The growing challenge of CHRO succession planning: navigating burnout and beyond
Warren Partners
The demands of the Chief Human Resources Officer (CHRO) role have grown exponentially. However, as the scope of responsibilities expands, organisations are facing a significant challenge: planning for CHRO succession in a post-pandemic environment where burnout is also growing and the pool of ready successors – according to a report by Human Resources Executive – is alarmingly thin.
The expanding role of the CHRO
The modern CHRO is no longer just a manager of HR operations; they are central to the strategic direction of the company, driving initiatives around diversity, equity, inclusion (DEI), employee experience and organisational culture. This requires a unique blend of skills – strategic vision, operational expertise and people management. As a result, some organisations are finding it increasingly difficult to identify and mentor suitable successors. Indeed, in the US in 2023, 29 CHRO and chief people officer roles became vacant at Fortune 200 companies, and a quarter of the positions remained unfilled heading into 2024, according to a report by The Talent Strategy Group.
Burnout: a critical issue across all levels
Burnout is a growing crisis that is not confined to the CHRO role – it permeates all levels of organisations. A Deloitte survey found that 77% of professionals have experienced burnout at their current job, with more than half citing multiple instances. Additionally, Employee Assistance Programmes (EAP), set up to address workplace mental health challenges, have a consistently low take-up – around 5% – with some even being deemed dangerously bad for mental health.
“An EAP is only as effective as the climate of psychological safety within the organisation,” explains Dr Nicola Eccles, Head of Mental Health and Wellbeing at On Wellbeing, a corporate wellness programme. “This is because if the climate feels secure then individuals don’t worry about judgement in accessing their EAP.”
She points out that this burnout crisis is driven by an ‘always-on’ work culture, increasing job demands and a lack of adequate support from leadership. For CHROs, who are often tasked with addressing these very issues, the pressure is even more intense, leading to higher rates of burnout and, consequently, a greater risk of vacancies at the top.
This burnout is not only a personal issue but also a strategic business concern. In a study of the Canadian workplace, the Boston Consulting Group (BCG) reports that workplace stress and burnout contribute to significant productivity losses and even a mental health epidemic, costing businesses billions annually. Furthermore, this crisis disproportionately affects younger workers, who are essential to the future talent pipeline.
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The implications for succession planning
Given the increasing demands on the CHRO role and the pervasive issue of burnout, companies are facing a potential leadership vacuum. Without a strong succession plan, the sudden departure of a CHRO could leave an organisation vulnerable at a critical time. The talent shortage, particularly for such a specialised role, means that organisations must invest in long-term development programs to prepare future leaders from within their ranks.
Kirsty Dougan, MD at Warren Partners says: “This potential talent shortage, particularly for such a specialised role, means that organisations must invest in long-term development programs to prepare future leaders from within their ranks”.
Addressing the challenge
To mitigate these challenges, companies must adopt a multifaceted approach:
Promote mental health and wellbeing: Companies must prioritise mental health and wellbeing as a strategic business priority. Deloitte’s findings suggest that for every £1 spent on supporting employee mental health, employers see an average return of £4.70 in increased productivity. This investment is not just beneficial for employees; it directly contributes to the organisation’s bottom line.
Embed flexibility and support: Flexible work arrangements, accommodations for mental health challenges, and comprehensive employee support programs are highly important. By fostering a culture that prioritises employee wellbeing, organisations can reduce burnout and retain top talent.
Develop internal talent: Given the limited external talent pool, companies should also focus on developing internal candidates for the CHRO role. This includes creating leadership programs that equip potential successors with the strategic and operational skills needed to thrive in the expanded role.
Nikki Kenyon, Partner at Warren Partners adds: “Ensuring there’s a robust leadership pipeline even in challenging times, means being aware of potential talent, wherever in the world it may be. Having regular conversations with an executive search specialist – even before the need for a role replacement arises – will ensure a seamless succession when the time comes.”
The challenges of CHRO succession planning are becoming more complex as the role expands and burnout rates rise across the board. However, by prioritising mental health, embedding flexibility and focusing on both internal talent nurturing and external search potential, organisations can navigate these challenges effectively. As the strategic value of the CHRO continues to grow, so too must the strategies to ensure their succession – to ensure companies aren’t left without the leadership they need.