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Chief people officers

CPO insights

To find out how the HR leadership role is changing and what it takes to succeed as a chief people officer today, we spoke to 70 experienced CPOs around the world to understand the impact of trends such as data and artificial intelligence, the expectations of younger generations, sustainability, competition for talent, and workforce well-being.

Chief people officers in focus: What new HR leaders need to know

In an environment where more is at stake, more is uncertain, and more is expected of leadership teams, talent has climbed up CEO and board agendas. The chief people officer (CPO) no longer plays a supportive role; they are more strategic than ever before and central in executive decision-making processes. Yet, that means there is now an inherent tension in HR, because it is the function responsible not only for foundational operations related to people and for attracting, developing, promoting, and retaining game-changing talent; ensuring the right talent is in the right places; ensuring the organizational design makes sense; and supporting a thriving culture, to name just a few responsibilities. To better understand how external forces and enterprise changes are affecting the role, what this means for people stepping into the CPO position, and how CPOs can successfully lead their businesses into an uncertain future, we talked with 70 experienced CPOs from Asia Pacific, Australia, Europe, Latin America, and the United States.

Emma Burrows is the regional head of the Human Resources Officers Practice in Europe & Africa and a member of the CEO & Board of Directors Practice.

About the authors

In this article

1. Adapting to a changing world: Five trends CPOs need to master AI is driving the data agenda ever faster Younger workforces are demanding purpose-driven leadership Sustainability is rising up the people agenda Workforce planning needs to incorporate flexibility The well-being agenda is rising ever higher 2. Stepping up: Becoming an effective enterprise leader Excelling in stakeholder management Mastering storytelling Building high-performing HR teams 3. Looking ahead: The CPO of 2030

Many CPOs now find themselves splitting their attention in multiple directions. This requires the ability to connect the dots between external and internal factors, corporate strategy, and the workforce, while also connecting people: they need to become what we call “superconnectors.”1 For seasoned CPOs, the pace of change and growing set of demands can be exhausting. For those coming into the role for the first time, it can be overwhelming. “It is a very challenging time, and those who are taking their first leadership position find that everything needs to be done at the same time, faster,” explained a CPO in Latin America. In our conversations, CPOs focused on five trends that are reshaping their organizations, functions, and roles right now.

Adapting to a changing world: Five trends CPOs need to master

AI is driving the data agenda ever faster

Data has been playing an increasingly critical role in decision making across all aspects of people, performance, and culture. With accurate data, today’s CPO is better equipped to deliver meaningful business insights and translate them into trackable goals and outcomes. Data evangelists all over the HR world believe that the smart use of AI will unlock the full potential of the huge amount of workforce-related data to transform hiring, workforce planning, people analytics, and rewards—disrupting traditional career pathways and even increasing workforce diversity by advancing employees who do not have classic career backgrounds. “Don’t look at competencies. Look at possibilities,” advised one European CPO. Others, however, expressed some concern that data and AI could threaten the HR function itself—especially if CPOs cannot find a way to elevate discussions beyond a numerical or results-driven orientation. With the technology still relatively new, it’s no surprise that CPOs’ feelings ranged from very excited to terrified.

Even so, most understand that HR must embrace AI. “CPOs need to be very aware that we are responsible for being in the digital arena, as much as every other function,” a CPO from Latin America told us. With this comes the expectation that CPOs must step up and become AI advisors to the business, from understanding and managing the skills the workforce will need to driving how their organizations use technology to capture and leverage data in talent management, planning, and engagement in a way that enables people to bring their best selves forward.2

In that context, another new focus for CPOs is ensuring employees understand how AI can have a positive impact on their roles—by increasing productivity, enhancing creativity, adding value, and improving working conditions. For CPOs, the challenge is enabling people to deliver the business plan and AI strategy and to incorporate growth as organizations build a culture of continuous learning. “HR will need to be the facilitator of this culture,” said another Latin American CPO. In other words, CPOs have landed the difficult job of getting the workforce AI-ready, at a stage when it is not yet clear how the technology may transform their business or sector, or the HR function itself. As one European CPO put it: “You need to be able to create a safe space for people to learn the technology while making sure concerns and fears are heard.”

Explore our infographic: "How HR leaders are using AI today"

Younger workforces are demanding purpose-driven leadership

With younger generations making up a larger share of the workforce, socially meaningful purpose has become an important driver of motivation and company reputation. And employees increasingly look to organizations to step into the leadership gap when it comes to societal issues.3 The key for CPOs is to ensure the relevance of purpose to the business. “We’re very focused on our purpose, so we lean into things that have a direct connection between our purpose and our business,” shared one US CPO. To do this, “you have to be a leader who sets standards and is prepared to make changes, including for people who are resistant to the values and changes that the business is implementing,” we heard from another US leader. Blending purpose into organizational culture is not simple4—particularly in an environment with a relentless pace of change. A CPO in Europe admitted feeling the strain of this task: “How can we engage younger generations who need more purpose when everyone is exhausted by the pace of change?” Furthermore, HR leaders need to be mindful of balancing the complex needs of their multigenerational workforces and their respective interests and aspirations. This goes beyond the more obvious intergenerational tensions and requires a careful approach to organizational design and career progression that ensures high employee engagement and an effective transfer of knowledge between generations.

Sustainability is rising up the people agenda

A growing number of issues now sit at the intersection of talent and sustainability, among them livable wages, the gender pay gap, “glass ceilings,” upskilling and reskilling, employee well-being, and human rights. Today’s CPOs are akin to a social barometer as they absorb and integrate these issues into their strategy. “In seven years, this is the first time I’ve seen such a spotlight on sustainability,” said a CPO in Europe. “We need to think about whether we have the right systems to support these new expectations from external and internal stakeholders.” The CPO, alongside communications and corporate affairs leaders, is expected to provide crucial guidance to the C-suite on these issues, many of which, like diversity, equity, and inclusion (DEI), are increasingly complex and will bring supporters and detractors no matter the company’s stance. The need for guidance is even more acute as an increasing number of companies have integrated sustainability metrics into executive compensation or used sustainability to refine their organizational purpose. “Ultimately, the CPO needs to be able to drive sustainability through people-related topics—organizational culture, communication, and engagement—and be able to link this to performance management and rewards,” said a CPO based in Asia Pacific. Understanding regional nuance around sustainability—both legislative and cultural—is critical for modern CPOs. Our conversations with European CPOs highlighted a stronger integration with sustainability compared with other regions; some CPOs even have organizational responsibility over sustainability. In the United States and increasingly in Europe, political and social tensions are putting pressure on society and, at times, have created anti-ESG or anti-DEI sentiment that reverberates throughout organizational layers, with impact on most team dynamics and therefore culture and productivity. Additionally, implementing global DEI policies at the local level requires factoring in a wide range of cultural norms (often codified into laws) regarding the role of women in society, LGBTQ+ roles, neurodiversity, or mental health. This adds to the challenges for CPOs. “The social is becoming political,” asserted one US CPO, while another from Europe described how they have to remain politically neutral but still speak out in terms of values. This is a fine line; one that can easily be overstepped.

Workforce planning needs to incorporate flexibility

The quickly changing nature of talent needs and scarcity of sought-after skill sets mean that CPOs need to access untapped talent markets and shake up career paths to give their organizations the best chance to recruit and retain top talent. Organizations that follow rigid approaches to recruitment, talent management, and career progression can easily miss out on outstanding hidden talent within their ranks: people who have multiple skill sets, are investing in new skill sets, or are interested in a career change. “There are obvious candidates with obvious skills, but what about the others? You can now come from wherever in the organization as long as your skills (not experience) match the job,” asserted one European CPO. CPOs increasingly need to focus on evaluating skills and capabilities within the organization, upskilling and reskilling, streamlining processes, and creating agile teams. “There are, after all, many advantages to retaining talent rather than having to attract new talent,” is how one CPO put it. This aspect of the job is even more important when considering key roles within the organization. Many companies now treat their leadership pipeline as a strategic asset, adding a layer of complexity to the retention challenge, given the constantly shifting goalposts around what the business needs to succeed.5 We also heard from many CPOs that a greater focus on strategic workforce planning and the provision of nonfinancial benefits—such as flexible working or the ability to volunteer, for instance—can be vital for attracting the best talent, as well as creating a culture and environment that keeps it. Employees want to remain competitive for the jobs of the future, which also explains why learning and development has become a more important incentive than even pay in the early career stages.6 Across the board, CPOs said flexibility is critical for catering to multiple generations in the workplace. “New generations don’t care much about benefits; they care about expressing ideas or working hybrid,” said a Latin America CPO, echoing the thoughts of countless others. However, another cautioned, “Don’t follow the benchmark just because it’s the benchmark.” CPOs must consider the unique needs and culture of their company when deciding on the right mix of financial and nonfinancial incentives.

The well-being agenda is rising ever higher

With disruption and uncertainty comes a strong impact on mental health and well-being. People are tired and feel insecure amid a volatile economy, global geopolitics, and changes in society. Other health issues are also becoming more prevalent—creating a significant financial, emotional, and cultural impact on organizations. “Health issues of the workforce are off the charts. We saw very little cancer in our data before, and now numbers are growing 35% to 40%,” said a US-based CPO. “Every CPO I talk to is seeing the same thing.” Research shows that companies that invest in employee healthcare and well-being have a competitive advantage and superior profits.7 However, crafting an effective well-being policy goes beyond providing healthcare benefits suitable to the countries companies operate in. It is important to establish cultural norms that encourage taking time off for medical reasons, holidays, and even activities that help employees stay healthy. Again, this onus falls largely on CPOs and their teams. Many organizations are now actively supporting employee health and well-being through campaigns to reduce the stigma associated with mental health, offering mental health days, and providing access to professional experts, comprehensive sick leave policies, and even gym memberships.

For many companies with an extensive frontline workforce, particularly in services sectors such as retail, hospitality, healthcare, and public services, the safety and security of frontline workers have also risen up the CPO agenda. Despite existing health and safety policies, several sectors have seen upticks in violence against their workers. Add the anonymity and pervasiveness of social media to the mix, and it becomes clear why employee safety has become more urgent and complex. As with sustainability, the key for CPOs in driving such programs and gaining the support of leadership is to link them to business outcomes. This means “leading from the front and caring about our employees’ experience,” advised a US CPO. “If you are your best self and your authentic self, then you are happier and more engaged and more productive.”

“If you are your best self and your authentic self, then you are happier and more engaged and more productive.”

Stepping up: Becoming an effective enterprise leader

“There is a broader capability around being able to look at the external trends and translate that into your organization’s strategy execution, and then into the changes you need to make to the people, processes, and system capability built internally.”

The moment the HR function became part of the core business agenda, the role became more strategic, visible, and open to public scrutiny. For CPOs who have come up through the ranks of the HR function, this change can come as a shock: “There is an assumption that if you are in a role already in the organization, then you know everything about it, but that didn’t play out for me. The role is far more strategic, nuanced, and less tangible in terms of impact,” shared a European CPO. Every important trend or issue impacting people eventually lands on the CPO’s desk, and to successfully navigate this evolving role, CPOs need to embrace their superconnector status. This was the overarching theme of our conversations with global CPOs, with three areas of focus standing out when it comes to what they see as success factors: stakeholder management, storytelling, and building high-performing HR teams.

The relationship with the CEO is seen by many of our interviewees as a crucial predictive indicator of their success, something that is true in all C-suite roles. In addition, explained a US CPO, “Your relationship with the CEO gives you credibility with the board. Board members often ask me how the CEO would react to something, or if I could run something in front of the CEO.” Beyond the CEO relationship, CPOs thrive when they can be superconnectors, building relationships across the organization. With this comes privilege and enormous responsibility, and the successful CPO works hard on redefining these key relationships. Being able to speak candidly and challenge the CEO or board members is paramount; CPOs always need to put the business first and speak for employees. “We’re the leaders who represent all the people, from drivers to builders; we are the employees’ advocates,” a CPO from Latin America shared. And this is a growing priority for their role, as other Heidrick & Struggles research shows that workforces have significantly accelerated their influence on board agendas since the start of the pandemic, and boards have a strong appetite to engage deeper with employees.8 Many CPOs also face the new challenge of acting as sounding boards for CEOs, and as coaches, facilitators, peacemakers, and moral compasses for the broader executive team. This can be difficult, especially as relationships shift when people move into the role through internal promotion: peers become direct reports, and former managers or internal clients become peers.

Looking ahead: The CPO of 2030

Success for CPOs today is about “leading, involving, catalyzing—not just directing,” said a US CPO. Another in Latin America summed it up by saying, “The only thing we can do is keep learning. What we learned yesterday may no longer be useful today; we have to remain attentive and curious.” The ability to accurately make early assessments of the impact of future trends on their organizations will set the outstanding CPOs apart. Resilience and adaptability in the face of unknown future shocks and disruption are also important. “You have to be prepared for what you don’t know,” said one leader. “There is no normal, and so we must adapt, change, participate. Old rules and policies no longer apply, so the question is how we learn to operate in the gray and feel as comfortable as we can.” The one-size-fits-all approach is also out. To paraphrase one European CPO, the future of HR is to personalize the experience for employees—while still remaining cohesive as a community—to help foster an inclusive culture. This allows for individuality and gives employees the tools and environment they need to perform at their best. Looking to the future, one Asia Pacific CPO predicted that HR will transition into a forward-looking strategic business partner: “HR should be coming to the table with a forward-looking opinion rather than waiting to be asked or waiting to respond to something that is happening. We should use the people capital lens to challenge long-term organizational strategies and plans.” This points to the continuous elevation of the CPO role, one that requires blending foresight with agility and the ability to drive change. For most of the CPOs we talked with, however, the exact role of human resources in the future remains unclear. Many believe that the HR function will become a small center of excellence within the business, while one Latin American CPO went as far as to predict that HR could cease to exist as a function altogether: “It will be much more horizontal and exist within different functions of the business itself.” Others see it remaining a centralized but more agile function, ready to adapt to the unknown. What is certain is that the days of HR as the siloed back-office function are well and truly behind us. While every organization is unique and will operate differently, there is no doubt that CPOs are now business leaders who must grasp a broad variety of business-critical topics, stay on top of global trends, and effectively lead change within their organizations. For the right aspiring leaders, the challenge is a stimulating, if daunting, prospect.

Steven Krupp, Brad Warga, and Jennifer Wilson, “The next evolution of HR leadership: The connecting HR leader,” Heidrick & Struggles, September 19, 2024, heidrick.com. For more on the views of CPOs around the world on AI, see “How HR leaders are using AI today,” Heidrick & Struggles, heidrick.com. The Edelman Trust Barometer shows that, across geographies, people have more trust in business than government, media, and other institutions. Darren Ashby and Atif Sheikh, “To craft a purpose that motivates your team, balance pragmatism and idealism,” Harvard Business Review, December 1, 2023, hbr.org. Sarah Arnot, Sharon Sands, and Todd Taylor, “Treating your leadership pipeline as a strategic asset: How data can improve every aspect of executive leadership development and succession planning,” Heidrick & Struggles, July 31, 2024, heidrick.com. TA Mitchell and Sharon Sands, “Future-ready leaders: Finding effective leaders who can grow with your company,” Heidrick & Struggles, November 10, 2021, heidrick.com. Anniken Grønstad, “A healthy workforce is good for business. Here's why,” World Economic Forum, July 19, 2023, weforum.org. Board Monitor US 2024: Navigating shifting sands, Heidrick & Struggles, May 20, 2024, heidrick.com. Rachel Halversen, “The strategic advantage of interim CHROs and other HR leaders,” Business Talent Group, a Heidrick & Struggles company, September 16, 2024, businesstalentgroup.com.

In many cases, driving functional excellence through a winning HR team requires going back to basics. One US CPO noted: “To operate as a holistic function that delivers value to the business, you need to have a clear set of priorities and define what you will accomplish and what you will not and how you measure success.” Furthermore, each HR leader needs to be able to show up as a partner to the business functions or units they support, which is at times not part of the culture in which they operate: “My biggest challenge was to re-create a close relationship between the business and the HR function; as HR had become a strong community, it was also more and more disconnected from the business,” noted one European CPO.

“You have to have a really phenomenal HR team that is leading the functional components of HR. They have to integrate and solve business problems with each other, work in an agile fashion, and do all of that really well.”

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Excelling in stakeholder management

As the role of the CPO becomes more strategic and central to decision-making processes, they are required to engage with a much wider and more senior set of stakeholders to reach their goals. The ability to engage and influence across organizational stakeholders is therefore a critical skill for new CPOs. As a European CPO highlighted: “You are in a privileged position because you have many pieces of information, and you have to decide really carefully on what you share and don’t. You need to be able to build trust, as you are often the only person talking to the CEO about certain issues.”

Mastering storytelling

Leadership development

In order for CPOs to manage the inherent tension in HR today, of being responsible both for foundational operations and for long-term strategy, CPOs told us that they need to build and rely on high-performing HR teams who steer the function through its day-to-day work, while they focus on the next five to ten years. Considering the increasing demands on HR teams, getting it right—and fast—is more important than ever before. For a US-based CPO, this has meant he needed “radical prioritization and having a winning team.” A European CPO added, “You have to have a really phenomenal HR team that is leading the functional components of HR. They have to integrate and solve business problems with each other, work in an agile fashion, and do all of that really well.” The scale of this undertaking cannot be underestimated. Historical underinvestment in people and technology has positioned many HR teams as glorified administrative functions, without the ability or time to provide strategic advice. While AI can step in to take on a range of repetitive administrative tasks that will free up time, HR teams also require upskilling to ensure they can lead their companies through continuous change. However, building a strong HR pipeline in a volatile economic environment with changing talent profiles remains a challenge that many CPOs still need to master. When traditional recruitment processes and internal talent pools cannot provide the skill set needed on short notice, access to experienced HR professionals on demand can help cover temporary gaps in the pipeline or address one-off issues.9 More progressive organizations set structures in place to ensure the HR function is equipped for any situation and to upskill those within the team already: “We have an HR capability workstream that goes all the way down to human resource development at a division level,” said a CPO in the United States. “Some want to plan parties and process paperwork, but we need people to think about the culture, coaching, succession, and the talent pipeline.”

Building high-performing HR teams

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