How the CHRO role has transformed alongside the C-suite

Here’s a history lesson to kick off the new year. Today’s C-suite structure can be attributed to GM, which created the concept about a century ago. My colleague Paige McGlauflin chronicles the C-suite’s history in a recent piece and explores how the CHRO function has evolved since its inception some 30 years ago. The C-suite, as we know it, was essentially the brainchild of Alfred P. Sloan, the former president and chairman of General Motors. Troubled by GM’s “lack of cohesive leadership,” Sloan drafted a corporate hierarchy that would eventually place a central figure at the top, alongside more junior-level figureheads to oversee specific functions. The CHRO role soon became one of those executive positions.

Here’s an excerpt from McGlauflin on how the CHRO role has evolved over the years:

“CHROs have long been perceived as the indolent narc, overseeing hirings and firings, doling out compensation packages, and handling benefits. But in the pandemic’s wake, the chief human resources officer has morphed into a highbrow position, working with CEOs to drive attraction and retention among a myriad of other talent operations. 

Johnny Taylor, CEO of the Society for Human Resource Management, says human capital strategy has existed as a corporate function since the 1990s. 

At the time, HR primarily focused on litigation avoidance, compensation, unionization, and civil rights compliance. As companies grew in size and rapid-fire innovation became de rigueur, HR heads began ‘making the case that we can have all of the money in the world, but if we don’t have the right people with the right skills, and the right roles, then that money will be lost,’ he says. 

Fast-forward to 2022. The culmination of a steadily declining birthrate, high quit rates, and worker unrest has helped create a labor shortage, inciting a war for talent.”

Read the full story here.

Amber Burton
amber.burton@fortune.com
@amberbburton

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