The Evolving Role of the CHRO: From Policy Maker to Purpose Champion

In an interaction with Radhika Arora, Chief Human Resources Officer, Isgec Heavy Engineering Ltd., she shared her views and thoughts on the skills and competencies that are now essential for CHROs to succeed in a purpose-driven leadership role as well as how CHROs can cultivate a culture of purpose across a multi-generational and hybrid workforce.

With over 21 years of experience in strategic HR practices across sectors as diverse as heavy engineering & manufacturing, consumer goods, energy & infrastructure, and renewable energy, Radhika brings a wealth of experience in building inclusive workplaces and a proven track record of delivering industry-first HR practices.
 

How is the CHRO’s role shifting from operational policymaking to driving organizational purpose and culture? In what ways can CHROs embed purpose into talent strategy, beyond traditional HR functions? 

What was once a compliance and administrative function, focused on policies and basic employee relations, has transformed. Today, the modern CHRO is a strategic business partner, deeply integrated into the C-suite, directly shaping the organization's vision and values moving beyond traditional operational policy making to becoming a pivotal driver of organizational purpose and culture. Several factors are driving this shift –

• Organizations now see their workforce as their most valuable asset, with the CHRO responsible for optimizing this crucial human capital.
• Rapid technological advancements and a competitive talent landscape demand that the CHROs proactively shape the workforce to meet future demands.
• Most importantly, the CHRO is the chief architect of a strong, purpose-driven culture that helps foster innovation and productivity by championing diversity, equity, and inclusion (DEI), promoting well-being, a sense of belonging and shared purpose within the organization.

Today, CHROs have moved beyond traditional HR functions towards creating deeply engaged, high-performing workplaces that have employees that are genuinely connected to the organization's mission and values.

What skills and competencies are now essential for CHROs to succeed in a purpose-driven leadership role? How can CHROs align people strategies with business goals in a way that reinforces purpose? 

The contemporary Chief Human Resources Officer’s (CHRO) role now demands strategic business acumen, deep understanding of market dynamics, and foresight to proactively shape the future workforce. They are essentially culture architects, championing Diversity, Equity, and Inclusion (DEI) and employee well-being, all while crafting compelling employee experiences. This involves adeptly balancing organizational and employee needs, ensuring compliance, and directly driving business success. To truly align people strategies with business goals and purpose, CHROs must integrate purpose into every talent stage—from hiring to development—guaranteeing initiatives reinforce the organization's mission and values.

This strategic evolution makes the CHRO central to building a "future-ready" organisation. They define the company's identity through culture, enable speed and simplicity via a diverse and growth-oriented talent profile, and scale learning and innovation by identifying not just skills, but the mindsets and values critical for business goals. The CHRO now orchestrates purpose into the core of human capital.

What metrics should CHROs use to measure the impact of purpose-driven HR initiatives? How can CHROs influence the C-suite to prioritize purpose alongside profit?

The CHRO’s role includes ensuring that HR initiatives are purpose-driven and benefit the business. Tracking key metrics enables HR to make data-driven decisions ensuring the workforce is ready for today's needs and future changes.  The focus needs to be on these key areas:

• Workforce Composition & Risks: Understand talent inflows, migration, and outflows to assess business continuity implications. This helps identify and address potential talent gaps.
• Workforce Spends: Look beyond costs to evaluate how compensation, benefits, and Recognition & Rewards (R&R) programs achieve goals like talent attraction, retention, and engagement, aligning with the organization's purpose.
• Succession Planning & Career Management: Ensure organizational readiness for contingencies and commitment to employee growth. 
• Workforce well-being: Track metrics reflecting employees' physical, emotional, and financial resilience. This includes engagement scores, mental health support use, and absenteeism related to stress, prioritizing holistic well-being.
• Flexibility & Future of Work Culture: Assess alignment with evolving work trends and readiness for new generations. Metrics could include adoption of flexible work practices and work-life balance.

CHROs must ensure that HR initiatives are aligned with tangible business outcomes to influence C-Suite to prioritize purpose alongside profit.

• Speaking the same language, framing HR's impact in terms of revenue, cost savings, risk reduction, and competitive advantage. For instance, show how better well-being boosts productivity and cuts healthcare costs.
• Show ROI with Data using the metrics above to demonstrate the return on investment of purpose-driven programs. Link strong succession planning to reduced recruitment costs or higher engagement to improved customer satisfaction.
• Highlight Talent Attraction/Retention by emphasizing how a strong purpose draws and keeps top talent, especially younger generations who seek ethical employers. Quantify reduced turnover and improved hire quality.
• Risk mitigation through a robust purpose-driven culture that reduces reputational risks which could harm brand value and investor confidence.

By meticulously tracking data and clearly communicating HR's value, CHROs can convince the C-suite that purpose is not just an ideal, but a vital driver of long-term profitability and sustainable success.

How can CHROs cultivate a culture of purpose across a multi-generational and hybrid workforce? In what ways are CHROs helping organizations attract and retain purpose-driven talent? 

CHRO plays a critical role in embedding purpose across diverse workforces, especially in today's multi-generational environments. This requires a thought-out approach to acknowledging different values and work styles while fostering a shared sense of meaning. This can be done through clear messaging articulating the company’s purpose, ensuring a culture of trust and growth through recognitions, skill enhancement and other developmental initiatives. These initiatives also ensure that the organization attracts and retains purpose-driven talent. Additionally, a focus on employer branding, skills -first hiring, a robust onboarding process and a clearly outlined career development framework can completely enhance employee experience. Enabling the company to build a vibrant culture that attracts, engages, and retains a purpose-driven, diverse workforce.

How can the CHRO drive employee engagement and well-being through a purpose-first approach? What is the CHRO's role in advancing ESG goals, DEI initiatives, and social impact strategies? 

Outlining the purpose can transform a job from a mere set of tasks into a meaningful endeavor for employees and totally enhance employee engagement and experience.When employees understand why their work matters - how it contributes to a larger goal, helps customers, or makes a positive societal impact – they are far more motivated and engaged. They experience deeper job satisfaction, pride in what they do, and a sense of accomplishment and are more likely to go above and beyond, be creative in problem-solving, and invest extra effort, leading to higher productivity and better overall performance.When an individual's purpose aligns with the organization's purpose, it fosters a strong sense of belonging and connection, significantly increasing employee loyalty, reducing turnover, especially for younger generations where purpose is a key differentiator.

By championing a purpose-first approach, the CHRO enhances employee engagement and well-being, strategically positioning the organization to achieve its ESG, DEI, and social impact aspirations, building a more sustainable and responsible future. The CHRO leads the HR teams to develop initiatives that enhance human capital metrics, promote ethical labor practices, ensure fair compensation, and foster a safe, inclusive work environment.Today, employees want to feel valued through the entire employee lifecycle – from inclusive hiring and equitable promotion processes to working in a culture where voices are heard and valued. By empowering employees to participate in social impact initiatives through employee volunteer programs, philanthropic efforts, and community engagement, the CHRO is able todemonstrate the organization's commitment beyond profit.

What does the future of HR leadership look like in organizations where purpose is central to strategy? 

Purpose driven organizations have realized that the CHRO’s role is integral to business continuity and perpetuity of the organization. HR leadership becomes a strategic architect of meaning and impact, embedding purpose into every fiber of the organization. They understand how purpose influences engagement, well-being, productivity, and retention because there is data to prove the ROI of human-centric strategies to the C-suite.The focus then shifts from "employee experience" to "human experience” ensuring a seamless, inclusive, and empowering employee life cycle – from recruitment and onboarding to career development, recognition, and even offboarding. Environmental and social commitments are aligned with people strategies, employees are equipped with skills to adapt to change, innovate and give their work a purpose. In fact, the CHROs gain even greater influence at the executive table. They act as the voice of the employee and the conscience of the organization, challenging decisions that might compromise purpose or values, and ensuring that long-termsustainability aligns with business success. In essence, the future HR leader in a purpose-driven organization is a visionary, empathetic, data-savvy, and strategically integrated partner, dedicated to unleashing human potential in service of a greater good.