CHRO Turnover Stabilizes as Gender Diversity Increases

CHRO turnover has showed signs of stabilization, with a notable decrease in departures reflecting organizations' efforts to retain leadership amid ongoing market challenges, a recent Russell Reynolds study found. Simultaneously, the appointment of female CHROs reached its highest percentage since 2022, underscoring a positive shift towards greater gender diversity in HR leadership roles. Let’s take a closer look at the recently released report!

September 23, 2024 – CHRO turnover is showing signs of stabilizing, with only 39 global public company CHROs stepping down in the second quarter of 2024—down from 50 in the second quarter of 2023, according to a new report from Russell Reynolds Associates. These figures reflect CHROs from the world’s largest indices, including the ASX 200, FTSE 100, FTSE 250, and S&P 500. This stability may indicate that organizations are opting to retain their CHROs to maintain continuity amid market volatility. CHROs may also choose to remain in role as they navigate the key talent and skills shortage—rated as a top threat to organizational health by leaders.

In the second quarter of 2024, of the 25 CHROs who were appointed, 14 were women. This is the highest percentage of women CHROs in Q2 since 2022. Gender diversity among CHROs has increased across most indexes, except the Nikkei 225 and Nifty 50, where women remain underrepresented in the top HR role. To ensure that true gender balance is achieved at the top of all indices, Russell Reynolds explains that we need to ensure that the way CHRO succession is planned, managed, and executed is equitable.

Of the 25 CHROs appointed in the second quarter, only 36 percent were hired internally for the role, compared to 56 percent in the second quarter of last year. This shift towards external appointments could indicate a strategic move by organizations to bring in fresh perspectives and new expertise to navigate the evolving challenges within the HR function and workforce alike, led by geopolitical tensionstechnological disruption, and redefining corporate value. “To rebalance the scales, organizations must re-look at their succession pipelines, and assess what they can do to develop more internal candidates for the CHRO role,” the Russell Reynolds report said.

In the second quarter 2024, only 40 percent of CHROs were first-timers, down from 52 percent last year. “This decline reflects a growing preference for more experienced leadership amid increasingly complex challenges, such as navigating political turmoil and uncertain economic conditions,” the Russell Reynolds report said. “While external hiring remains strong, organizations are prioritizing seasoned leaders who can bring stability and proven expertise, rather than taking risks on first-time CHROs. This shift towards experienced hires underscores the need for steady hands in turbulent times.”

What is CHRO Turnover

CHRO turnover refers to the rate at which CHROs leave their roles and are replaced within organizations, according to Russell Reynolds. It reflects leadership stability and can indicate broad trends in HR leadership. The CHRO Turnover captures data from the following global stock indices: ASX 200, CAC 40, DAX 40, Euronext 100, FTSE100, FTSE 250, HANG SENG, Nikkei 225, NSE Nifty 50, S&P 500, S&P/TSX Composite, and STI.


CHRO Perspectives for 2024 and Beyond

A notable lack of confidence in leadership, coupled with significant skepticism around overall business performance, is raising concerns among HR and people leaders. Pressing questions are emerging about leadership capabilities that demand attention. When a recent report from Leathwaite queried about prioritized current people challenges, leadership capabilities emerged as the top concern, followed by organizational agility and receptiveness to change. “When we posed the same question to people leaders a year ago, leadership interestingly didn’t rank in the top three concerns,” the Leathwaite report said. “This shift underscores the evolving landscape, where there’s an increasing expectation for senior leaders across the ExCo to navigate the organization into the future. Unfortunately, most respondents express doubts about the preparedness of these ExCo members to lead this charge. Consequently, the responsibility falls on the CHRO to instigate a more fitting leadership ethos, a task that, from our conversations, seems to be well underway.”


“CHRO turnover has remained steady, but the approach has evolved,” the Russell Reynolds report said. “There is now a growing preference for external hires to bring in fresh perspectives. As a result, firms are increasingly seeking more experienced individuals who have navigated complex environments to help address their own challenges. While there’s still openness for first-time CHROs, this trend may be shifting as organizations prioritize seasoned leadership in the current climate.”

The Russell Reynolds report also found that CHRO turnover is high in public firms globally due to multiple factors. “While workforce and global pressures can contribute to a need for leadership change, a significant driver is the turnover of CEOs,” the report said. “The CHRO is often considered the CEO’s close confidant, so changes in turnover in top seat are likely to have a knock-on effect on the CHRO.‍”

In 2023, Russell Reynolds found that 179 CHROs were appointed to the top HR role at public companies globally, closely mirroring the 178 CEO changes within the same period. Notably, some organizations may not have previously had a dedicated CHRO, while others experience more than one CHRO change within the year. A more robust assessment and succession planning process could have contributed to greater stability in these roles.

Related: 7 Qualities and Experiences Needed to be a CHRO

In 2023, Russell Reynolds also found that a total of 174 CHROs stepped down from their roles at public companies globally, with a notable 59 departures from S&P 500 organizations, 17 from the ASX, and 8 from the FTSE 100. Since the first quarter of 2023, 72 percent of the outbound FTSE 100 CHROs who joined boards are women, with these boards averaging 41 percent diversity, compared to 28% for those with CHROs who are men.

In 2023, women made up 61 percent of all CHRO appointments at public firms globally. Historically, from 2018 to 2024, the average proportion of female CHRO appointments has been 67 percent, according to the Russell Reynolds report.

In 2023, 53 percent of new CHRO appointments at public companies were first-time CHROs. Historically, from 2018 to 2024, the average proportion of first-time CHROs has been 57 percent. The average tenure of CHROs at publicly listed companies is 4.2 years, with a range spanning from 0.8 to 17.3 years.

Finding Senior Leaders

Russell Reynolds Associates is a global leadership advisory and search firm. Its 520-plus consultants in 47 offices work with public, private, and non-profit organizations across all industries and regions. The firm also conducts in-depth organizational culture assessment and measures the cultural fit of key leadership and candidates in the following areas: arts and culture, global development, higher education, non-profit health and human services, public sector, social justice and advocacy, as well as trade and professional associations.

The firm provides executive search services across all areas of the global media, entertainment, technology, and athletics markets. The firm’s consultants bring the experience and ability to assess competencies and cultural fit of board members, CEOs, senior functional leadership and players, with expertise in professional sports teams and leagues (CEOs, general managers, coaches and players); digital, media and entertainment; and technology-based start-ups.

Related: How to Become a Successful CHRO

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media

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