Global Chief Human Resources Officer (CHRO) turnover has declined in the second quarter of 2024, according to the newly launched Global CHRO Turnover Index from Russell Reynolds Associates (RRA), a global leadership advisory firm.
The index tracks the proportion of CHRO departures and appointments across the globe, providing insights into trends such as gender diversity, tenure, and internal versus external hires.
Only 39 global public company CHROs stepped down in the second quarter of 2024, down from 50 in the same period last year, the index found. These figures represent CHROs from major global indices including the ASX 200, FTSE 100, FTSE 250, and S&P 500.
The decrease in turnover suggests organisations may be prioritising stability amid market volatility, retaining their CHROs to navigate talent and skills shortages, which leaders have identified as a major threat to organisational health.
“This stability may indicate that organisations are opting to retain their CHROs to maintain continuity amid market volatility,” the report noted. “CHROs may also choose to remain in role as they navigate the key talent and skills shortage—rated as a top threat to organisational 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 a decrease in 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 organisations 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, organisations 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 also declined in the second quarter, falling to 40% from 52% in 2023. This suggests organisations 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, organisations are prioritising 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, providing 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.
