Dive Brief:
- CHRO turnover declined in the second quarter of 2024, with 39 global public company CHROs stepping down compared to 50 in the second quarter of 2023, according to leadership advisory firm Russell Reynolds.
- “This stability may indicate that organizations are opting to retain their CHROs to maintain continuity amid market volatility,” the firm said in an analysis. CHROs may also decide to stay in their roles “as they navigate the key talent and skills shortage — rated as a top threat to organizational health by leaders.”
- The index also found the highest percentage of women CHROs — 14 of the 25 appointees — since 2022, fewer internal hires for the role compared with Q2 2023 and fewer first-timers in the role.
Dive Insight:
The data compiled by the index reflects a few trends, Russell Reynolds said.
First, the stabilization of the CHRO role points to some of the top external threats leaders listed in Russell Reynolds’ Global Leadership Monitor for H1 2024, including economic uncertainty and the availability of key talent and skills. In an environment of uncertainty, CHROs appear to be staying put and companies seem less willing to part with top leaders.
On the other hand, the decrease in internal hiring — a drop to 36% of hires, compared to 56% in Q2 2023 — “could indicate a strategic move by organizations to bring in fresh perspectives and new expertise to navigate the evolving challenges within the HR function and workforce alike,” the firm said.
While companies are looking for fresh ideas, they are pursuing those new perspectives from experienced leaders, the firm suggested: “Organizations are prioritizing seasoned leaders who can bring stability and proven expertise, rather than taking risks on first-time CHROs. This shift towards experienced hires underscores the need for steady hands in turbulent times.”