Why Interim CHROs Are Becoming Essential in a Rapidly Changing Workforce
October 9, 2025 – When the role of a chief human resources officer or chief people officer is done well, it can be one of the broadest roles in an organization, according to a recent report from Business Talent Group (BTG), a Heidrick & Struggles company. “Not only are these executives critical human capital strategists charged with overseeing an organization’s end-to-end talent agenda, they are also key business leaders who can impact everything from environmental, social, and governance (ESG) and diversity, equity, and inclusion (DEI) initiatives to commercial outcomes and investor interest,” the study said. “The best CHROs and CPOs are agile enough to serve in roles ranging from strategic talent advisor to crisis lead to diversity and inclusion champion and more.”
As the HR function navigates a landscape of near-constant scope expansion, innovation, and change—and as human capital opportunities and challenges become increasingly technical and complex—it’s no surprise that finding a perfect-fit permanent HR leader usually isn’t a short and sweet process, a recent report from Forbes explained. “But the demands of both day-to-day people operations and moments of significant organizational change frequently can’t wait,” the BTG report said. “In these scenarios, engaging an interim CHRO or senior HR leader can be an ideal solution to fill gaps, address immediate priorities, and define the ideal leadership profile while a search for a long-term executive is underway.”
In fact, human resources is the number two interim function revealed in BTG’s High-End Independent Talent Report as increased focus on reskilling and upskilling workers, digital transformation and AI adoption, and culture and human capital initiatives prove paramount across industries.
The Benefits of Engaging an Interim CHRO
“An interim CHRO is an accomplished and experienced HR executive who steps into a critical role within an organization to offer a steady hand and strategic leadership to the HR department during periods of transition, such as leadership changes, post-merger integrations, or carve-outs and spin-outs,” the BTG report said.
Engaging an interim CHRO can bring several benefits. Business Talent Group points out the following:
- They bring a fresh perspective and an unbiased approach to review existing HR practices, identify areas of improvement, and implement effective strategies for positive change.
- With a wealth of HR leadership experience to draw on, they are adept at aligning human capital strategy with business goals, reinventing talent acquisition, leading culture-changing initiatives, transforming the function, optimizing the organization, and adding expertise to supplement a full-time team.
- The limited tenure of their interim engagement drives them to adapt to the organization’s culture quickly and jump right in to make an immediate impact.
For a business to thrive, its people must too. As noted by Deloitte: “We’re operating in a world where work is no longer defined by jobs, the workplace is no longer a specific place, many workers are no longer traditional employees, and human resources is no longer a siloed function.”
Related: What CHROs Need to Know About DEI Moving Forward
Historically, HR leaders were tasked with using tools and technologies to “unlock the power of the workforce” by trying to make humans better at work rather than making work better and more meaningful for the organization’s people, according to the BTG report. “Today, amid workers’ rising demands for work-life balance and flexibility in how and where they work, the goals have shifted,” it said. “What’s more, because of widespread skill shortages in many of today’s most in-demand disciplines—AI, for example—increasingly the most important professionals that HR must keep top of mind are not part of the organization’s permanent workforce at all.”
High Demand for CHRO Within the Private Equity Sector
Private equity’s impact on the global economy is growing every year. The sector has become a financial behemoth worth as much as $7 trillion dollars globally, according to a McKinsey report — and, as a result, an important direct employer of millions of people worldwide. Like other recruiters that work with PE firms and their portfolio companies, Spencer Stuart is seeing both the demand for and the profile of HR leaders at portfolio companies continue to rise. Today, more private equity owners view the CHRO not only as someone who oversees the HR function, but also as a strategic business partner to the CEO, the board, and private equity partners and operators.
So, what unique skills and experiences set HR leaders up for success in a private equity portfolio company? A new report from Spencer Stuart considers that question, based on its client work with private equity portfolio companies as well as a dozen interviews the firm conducted with portfolio company CHROs.
“To navigate this labor labyrinth, companies must enable a hybrid work environment and increasingly incorporate a liquid workforce approach—all while remaining more mindful of the organization’s culture than ever before,” the BTG report continued. “They must explore new ways of thinking about human capital, human potential, and human performance. Thanks to their wealth of knowledge, years of experience, and external perspective, interim CHROs are especially well suited to the task.”
When to Engage an Interim CHRO
Like all types of interim executives, the reasons why and ways in which companies engage interim CHROs have expanded significantly from their traditional use case as seat-fillers following an HR leader’s departure, the BTG report explained. “Today’s interim CHROs infuse immediate expertise and skill to both help companies cover leadership gaps as well as to stand up or expand an HR function, try out new roles and organization designs, develop and advise internal talent, or manage through moments of significant growth or change,” the study said. BTG laid out four instances when a company may hire an interim CHRO.
1. Standing Up an HR Function. Building an HR function from the ground up requires strategic planning, expert insight, and a clear vision of the organization’s goals. Interim HR leaders can be pivotal in setting up a robust HR framework, establishing policies and procedures, and creating a sustainable HR strategy tailored to the company’s growth trajectory. Their tried-and-tested skills allow them to swiftly develop a comprehensive HR infrastructure that aligns with the organization’s long-term objectives.
Related: How CHROs and CPOs Can Become CEOs
2. Transforming the HR Function. When an existing HR function isn’t meeting its potential due to outdated practices, misalignment, or inefficiencies, transformation may become necessary. Interim HR leaders are ideal for these situations, providing the expertise needed to revitalize the HR function, while ensuring uninterrupted operations. They swiftly identify areas for improvement and devise strategic plans that align with the organization’s goals. By bringing a fresh perspective and vast experience, interim HR leaders facilitate smooth transitions, minimize disruptions, and enhance the effectiveness of the HR function.
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3. Moments of Significant Change. Organizations undergoing large-scale transactions and transformations—such as initial public offerings (IPOs), mergers, or digital overhauls—require specialized interim leadership to navigate these complex shifts. Interim HR leaders can play a crucial role in these periods by delivering been there, done that experience to facilitate rapid adaptation and seamless transitions without disrupting ongoing business operations.
4. Periods of Rapid Growth. Companies experiencing rapid expansion must augment their HR capabilities swiftly to keep pace with growth. In such scenarios, an interim HR leader can help the organization seamlessly integrate new employees, optimize talent acquisition processes, and scale HR operations effectively. These leaders can be instrumental in maintaining organizational culture and productivity during times of intense growth, ensuring that the company can continue its upward trajectory without disruptions.
To read the full report click here!
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
