Dean Carter
October 26th, 2023
The range and magnitude of challenges we’ve faced over the past several years have put CHROs to the test. Between the intricacies of COVID and its implications, the reckoning around racial injustice, a fiercely divided political environment, and layoffs following a shift in the macroeconomic environment — just to name a few — the C-suite has noticeably leaned on the CHRO more often.
It’s not just a vague sentiment suggesting the CHRO is rising in the ranks. Guild recently surveyed a group of HR decision makers, and we found that 77% feel that the CPO/CHRO role is more influential than 2 years ago. Additionally, 81% believe that HR initiatives are viewed as being very important by other leaders, with 99% saying either very or somewhat important. 80% also reported that their HR budgets have generally been increasing over the past year.
We can learn a lot by reflecting on this change in recognition, but I believe we still need to ask ourselves an important question: Are we doing everything we can to use that influence strategically — especially when we know that skills gaps and labor shortages are going to continue for the foreseeable future?
Urgency around building skills and agility
It’s not a theoretical question.
There is and will continue to be a persistent talent shortage inside this country. How do we know? By 2030, all ~73M Baby Boomers will have reached retirement age (US Census Bureau), and neither population growth nor immigration policy will fully offset this outflow of workers.
Also, in the next two years alone, 375 million people will need new skills, just to keep up (HR Executive). It’s clear that employers want to hire for the jobs and skills they know they’re going to need in the future, but millions of Americans don’t have a clear picture of how they can advance and move forward.
These dynamics are coming to a head, and the rapid rise of AI and automation is only increasing the pressure to find durable solutions. While there are many unknowns, data suggest that 20-30% of hours worked across the US economy are expected to be transformed by technology in the next decade (McKinsey).
That will be even tougher on workers earning under $38K, who are 14 times more likely to lose their jobs to AI (McKinsey). These workers also tend to be women and people of color. From this lens of equity alone, it’s incumbent on all of us to confront these challenges head on and come up with some better ways to solve them.
Meeting the moment
The good news is that, as leaders, we have the chance to address the coming skill shortage and the looming impact of AI by making sure our current workers continue to have the ABILITY do the job they are doing today, the AGILITY to take on new skills in a rapidly changing environment, and a focus on MOBILITY to ensure there’s a clear pathway for everyone to prosper.
So what does that entail? We can start by investing in the education and skills development of our employees. Creating a positive loop between upskilling your workforce in the areas you need and preventing the accumulation of debt for those same workers will not only reduce your exposure to talent shortages and skills gaps, but it’s also likely to earn deeper satisfaction and loyalty toward your organization.
There are tons of other ways that we can step up as CHROs, and our community is stronger than it’s ever been before. I encourage any other HR leaders to keep sharing your experiences, contributing new ideas, and leaning on one another for support. We all face very similar struggles ahead, and by making the most of the influence we’ve earned in the C-suite and even on boards, now is the time for us to get our companies and our people in the best position possible to weather what’s ahead.
In the spirit of community, I’d love for you to visit my LinkedIn profile and let me know your thoughts on the following questions — either by leaving a comment on my post or by reposting it and adding your own story:
1) Do you agree that the influence of CPOs and CHROs has grown in recent years?
2) How has your HR team stepped up to upskill or reskill your workforce for the future?
3) What’s on your roadmap to build skills and enable upward mobility for your employees that you haven’t been able to launch yet?
With peace and purpose - Dean
Dean’s list
- Walmart announces their plans to remove college degree requirements from hundreds of their corporate job descriptions.
- Guild’s own Allison Salisbury discusses why AI demands a new kind of “in-the-job” learning.
- The Wall Street Journal explores the benefits that companies like Chipotle Mexican Grill, Walmart, and The Walt Disney Company are seeing from employer-funded tuition programs.
- A report conducted by LinkedIn finds that internal mobility jumps when employer prioritize skill building.
To read more insights about the evolving role of purpose-driven HR leaders from Dean Carter and his CHRO Compass community, sign up here.
