As organisations navigate the complexities of a rapidly evolving business environment, the role of the Chief Human Resources Officer (CHRO) has become increasingly pivotal. Five years on from the pandemic, boards of directors are placing heightened expectations on CHROs to drive strategic initiatives that align human capital with overarching business objectives.
In 2025, several key areas have emerged where boards are increasingly seeking CHRO leadership:
Leadership and Manager Development
The development of skilled leaders and managers is critical as organisations navigate increasingly complex global challenges. Yet this imperative is being undermined by a shrinking leadership pipeline. Recent data shows that half of Gen Z professionals are actively avoiding middle management roles, with nearly 70% viewing these positions as “high stress, low reward.” This growing reluctance is narrowing the pool of future leadership talent.
Boards are aware of this emerging risk and are looking to CHROs to take decisive action. They expect the implementation of robust leadership development programmes designed to identify high-potential talent and equip them with the tools, experiences, and support needed to succeed.
These programmes must emphasise continuous learning, adaptability, and resilience – while also redefining the narrative around leadership to highlight its purpose, impact, and long-term rewards. Only by doing so can organisations build a pipeline of leaders capable of navigating uncertainty and driving sustainable growth.
Strategic Workforce Planning
Aligning talent strategies with long-term business goals demands a proactive and strategic approach to workforce planning. Boards now expect CHROs to not only anticipate future talent needs but also to identify critical skill gaps and implement targeted strategies to close them.
This focus has become a top priority for HR leaders globally. In a recent Gartner survey of nearly 1,500 CHROs across 60 countries, strategic workforce planning was ranked among the top five priorities for 2025. Rather than relying on traditional headcount-based models, CHROs are shifting toward a phased, capability-driven approach – one that pinpoints the essential skills required to meet future demands and outlines whether to develop or hire that talent.
By embedding this capability-led planning into the broader business strategy, CHROs are enabling their organisations to remain agile, resilient, and better equipped to respond to shifting market dynamics and operational needs.
Organisational Culture and Employee Experience
A strong organisational culture and a positive employee experience are now seen as essential levers for attracting and retaining top talent. Boards are increasingly focused on building cultures that not only enable strategic transformation but also inspire and engage employees at every level.
CHROs are expected to lead this cultural agenda, shaping environments where people feel valued, heard, and aligned with the organisation’s mission and values. In a 2024 survey by IESE Business School, board members identified trust, transparency, collaboration, and meritocracy as the most important cultural traits for achieving business success – underscoring culture’s central role in driving performance.
To that end, enhancing the employee experience through initiatives such as flexible working models, recognition programmes, and targeted development opportunities is key for CHROs. These efforts boost engagement, strengthen retention, and create a culture where people feel empowered to contribute to the organisation’s goals.
Change Management
As organisations continue to undergo rapid transformation – driven by evolving work models, emerging technologies, and external disruptions – effective change management has become a critical capability. Boards now look to CHROs to lead the charge in preparing both employees and leaders to navigate ongoing change with confidence and agility.
However, according to Gartner, 73% of HR leaders report that their employees are experiencing change fatigue, underscoring the urgent need to build resilience across the workforce. At the same time, McKinsey research shows that 26% of employees globally now identify adaptability – a core element of resilience – as one of the top skills required in their roles.
To combat fatigue and resistance, boards want their CHROs to champion clear, consistent communication that conveys the purpose, benefits, and impact of change initiatives. By cultivating a culture of resilience, openness, and psychological safety, HR leaders can help employees embrace transformation, maintain momentum, and preserve organisational cohesion through times of uncertainty.
HR Technology and Analytics
The adoption of advanced HR technologies and analytics has become essential for optimising processes and enabling smarter, data-driven decision-making. Boards increasingly expect CHROs to embrace tools that enhance operational efficiency while delivering deeper insights into workforce trends and performance.
This shift is already gaining momentum. Between June 2023 and January 2024, the number of HR leaders piloting or planning the implementation of Generative AI solutions doubled – highlighting the growing recognition of AI’s transformative potential within the HR function.
For CHROs, staying informed on the latest developments in AI and understanding how peer organisations are leveraging these tools is critical. From automating administrative tasks to generating predictive talent analytics and delivering more personalised employee experiences, AI is quickly becoming a strategic enabler of workforce agility and organisational effectiveness.
The strategic importance of HR
The expectations placed on CHROs by boards in 2025 underscore the strategic importance of human resources in achieving business success. By focusing on leadership development, strategic workforce planning, organisational culture, change management, and the integration of advanced technologies, CHROs can meet these expectations and drive their organisations toward sustained growth and competitiveness.
