The Strategic Advantage of Interim CHROs and Other HR Leaders
When the role of a Chief Human Resources Officer (CHRO) or Chief People Officer (CPO) is done well, it can be one of the broadest roles in an organization. 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 interests. 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. But the demands of both day-to-day people operations and moments of significant organizational change frequently can’t wait. 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 #2 interim function revealed in our 2024 High-End Independent Talent Report as increased focus on reskilling and upskilling workers, digital transformation and AI adoption, and culture human capital initiatives prove paramount across industries. Read on for more insights on how leading companies are leveraging interim CHROs today.
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.
Engaging an interim CHRO can bring about several benefits:
- 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 your 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.”
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. Today, amid workers’ rising demands for work-life balance and flexibility in how and where they work, the goals have shifted. 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.
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. They must explore new ways of thinking 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. 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.
Here are five perfect times to engage an interim CHRO or other senior HR leader:
Sudden Departures
When a senior HR leader suddenly departs, the gap can disrupt vital functions, from talent acquisition to total rewards. Organizations need an immediate solution to maintain stability and continue operations without missing a beat. Interim HR leaders are ideally suited to step into these situations, bringing immediate expertise and neutrality to manage the transition effectively. They can swiftly assess the current landscape, address immediate issues, and ensure that ongoing HR initiatives remain on track.
For example, a global financial services company sought Business Talent Group’s (BTG) help when its head of compensation and benefits resigned during an HR team expansion that also included a head of total rewards role. BTG promptly provided an interim global compensation and benefits consultant with extensive HR leadership experience across various financial sectors. This interim leader managed the responsibilities of both open roles, allowing the head of talent to focus on hiring permanent replacements, ensuring continuity in HR functions, and minimizing organizational disruptions.
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.
Consider a private equity firm that was working on a the carve-out acquisition of an undervalued pharmaceutical business. The operating partner knew it would take time to find the right long-term leader, but needed help standing up the HR function in the interim. BTG provided an interim HR executive with over 20 years of experience setting the HR agenda for rapid-growth life science companies. The interim leader assumed responsibility for the management of all HR operations, including the company’s Professional Employer Organization (PEO) relationship and driving recruiting efforts. After a full-time CHRO was found, she stayed on for an additional two weeks in a part-time advisory capacity to help ease the transition.
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.
A global insurance company found itself in this position, after churning through four CHROs in as many years. Realizing that the structure of the organization could be playing a role in the turnover, the CEO reached out to BTG before kicking off a search for yet another new leader. BTG deployed an interim HR executive who worked closely with senior leadership to understand their strategic objectives. After performing a detailed diagnostic of the company’s HR service model, the talent delivered an organizational transformation plan informed by experience and vision.
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.
For instance, an ultraviolet radiation start-up in the midst of preparing for an IPO needed strong finance and HR leadership to prepare the functions for large-scale growth and major transition. BTG provided two senior executives: an interim CFO and PWC alum with a background in renewable energy and an interim CHRO with experience establishing human capital infrastructure and operational procedures for a public company. These experts equipped the start-up to handle significant growth opportunities and transition smoothly into a public entity.
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.
Take the example of a PE-backed provider of labor market data that acquired its largest competitor, and faced the challenge of integrating two organizations of similar size, but with very different cultures. BTG delivered a senior HR executive with experience at companies such as Microsoft, AT&T, Comcast, and Blue Cross Blue Shield. Along with creating policies, processes, and leadership commitments to sustainably scale and level up the workforce, the talent provided strategic guidance to resolve critical culture issues and worked to define, attract, and recruit a long-term leader for the integrated company’s HR function.
Finding an Ideal Interim CHRO with Business Talent Group
Access the right HR leadership at the right time can significantly impact your organization’s success, which is why many leaders turn to BTG for experienced and capable interim CHROs, HR functional leaders, and other HR experts. Our network of highly skilled talent have the niche expertise to be your in-seat solution whenever a challenging situation or opportunity presents itself. We provide access to perfect-fit on-demand talent solutions: remote or on-site, part-time or full-time, individuals or teams, all around the world.
Let us connect you with the human resources professionals you need to support your most pressing HR projects and priorities. Reach out today!
