The role of a Chief Human Resources Officer (CHRO) has dramatically shifted since the onset of the COVID-19 pandemic, with more demands placed on HR leaders to navigate return-to-office challenges, support mental health initiatives, and develop a deeper understanding of business operations. According to former Google CHRO Laszlo Bock, HR leaders are now expected to be strategic business partners, not just HR specialists.
Bock, co-founder of Humu and former CEO of the HR tech solution, now serves as co-faculty director of the Berkeley Transformative CHRO Leadership Program. His extensive experience gives him a clear perspective on the evolving responsibilities of CHROs in today’s corporate landscape. Speaking with the Human Resource Executive, Bock emphasized that the best HR executives have a solid grasp of business fundamentals.
Business Acumen: The New Essential for HR Executives
“A strong HR leader today must go beyond understanding a company’s products and services,” Bock explains. “They need to understand why a business would spend $1.3 billion on an acquisition but hesitate at $1.4 billion.” Business knowledge involves analyzing cash flow and understanding how economic factors, such as interest rates, affect company decisions, which is now essential for CHROs. Yet, Bock acknowledges, it remains a rare skill set in the HR field.
Bock suggests that aspiring CHROs expand their experience beyond the HR department. He advises taking a role in finance, operations, or legal to sharpen business understanding and develop a strategic mindset. This broader understanding of the business era will set top HR leaders apart in boardrooms across the globe.
Opportunities for Growth in HR Leadership
Despite the growing complexity of the role, opportunities abound for top-tier HR leaders. A report from Korn Ferry notes that the average turnover rate for CHROs is 3.7 years, shorter than the overall C-suite’s average of 4.9 years. This suggests a continuous demand for strong HR leaders who can adapt and innovate.
The HR Technology Conference & Exposition, set for Sept. 24-26 in Las Vegas, will further explore these evolving roles. Notable speakers like Northwestern Mutual’s CHRO Don Robertson and Katie Carter, SVP of Global HR Evolution for Hyatt, will address the intersection of data, human experience, and program management in HR.
