collaborative networks. In India’s business hubs such as Bangalore, for instance, CHROs regularly meet to share and explore new ideas. By involving CHROs in discussions that go beyond HR, businesses can ensure their leaders are contributing to the larger organisational vision, from both revenue and product standpoints.

It is clear that the traditional HR playbook is no longer sufficient. CHROs must be prepared to adapt, think on their feet, and develop innovative programs under tight timelines. This shift has brought about a new generation of HR leaders who prioritise agility and are comfortable with continuous change. They move beyond conventional approaches, embracing data-driven decisions and maintaining an open dialogue with a range of stakeholders. 

Most successful organisations already have CHROs in their core leadership teams, working alongside the CEO and CFO. But by continuing to expand their influence, CHROs will remain central to guiding their organisations through the complexities of the modern business world.

By Ajo Joseph, Principal and member of global Industrial Practice, Heidrick & Struggles India