Two decades ago, HR was seen mainly as an administrative function. Today, that role has evolved significantly – HR leaders are now at the centre of business transformation, becoming key champions of technology adoption, responsible for change management and the fostering of collaborative, technology-welcoming work environments. They are now human catalysts for innovation, orchestrating transformations through people and processes.
Yet, despite the proven positive impact of effective HR leadership on achieving business goals, HR leaders still find themselves excluded from the very boardroom conversations where these critical decisions are being made. Semler Brossy found that only 8 per cent of S&P 500 boards include Chief Human Resources Officers (CHROs) – a surprising gap given how critical talent strategy is to business performance.
In Singapore, the Ministry of Manpower aims to address this gap by endorsing the HR Industry Transformation Plan (HR ITP), meant to reinforce HR capabilities and leadership. While this roadmap aids HR professionals in advancing their skillsets and empowering them to becoming more strategic enablers of industry transformation, it also acts as a signal that the role of HR leaders is rapidly evolving. But the bigger question remains: if HR leadership is so critical for transformation success in any business, why aren’t more CHROs in the boardroom? What’s holding them back?
Why aren’t CHROs in the boardroom where they belong?
Despite their expanding responsibilities, many HR leaders are still overlooked when it comes to boardroom representation. According to HR Executive, more than half (56 per cent) of business leaders continue to view HR as an order taker rather than a strategic partner. This perception diminishes the role of CHROs and prevents companies from fully leveraging one of their most powerful drivers of growth.
The reality is that no other function is as deeply connected to talent, culture, and organisational performance as HR. Yet, a disconnect still remains. Boards must recognise that the function of HR leaders has changed from administrative to strategic. HR leaders are now critical to driving policy, designing transformation approaches, and influencing organisational direction at the executive level. CHROs and HR teams are uniquely positioned to shape workforce strategies that fuel business growth and transformation – and elevating that value has now become essential to long-term success.
Shifting the perspective: 3 focus areas to support the HR evolution
1. Reframing HR’s organisational influence: The shift from admin to strategy
If HR leaders are to claim their rightful seat at the table, they must demonstrate that HR serves more than just a support function. Today’s HR leaders do not only manage talent and policies – they also design the guiding principles that foster an innovation-driven culture, foster environments that attract and retain scarce talent, and are foundational to the conditions that drive growth and transformation in the workplace. Their presence in the boardroom is not just about representation – it’s about ensuring that organisational culture and change management is integrated into every strategic decision being made.
2. The tools needed to act and think strategically: key skills for HR leaders
Research from Harvard Law projects that CHROs’ board engagement will likely grow, but readiness is key. According to the HR Policy Association (HRPA), CHROs must expand their skillsets and readiness through intentional networking and engagement. Additionally, certain areas of focus in upskilling should be prioritised to meet business and board demands, including: understanding how AI transformation and technology adoption contribute to profits and goal enablement, supported by change management and people support, and anticipating regulatory changes and working towards a robust cyber-secure posture. It is no longer about just building HR expertise, but about building board-level credibility.
3. Driving business profitability: Aligning HR with business goals
The most effective CHROs view their mandate not as “people first” but as “business through people”. That means aligning HR strategy with core business objectives, including profitability, growth, and innovation. Savvy CHROs should have their fingertips on the pulse of how to fill the gaps they see in human capabilities with AI and innovation. Their strategy, though focused on people, must expand to address what’s best for the business. This is how CHROs can start to articulate their contributions in “board language” – by bringing together workforce and technology to meet business objectives, and by making recommendations framed in terms of ROI, risk mitigation, and growth.
The future of CHROs: securing a seat at the table
To influence your board and secure your seat at the table, HR leaders must fully embrace a strategic mindset. At the same time, board members also need to change the way they perceive HR leaders. CHROs no longer simply execute directives – they hold critical insights that enable them to shape decisions with lasting impact. They are not only capable of translating vision into action, but are indispensable in doing so. CHROs don’t just deserve a seat at the boardroom table– their presence should be actively requested.
It’s time to reduce boardroom silos and invite CHROs into the fold. Forward-thinking boards recognise that HR leaders offer unique and invaluable inputs that can streamline decision-making for better business outcomes. Additionally, partnering with a strategic HR services partner can support overall HR strategy by equipping HR leaders and boards alike with actionable frameworks that deliver long-term business value.
Need an action plan to streamline back-office process to support meeting business objectives? Talk to RMI’s consultants today.
