Russell Reynolds Associates publishes new hiring figures with launch of Global CHRO Turnover Index for 2024

Russell Reynolds Associates (RRA), a global leadership advisory firm, has today launched a new index tracking Global CHRO Turnover data. Each quarter, you’ll find the proportion of CHRO departures and appointments globally, as well as trends on CHRO appointments by gender, tenure, and whether CHROs are internal or external hires.

Full index data can be accessed here, and key trends are shared below.

Global CHRO Turnover Index Q2 2024: Key Trends

CHRO turnover declined in Q2 2024

CHRO turnover is showing signs of stabilizing, with only 39 global public company CHROs stepping down in Q2 2024—down from 50 in Q2 2023. These figures reflect CHROs from the world’s largest indices, including the ASX 200, FTSE 100, FTSE 250, and S&P 500. 

This stability may indicate that organizations are opting to retain their CHROs to maintain continuity amid market volatility. CHROs may also choose to remain in role as they navigate the key talent and skills shortage—rated as a top threat to organizational health by leaders.

Gender diversity among CHROs is increasing

In Q2 2024, of the 25 CHROs who were appointed, 14 were women. This is the highest percentage of women CHROs in Q2 since 2022.

Gender diversity among CHROs has increased across most indexes, except the Nikkei 225 and Nifty 50, where women remain underrepresented in the top HR role.

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.

Internal CHRO appointments decrease

In Q2 2024, of the 25 CHROs appointed, only 36% were hired internally for the role, compared to 56% in Q2 2023. This shift towards external appointments could indicate a strategic move by organizations to bring in fresh perspectives and new expertise to navigate the evolving challenges within the HR function and workforce alike, led by geopolitical tensions, technological disruption, and redefining corporate value.

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 number of first-time CHROs has declined

In Q2 2024, only 40% of CHROs were first-timers, down from 52% in Q2 2023. This decline reflects a growing preference for more experienced leadership amid increasingly complex challenges, such as navigating political turmoil and uncertain economic conditions.

While external hiring remains strong, organizations are prioritizing seasoned leaders who can bring stability and proven expertise, rather than taking risks on first-time CHROs. This shift towards experienced hires underscores the need for steady hands in turbulent times.

Last Updated on 5 months by News Desk 1