During the pandemic, HR leaders took centre stage. The CHRO and HR function proved their strategic clout by ensuring that: their people were safe and able to work, that staff had the tools to be productive, and that the business had the relevant skills to deliver against its strategy – albeit during a turbulent time.

Despite this, at present only three FTSE 100 companies have HR professionals on their main board. Will that tide begin to turn? As UK businesses compete globally in an economy completely changed by technology, and operate in an inflationary environment, the need for diverse skillsets within an organisation has never been more important. Businesses are recognising this, with 86% of UK-based CEOs saying that Chief HR Officers should have a place on the board.

There’s an opportunity here for HR leaders to claim their place and help drive business growth. In this article we’ll be exploring five areas where HR leaders are already leading their organisations, and where their journey could go from here.

Innovating in a new era

Businesses have been lurching from one crisis to another and need innovation more than ever before – and innovation comes from a diverse workforce with different mindsets and skills to challenge the status quo. CHROs have typically been viewed as the custodians of inclusion and diversity. But greater success happens when a company’s progress in inclusion and diversity is set by the Executive and responsibility falls to the CEO. 

Of course, CEOs cannot drive everything alone – that’s why they have a board. The board, including the CHRO, act as the architects responsible for delivering innovation via a diverse and productive workforce. HR leaders should ask themselves – do they want to be the sole driver, or the architect?

Businesses are in the era of cost savings, upskilling in a new technology-driven economy, and talent retention. Now is the time for those working in People Operations to lean in and own their position as a leader of people, bring CEOs into the future with them, and set a new course for their company.

Using technology to unlock your people power

What motivates people and triggers them to action? The HR leaders that are driving business growth are using data-led insights to understand just that – thinking with a data, then behaviour mentality.

Data science can be used to help understand the workforce, making sense of what triggers and motivates them. Having uncovered employee triggers, CHROs can then positively utilise behavioural science – such as nudge techniques – to encourage take up of capability building initiatives and future proofing skills. 

This mentality also means people can develop the skills they need for jobs in the future, particularly in a world making sense of generative AI. Accenture’s research found that successful CHROs are two times more likely to invest significantly in their people’s skills development – and recognise that technology is an integral part of that process. Behavioural technology now exists to help bring people into an upskilling environment; psychologically reassuring them that it’s okay to be a novice, helping to encourage new ways of working, and creating new muscle memory so this becomes force of habit.

Lead revenue beyond the HR function

Successful HR leaders drive impact across the organisation, not just in their department. This sentiment is echoed by CEOs, with 88% saying that CHROs should be responsible for infusing a culture of innovation across the entire enterprise.

Successful CHROs recognise that their organisations are deeply intertwined with the communities in which they function. As a result, they work beyond the boundaries of the company – across organisations, industries, and geographies – to contribute to solving systemic challenges. Creativity is a key attribute here, and nearly half of HR leaders believe they have the creative skills needed to drive and to lead change.

Connect new dimensions of data, technology and people

The ability to effectively connect data, technology and people lies behind any successful HR leader – and is a primary accelerator for improved business outcomes (both financial and non-financial). In fact, a third of UK HR leaders spend most of their time engaging with data, people analytics and predictive analytics, supplementing and even overtaking other tasks such as workforce planning, managing teams and functions.

Our research shows over 80% of organisations have reported an uptick in investment in data solutions and AI in the last three years alone. Once businesses have identified the skills they need for their growth strategy, they are now deciding the best way to do that: build, buy, borrow, or bot? Will they train from within, or hire externally? How will they apply automation strategically and unlock meaningful work? What about Chat GPT? How would the role evolve as the Chief People and Machine Officer?

 The combination of financial acumen, business acumen and technology is crucial. It positions CHROs as anticipators, driven by data and insights, instead of as reactors.

A sense of belonging in difficult times

If you’re still early in your journey to effectively connect data, technology and people and need somewhere to start, you can’t go wrong with cultivating a sense of belonging. This means going beyond the traditional HR function to create a sense of community and build a positive company culture. Arguably this has always been important, but trends accelerated by the pandemic such as hybrid and remote working have had an impact on team dynamics and ways of working. The majority of CHROs recognise this, with 90% believing it’s important for their people to have a sense of belonging at work.

Even in an inflationary climate, it’s never been more important for businesses to invest in the financial, mental, and physical wellbeing of their people – and forward thinking CHROs and HR leaders are key architects of this.

Overall, HR leaders are demonstrating precisely why they have earned their seat at the top table. However, it is important to note that there is no universally applicable formula that works for every leader or organization. As your business builds for the future, regardless of the stage you’re in, it is important to start asking questions about these five dimensions for the future at this very moment.