Report: CHROs Can’t Get No Satisfaction
According to a new report from Salveson Stetson Group, a multi-specialty retained executive search firm, many CHROs would leave their current job for a new one. Though eight out of 10 CHROs and HR leaders reported being satisfied with their current role, 61 percent said they’d leave for the right opportunity.
When asked for specific reasons why they’d leave their current position, approximately 20 percent cited the workplace culture.
According to Sally Stetson, co-founder and principal of SSG, there are a number of reasons why a CHRO may be dissatisfied with a company’s culture, including a CEO who is inconsistent in championing the company’s vision, is overly cautious and conservative when it comes to change and/or isn’t committed to promoting diversity and inclusion efforts.
“The CHRO can be instrumental in helping to change the culture if they have the ear of the CEO and is a respected member of the senior team,” she adds.
SSG surveyed nearly 400 CHROs and HR leaders across numerous industries, including finance, life sciences and manufacturing. A majority of respondents work at companies with 1,000 to 5,000 employees (31 percent) and they all earn a salary greater than $200,000 per year.
The report also revealed that only half of the respondents feel that there’s a “ready-now” successor in their organization who could take over if they left.
“As the demand for strategic leadership grows, it is crucial for employers to both take note of their HR leaders’ job satisfaction and have a formal succession plan in place,” says Stetson. “HR plays a key element in executing a company’s business strategy, so ensuring that your company has a capable lead in place has never been more important.”
John Salveson, co-founder and principal at SSG, says that as the HR profession has evolved over the years, CHROs’ jobs have become increasingly complex. He says that as more HR leaders join the C-suite, CEOs need to understand “the unique demands CHROs face and create an environment that is both stimulating and rewarding for them.”
No mater how highly regarded a CHRO may be, losing him or her to another firm is both real and sometimes unavoidable, he adds.
“Only a well-thought-out succession plan mitigates the risk of this loss given the true impact that strong HR leaders have on their organization,” says Salveson.
Stetson adds that if the C-suite values its CHRO, they’ll not only work to ensure he or she feels valued and engaged in the organization, but also guarantee that he or she is included in important decisions using them as advisers and sounding boards.