CHROs Are Now The Key To Long-Term Business Survival, New Report Shows

The Chief Human Resources Officer (CHRO) has become one of the most strategically influential roles in the executive suite.

Once seen primarily as a steward of hiring and compliance, the CHRO now plays a central role in shaping company direction, driving transformation, and enabling long-term growth. This evolution signals a growing awareness that business success is closely intertwined with workforce strategy.

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According to Korn Ferry’s 2025 CHRO Survey, which includes responses from 756 HR leaders across more than 50 countries, the role has expanded well beyond traditional boundaries. CHROs today are deeply embedded in business planning and are leading transformation efforts at scale.

As companies face economic volatility, fast-moving technological change, and widening skills gaps, the CHRO is uniquely positioned to connect business objectives with people strategy.

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Strategic Priorities on the Rise for CHROs

The survey shows a sharp rise in strategic priorities such as growth and market expansion, which increased by 25 percentage points since 2023. Risk and reputation management saw an equal increase.

Priorities related to skills of the future, AI adoption, and culture change also rose significantly. This role is clearly becoming more complex, as they’re expected to deliver both immediate operational efficiency and sustainable long-term capability.

Challenges in Long-Term Workforce Planning

Despite this expanded focus, many CHROs say they are struggling to plan for the future: 37% believe their organizations are not adequately preparing for future workforce needs. Another 35% say they are too focused on near-term demands to invest in long-range talent strategies. This short-term focus risks leaving organizations vulnerable to disruption, especially as technology and labor markets continue to progress.

AI Integration is a Top Challenge for CHROs

One of the most urgent challenges facing CHROs is the integration of AI. While 42% are prioritizing AI investments within HR functions, only 5% feel fully prepared to implement these technologies. This gap highlights a major opportunity, as AI is increasingly being used to predict attrition, identify skill gaps, and enhance recruitment processes. Organizations that fail to build readiness around these tools risk falling behind.

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The Role of Data in Workforce Strategy

Data-driven decision-making is another area where CHROs are making progress, though challenges remain. Only 18% of HR leaders say their organizations consistently use analytics to inform workforce strategies. Without this capability, it becomes difficult to anticipate trends, optimize performance, or measure the impact of HR interventions. Expanding the use of analytics is critical to strengthening the strategic value of HR.

Expanding Influence Across the Organization

At the same time, CHROs are expanding their influence across multiple domains. In the next one to two years, they plan to focus most on culture and organizational change, leadership succession, and elevating the strategic impact of HR.

These areas are closely tied to performance and reputation. Yet fewer than half of CHROs believe their current organizational culture supports long-term success.

The evolution of the CHRO role mirrors a deeper transformation in how organizations perceive the intersection of talent and strategic direction. No longer relegated to the background, HR has emerged as a pivotal force in driving innovation, fueling growth, and securing a competitive edge.