The turnover among Chief Human Resource Officers (CHROs) appears to be stabilising, with only 39 global public company CHROs stepping down in Q2 2024; a notable decline from 50 in Q2 2023, data provided by leadership advisory firm Russell Reynolds shows.

This decrease in turnover suggests that organisations are prioritising continuity in HR leadership amid ongoing market volatility and economic uncertainty. Maintaining a steady HR leadership team may be essential as companies navigate challenges like workforce restructuring and talent shortages, which have been identified as top concerns by many corporate leaders.

CHROs play a critical role in addressing these issues, from overseeing talent management strategies to enhancing employee engagement and well-being.

A positive trend seen in Q2 2024 is the increasing gender diversity among newly appointed CHROs. Of the 25 CHRO appointments made during this period, 14 were women, marking the highest percentage of female CHROs appointed in Q2 since 2022. This trend highlights a significant shift toward greater gender balance in HR leadership, especially across major indices like the ASX 200, FTSE 100, FTSE 250, and S&P 500.

However, challenges remain. In indices such as the Nikkei 225 and Nifty 50, female representation in the top HR role continues to lag. This underscores the need for more inclusive leadership pipelines in certain regions and sectors, the firm said.

The current global talent and skills shortage continues to be a pressing issue for organisations, driving both employers and CHROs to maintain stability in leadership. With competition for skilled employees intensifying, many CHROs are likely choosing to remain in their roles to navigate these challenges. Retaining top HR leadership helps organisations stay focused on critical workforce issues like recruitment, retention, and workforce upskilling—all areas where experienced CHROs offer valuable expertise.

Moreover, while progress is being made in gender diversity, achieving true gender balance in CHRO roles across all indices requires deliberate action, the firm said.

Nonetheless, companies need to ensure that their succession planning and leadership development practices are equitable, the firm highlights in their analysis. This means identifying and nurturing high-potential women leaders, providing mentorship opportunities, and addressing any biases in promotion or hiring processes.