The role of the Chief Human Resources Officer (CHRO) is undergoing a significant transformation as companies increasingly recognize the vital need for human capital expertise in driving business performance, managing risks, and creating value. As the next generation of CHROs emerges, their engagement with corporate boards is evolving, particularly in publicly traded companies across the US and Europe.
The Expanding Role of the CHRO
CHROs are moving beyond traditional HR responsibilities to take on greater roles in corporate governance. Boards and senior management are placing more emphasis on human capital strategies to meet evolving business, regulatory, and investor expectations. CHROs are now expected to act as enterprise leaders, aligning human capital strategy with financial, operational, and risk priorities. Their involvement in workforce strategy, succession planning, mergers and acquisitions, and business transformation has grown significantly.
Challenges Faced by CHROs
Despite the expanding role, CHROs face several challenges in maximizing their board engagement and strategic impact. Four key derailers include perceptions of HR as solely administrative, friction in succession planning, CEO-imposed access limits, and limited commercial and financial acumen. Addressing these challenges requires clearer board designation of responsibilities, more structured processes, and greater recognition of the strategic role of human capital.
Empowering CHROs in the Boardroom
Boards and CEOs can empower CHROs by enhancing their access to the board, recognizing their neutrality in executive and operational matters, and fostering a trusted partnership for candid workforce risk insights. This approach will inform high-level decision-making and ensure that CHROs are integral to business strategy discussions.
The Changing CHRO Landscape
The CHRO’s role in the boardroom is evolving structurally. Once primarily focused on administrative HR tasks, CHROs are now expected to function as enterprise leaders. This involves deep engagement in business strategy, risk oversight, organizational transformation, and governance. The most effective CHROs are those who can build strong partnerships with both the CEO and the board, becoming “next-generation, high-impact CHROs.”
The Evolving Expectations of CHROs
Interviews with CEOs and board members highlight the expectation for CHROs to evolve from functional specialists to strategic enterprise leaders. Key expectations include linking workforce investments to shareholder value, aligning talent strategies with productivity and innovation, and leveraging analytics for operational efficiency. Moreover, CHROs are expected to lead CEO and leadership succession planning, supporting mergers and acquisitions, and ensuring leadership alignment.
Future Opportunities and Challenges
As generational workforce shifts, AI transformation, and regulatory uncertainties continue to shape the business landscape, CHROs will play a critical role in talent strategy, workforce risk management, and AI oversight. Boards will increasingly rely on CHROs to interpret policy changes, balance compliance with corporate commitments, and manage reputational risks.
The role of the CHRO is increasingly embedded in the broader architecture of corporate governance and enterprise strategy. As business challenges intensify, CHROs who can navigate board governance dynamics and internal executive relationships will be essential in positioning human capital as a central pillar of enterprise value and oversight.
Note: This article is inspired by content from https://corpgov.law.harvard.edu/2025/05/08/the-evolving-role-of-the-chro-in-the-boardroom/. It has been rephrased for originality. Images are credited to the original source.
