The 4 essential CHRO skills

Ninety‑one percent of companies still rely on annual reviews. Batched feedback like that is too slow at a time when entrenched business models are being disrupted by the likes of Amazon, Netflix, and Uber. In order to build organizations that can change course quickly, CHROs need to provide workers with feedback on a continuous basis, not just once a year.

Modern CHROs should be familiar with so‑called agile processes that are popular in software development. In the case of performance reviews, an agile approach would scrap annual reviews in favor of faster feedback, rapid rewards, and ongoing reassessment.

CHROs can use AI‑powered performance review tools like ADP Compass or Humu, which crunch data on workers’ productivity and give them “nudges” on how to improve it in real time. They can also hire data scientists to customize their company’s analytics to measure key objectives such as faster time to market for new products, or improved customer satisfaction in call‑center interactions.

Modern CHROs must be able to understand and communicate how business goals translate into hiring strategy. Seventy percent of CEOs expect their CHRO to be a key player in enterprise strategy, but only 55% feel their HR execs are living up to this expectation, according to Gartner.

CHROs need ninja‑level communication skills to transform entrenched HR processes. Want to launch an ambitious new talent strategy? You need to effectively communicate it to, and win buy‑ins from, key stakeholders across the company, from C‑suite executives to recruiters and even workers who may need to learn new skills as their roles evolve to meet business objectives.

“If I’m a good HR leader, I have a vision and skills so that I can communicate my vision clearly,” says Cole.

Smart CHROs listen to “upstream” feedback from employees and recognize when old HR processes are no longer working. That includes having a hiring and growth strategy that accounts for changing workforce dynamics. In the United States, more than 40% of workers are currently engaged in “alternative employment” such as contingent and gig work, according to a 2018 Deloitte study. This sector of the workforce has grown by 36% in the past five years alone.

Forward‑leaning CHROs don’t just fill positions. They think about building teams with the right mix of full‑time staff and project‑based freelancers. At the same time, they future‑proof their talent pool by reskilling and upskilling employees for evolving business objectives.

For CHROs to succeed on these shifting sands, they will need to lead the way from old HR processes into digitally advanced ones. “It will be important to know traditional HR,” Cappelli says, “but also be open‑minded enough to alternative ways to solve traditional HR challenges.”