Global Chief Human Resources Officer (CHRO) turnover fell in the second quarter of 2024, according to the newly announced Global CHRO Turnover Index from Russell Reynolds Associates (RRA), a worldwide leadership consultancy business.
The index monitors the proportion of CHRO departures and appointments worldwide, offering data on trends such as gender diversity, tenure, and internal versus external recruitment.
The index revealed that just 39 worldwide public company CHROs resigned in the second quarter of 2024, down from 50 in the same period last year. These numbers show CHROs from key worldwide indexes, including as the ASX 200, FTSE 100, FTSE 250, and S&P 500.
The turnover decrease suggests organizations may prioritize stability amid market volatility and retain their CHROs to navigate talent and skills shortages, which leaders have identified as a major threat to organizational health.
“This stability may indicate that organizations are opting to retain their CHROs to maintain continuity amid market volatility,” the report noted. “CHROs may also choose to remain in the role as they navigate the key talent and skills shortage—rated as a top threat to organizational health by leaders.”
Gender Diversity on the Rise
Despite the overall decline in turnover, the index highlights an increase in gender diversity among CHROs. Of the 25 CHROs appointed in the second quarter, 14 were women – the highest percentage since 2022.
This trend is positive, but it remains uneven across different indices. While gender diversity has improved in most, it remains a challenge in the Nikkei 225 and Nifty 50, where women are still underrepresented in top HR roles.
“To ensure that true gender balance is achieved at the top of all indices, we need to ensure that the way CHRO succession is planned, managed, and executed is equitable,” the report states.
Internal Appointments Decline, Experienced Leaders in Demand
The second quarter also saw a shift in hiring practices, with decreased internal appointments for CHRO roles. Only 36% of the 25 CHRO appointments were internal hires, compared to 56% in the same period last year.
This shift towards external appointments could be attributed to organizations seeking fresh perspectives and expertise to address evolving challenges within the HR function and workforce, driven by geopolitical tensions, technological disruption, and a changing landscape of corporate values.
“To rebalance the scales, organizations must re-look at their succession pipelines and assess what they can do to develop more internal candidates for the CHRO role,” the report advises.
The number of first-time CHROs declined in the second quarter, falling to 40% from 52% in 2023. This suggests organizations are opting for more experienced leaders who can bring stability and proven expertise to navigate complex challenges, such as political turmoil and economic uncertainty.
“While external hiring remains strong, organizations prioritize seasoned leaders who can bring stability and proven expertise, rather than taking risks on first-time CHROs,” the report notes. “This shift towards experienced hires underscores the need for steady hands in turbulent times.”
The Global CHRO Turnover Index is a new quarterly report from Russell Reynolds Associates that provides data on CHRO turnover, appointments, and trends in the global public company landscape. Statistics and data shared with media and published as part of the index may be used in references or wider articles where appropriate.
