CHROs are now ‘indispensable’ to successful businesses, finds IWG

Eight in ten CHROs work more closely with the C-suite now than ever before, and 88% believe they have more influence on their business.

That’s according to new data from workspace provider International Workplace Group (IWG), which surveyed 1,000 CHROs in the UK and the US.

89% see themselves as trusted senior advisers to the CEOs – 91% in the UK; they have become “indispensable”, according to IWG’s report.

IWG’s research found that CHROs have a significant impact on company profitability (96%), productivity (95%), and recruitment and retention (95%).

The data shows that these are the same topics that the C-Suite are focused on, which is why CHROs  are becoming such important executive leaders in business.

Talking about the results, IWG’s CEO & Founder Mark Dixon tells UNLEASH: “Today, CHROs have a hand in almost everything from business strategy to establishing culture, workforce planning, compliance, learning and development, and beyond.

HR leaders are essential members of the C-Suite and will remain so well into the future.”

CHROs, flexible working and company success

For Dixon, the most interesting finding of IWG’s report was how much CHROs are aware that flexible working is a critical factor in attracting and retaining talent.

He tells UNLEASH: “The majority (83%) of HR leaders believe that reducing flexibility and forcing employees to undertake lengthy commutes every day to a faraway office would have a detrimental effect on their company and it’s clear that old ways of working are long gone.”

81% of CHROs explicitly link flexible working to retention, and 66% believe that without flexibility, there will be a significant decline in retention. This is a concern as 59% of CHROs see long-term retention as an important objective not just for them, but for the whole C-Suite.

This findings sits in contrast to ongoing return to office (RTO) mandates, which are dominating the headlines.

UNLEASH asked Dixon for this insights.

He shares: “While RTO dominates the headlines, there’s nuance behind the trend.

“RTO mandates are unmistakably taking place, but the reality is there isn’t solely a binary choice between working from a traditional city center office or home.

“An increasingly popular third option is working out of a local co-working space or office close to home, and we’re seeing that play out across our customer base.

“CHROs today are challenged to balance the needs and desires of organizations, such as developing company culture, in-person collaboration and team development, with the needs of employees, who have noted flexible work models make them feel more productive, healthier, and happier.

As our findings demonstrate, CHROs understand the importance of creating a culture of listening and ensuring everyone feels heard and taken care of.”