The strategic nature of HR functions is becoming increasingly critical to business success today. The ensuing HR transformations, a new report finds, are driving a dramatic rise in the number of interim CHROs being asked to maintain continuity in times of change.
Specifically, between 2022-23, there was a startling 225% year-over-year growth in demand for interim CHROs. Plus, in just the first half of 2024, demand for interim CHROs has already matched 2023 numbers, according to Heidrick & Struggles’ latest Fortune 1000 CHRO Trends data.
In fact, the HR function saw the second-highest demand for interim leaders across all levels—including senior vice presidents, vice presidents and directors in areas such as total rewards, HR operations and talent acquisition. All told, CHROs were the third most-requested interim C-suite officer in 2023.
The sharp upswing in hiring for interim CHROs mirrors a rise in HR transformations, says Sunny Ackerman, global managing partner of On-Demand Talent at Heidrick & Struggles. Most often, she explains, interim CHROs are leveraged when a business is scaling its HR function or undergoing a major change, like a cultural transformation, M&A or initial public offering.
“Organizations most notably leverage seasoned HR leaders in times of significant business change to support the sitting CHRO or build up an HR function where one may not have previously existed,” Ackerman says.
“An interim chief people officer or CHRO with experience leading through a similar challenge in a previous role is sought after to provide an impactful solution and maintain continuity for the people-centric needs of an organization,” Ackerman adds.
Beyond interim CHROs, how change is driving CHRO hiring trends
The rapid pace of change isn’t only influencing the rise of interim CHROs.
Another key finding from the report is that 55.3% of CHROs were external hires in the first half of 2024 alone—an increase from 42% in all of 2022 and 45% during 2023.
Jennifer Wilson, co-head of Heidrick & Struggles’ global Human Resources Officers Practice, says two primary factors are converging to shift attention toward external hiring for CHROs.
“CEOs looking to make a change at their organization will typically seek external CHRO candidates for a fresh perspective,” Wilson says. Meanwhile, the pool of available internal HR leaders is shrinking due to retirements, recent moves and leaders looking to take up contract or interim roles.
“Ultimately, it’s the interplay between these factors and forces that are spurring the growth in external CHRO hires,” she says.
At the same time, there has been sustained demand for cross-industry hires, as CHRO hires from other industries stayed steady at 77.8% year over year, from 2022 to the first half of 2024.
“People—and by extension, people challenges—remain largely similar,” she notes. “In our work, we’ve seen clients prioritize contextual experience over industry-specific experience.”
Ultimately, Wilson says, organizations are seeking CHROs with proven expertise in navigating human capital challenges through the critical changes many are experiencing today.
“The sustained demand for cross-industry hires is logical, given the significant changes within the CHRO talent pool and the fungible nature of HR as a discipline,” Wilson says.
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